Walmart is expanding its marketplace services with a new set of offerings aimed at enhancing the efficiency and appeal of its platform ahead of the upcoming holiday season. The retail giant announced on Tuesday that it will now manage the transportation of goods from Asia directly to its U.S. warehouses, and will also provide order fulfillment and returns management services for sales across any e-commerce site.
This strategic move underscores Walmart’s commitment to strengthening its marketplace operations as it competes more aggressively with Amazon in the third-party sales arena. The company’s marketplace has become a significant revenue source, reflecting its drive to improve its position in the online retail space.
The announcement follows Walmart’s recent divestiture of its stake in Chinese e-commerce giant JD.com, marking a shift toward handling a greater portion of its third-party operations internally. In addition, Walmart will offer cash advances to eligible marketplace sellers and eliminate peak-season storage fees for inventory sent to its fulfillment centers before September 30.
These enhancements were revealed during Walmart’s annual Marketplace Seller Summit and are intended to help sellers meet the surge in demand associated with the holiday shopping season. Walmart’s sales events, which often coincide with Amazon’s Prime Day in October, will benefit from this increased support for sellers.
Over the past year, Walmart has significantly expanded its marketplace, particularly with sellers from China. The retailer’s approach involves leveraging its delivery network and Walmart Fulfillment Services to fulfill orders and promote products on its platform. The company reported a 30% increase in marketplace sales each quarter over the last year, contributing substantially to its global e-commerce revenue, which surpassed $100 billion last year.
Walmart’s marketplace now features over 420 million products and more than 100,000 active sellers, with over a third based in China. Despite this growth, Walmart’s marketplace still lags behind Amazon, which has over 2 million active sellers.
Additionally, Walmart introduced a new service allowing sellers to ship orders through its fulfillment network at rates averaging 15% lower than those of competitors, though specific competitor details were not disclosed. The new services also include the management of shipping goods from Asian ports directly to Walmart’s U.S. warehouses.
This strategic overhaul aligns with Walmart’s broader goal of enhancing its marketplace offerings and solidifying its position as a leading player in the e-commerce sector.