Walmart expands e-commerce market to compete with Amazon

After e-commerce sales surged due to the pandemic, Walmart stepped up to bolster its ability to compete with Amazon's dominance in the field. Walmart is probably the only retailer with the financial strength and scale to confront the world's retail giant Amazon.
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Walmart excels in the number of online sellers

Walmart's e-commerce sales in the United States in the final quarter of 2020 grew 69% year-over-year.
E-commerce platform walmart account management Marketplace is estimated to add about 70,000 salespeople in 2020 as online shopping is fueled by the Covid-19 pandemic situation and a series of Walmart investments in technology and relationships with suppliers. This number is expected to grow 146% by the end of 2022.
According to a survey by Jungle Scout - an information search engine for Amazon sellers, 39% of online Amazon sellers are considering switching to Walmart this year. Many sellers on Amazon have gradually become distrustful of Amazon Marketplace because of the firing of sellers without explanation, the market is too crowded to manage.
The survey also shows that online sellers interested in Walmart are likely to be good sellers, because the goods they sell are mostly in Amazon's best-selling categories such as home appliances, appliances kitchen tools, toys, games, sporting goods and outdoor activities.

Advantages of Walmart

The time of the pandemic was also when Walmart showed its own strengths compared to competitors. According to Bradley Sutton, who works at seller consulting firm Helium 10, Walmart has something Amazon can't match a brick-and-mortar store.
Walmart has 4,756 retail stores in the United States. Retail stores can be used for pickup, delivery and returns. Meanwhile, Amazon's Whole Foods chain has only 500 stores in the United States.

Previously, Walmart orders had to be worth at least $35 for customers to enjoy 2-hour delivery. Now, Walmart has removed this minimum order level. Walmart's 3000 stores across the US are ready to deliver, reaching 70% of the US population. Customers need to pay $10 for delivery service, mainly for food products, household essentials and other consumables.
However, Walmart waives the entire shipping fee if a consumer subscribes to Walmart+ ($98/year or $12.95/month). Walmart+ is a Walmart loyalty program that is similar to and competes with Amazon Prime's Amazon Prime.
While it doesn't include video and music like the competition, Walmart+ offers fuel discounts at Walmart and Murphy gas stations and membership pricing at Sam's Club gas stations.

Walmart's Strategy

Walmart Listing implements its online sales growth strategy in two directions: attracting Amazon's online sellers and expanding its market to international sellers.
According to Marketplace Pulse, Walmart currently has about 80,000 sellers on the e-commerce marketplace. This is a small number compared to the 1.9 million active sellers on Amazon's website. However, 39% of Amazon online sellers are considering switching to Walmart which is a number for Amazon to watch out for. Walmart has been separately approaching a number of large companies engaged in online sales on Amazon to supplement its force.
At the same time, to attract new sellers, Walmart is also simplifying the seller's registration process on the e-commerce site, avoiding criticisms of the cumbersome procedure in the past. Walmart is also promoting a limited-time offer called the “New Seller Offer,” which waives sales commissions for all sellers who join the Walmart e-commerce platform before March 31. 2021 and commence operations before May 1, 2021.
Walmart does not charge online sellers monthly fees, while Amazon sales accounts cost $39.99 per month. Walmart charges merchants a flat referral fee for each participation (typically 15% of the product's sale price) plus additional fees if they use Walmart's own Services.
Walmart also announced that it will expand its online store, allowing retailers from abroad to enter. The number of new suppliers is expected to increase significantly. Recently, Walmart added more than 130 new sellers from China.
To catch up with the world's retail king Amazon, Walmart has a long way to go. Walmart e-commerce sites have also made significant progress. With more and more goods and services online, Walmart can challenge Amazon's dominance.