If you’re one of the millions of individuals who orders products online, you are part of a revolution. Total e-commerce sales will reach $684 billion in 2020, and the two titans of retail, Amazon.com and Walmart.com, are competing for market share in a big way. But it’s a more complicated story than you might imagine. Each platform offers third-party sellers the chance to reach consumers, and though the online e-commerce playing field is currently far from level, Walmart.com is catching up. Amazon is saturated with third-party sellers in their marketplace, while Walmart.com potentially presents a big untapped opportunity for sellers.
In the blue corner: Walmart Marketplace
Walmart.com has approximately 1,000 third-party sellers, with hundreds of new merchants added monthly. As the second-most-visited e-commerce site in the U.S., Walmart.com enjoys 110 million unique visitors per month. Though it currently only offers approximately 11 million different kinds of items for sale via its Marketplace, the platform plans to add 1 million items per month in an assertive bid to catch up with Amazon.
The coveted Walmart.com Buy Box is based on whoever is selling their product at the lowest price, which makes it much easier to crack than Amazon’s equivalent.
However, two-day shipping from the Walmart Marketplace will cost shoppers. The 2-day Rush shipping option costs $10.97 for an iPad Air 2, more than 10% of what an Amazon Prime membership would cost for a year. Walmart’s free Store Pickup option isn’t currently available to Marketplace sellers.
In the yellow corner: Amazon Marketplace
The dominant platform in third-party selling is Amazon, with approximately two million third-party sellers and offers about 365 million different kinds of items. Its advanced algorithmic approach to presenting particular products to its customers is very powerful.
Furthermore, Amazon uses real-time data to fuel dynamic pricing – which makes it more sophisticated than Walmart.com. The Amazon Buy Box takes into account a seller’s performance, price, sales, fulfillment, and order defect rate. In other words, it’s not easy for a seller to arrive in this valuable real estate.
Perhaps the big difference between the two marketplaces is Walmart.com’s barrier to entry. Sellers have to be invited to sell at the Walmart Marketplace, which can take 2-4 weeks. Walmart.com seeks sellers with good reputations on Amazon and eBay, with an order defect rate below 1% and excellent feedback. Walmart charges no monthly or setup fees. There is not much difference between Walmart.com and Amazon as far as commissions and fee structures; though a percent or two may differ from category to category.
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No matter how this clash of the titans ultimately resolves, the most successful third-party sellers will certainly establish a presence on both platforms—and partner with solutions like Doba to help them grow. At Doba, our mission is to empower retailers and wholesale suppliers to easily connect. We simplify product sourcing for over 15,000 ecommerce retailers. If you’re an established ecommerce retailer looking to take your sourcing operation to the next level, request a demo of the Doba Enterprise platform today!