It was difficult to miss the internet chatter early this Monday morning regarding the newly announced Walmart and Shopify partnership. Walmart Vice President, Jeff Clementz, excitedly released details of a new integration between the retail giant and the all-in-one eCommerce online sales platform.
"For years," Jeff explains, "it has been a priority to build an eCommerce Marketplace customers trust." And, considering today's newly released information, Walmart has put in motion the means to accomplish just that.
So, what exactly does this entail for the smaller Shopify owners out there? Here are the most important details about this exciting, new eCommerce partnership, and the answers to all of your burning questions.
While Walmart's Marketplace program already enabled third-party merchants to sell their products on Walmart.com, this new partnership with Shopify fosters a considerable expansion opportunity.
In fact, Walmart intends to add 1,200 new vendors from Shopify to the Marketplace within the year. Thereafter, once accepted to Walmart Marketplace, Shopify vendors are able to list and sell their own products on Walmart.com.
Intriguingly, this integration deviates from Shopify's typical strategy of competing against major retailers. However, as an article from TechCrunch noted, it "turns Shopify’s seller network from one that rivals Walmart’s Marketplace to one that now fuels it." If you cannot beat them, join them - right?
Ultimately, this partnership should prove profitable not only to Walmart but also to the Shopify vendors upon which the platform fundamentally relies.
For the brick-and-mortar, anticipated results of this Walmart/Shopify partnership are simple: remain competitive. After all, Walmart ranks third online, after the ever-popular eBay and Amazon. And, only as a further incentive for growth, Target is slowly closing the gap as position number four.
Moreover, Walmarts sales increased by 74% last quarter, and, notably, Marketplace even outpaced that. In his announcement this morning, Clementz explained, "We’re excited to be able to offer customers an expanded assortment [of products]." Basically, by offering more merchandise that people actually want, Walmart hopes to snatch away some of those purchases from the competition.
However, this partnership is not one-sided. Rather, Walmart's endeavor for competitivity directly benefits its sellers on the Marketplace. In fact, by selling their own products on Walmart's website, Shopify merchants can now reach more than 110 million of the retailer's monthly shoppers. If you never thought your little online store could compete with the likes of Target and Amazon, Walmart and Shopify just said, "think, again!"
Plus, online, trust is crucial. As a small Shopify seller in a competitive eCommerce world, it is difficult to gain customers' confidence. However, by taking advantage of the new partnership between Shopify and Walmart, sellers are able to align their brand with one of retail's most trusted. How does that sound as a stamp of approval?
As expected with Shopify applications, the Walmart integration is designed to function seamlessly and easily. Users are able to efficiently manage products from Shopify, no mundane duplicating of information required. Further, Marketplace integration allows unlimited products and bulk editing for ease of use. Plus, the platforms sync inventory so you never run into any unexpected stock issues.
Walmart Marketplace offers users other convenient features, like 2-day shipping, weekend delivery availability, and detailed shipment tracking. Vendors are even able to apply for a 40-50% delivery discount with FedEx for further savings. Later, customers can return their products via a printable shipping label, or by bringing the shipment-ready return package to their local Walmart store. By utilizing the benefits offered from Walmart's Marketplace program, small vendors are better able to serve (and preserve) customers.
Notably, Walmart does not charge Shopify vendors any start-up or monthly fees. However, the Marketplace operating agreement states Walmart does take a "reasonable referral fee" when a sale is completed. That fee ranges from 6-20% depending on the product category.
Unlike Amazon's third-party seller program which accepts almost anyone who applies, Walmart chooses to select vendors a bit more carefully. This level of protection upholds high customer standards and ensures a safe, dependable shopping experience. Walmart likely hopes this will eventually solidify a higher-rated shopping process than the competition.
To begin selling with Shopify on Walmart.com, first, make sure you meet some general requirements:
If your eCommerce business meets the requirements for Walmart's Marketplace, download the Walmart app on Shopify to begin the application process. Feel free to contact our Shopify experts if you have any questions.
Clementz, quoted earlier, said, "Shopify has a long history of helping small businesses leverage scale, and we’re proud to be part of the solution that is helping customers and other retailers."
As a small business owner, this is truly exciting news. Take advantage of the power of one of the world's leading retail companies and watch your customer base soar.
With seamless integration and flawless usability, joining Walmart's marketplace with Shopify will surely lead to eCommerce success.
