The Motley Fool, an investor website, in this article looked at the financial data from both Walmart and Amazon to compare how Walmart is doing trying to catch up to Amazon.
Walmart over the last few years has made some major acquisitions such as Jet.com, ShoeBuy, MooseJaw, and Heyneedle, but despite these expenditures is still lagging behind Amazon in total sales and eCommerce growth rate.
Of course total sales is not a surprise, but there are even signs that Walmart’s eCommerce growth rate has started to slow down after the acquisition’s initial bumps. That is a bit surprising as one would expect the opposite.
The 4th Quarter slowdown in Walmart’s eCommerce growth rate is especially perplexing as it includes the first full quarter of Jet.com’s sales.
But there is one bright spot according to the article, Walmart’s marketplace sales (3rd party sellers) have increased nearly 43% year over year. Could this be the real future for Walmart.com as Marketplace sales are also more profitable for the retail giant?
While Walmart has thrown everything but the kitchen sink at growing eCommerce, it is becoming one of the bigger players in the eCommerce business.
The significant growth of Marketplace sales is an interesting opportunity for entrepreneurs to exploit as Walmart’s pure will power to go after Amazon opens up a niche to Walmart brand loyal customers that is still at its infancy.
In the comments section below let us know if you have tried Walmart’s Marketplace and how you compare it to Amazon or eBay.