It looks like Walmart is the new metonym for eCommerce.
Sorry for that tone-deaf statement, hoping it didn’t hurt the feelings of companies A, B and C.
It’s just that the first quarter of the fiscal year saw the retail giant in full swing and conspicuously edging out its competitors.
Calling the company the new marketplace giant wouldn’t be an exaggeration now, would it? It has literally gained ground in eCommerce.
Walmart’s total revenue from the previous quarter reached $117.5 billion, which is 1.4% higher than its earnings in the same period last year.
Its eCommerce business is getting stronger by the day, exhibiting a 63% increase in sales, which were driven organically despite its number of acquisitions, and a 69% increase in gross merchandise volume.
Taking advantage of the favourable conditions on bettering their customers’ shopping experience, Walmart CEO Doug McMillon said they are working hard at combining their digital and physical assets.
“We need to scale our eCommerce business further and see more additional strength in our store comps to deliver the results we know we’re capable of – so that’s what we’re focused on,” he said.
Taking Giant Leaps
Since it revived its eCommerce platform last year, Walmart has garnered so much attention from shoppers and been perceived a threat by other marketplaces.
Earlier this year, it offered free two-day shipping for items worth at least $35, which Amazon quickly countered with a lower free shipping threshold.
If Walmart is just trying too hard, that wouldn’t have been the response of an established marketplace-slash-innovator; just thinking aloud.
Walmart also came up with a Pickup Discount program for customers who would order items online and pick them up in-store.
Aside from that, the number of people shopping on Walmart.com is fast-increasing as the items that are being sold here have significantly shot up to 50 million from 10 million at the same time last year.
Consumers favour a store, or marketplace for that matter, that doesn’t cease to offer them more options every day.
“The majority of our growth is and will be organic. The acquisitions are helping us speed some things up. So overall, we’re making progress in providing the seamless shopping experience our customers desire and we will keep moving along this journey,” McMillon explained.
After it acquired Jet.com last year, Walmart went on to expand its eCommerce space by purchasing online retailers ModCloth, Moosejaw and ShoeBuy.
It’s currently in talks to buy online men’s clothing retailer Bonobos, so expect Walmart’s empire to grow even bigger in the next couple of months.
Who would’ve thought it could overtake long-time eCommerce players in a span of just one year?
So if you receive an email from Walmart inviting you to sell on their marketplace, jump at the chance, for we really don’t see any reason why you shouldn’t.