Walmart is partnering with the e-commerce platform Shopify in a deal that seeks to take advantage of the digital spending surge during the coronavirus pandemic.
Walmart will be able to offer products from more U.S.-based small and medium-size businesses through the partnership, the retailer said Monday.
According to Walmart Marketplace, Vice President, Jeff Clementz, “We’re excited to be able (to) offer customers an expanded assortment while also giving small businesses access to the surging traffic on Walmart.com.”
“Shopify powers a dynamic portfolio of third-party sellers who are interested in growing their business through new, trusted channels. This integration will allow approved Shopify sellers to seamlessly list their items on Walmart.com, which gives Walmart customers access to a broader assortment,” he added.
With the launch of the Shopify integration, Walmart’s focus will be on those brands that can meet its shoppers’ needs. Specifically, Walmart says it will look for U.S.-based small and medium-sized businesses with an assortment that complements Walmart’s own, and that have a good track record in terms of customer service.
Shopify sellers are being invited to install the Walmart Marketplace app from Shopify’s App Store and determine their eligibility. If approved, the sellers can then add an unlimited number of products to Walmart Marketplace, while making changes to product images and inventory within Shopify. Those changes will immediately and automatically be reflected on Walmart’s site, the retailer says.
The partnership will add 1,200 new Shopify vendors to Walmart’s third-party marketplace website by the end of the year, giving online shoppers access to more products. The partnership helps Walmart better compete with Amazon, a market leader in e-commerce.
But in the near-term, it turns Shopify’s seller network from one that rivals Walmart’s Marketplace to one that now fuels it. Over time, this can boost Walmart’s bottom line as it will benefit not only from marketplace listing fees but also from the increased traffic and sales that marketplace items will bring.