Walmart is a household name around the country and for a good reason. It is home to anything and everything that you could possibly need. In recent developments, Walmart has decided to branch out on the online front looking into generating more traffic selling and distributing products on Walmart.com.
Similar to Amazon’s services, they plan on storing items and products in inventory and then shipping them to potential customers to generate revenue. The product placement will, of course, be in collaboration with third-party sellers and companies who already supply their products to Walmart. This would be an extension to make the most out of their existing contracts. Read on below to see how it works.
Everything You Need To Know About ‘Fulfilled by Walmart’
For starters, ‘Fulfilled by Walmart’ develops the e-commerce aspect of distributing products and helps equip more third-party sellers to distribute products on a much wider scale, perhaps even exclusively.
This will also allow items to have a wider margin in terms of sales and profits, which will inevitably generate more revenue for the company and third-party sellers. This is a great way of cashing in on transport services that were previously just cost gatherers for Walmart, but will now be bringing in their share of profits as well.
How Will It Perform?
By turning transport into a source of profit, Walmart will reach up to billions in terms of sales in the coming year, USD 1.7 Billion if we are going to be specific. According to Amazon, the bulk of the sellers registered with their own program ‘Fulfilled by Amazon’ are happy to pay extra dues because Amazon can ship products to customers much faster than the seller through their intricate networking all across the globe. It is projected that soon ‘Fulfilled by Walmart’ will also be a part of the larger marketplace as it becomes more integrated with the selling and distribution circuit.
Comparisons with Amazon
Even since its inception, Walmart’s online establishment has gathered up to 75 million different products, while Amazon has over 300 million products registered on the site. Both sites charge about fifteen percent in terms of fees for the products that are registered with them.
While Amazon is handling all kinds of sales on its own, Walmart is still relying on third party providers to handle these logistical settlements. To top it all off, this initiative also gives Walmart more control over which products it is distributing, hence avoiding any items that are unfavorable to the public.
With this new development, Walmart is all set to provide some fair rivalry with its long-time competitor, Amazon, and this is definitely a step in the right direction. The move is bound to bring long term benefits in terms of expanding sales and profits.
Contact Us to learn more about The Starren Group and how we can help you leverage Amazon to grow your business.