Walmart has forged an agreement with Shopify to help its third party marketplace improve its online presence and set its sights on online behemoth Amazon. By enlisting the help of Shopify, the retail giant plans to add 1,200 online sellers to its walmart.com store site and draw more online shoppers. Shopify helps sellers create a website and provides a shopping cart solution to provide an easier shopping experience.
The market welcomed the partnership, as Shopify shares gained 5% and Walmart getting a slight uptick. Walmart is currently capitalizing on its recent success in online sales, which grew 74% during the first quarter. However, its growth came primarily from its third party marketplace rather than its first-party (direct purchase from suppliers) store. The deal with Shopify further strengthens the infrastructure for its third party marketplace.
Walmart has embarked on a series of strategic moves to expand its e-commerce, recently purchasing Bonobos and Modcloth, and has recently announced a deal with resale firm ThredUp.
Attention ALL Capitalist Subscribers: Elon Musk, Mark Cuban, and Richard Branson reveal how $25 gets you into one technology set to grow 2,000X BIGGER than Bitcoin.