Shoppers in Britain could soon have an alternative to Amazon. Reports suggest that Walmart Marketplace, the second-largest online store in the US, is asking UK sellers to sign up to the platform.
David Jinks, Head of Consumer Research at delivery provider ParcelHero, commented: “It may only be a year since Walmart pulled out of Britain, selling its Asda chain to the Issa brothers, but the good news for shoppers is that the US giant is actively pursuing British sellers to join its Walmart Marketplace.”
The world’s largest retailer is staging a global sellers summit in London on 17 June, billed as ‘an opportunity for UK-based e-commerce sellers to explore how to grow their business as part of Walmart Marketplace’.
Jinks added: “Walmart’s initial event is aimed at introducing British businesses to its US marketplace of 120 million customers every month. But Walmart is the world’s largest omnichannel store, and may well have unfulfilled ambitions in the UK. Grace Xu, Walmart’s (significantly titled) Lead of UK Business Development, will be speaking at the event.
“Access to Walmart.com would be a big win for UK shoppers with an eye for a bargain. From half-priced televisions and laptops to barbeques, Walmart items appear alongside millions of products from independent sellers using the integrated marketplace. UK retailers would be able to take advantage of the benefits US sellers enjoy, such as no set-up charge or monthly fees.”
Jinks noted Amazon’s surging sales in the UK and the fact that 86% of British consumers shop on its marketplace. “Which retailer wouldn’t want a slice of this action?,” he said.
“In the US, Walmart’s network of 5,000 stores gives its online operations a major boost as they fulfil grocery orders and act as pick-up and returns centres. In the UK, the fact that Walmart has lost all its stores seems like a major hurdle. However, even though it has just a handful of grocery stores around London, Amazon has extended its reach by partnering with companies like Morrisons for local fresh food and installing a network of pick-up lockers nationwide.
“Significantly, when it sold Asda, Walmart retained an equity investment in the business, with an ongoing commercial relationship and a seat on the board. That could mean it would be a relatively smooth ride to tie in with Asda’s 633 locations across the UK.
“Walmart also lacks access to Amazon Logistics, the huge delivery network Amazon has built up. However, since the end of Covid lockdowns, many UK delivery networks have spare capacity. Two-day deliveries shouldn’t be a significant problem if Walmart partners up with one or more operators.
“With topics such as global sales and expansion on the agenda at Walmart’s Global Seller Summit, Brits may well be hoping to see the arrival of a genuine Amazon rival for new online bargains.”
NAM Implications:
- Suppliers need a competitor…
- Walmart need to match Amazon standards.
- And Walmart’s US marketplace of 120 million customers every month should not be ignored.
- And “no set-up charge or monthly fees” could prove difficult to ignore.
- Global Seller Summit UK worth a visit?
