Walmart is testing a new way to show off products from third-party marketplace sellers in stores
Walmart is exploring new ways to feature items from its third-party marketplace sellers in stores, the company told Modern Retail in conjunction with its annual marketplace seller summit, which this year takes place in San Diego from Aug. 25-27.
At its new store in Cypress, Texas, Walmart has placed digital QR codes next to some items promoting different flavors or iterations, as well as digital tools and services. The retailer plans to promote both first-party and third-party items sold online in this way.
For example, it has put a Kenmore washing machine on display in that store, where customers can scan a QR code next to it to purchase it through the Walmart app and have it professionally installed. The codes can also be found next to a Weber grill, a Vizio TV and a Huffy bike.
“We just kind of removed the barrier between online and offline,” Manish Joneja, svp of Walmart U.S.’s marketplace and Walmart Fulfillment Services, told Modern Retail.
This would give some marketplace sellers visibility to the roughly 270 million customers who walk through Walmart stores each week. Likewise, it would make those customers aware of the greater assortment of products only available online.
“We have an incredible assortment from amazing sellers, and we have these hundreds of millions of customers that walk into a store. It just makes sense to connect both, not just digitally, but in-store physically, as well,” Joneja said. “The more you become aware of [the online assortment], the more you basically buy, and the more you buy more often.”
As another example, Joneja said customers may find a QR code next to a brand of coconut water that has more flavors available online when only a few are available in stores.
This doesn’t come with a charge to the sellers, he said, adding that the choice of which sellers to highlight is done in collaboration with the first-party merchants.
“We look at the right brands, the right sellers, … the ones that click really well, that have proven they’re good sellers with us,” Joneja said. “We have to make sure it’s the right place, the right season, the right demand — because what might sell in Cypress might not sell in Seattle.”
For now, the company is only trying this at the one store in Texas. Joneja said the company is not yet sharing any plans to scale.
“We take in customer feedback, seller feedback and store feedback, and then we scale and go big,” when the retailer launches new programs, he said. “We are launching this as a pilot out there before we start scaling.”
This week, the company also announced additional tools and initiatives for marketplace sellers. These include an AI-powered listing assistant, a direct line for sellers to reach Walmart leaders and new seller incentives for the peak shopping season, as well as expanded fulfillment services. Last quarter, Walmart’s marketplace sales grew nearly 20% year over year, according to the company’s recent earnings call.
Walmart is working to build an ecosystem for sellers of all sizes that spans the globe — similar in some ways to Amazon, but unique in having a distinct network of thousands of stores. Its fulfillment services are now used by about 44% of sellers, or 250 basis points more than last year, and can be used to fulfill orders from other marketplaces like Amazon. Sellers can also tap into the company’s advertising business, Walmart Connect, to boost eyeballs further.
“We say that we want to be America’s best place to shop, but we want to be the best place for selling, as well,” Joneja said. “We want to make it easier for [sellers] to succeed.”