(Photo courtesy expertinvestor.net)
Walmart and Shopify are teaming up to take on e-commerce giant Amazon.
Yesterday, Walmart Inc. announced that it has partnered with e-commerce platform Shopify Inc., offering its third-party marketplace as a channel for Shopify’s merchant base.
- Walmart said it expects to add 1,200 Shopify sellers to Walmart.com by the end of this year
The deal is beneficial for both companies: Shopify’s sellers get access to Walmart’s 120M monthly customers, and Walmart gets a cut of sales and more variety on their website.
“This integration will allow approved Shopify sellers to seamlessly list their items on Walmart.com, which gives Walmart customers access to a broader assortment,” said Jeff Clementz, vice president of Walmart’s marketplace. “We are focused on US-based small and medium businesses whose assortment complements ours.”
Their ultimate goal? To compete with Amazon. The partnership with Walmart adds another major player to Shopify’s growing alliance against Amazon’s e-commerce reign. In fact, Shopify CEO Tobi Lutke has said his company’s goal is to “arm the rebels” against the Amazon empire.
And Amazon is certainly a force to be reckoned with.
The battle for e-commerce dominance is especially important given the effect of Covid-19 on consumer behavior. People are choosing to shop online instead of risking infection inside physical stores.
And as online shopping becomes more and more common, Walmart and Shopify are preparing to give Jeff Bezos a run for his money.