Please ensure Javascript is enabled for purposes of website accessibility

Walmart Partners With Shopify in Its Biggest Move Yet to Take on Amazon

By Danny Vena – Updated Jun 15, 2020 at 4:29PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The move will add thousands of new small businesses to Walmart's e-commerce platform.

Walmart (WMT -0.93%) announced on Monday that it was joining forces with Shopify (SHOP -2.50%), opening its marketplace to Shopify merchants. The move will expand the company's online sales platform and better position it to compete with e-commerce leader (AMZN -0.54%)

The world's largest retailer said it hoped to add as many as 1,200 Shopify sellers to its platform by the end of the year. Walmart plans to focus on small- and medium-sized U.S.-based business that have an assortment of products that complement its own, while also looking for companies with a "track record of exceeding customers' expectations."

Shopping cart Icon on smart phone screen.

Image source: Getty Images.

Shopify merchants that sell through Walmart will be able to manage their inventory and have products automatically synced with Those with a large quantity of products will be able to add them in bulk. An added benefit for merchants is that they won't be charged the listing fees that sellers typically pay to other marketplaces like Amazon.

More than 120 million U.S. consumers visit Walmart's e-commerce site every month, and Shopify said the partnership will "enable our merchants to get their products in front of these high-intent, loyal buyers from one of the world's largest retailers, helping them expand their reach and drive sales."

Third-party sellers represented more than half of the units sold on Amazon, and generated $14.48 billion in the first quarter, up 30% year over year, and representing 19% of Amazon's revenue. Third-party sellers are typically more profitable, often footing the bill for delivery charges.  

Walmart's U.S. e-commerce business surged 74% last quarter as a growing number of consumers adopted online retail as their primary shopping venue, forgoing trips to brick-and-mortar stores in the face of the COVID-19 pandemic.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Danny Vena owns shares of Amazon and Shopify. The Motley Fool owns shares of and recommends Amazon and Shopify and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Walmart Stock Quote
$131.68 (-0.93%) $-1.24
Shopify Inc. Stock Quote
Shopify Inc.
$30.06 (-2.50%) $0.77, Inc. Stock Quote, Inc.
$120.30 (-0.54%) $0.65

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.