Jungle Scout, which provides a platform for selling on Amazon, recently released its first “State of the Walmart Seller” report, which highlights the mass merchant's substantial e-commerce growth that has resulted in 95% profitability for sellers.
Some key findings from the report include:
- Ninety-five percent of Walmart Marketplace sellers have profitable e-commerce businesses. Seventy-three percent of sellers earn profit margins above 20%, and more than half earn over $100,000 in annual revenue. Fifty-four percent of SMBs (small and midsize business) sellers earn over six figures annually, and 57% of enterprise sellers make between $2 million and $10 million in annual revenue.
- Walmart’s broad in-store dominance translates to loyal online customers. Forty-one percent of consumers shop on Walmart.com based on familiarity with the brick-and-mortar store and its products. Consumers prefer shopping on Walmart.com for automotive parts and accessories, electronics and exercise/fitness supplies. Consumers prefer shopping at Walmart in-store for essentials like beauty & personal care, cleaning supplies and groceries.
- Walmart sellers embrace omnichannel e-commerce strategies.Ninety-seven percent sell products on at least one other e-commerce marketplace. Amazon is the most popular platform, followed by eBay, Shopify, Facebook Marketplace and Etsy. Forty-six percent also sell products in brick-and-mortar stores (including Walmart stores).
Walmart’s U.S. business attributed $47.8 billion in net sales to online purchases in fiscal year 2022, a 98% increase over the past two fiscal years, according to a news release from Jungle Scout on the report’s findings. This year, the retail giant anticipates 40,000 new sellers to join its growing online marketplace, which currently boasts 1,918 customers for every seller. The report’s findings indicate opportunities for third-party sellers of all sizes on Walmart Marketplace, which launched in 2009, that Jungle Scout says is poised to become a frontrunner in the e-commerce space.
“Walmart’s online business is becoming a more significant player, even alongside more established platforms. Walmart’s massive online growth presents an attractive proposition for e-commerce sellers looking to diversify their strategies,” Greg Mercer, founder and CEO of Jungle Scout, said in the release. “An omnichannel strategy that includes emerging platforms allows sellers to reach even more consumers across the various formats where they shop.”