Wal-mart pushes deeper into Amazon ecommerce territory |
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Wal-mart pushes deeper into Amazon ecommerce territory
Wal-Mart today launched a new ecommerce initiative, adding a million items to its online store through partnerships with outside vendors. In doing so, the Arkansas-based big-box chain is moving more and more into online rival Amazon.com's turf.
The new Walmart.com products are in the home, baby, apparel, toys and sporting goods categories. The company is initially teaming with CSN Stores, eBags, and Pro Team and said it "will continue to grow the Walmart Marketplace program with additional retailers over the next year."
Is Wal-Mart emerging as a bigger threat to Amazon.com? Amazon has a more established ecommerce presence, and a head start in developing its third-party (3P) seller business, writes Scot Wingo of Amazon Strategies:
Even though Walmart is the 800lb gorilla of the offline world, it is a good bit smaller (Internet Retailer reports that in 2008 they were the 14th largest online retailer with $1.7b in sales vs. Amazon at the top with $20b). Thus, while this is a strategic move in Walmart.com's court, it would have to be massively successful to help them catch up to Amazon.
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