Bentonville, Ark. – The millions of items Walmart offers online to U.S. customers will grow by millions more this year.
The company already offers roughly 170 million items online between its own assortment and Walmart Marketplace for independent vendors, brands and retailers. It aims to have more than 200 million items in its e-commerce assortment by late 2022.
“The e-commerce business – first-party, third-party – is growing. It gives us the opportunity to grow advertising income. It’s grown at a fast rate, and it’s growing across markets,” said Walmart Inc. president and CEO Doug McMillon.
In addition to deriving revenue through marketplace sales, Walmart offers paid trade-up options, including sponsored product ads on the site to boost visibility, two-day delivery through Walmart fulfillment services and “enhanced returns,” a program that allows consumers to return third-party merchandise to their local Walmart store.
“We opened up our US Marketplace to sellers from India and created a dedicated team there to help sellers onboard and grow. Many sellers are looking to diversify their business. And they’re pushing us to add capabilities, including the expansion of our fulfillment services,” McMillon told analysts during yesterday’s fourth quarter conference call.
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Walmart U.S. grew its fulfillment services by 500% last year. Internationally, fulfillment services in Q4 represented 44% of total Marketplace orders in India and 22% in Mexico.
“I think Marketplace is one of those areas where we can see growth, including that last-mile component that we’re building out,” McMillon added.