Walmart to Sell E-commerce Tech to Retailers

Walmart to Offer Retail Technologies to Competitors Through Adobe Partnership

Walmart announced today that it will, for the first time, extend access to the software and retail technologies that have driven its transformation to other retailers. This move allows businesses to leverage the innovations previously exclusive to Walmart’s combined in-store and online shopping experience.

Integration with Adobe Commerce Platform

A strategic alliance with Adobe will facilitate this expansion. Walmart’s Marketplace, alongside its diverse online and in-store fulfillment and pickup capabilities, will be integrated directly into the Adobe Commerce Platform.

Both users of Adobe Commerce and those utilizing Magento Open Source will gain access to these technologies, as stated by Adobe.

Reaching Small and Mid-Sized Retailers

This collaboration presents Walmart with the opportunity to connect with potentially thousands of small and medium-sized retailers. These businesses will be empowered to utilize the same tools employed by a leading global retailer to manage their operations.

Enhanced Customer Fulfillment Options

Through this partnership, Adobe’s retail clients will be able to implement features such as real-time store pickup availability and scheduled pickup times. Multiple pickup methods, including curbside and in-store options, will also be available.

Store associates will benefit from mobile tools designed to streamline order picking, verify item selections, and manage product substitutions. Furthermore, retailers can utilize communication tools to keep customers informed about their pickup orders, including ETA notifications for curbside service.

Expanding Marketplace Reach

The partnership also enables retailers to list and sell their products across Walmart’s Marketplace, broadening their customer base.

Strategic Implications for Walmart

This arrangement is expected to generate new revenue streams for Walmart related to its retail technologies. It also represents another step in Walmart’s ongoing competition with Amazon for dominance in the online retail sector.

Leveraging Walmart Fulfillment Services

Retailers utilizing the Adobe Commerce platform will be able to list products on Walmart’s Marketplace and then utilize Walmart Fulfillment Services to provide two-day shipping throughout the United States.

This expansion could significantly increase the number of products available on Walmart’s Marketplace, which currently lags behind Amazon in scale.

Marketplace Growth and Comparison

Walmart’s Marketplace experienced substantial growth, reaching approximately 70,000 sellers in 2020, a surge attributed to the pandemic-driven increase in online shopping. This represented a doubling of seller numbers compared to 2019.

Currently, the marketplace hosts over 100,000 sellers, according to Marketplace Pulse data. In contrast, Amazon’s Marketplace boasts an estimated 6.3 million total sellers globally, with 1.5 million actively selling.

Addressing Seller Challenges

Walmart’s slower growth in its marketplace business may be linked to usability issues for sellers. Many smaller sellers have reported that Walmart’s Marketplace is more complex to navigate than Amazon’s, and they have experienced lengthy delays in receiving approval to sell on the platform.

Adobe’s partnership is anticipated to help mitigate these challenges.

Unified Channel Solutions

Adobe is also focused on consolidating its channel solutions into a single, unified extension. This will allow retail customers to manage sales across multiple channels – including Amazon – through a single, integrated tool for streamlined account setup and catalog management.

A New Revenue Stream for Walmart

This marks the first instance of Walmart offering its retail technologies to external businesses. While the company has not yet projected the potential revenue from this partnership, it mirrors a strategy Amazon has pursued to maximize returns on its innovative retail solutions, such as its Just Walk Out technology.

Statements from Walmart Leadership

“The core mission of helping people save money and live better is at the heart of every idea including Scan & Go and checkout technologies, AI-powered smart substitutions and pickup and delivery,” stated Suresh Kumar, Chief Technology Officer and Chief Development Officer of Walmart Inc.

He continued, “Combining Adobe’s strength in powering commerce experiences with our unmatched omni-customer expertise, we can accelerate other companies’ digital transformations.”

Availability and Pricing

Adobe’s U.S. retail customers will be able to integrate Walmart’s technologies into their storefronts starting in early 2022. Specific pricing details will be released closer to the launch date.

In addition to the partnership with Adobe, Walmart has established a dedicated GoToMarket team to directly engage with retailers.