According to the U.S. Department of Commerce, in the past year, the consumption of the U.S. e-commerce market has exceeded 1 trillion U.S. dollars, which has almost doubled in three years. According to previous forecasts, this achievement would not have been achieved until 2024.
Although this year's market is not optimistic by the public , consumer spending is tightening, inflation is high, costs are rising, and companies are laying off employees one after another. The overfulfilled goal of the US e-commerce market tells us that the coexistence of opportunities and challenges is an eternal law .
The prospect of the US e-commerce market is bright. Not only Amazon, but also Wal-Mart have invested a lot of energy in the e-commerce sector in recent years.
-Wal-Mart sellers surge, Q3 revenue explodes-
Since the Walmart platform was opened to sellers outside the United States last year , the number of domestic sellers has grown rapidly. This year, Wal-Mart has continued to make efforts in the e-commerce market , and the speed of expansion is really amazing.
In April 2021, the number of sellers settled in was only 4%. By the end of the year, the number of new sellers settled in soared to 20%, and by April this year, the proportion reached 40%.
According to the research firm Marketplace Pulse, since August this year, the number of sellers has increased by more than 1,000 per week, which is 4 times higher than before. Among them, 51% of Chinese sellers settled in Walmart, far surpassing the local sellers in the United States. (46%).
(Data source: Marketplace Pulse)
The number of sellers on the Wal-Mart platform is still increasing. Although local sellers dominate, Wal-Mart has recently launched new services and recruitment plans to stimulate the rapid growth of the Chinese seller group.
In the 2022 third quarter financial report released by Wal-Mart , the overall revenue reached US$152.81 billion, a year-on-year increase of 8.7% or 9.8% (affected by exchange rates), exceeding the expected US$147.75 billion.
Among them, the performance of the e-commerce sector is even more impressive. Wal-Mart's US e-commerce sales increased by 16% year-on-year, and the cumulative increase in two years was 24%.
(Data source: Wal-Mart financial report)
Another reason for Wal-Mart 's significant Q3 growth rate is Amazon 's recent market downturn:
Amazon announced third-quarter revenue of $ 127.1 billion, up 15% year-on-year, below market expectations. While Prime Day contributed to Amazon's third-quarter profit, actual sales growth was 400 basis points lower than expected.
Since the beginning of this year, Amazon's market value has evaporated by nearly 800 billion US dollars, and its level has fallen back to two years ago. Its dominance in the US e-commerce market is also being shaken.
Whether it is the growing seller base or the sales data of the giants, it is a signal that Wal-Mart's efforts in the e-commerce business have achieved obvious results, and it is still growing beyond expectations.
– Walmart overtook Amazon and became the big winner of Black Friday traffic –
The competition between Wal-Mart and Amazon has never stopped . Since Amazon’s title ban, Wal-Mart has become an important layout platform for many sellers . This year, it has even caught up and surpassed Amazon.
On the product side, most shoppers still choose Walmart to buy items such as household groceries on the platform, which is far ahead of Amazon. At the same time, pet supplies, health and beauty, and smart devices have also become hot-selling categories that consumers focus on this year.
In terms of price, Wal-Mart has a higher frequency of discounts and promotions than Amazon, and consumers are more inclined to active and cost-effective products, so Wal-Mart has a greater advantage.
Judging from the financial report data of Jungle Scout in the figure below , although Amazon’s e-commerce sales in the first half of the year far surpassed Wal-Mart, sales fell by 4.61%, while Wal-Mart increased by 11.98%.
(Data source: Jungle Scout)
In terms of traffic, Wal-Mart's strength should not be underestimated. In the recent Black Friday, online sales of American consumers reached 9.12 billion U.S. dollars , a year-on-year increase of 2.3% . Unexpectedly, Amazon fell, and Walmart gained the upper hand, becoming the biggest winner of Black Friday traffic .
In a set of data released by CNBC, consumers searched for Wal-Mart's "Black Friday discounted products" more than 1 billion times, and the search volume soared 386% year-on-year, far surpassing Amazon, which ranked first last year, and Amazon fell to fourth place. .
Wal-Mart also officially announced that the sales of international sellers rose nearly 8 times on Black Friday , and the number of products sold and orders soared by more than 6 times . Among them, cleaning supplies (sweeping robots), children's toys (cameras), and kitchen appliances (oven, toaster) are the best-selling categories, with sales rising hundreds of times.
This year's performance is enough to show that Wal-Mart is striving to become the preferred shopping platform for more consumers, and at the same time accelerate the expansion of a larger e-commerce blue ocean for sellers .
-Walmart Accelerates Transformation to Omni – channel Retail-
As a world retail giant , Wal-Mart has been building a bridge between consumers and sellers through a combination of online and offline models in recent years :
Leveraging the supply chain advantages of its own offline supermarkets, acquiring top brands in the retail industry, upgrading VR technology, actively expanding online channels, and diverting store customer groups to online platforms, it not only provides more convenient consumer services , but also satisfies customers The experience also creates an advantage for the seller's revenue .
In the 2022 Wal-Mart Seller Status Report released by Jungle Scout, 95% of sellers achieved store profitability, and 67% of them had a profit margin of more than 15%.
(Image source: Internet material)
Facing the dynamic reshuffle of the new retail industry, Walmart is accelerating its transformation and upgrading to e-commerce. The vice president said that with the growth of online consumer groups, the focus in the future will still be the implementation of the omni-channel strategy to meet the shopping scene needs of consumers in offline stores and online platforms, and achieve rapid growth in omni-channel retail performance.
Continuing to catch up with Amazon and occupy a larger market is the next big thing Wal-Mart will do.
– say at the end :
When Wal-Mart's e-commerce gene is further strengthened , in the multi-platform layout, Wal-Mart, which is accelerating its value-added, will be the first choice. For Chinese sellers going overseas, there will be more choices , and it will also bring unprecedented expansion opportunities for sellers' export business. .
In addition, it is recommended that sellers focus on referring to Wal-Mart's best-selling list this year for iterative upgrades in the next product layout . As a leading one-stop cross-border distribution service provider in the industry, Saiying also focuses on providing Wal-Mart sellers with high-quality goods with after-sales guarantee and low cost.
I look forward to more sellers who will work hard on the Wal-Mart e-commerce platform and gain a lot .