After the wave of Amazon bans in the past year, the multi-platform layout has obviously become the consensus of many cross-border e-commerce sellers. During this process, another retail giant, Walmart, has become the first choice of many sellers.
Although e-commerce developed later than Amazon, Walmart has stood out like a dark horse in recent years. Earlier , a report by Jungle Scout showed that by the end of 2021, although Walmart's revenue in the global e-commerce market is much lower than Amazon's, Walmart's online business growth is very rapid , more than five times that of Amazon.
Before March last year , Walmart's entry barriers were very high, so there were not many Chinese sellers on the platform, so for the new sellers who are now laying out, there are still many opportunities on this platform.
Walmart's stores support 100 million years of revenue, and the big sellers are here
In fact, Walmart is also one of the important overseas channels for many big sales, and some companies that have made arrangements in advance have achieved good results and their performance has continued to grow.
Saiwei Technology, which is in the process of IPO, is one of the first big sellers in this channel. It can be seen from its latest prospectus that its business on Walmart has achieved remarkable results.
In 2019, 2020, and 2021, Saiwei Technology's revenue was 62.48 million yuan, 126 million yuan, and 103 million yuan, respectively . From 2021 alone, the average annual revenue of each store is about 4.48 million yuan, and the monthly revenue is about 370,000 yuan.
As far as the earliest data can be found so far, Saiwei Technology has already deployed Walmart in 2018, when its annual revenue was 76.06 million yuan.
For cross-border e-commerce sellers, the huge revenue does not mean making money, but the gross profit margin of Savi Technology on Walmart has always been very good, averaging more than 54% from 2018 to 2021, of which the highest in 2018, reaching 62.41 %.
Not only that, from the data of the past four years, the unit price of Saiwei Technology's products is not low, but its repurchase rate is good. Taking 2021 as an example, the unit price per customer is 474.58 yuan, and the repurchase rate is 6.98%.
In addition to Saiwei Technology, Youkeshu is another big seller in Walmart earlier, and it has also increased its layout in Walmart after experiencing the Amazon ban. It can be seen from the announcement of its parent company Tianze Information's reply to the Shenzhen Stock Exchange's annual report inquiry letter earlier that in 2021, Walmart will enter the top five operating platforms of Youkeshu, ranking No. 1 with a revenue of 63.32 million yuan. Fifth , although it only accounted for 3.99% of total revenue , it squeezed out eBay and Shopify compared to the previous year. In contrast, its revenue on Amazon has decreased significantly, from 1.525 billion yuan in 2020 to 521 million yuan in 2021.
When the big sellers gradually increased their layout efforts, some small and medium-sized sellers also started their own Walmart sales journey under the dual effect of Walmart's lower entry threshold and Amazon's title wave. According to the results of the current feedback, some sellers have already embarked on the track:
The "Five Master of Amazon" who issued orders from the Buddhist department said that he is purely a boutique shop in Walmart. Currently, 20 products have arrived in the wfs warehouse without advertisements. The sales in May are about 500 US dollars, and he said that he will strive to achieve 1,000 US dollars in July. . Another seller of high-cost products said that he had achieved sales of $20,000 just half a month after he moved from Amazon to Walmart. Another seller thinks his Walmart store is doing well in the first month, with 4 SKUs and $1,000 in monthly sales.
The growth rate is 5 times that of Amazon, the new blue ocean channel
Behind the competition among sellers is the development potential of Walmart.
In recent years, Walmart's e-commerce business has maintained rapid growth, especially after the outbreak of the new crown epidemic, which has given it another opportunity to break out. In 2020, Walmart's e-commerce sales in the United States increased by 37%, surpassing the old cross-border e-commerce platform eBay in one fell swoop, becoming the second largest online retailer in the United States after Amazon. In addition, a report by JungleScout shows that by the end of 2021, although Walmart's revenue in the global e-commerce market is much lower than Amazon's, Walmart's online business growth rate is more than five times that of Amazon.
Obviously, Walmart has become a new blue ocean channel for sellers to go overseas, and it will also be their "second growth curve".
Amazon's unicorn status in cross-border e-commerce is still unshakable, so many sellers will use it as the preferred channel to go overseas, which has also led to an increasingly crowded track and increasing competition. On the other hand, Wal-Mart has a much lower competition density for sellers.
Relevant data shows that the potential business opportunity of third-party sellers on Amazon is 1:48 (that is, a merchant may have the opportunity to face 48 consumers and reach a transaction), while the business opportunity ratio of Walmart is 1:1918.
As the saying goes, there are more monks than porridge, and the difference in the proportion of business opportunities between the two platforms is so large, because the number of sellers on both sides has a very large gap. Marketplace Pulse data shows that the number of Amazon's global sellers has exceeded 8 million, while Wal-Mart is only in the early 150,000 (data on June 5). With fewer competitors, there are naturally more opportunities for sellers.
Therefore, after Walmart lowered the entry barrier in March last year, many sellers seized the opportunity and rushed in. Among these sellers are many Amazon sellers. JungleScout's "2021 Amazon Seller Report" shows that among the eight e-commerce markets that Amazon sellers are interested in, Walmart ranks first.
Marketplace Pulse data shows that one month after Walmart lowered the threshold for Chinese sellers to enter , 6% of the new sellers came from China, and by the end of 2021, this proportion rose to 20%. The growth continued this year, reaching 40% in April, and even among the 1,000 new sellers added recently, 51% were from China, outpacing sellers from the US (46%).
It is worth mentioning that Walmart has only lowered the entry requirements, not set no thresholds at all, so even if it expands investment in India and China, the growth rate of new sellers is still limited, which means that sellers entering the track The competitive pressure will be much less.
Therefore, the sooner you enter the game, the greater the opportunity to seize the market.
Walmart opens a store to find Anying, enjoy powerful comprehensive resources , and issue orders faster
The editor learned that since 2016, Walmart has established a global official partnership with the cross-border payment platform Payoneer. Last year, Walmart launched its investment in China for the first time. The preferred official partner is Payoneer . The card recommends excellent sellers to settle in quickly .
Not only that, Walmart is also one of the partners of the Payoneer Olive Branch Program. In this program, Walmart has opened a green entry channel for Payoneer, and sellers who enter Walmart through the Payoneer green channel can enjoy the cold start of Walmart's special quota. The support plan allows sellers to achieve rapid incubation from 0 to 1. Payoneer also provides Walmart 's exclusive panoramic payment solution for the Walmart platform .
1. Panoramic payment: Walmart has four major needs: collection, supplier payment, logistics and warehousing payment, and priority and quick entry .
2. Provide global funding solutions for Walmart sellers .
3. Convenient fund planning and use methods to ensure that the use of global funds is more compliant and convenient. In addition to domestic instant RMB withdrawal and foreign currency original currency withdrawal, it can also be used to pay commercial payments in the original currency of suppliers and partners overseas, Hong Kong, Taiwan and other regions, making cross-border e-commerce business and general trade business more closely undertaken , smooth.
4. Payoneer has launched a growth-focused VIP value-added service – Global Access Club, which can customize global growth plans for customers through a caring industry expert service team.
5. Withdrawal supports currency upgrade , the exchange rate is transparent and competitive ; the balance or pay as you like can conveniently and directly pay advertising fees, platform fees, and platform advertising fees to /Facebook .
For new sellers who entered Walmart before the end of June , Pai Anying and Walmart jointly prepared four limited -time benefits:
First, Pai Anying enjoys 0 cash withdrawal fee for receiving money;
The second is to enjoy a 50% commission discount on the Walmart e-commerce platform ;
The third is to enjoy 90-day free warehousing of Walmart e-commerce WFS;
Fourth, Payoneer Xpress new users can enjoy up to 4.25% rebate support.
It is reported that as long as the new Walmart store opens from May 15th to June 30th, the above benefits can be obtained by opening Pai Anying to collect payments.
In fact, not only Walmart, Payoneer Olive Branch Program has cooperated with 30+ e – commerce platforms around the world , among which it is the exclusive global payment partner of 10 e-commerce platforms .
It is understood that the Payoneer Olive Branch plan has systematically commercialized the deep cooperative relationship between the e-commerce platform and Payoneer, providing a green entry channel for sellers to enter the platform. So far, thousands of sellers have completed the new platform entry.
In this plan, Pai Anying can help sellers to accurately match the platform and settle in quickly. At the same time, it can introduce and match the most scarce emerging platforms with high development potential for sellers to meet the needs of sellers' global e-commerce business growth.