Walmart Inc is entering online Commerce with news of a partnership agreement with the Canadian online marketplace, Shopify Inc. The deal is driven by the company's desire to enter the online commerce market.
Shopify shares have doubled in value this year. Now it is one of the most valuable Canadian online companies. On Monday, the share price jumped by 7%, now the price has fallen slightly.
Online retail sales rose sharply after the COVID-19 pandemic. This happened because people were forced to stay at home and order things over the Internet.
The Walmart, an Arkansas-based company, reported planning to add 1,200 Shopify sellers to its market this year. The partnership will mainly affect small and medium-sized businesses in the United States. Their placement is planned on the main marketplace Walmart.com.
A month ago, Walmart reported a 74% increase in quarterly e-Commerce sales. The company also announced the end of its partnership with the platform Jet.com. This platform was purchased for $ 3.3 billion in 2016.
However, Walmart's share price (WMT) did not respond to the partnership statement.
Shopify account holders will be able to merge their accounts with Walmart's ones. This will allow them to place their products directly into the cart on Walmart.com.
Growing our Marketplace is a strategic priority, and we are going to be smart as we grow. Jeff Clementz, Vice President, Walmart Marketplace