Walmart announced that it is partnering with Shopify to deliver products from over a million business customers.
About Shopify new partnership with Walmart: Shopify, the Canadian e-commerce company, is moving to dismantle Amazon.
This week, Walmart announced a new partnership with Shopify to deliver products from over a million business customers. It comes just a month after a deal was announced between the Ottawa-based site and the Facebook market.
Shopify growing internet e-commerce partnership with Walmart is now in a strong position to challenge Amazon’s monopoly position.
New Shopify partnership with Walmart
Shopify is an online e-commerce platform that allows about 1 million merchants to reach their customers. But CEO Harley Finkelstein is keen to differentiate his company from Amazon. Unlike Amazon, Shopify is not a “market,” but rather a “way for consumers to interact with their favourite brands, not just new local businesses,” Finkelstein notes.
Like Amazon, there is no shopfront of products for brands that use their site. When a consumer buys an item, the individual merchant must process the transaction and send the product to them.
Shopify has already made its debut in 2019 in the U.S. Accounted for the second-largest share of retail sales. But its new partnership with Walmart has great competition with Amazon. Walmart’s e-commerce site already has 120 million visitors each month. That means Shopify merchants will reach a large community of existing shoppers.
“Over the years, building an eCommerce marketplace of customers’ trust has been a top priority for our business, ”Walmart vice president Jeff Clements said in a statement. He noted that the partnership with Shopify is mutually beneficial, and that “Shopify allows vendors to list their products seamlessly on Walmart.com, giving Walmart customers access to a wider assortment.”
Shopify on top
It was a great season for Shopify, despite the epidemic. In May, Facebook announced it was partnering with the site for a new online shopping feature called Facebook Shops. Announcing the partnership, Shopify CEO Tobias Lutke said: “We are reducing the barriers to entrepreneurship and improving the future of the business.”
That statement could not be more true. Shopify has quickly changed with the coronavirus epidemic, and the new retail landscape it has created. Along with a tipping feature for restaurant orders and curbside pickups, Shopify responded quickly to the need for contactless contacts.
It was also quick to expand its financial business, Shopify Capital, to merchants now available in the UK and Canada.
Shopify’s user base is growing faster than ever before. The height of the COVID-19 shutdowns from March 13 to April 24 the increased the volume of new merchants on-site compared to the previous six weeks.
Despite the financial scandal in most retail businesses, Shopify’s stock is up nearly 150% from 3 months ago. With two strong partnerships in the bag and a display of brilliant business manoeuvring, 2020 could be the year of Shopify.