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With each eCommerce seller trying to capture the market, Walmart is upping the game on the subscription service with Walmart+. While the program was debuted in September 2020 amidst the Covid outbreak where customers were avoiding the stores visit, currently Walmart is trying to use the subscription service to increase the eCommerce growth rate. Subscription services by Walmart includes such as Free shipping for online purchases, free deliveries from the store and gas discounts. In this current challenging environment, Walmart plans to make the subscription service to be attracted by the eCommerce buyers who are more tech- savvy in comparison to typical Walmart shopper.
Noticeable point: This insight reveals that Walmart shopper demographic is improving towards on boarding a new customer segment who was not previously on their eCommerce customer base. As an eCommerce seller now, you can consider introducing more relevant SKU’s to suit these demographics compared to earlier times.
Walmart as a company is predicted to be winning this season. One analyst mentioned that the company “has a lot of tools at its disposal to gain more wallets here, like Walmart Plus can be aggressive on price,” UBS US Hardline & Broadline and Food Retail Analyst Michael Lasser told Yahoo Finance Live (video above). “It’s got a lot of inventory. And so, I think Walmart is positioned to win over the holiday season.”
Walmart needs to flesh out the subscription program with more perks to convince consumers to sign up, experts say. It should leverage its vast brick-and-mortar network to bring consumers into stores before the holidays, enhance current deals and add new services such as media content, experts say. Walmart has indicated that it plans to add new benefits to the service but did not return inquiries to S&P Global Market Intelligence about those additions.
Walmart is no stranger to loyalty initiatives, having experimented with its now-defunct membership-based personal shopping service Jetblack and a grocery delivery membership program that has essentially been rebranded as Walmart+. Walmart also offers memberships through its Sam’s Club unit. But Walmart+ appears to target a broader audience of consumers, which makes it even more critical that it woo enough consumers to sign up.
For example, Walmart could offer a “doorbuster” deal of sorts before the holidays to drive consumers into its approximately 11,500 stores, Lipsman said. “It leverages the fact that they have stores that Amazon doesn’t,” he said. “That’s something that would give it a bit of differentiation going into the holiday season.”
Walmart+ could also offer special deals on products exclusive to Walmart. “All of the sudden, Walmart could have a marketplace that is fueled by a lot of brands that aren’t on Amazon,” Lipsman said.
Amazon’s Prime program has amassed more than 150 million paying members, up from 95 million in June 2018, according to Statista. Amazon’s net sales from subscription services that include revenue from Prime rose to $19.21 billion in 2019 from $6.39 billion in 2016. Net sales from subscription services reached $11.57 billion in the first half of 2020, compared to $9.02 billion in the first half of 2019.
It is certainly possible that Amazon and Costco members may decide to add the Walmart+ program to their budget if it can provide a high enough value for their money, experts say. That decision will come down to an individual’s specific needs, not cost alone.
“A lot of people have Amazon and Costco already, so there’s precedent for having multiple membership programs,” said Lipsman, of eMarketer.
“Walmart to me sits somewhat in the middle of those two, especially given the gas benefit, which is a big one. A $100 membership spread out over thousands of dollars of purchases may be a very good value.”
Kodali, of Forrester, concurred, adding that Walmart’s program may provide additional benefits for households that spend on items offered through the program anyway. “Honestly, this is no different than the 15 credit cards that people have with all the points and the bonuses,” she said.
We at nFinance provide invoice financing so that you can buy goods from your suppliers more quickly and expand your business smoothly. Instead of waiting 14 days for Amazon to pay you, nFinance pays up to 70% of the gross invoice value, starting from the date of sale on your Amazon marketplace.
Best news is we are not limited to Amazon, we also support Walmart, The Home Depot, Wayfair, Macy’s Houzz too. Get funded with invoice factoring from nFinance. As an e-Commerce Seller you get paid faster for you invoices.
For registrations, write to info[at]nfinance.io
With each eCommerce seller trying to capture the market, Walmart is upping the game on the subscription service with Walmart+. While the program was debuted in September 2020 amidst the Covid outbreak where customers were avoiding the stores visit, currently Walmart is trying to use the subscription service to increase the eCommerce growth rate. Subscription services by Walmart includes such as Free shipping for online purchases, free deliveries from the store and gas discounts. In this current challenging environment, Walmart plans to make the subscription service to be attracted by the eCommerce buyers who are more tech- savvy in comparison to typical Walmart shopper.
Noticeable point: This insight reveals that Walmart shopper demographic is improving towards onboarding a new customer segment who was not previously on their eCommerce customer base. As an eCommerce seller now, you can consider introducing more relevant SKU’s to suit these demographics compared to earlier times.
Walmart as a company is predicted to be winning this season. One analyst mentioned that the company “has a lot of tools at its disposal to gain more wallets here, like Walmart Plus can be aggressive on price,” UBS US Hardline & Broadline and Food Retail Analyst Michael Lasser told Yahoo Finance Live (video above). “It’s got a lot of inventory. And so, I think Walmart is positioned to win over the holiday season.”
Walmart needs to flesh out the subscription program with more perks to convince consumers to sign up, experts say. It should leverage its vast brick-and-mortar network to bring consumers into stores before the holidays, enhance current deals and add new services such as media content, experts say. Walmart has indicated that it plans to add new benefits to the service but did not return inquiries to S&P Global Market Intelligence about those additions.
Walmart is no stranger to loyalty initiatives, having experimented with its now-defunct membership-based personal shopping service Jetblack and a grocery delivery membership program that has essentially been rebranded as Walmart+. Walmart also offers memberships through its Sam’s Club unit. But Walmart+ appears to target a broader audience of consumers, which makes it even more critical that it woo enough consumers to sign up.
For example, Walmart could offer a “doorbuster” deal of sorts before the holidays to drive consumers into its approximately 11,500 stores, Lipsman said. “It leverages the fact that they have stores that Amazon doesn’t,” he said. “That’s something that would give it a bit of differentiation going into the holiday season.”
Walmart+ could also offer special deals on products exclusive to Walmart. “All of the sudden, Walmart could have a marketplace that is fueled by a lot of brands that aren’t on Amazon,” Lipsman said.
Amazon’s Prime program has amassed more than 150 million paying members, up from 95 million in June 2018, according to Statista. Amazon’s net sales from subscription services that include revenue from Prime rose to $19.21 billion in 2019 from $6.39 billion in 2016. Net sales from subscription services reached $11.57 billion in the first half of 2020, compared to $9.02 billion in the first half of 2019.
It is certainly possible that Amazon and Costco members may decide to add the Walmart+ program to their budget if it can provide a high enough value for their money, experts say. That decision will come down to an individual’s specific needs, not cost alone.
“A lot of people have Amazon and Costco already, so there’s precedent for having multiple membership programs,” said Lipsman, of eMarketer.
“Walmart to me sits somewhat in the middle of those two, especially given the gas benefit, which is a big one. A $100 membership spread out over thousands of dollars of purchases may be a very good value.”
Kodali, of Forrester, concurred, adding that Walmart’s program may provide additional benefits for households that spend on items offered through the program anyway. “Honestly, this is no different than the 15 credit cards that people have with all the points and the bonuses,” she said.
We at nFinance provide invoice financing so that you can buy goods from your suppliers more quickly and expand your business smoothly. Instead of waiting 14 days for Amazon to pay you, nFinance pays up to 70% of the gross invoice value, starting from the date of sale on your Amazon marketplace.
Best news is we are not limited to Amazon, we also support Walmart, The Home Depot, Wayfair, Macy’s Houzz too. Get funded with invoice factoring from nFinance. As an e-Commerce Seller you get paid faster for you invoices.
For registrations, write to info[at]nfinance.io
