The growth rate is 5 times that of Amazon, the second growth curve of Shenzhen's best seller, easily exceeding 100 million yuan in revenue

After experiencing last year’s Amazon account ban wave, a multi-platform layout has clearly become a consensus among many cross-border e-commerce sellers. In this process, another retail giant, Walmart, has become the first choice for many sellers.

Although Walmart developed e-commerce later than Amazon, it has emerged as 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 was far lower than Amazon's, Walmart's online business was growing rapidly .   That’s more than five times as much as Amazon.

Before March last year , Walmart’s entry threshold was very high, so there were not many Chinese sellers on the platform. Therefore, for new sellers who are now planning to enter, there are still many opportunities on this platform.

Walmart stores generate 100 million yuan in annual revenue, and big sellers are making their mark here

In fact, Walmart is also one of the important overseas channels for many big sellers, and some companies that have made early arrangements have achieved good results and their performance continues to grow.

SDIC , which is currently in the process of going public, is one of the big sellers that has been early in developing this channel. Its latest prospectus shows that its business with 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 . Looking at 2021 alone , the average annual revenue of each store was about 4.48 million yuan, and the monthly revenue was about 370,000 yuan.

According to the earliest data available, Suntech Power had already started to expand into Walmart in 2018, when its annual revenue was 76.06 million yuan.

For cross-border e-commerce sellers, huge revenue does not mean making money, but Savi Technology's gross profit margin performance on Walmart has always been excellent, exceeding 54% from 2018 to 2021, with the highest in 2018, reaching 62.41%.

Not only that, judging from the data of the past four years, the average customer price of Savi Technology's products is not low, but its repurchase rate is good. Taking 2021 as an example, the average customer price was 474.58 yuan and the repurchase rate was 6.98%.

In addition to Saiwei Technology, Youkeshu is another big seller that has been deployed on Walmart earlier, and after experiencing the Amazon account suspension storm, it has also increased its layout on Walmart. From the announcement of its parent company Tianze Information’s reply to the Shenzhen Stock Exchange’s annual report inquiry letter, it can be known that in 2021, Walmart entered the top five operating platforms of Youkeshu, ranking fifth with a revenue of 63.32 million yuan . Although it only accounted for 3.99% of the total revenue , it squeezed out eBay and Shopify compared with the previous year. On the other hand, its revenue on Amazon has dropped significantly, from 1.525 billion yuan in 2020 to 521 million yuan in 2021.

As big sellers gradually increase their efforts to expand their presence, some small and medium-sized sellers have also started their own Walmart sales journey under the dual effects of Walmart lowering the entry threshold and Amazon’s account ban wave. According to the feedback results so far, some sellers have already got on track:

Amazon Wuye, who is very good at placing orders, said that he only does boutique shopping at Walmart. Currently, 20 products have arrived at the WFS warehouse. He has no advertisements. The sales in May were about 500 US dollars. He said he would strive to achieve 1,000 US dollars in July. Another seller who sells high-priced products said that he has achieved sales of 20,000 US dollars in just half a month after switching from Amazon to Walmart. Another seller believes that his Walmart store performed well in the first month, with 4 SKUs and monthly sales of 1,000 US dollars.

The growth rate is 5 times that of Amazon, a new blue ocean channel for overseas expansion

Behind the sellers' rush to make their moves is Walmart's gradually emerging development potential.

In recent years, Walmart's e-commerce business has maintained a relatively rapid growth, especially after the outbreak of the COVID-19 pandemic, which gave it another opportunity to burst 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 from JungleScout shows that by the end of 2021, although Walmart's revenue in the global e-commerce market is far lower than that of Amazon, 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 expand overseas, and it will also be their "second growth curve."

Amazon's unicorn status in the cross-border e-commerce field is still unshakable, so many sellers will regard it as the preferred channel for going overseas, which has also led to an increasingly crowded and competitive track. On the other hand, the competition density of sellers at Walmart is much lower.

Relevant data shows that the potential business opportunities for third-party sellers on Amazon are 1:48 (that is, one merchant may have the opportunity to face 48 consumers and make a deal), while the business opportunity ratio for Walmart is 1:1918.

As the saying goes, there are too many monks and too little porridge. The reason why the business opportunity ratio of the two platforms is so different is that the number of sellers on both platforms is very different. Marketplace Pulse data shows that the number of Amazon sellers worldwide has exceeded 8 million, while Walmart has only a little over 150,000 (data as of June 5). With fewer competitors, sellers naturally have more opportunities.

Therefore, after Walmart lowered the entry threshold 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 Walmart ranks first in the ranking of the eight major e-commerce markets that Amazon sellers are interested in.

Marketplace Pulse data shows that one month after Walmart lowered the entry threshold for Chinese sellers , 6% of new sellers were from China, and this proportion rose to 20% by the end of 2021. It continued to grow this year, reaching 40% in April, and even among the 1,000 new sellers added recently, 51% were from China, exceeding sellers from the United States (46%).

It is worth mentioning that Walmart has only lowered the entry requirements, not completely eliminated the threshold. Therefore, even if it is now expanding its investment in India and China, the growth rate of new sellers is still limited, which means that the competitive pressure faced by sellers entering the track will be much smaller.

Therefore, the earlier you enter the market, the greater your chances of seizing the market.

Choose Payoneer when opening a Walmart store, enjoy powerful comprehensive resources and place orders faster

The editor learned that Walmart has established a global official partnership with the cross-border payment platform Payoneer since 2016. Last year, when Walmart first recruited investors in China, Payoneer was also its preferred official partner , with excellent sellers recommended by P cards to quickly settle in .

In addition, Walmart is also one of the partners of Payoneer's Olive Branch Program. In this program, Walmart has opened a green entry channel for Payoneer. Sellers who enter Walmart through Payoneer's green channel can enjoy Walmart's special cold start support plan, allowing sellers to achieve "quick launch from 0 to 1" and quickly incubate and start. Payoneer also provides Walmart 's exclusive panoramic payment solution for the Walmart platform .

Include:

1. Panoramic payment: Walmart payment collection, supplier payment, logistics warehousing payment, priority and fast entry into the four major needs .

2. Provide global funding solutions for Walmart sellers.

3. Convenient fund planning and use methods ensure that global fund use is more compliant, convenient and fast. In addition to instant RMB withdrawals and foreign currency withdrawals in the country, it can also be used to pay commercial payments in the original currency of suppliers and partners in overseas and Hong Kong, Taiwan and other regions, making cross-border e-commerce business and general trade business more closely and smoothly.

4. Payoneer launched a VIP value - added service focused on growth - Global Access Club, which customizes global growth plans for customers through a caring team of industry experts.

5. The currencies supported for withdrawals have been upgraded, and the exchange rates are transparent and competitive. The balance or payment can be used to conveniently pay advertising fees, platform fees, and platform advertising fees directly to Google/Facebook .

For new sellers who join Walmart before the end of June , Payoneer and Walmart have jointly prepared four limited -time benefits:

First, Payanying receives payment with 0 withdrawal fee;

Second, enjoy a 50% commission discount on Walmart’s e-commerce platform;

Third, enjoy 90 days of free storage from Walmart e-commerce WFS;

Fourth, new Payoneer users can enjoy up to 4.25% rebate support.

It is reported that as long as you open a new Walmart store and activate Payoneer payment at the same time between May 15th and June 30th, you can enjoy the above benefits.

In fact, not only Walmart, the Payoneer Olive Branch Program has cooperated with more than 30 e -commerce platforms around the world, and it is the global exclusive payment partner of 10 e-commerce platforms.

It is understood that Payoneer's Olive Branch Plan has systematically productized the deep cooperative relationship between the e-commerce platform and Payoneer, providing a green entry channel for sellers to enter the platform. It has currently completed the entry of thousands of sellers into the new platform.

In this plan, Payoneer can help sellers accurately match platforms and quickly settle in. At the same time, it can select, introduce and match the most scarce and highly potential emerging platforms for sellers to meet the needs of sellers for global e-commerce business growth.

If you also want to join Walmart, or are interested in Walmart, please scan the QR code in the picture below , or click: https://www.huodongxing.com/event/4653966211400 .

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