Walmart.com appears to be have made a big change in how it handles marketplace listings, getting more like eCommerce giant Amazon in the process.
Until recently Walmart’s core site and the Walmart marketplace were treated as separate entities when it came to fulfilment. If an item went out of stock on walmart.com it was either listed as not available on the online retailer’s website or the item page was voided. There was no mention of substitute items from third party Walmart Marketplace sellers, as you would get on Amazon.
This is no longer the case. We are now observing that when an item is out of stock on the core site, the “buy box” is moving to a marketplace seller as long as a matching item with matching UPC is available.
This switch to an Amazon type model is a major shift for Walmart as until now marketplace listings have stood on their own. And it has significant implications for CPG manufacturers.
There is potential for confusion as third party sellers now fulfil off the main page. Will a shopper fully comprehend who they’re actually buying from? What are the product quality expectations as the lines blur on who is actually fulfilling the purchase? Ironically, all the hard work a brand may put in to optimize and enhance its content on the Walmart page will now support the 3rd party seller with the same item UPC until the product is back in stock.
For CPG manufacturers it is critical to monitor this change as the risks are large, in particular the impact the presence of third-party sellers in the ‘buy box’ could have on pricing, as well keeping track of who is actually selling your products.
The dynamic of the online space means that price fluctuates more frequently than in physical stores. Through the power of mobile technology price is now completely transparent to consumers where ever they are – in the aisle or online. As a result, marketplaces act like stock markets where price is determined by supply and demand.
The significance of this latest move by Walmart means that it will be more difficult for suppliers to match supply and demand in order to manage their pricing strategies in the online space. See the Clavis Insight white paper “Adapting Your Category Management Capability for the Fast Growing Online Channel,” for more information on managing the eCommerce channel.
No longer is it enough to track out of stock and voids. Brands will now also need to monitor third party sellers within the Walmart environment. Clavis Insight’s enhanced capabilities focused against analyzing the “Lost Buy Box” can help CPG manufacturers address critical questions around third party sellers.
To find out more about our enhanced Availability and Placement tracking and insights around the 'Buy Box' contact info@clavisinsight.cominfo@clavisinsight.com.
