June 15, 2020 / 12:18 PM / 19 days ago

Walmart partners with Shopify to expand online marketplace business

FILE PHOTO: Walmart shopping carts are seen on the parking lot ahead of the Thanksgiving holiday in Chicago, Illinois, U.S. November 27, 2019. REUTERS/Kamil Krzaczynski

(Reuters) - Walmart Inc (WMT.N) has partnered with Canadian e-commerce firm Shopify Inc (SHOP.TO) (SHOP.N), as the world’s biggest brick-and-mortar retailer ramps up its efforts to capture a bigger slice of the coronavirus-driven surge in online shopping.

U.S.- and TSX-listed shares of Shopify, which have doubled in value this year and briefly made the company the most valuable Canadian company in May, were up about 7% in morning trading on Monday.

Online sales at retailers, from cosmetics makers to pizza chains, have boomed in the wake of the COVID-19 pandemic, which has forced customers to stay indoors.

Bentonville, Arkansas-based Walmart said it expected to add 1,200 Shopify sellers to its marketplace this year and that the partnership was focused on adding small- and medium-sized U.S. businesses to its platform, Walmart.com. (bit.ly/2YvxHOg)

Last month, Walmart reported a 74% surge in quarterly e-commerce sales and discontinued operations at e-commerce start-up Jet.com, which it had acquired for $3.3 billion in 2016.

Shopify said the merchants would be able to connect their accounts to their Walmart seller accounts, before they could list their products separately on Walmart's website. (bit.ly/2AsYF19)

“Walmart is the 3rd biggest marketplace in the U.S. behind Amazon and Ebay, both of whom are already channel partners for Shopify, so this partnership is a natural next step and frankly, a long awaited one,” Eight Capital analyst Suthan Sukumar said.

Shopify has announced similar partnerships with Facebook (FB.O) and Pinterest (PINS.N) in recent weeks.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Aditya Soni and Subhranshu Sahu

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below