Walmart Acquiring Shopify Seems a Great Idea
The intense competition between Walmart and Amazon is leaving both the companies explore new way to combat each other. The recent acquisition of Shopify by Walmart is being looked as a step towards getting resistance against this competition. But why Walmart choose Shopify is a big question which seems doubtful as one is the marketplace while other is the e-commerce platform. But there are reasons why this deal can help Walmart go ahead and develop high resistance to its competition against industry giants.
By acquiring Shopify, Walmart is giving access to a number of sellers who can create their own ecommerce platforms to sell the products. While Walmart’s own platform offers a stringent entry process to the sellers, the easy access to Shopify will ultimately increase the number of sellers on its platform. This way, the sellers who are moving away from Walmart will at least enter into Shopify which ultimately will fall in the bag of Walmart only.
More about Shopify
Shopify provides eCommerce platform for big and small enterprises where they can sell their products online without any technical glitches. Its basic version is available for as low as $29 per month that helps the start-ups set their business online. Its higher version Shopify Plus is the choice of big enterprises and Wholesalers and as much as 3600 merchants are also in their high -level version. This portal has seen a growth of more than 100% ever year with a total of more than 600,000 merchants on its platform.
Walmart Makes Moves to Compete with Amazon
Walmart has been investing huge to compete with its rival Amazon. It is recently pushing thrust on grocery and technology sector. Though it acquired more than 77% stake in FlipKart, the popularity of Amazon Prime seems invincible. Its move to acquire Shopify can help it go ahead in other path where it can counter the other industry giants more effectively. This acquisition also gives Walmart a space to perform which was once a choice of Amazon which it thought about but quit at the end.