Walmart’s eCommerce business is thriving, but e-commerce is the bottleneck
Wal-Mart has an e-Commerce business that’s booming, but its e-Business platform still hasn’t managed to take off.
Read moreThe company recently released a report detailing how its eCommerce platform is currently performing, and the findings are eye-opening.
Walmart’s e- Business platform, which is currently experiencing strong growth in terms of both revenue and number of orders, is also currently experiencing its second-biggest annual increase in total transactions, at over $2.2 billion.
In addition, Wal-Marts sales are up by more than 5% year over year and its online sales are now up by over 5% over last year.
Wal-Mart’s eBusiness platform has been built on a “single-store business model”, which means that it relies on one store to serve customers.
“We have a single-store solution that’s been in place for nearly two decades and it works, it has a good track record, it is supported by an awesome team and we are doing great,” said Steve Pincus, Walmart’s chief operating officer.
But that single-stores business model isn’t working out very well for Wal-mart’s online sales.
Last year, Walms online sales were down 9% year-over-year, but the company blamed the launch of Amazon.com and Google’s search engine for this, saying its search engine had “further eroded” the online sales growth it was already seeing.
It also blamed its shift to online delivery in 2015 for its sluggish online sales performance.
Despite Wal-marts struggles in online sales, it did make an impressive $2 billion in revenue in the past year.
That was largely due to its online store, which sold more than 20 million products during the quarter.
WalMart’s success in the online business has been the result of a few key factors, but one of those factors is the success of Amazon and Google search engine, according to Wal- Mart.
The company also had a solid year in the video and mobile commerce markets, with a revenue of $2 million for the quarter and $1.8 billion for the year.
But Wal-Mar has struggled in other areas, such as e-store sales.
In the first three months of 2016, Walmarts online sales dropped by nearly half a billion dollars, which was largely attributed to Amazon’s slow pace of growth.
The company’s online business saw a decrease of $1 billion in the quarter, and by the end of the year, it will see a $2-$3 billion decline.
Walmart did see a slight uptick in the number of transactions for the online store this year, but that didn’t match the year-on-year drop.
It will be interesting to see how Wal-mar’s online store business is performing this year.