Wal-Mart Pushes to Sell Online Goods at $10-And-Up

Wal-Mart Inc. is planning to sell more stuff worth more than $10 on its website, as the world’s largest retailer is pushing to turn a profit in its online business.

Walmart Logo with Yellow Lights
Walmart to sell online goods worth more than $10.

According to reports, the push has left Wal-Mart leaning on its vendors to supply it with more merchandise priced at or more than $10.

The new emphasis on more expensive goods at Walmart.com comes after the company acquired Jet.com in 2016 and it is now investing billions of dollars to make its online business more competitive.

The new focus at the retailer is on dry grocery products like sauces, soaps, and general merchandise items like toys and home furnishings, the sources said.

The increase is to account for the fact that selling digitally is more expensive, since delivery is a banked-in part of the retailer’s costs.

Last week, Wal-Mart held a meeting with its suppliers including Procter & Gamble Co, Unilever PLC, Kimberly-Clark Corp, and Clorox Co.

Marc Lore, e-commerce chief of Wal-Mart, stated in the meeting that the company wants to focus on merchandise priced at least $5, and preferably more than that.

“Wal-Mart has started to understand it cannot make money if they offer the lowest prices online on every item and then spend $4 or $5 trying to ship it over,” stated on of the supplier. “It is not sustainable and more importantly their shareholders won’t allow it.”

Meanwhile, the move is a change in direction for the retailer, which has been pushing its suppliers for ever-lower prices to make it easier to drive down costs for both online and in-stores, according to reports. Nevertheless, the retailer will continue to press for bargain-priced items to sell at its 4,700 stores.

“We are constantly looking for opportunities to expand our assortment with new items, and want to ensure that the items we add to the assortment are a great value but also make economic sense for the channel,” a spokesperson of Wal-Mart stated.

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Wal-Mart Pushes to Sell Online Goods at $10-And-Up Wal-Mart Pushes to Sell Online Goods at $10-And-Up Reviewed by Trade12 Reviews on 5:39 AM Rating: 5

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