Walmart Is Finally Capitalizing On Amazon And Temu's China Playbook

Core Insights - Walmart has significantly increased the onboarding of Chinese sellers to its online marketplace, with new Chinese sellers rising from 1.8% in April 2023 to 24% in October 2023, and projected to reach 73.8% by April 2024 [1][2]. Group 1: Walmart's Strategy - Walmart has shifted its policy to allow international sellers, particularly from China, to sell directly to U.S. customers, a move initiated in 2021 due to competition from Amazon and Chinese e-commerce platforms like Temu and Shein [2][3]. - The company has enhanced its engagement with Chinese sellers by launching a Chinese-language Seller Central dashboard and hosting a seller summit in Shenzhen [2][3]. Group 2: Market Dynamics - The rise of Chinese sellers on Walmart's platform reflects a broader trend in e-commerce, where major marketplaces are increasingly incorporating international sellers, particularly from China [3][4]. - Amazon's reliance on third-party vendors, many of which are based in China, is expected to surpass 66.8% of its online sales, while Walmart's third-party vendor sales account for about 11.3% of its total online revenue [4][5]. Group 3: Competitive Landscape - Temu, a Chinese-owned app, has rapidly gained popularity in the U.S. market, becoming the most downloaded app in 2023 and facilitating direct sales from Chinese vendors to American consumers [5][6]. - The Chinese government is actively supporting e-commerce sellers to expand their global presence, which may be a response to a softening consumer economy in China [6][7]. Group 4: Financial Performance - PDD Holdings, the parent company of Temu, reported record annual profits of over $8.4 billion in 2023, indicating strong financial performance and growth potential in the e-commerce sector [8].