Walmart says its third-party sellers enjoyed record sales as the holiday shopping season began.
The company’s Marketplace saw its highest-ever sales day and also set a single-day conversion rate record during the period between Nov. 25–Dec. 2, or Cyber Monday, Walmart announced Tuesday (Dec. 3).
Walmart says this record comes as the company’s eCommerce business is experiencing substantial growth. During its most recent quarter, that side of the business grew 22%, with Walmart Marketplace sales increasing 43%, marking the fifth quarter in a row with more than 30% sales growth.
In addition, the company says the Marketplace is also gaining more high-income shoppers. During its last quarter, around 75% of the company’s market share gains came from households earning upwards of $100,000 annually.
“These gains create exciting opportunities for premium brands and categories on our Marketplace because higher-income customers are showing a higher propensity to spend on both discretionary and grocery purchases,” the company said.
Management noted as much during Walmart’s last earnings call, telling analysts that one of the drivers of growth has been the blurring of the line between digital and physical channels.
“In an omni world, we have an opportunity with brands, we have an opportunity with presentation to increase the amount of market share we have in some of those categories,” CEO Doug McMillon said. “And that eCommerce opportunity is kind of bearing out as we grow our assortment. We’re able to appeal to more people and appeal to a higher income level.”
Meanwhile, Walmart rival Amazon announced Tuesday that it too had seen record sales — and sold a record number of items — during the Black Friday week/Cyber Monday period.
And as with Walmart, it was a record week for Amazon’s third-party sellers, with these merchants making up more than 60% of sales between Nov. 21 and Dec. 2.
These records are happening as Cyber Monday continues to surpass Black Friday in terms of sales, as PYMNTS wrote earlier this week, with sales that day beating Black Friday sales in 2021, 2022, and 2023.
“In 2023, Cyber Monday flexed its digital muscles with $12.4 billion in sales, outpacing Black Friday by $2.6 billion. That’s like finding an extra billion in the retail industry’s couch cushions — three times over,” that report said.
“As we look to the future, one thing is clear: Cyber Monday isn’t going anywhere. Projections for 2024 suggest we’ll see a staggering $13.2 billion in sales.”
In fact, the figure turned out to be a bit higher, Adobe Analytics reported Tuesday, coming in at $13.3 billion, compared to $10.8 billion for Black Friday.
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