What Do Sellers Do in the Battle of the Marketplaces?

Nearly a year after Walmart purchased Jet.com to up its eCommerce game, the battle of the marketplaces has heated up.

But how will sellers deal with this clash of the Titans?

First, some may defect from Amazon to the relatively less populated Walmart Marketplace. As Bloomberg has noted, sellers already do this. The theory goes that they don’t want to compete in a mature marketplace with two million other sellers. They see Walmart the way they saw Amazon ten years ago. Walmart is virgin-territory with the potential for sellers to stand out in a smaller crowd.

So, some businesses leave. Consequently, Amazon held a meet-and-greet with 1,500 sellers at the end of June, to keep them from jumping ship, the way Bloomberg reports it.

Secondly, some businesses will sell through both marketplaces. Even an example Bloomberg gave of an Amazon defector did not actually defect, but opened a separate Walmart channel last year after nearly a decade on Amazon. That business continues to operate in both marketplaces.

Lastly, some businesses may have to decide which marketplace is more suited to their brand. Providers of high-end products may shy away from Walmart’s long term reputation for retailing discount items. On the other hand, Walmart appears more selective about their sellers, requiring sellers to apply for an invitation to sell. Amazon, meanwhile, is much more ecumenical, providing a marketplace for a mix of arbitrage sellers, aspirational startups, and established brands.

Behind the Scenes in the Battle of the Marketplaces

A lot of the battle of the marketplaces between these corporate giants has little to do with sellers or customers. Walmart clearly had its work cut out to balance eCommerce with its established chain of 4,000+ physical stores across North America.

The pressure to compete appears to have made Walmart a little pushy, behind the scenes. According to DC Velocity, Walmart gave its for-hire truckers a choice. They could haul for Walmart, or they could haul for Amazon. But not both.

Similarly, according to multiple sources, Walmart has told its technology suppliers to stop running applications on Amazon Web Services. A spokesman asserted Walmart did not want its sensitive data to run on a competitor’s platform.