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Wal-Mart's marketplace now features just six merchants: Wayfair, Plumstruck,
eBags, ProTeam, ToolKing and Shoebuy. Spokesman Dan Toporek said the world'
s largest retailer is trying to expand available products and it "is a key
component of that strategy to accelerate the growth."
Google may be the bigger threat. It already owns most of the necessary
pieces, such as product search, listings and a payment service -- it just
hasn't combined them yet.
It began testing a same-day delivery service with retailers in recent weeks,
sparking speculation it's building a marketplace. A spokeswoman said Google
is always working to improve the user experience, including shopping.
"If somebody comes in, a Google for instance, and says you can list with us
and we will give you wide exposure at much lower cost, that would be a
problem for Amazon," said Scott Tilghman, an analyst at B Riley Caris.
Consumers want selection, bargains and fast shipping, which all cost money.
Getting sellers to cover those expenses could drive them elsewhere. Yet if
marketplace operators cover such costs, their profits suffer and
shareholders grumble.
"There's always a trade-off," said Ken Sena, an analyst at Evercore Partners
. "There's always that risk that sellers could defect." |
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