Walmart's order conversion rate has skyrocketed, but the number of visitors has dropped!

Walmart's e-commerce platform saw a slowdown in U.S. visit data, with year-on-year growth of only 23% in the first quarter of this year, a far cry from the 47% in the last quarter of last year.

In fact, compared with last year's overall traffic, Walmart's traffic is still on the rise, but it is a slowing trend among many platforms. Since March last year, the isolation caused by the epidemic has greatly promoted the development of e-commerce, but it is undeniable that website traffic has begun to decrease. The number of independent visitors this year has decreased by 23% compared to Q4 . However, in this case, Amazon still has no slowing trend. In the first quarter, global visits still increased by 12% and there is no sign of abating.

Under the current situation of slowing growth, what is surprising to many sellers is that the conversion rate is still increasing. The conversion rate of the entire Walmart platform has reached a record level, and is even close to the conversion rate of the Amazon platform. Amazon's conversion rate is generally maintained at 7.5%~9.5% . The reason for such a high conversion rate is that Amazon maintains a leading position in all product categories. It is the world's largest e-commerce platform and has the highest reputation in the e-commerce industry.

In the past, Walmart's conversion rate was only 5%, or even less than that, but surprisingly, in the first quarter of this year, it has reached a conversion rate of 7.5%, which is unprecedentedly high. If you have to make a comparison, it can be said that it is very close to Amazon's conversion rate. Since the outbreak of the epidemic, both Amazon and Walmart have achieved strong growth, especially Walmart's e-commerce sales, which increased by 76% in 2020 compared with 2019, and Amazon increased by 44%. Although the total sales of the two platforms are very different, Walmart's online platform had an annual sales volume of 53 billion US dollars last year, while Amazon reached 318 billion US dollars. Judging from this data, Walmart is not as good as Amazon, but if the growth rate continues, it may really be possible for Walmart to completely replace Amazon within 5 years.

It is not difficult to see that Walmart is now becoming more concrete. Whether it is logistics or platform backend, a unique model of Walmart has begun to form. If the previous Walmart was imitating Amazon, then the current Walmart e-commerce platform can be regarded as a unique one.

We currently know that Walmart sellers who have entered the big sellers have the following characteristics:

1. Own-brand business model (72%), with at least 10 active product listings (29% sell 100+ products);

2. Three years or more of e-commerce sales experience (accounting for 60%);

3. Profit margin exceeds 15% (accounting for 60%);

4. Sales exceeding $100,000 (59%).

It can be seen that all buyers on the Walmart platform are very sticky. Although the number of sellers is very small at present, this also means that sellers can get more click traffic. This is why the registration on the Walmart platform is reviewed very strictly. Its main purpose is to make the buyers of the entire platform sticky. This is also the reform of the Walmart platform from the beginning.

According to Walmart officials, each Walmart seller has about 27,000 visitors per month, while Amazon sellers have only 2,100 visitors per month . In other words, since the Walmart platform is not yet so saturated, Walmart sellers have 13 times the monthly visits of Amazon sellers. Referring to the above content, you should be able to feel whether you are suitable for this platform before entering the Walmart platform. The official has the mentality of "better to have nothing than to have something of poor quality" and would rather give the best resources to the most advantageous sellers than to recruit investors on a large scale.