Following the COVID-19 pandemic-fueled surge in online spending in 2020, Amazon has emerged as the world’s undisputed No. 1 e-commerce marketplace. That said, the playing field is beginning to level.
According to Digital Commerce 360’s 2023 Top 1000 Database – a comprehensive listing of leading online retailers based in North America ranked by annual web sales – hundreds of emerging e-commerce marketplaces are seeing unprecedented growth in the post-pandemic economy. One such marketplace is that of brick-and-mortar retail giant Walmart. Walmart’s e-commerce marketplace is seeing exponential growth as the platform continually improves its useability to attract new vendors.
Unfortunately, however, the growth of Walmart’s e-commerce platform is also due to attract grey market selling, unauthorized third-party (3P) selling, counterfeiting, and other threats to intellectual property (IP) and consumer safety.
The Rise of Walmart’s Marketplace
While Walmart opened its online marketplace to 3P sellers way back in 2009, the platform has seen an unprecedented surge of new vendors in 2023. According to Forbes, 3P sellers are shifting more and more of their advertising budgets to Walmart. In turn, they are sending more merchandise to Walmart to back up these advertising commitments.
Source: Marketplace Pulse
According to Marketplace Pulse research, Walmart’s marketplace has doubled in size in 18 months and reached 100,000 active sellers. In Digital Commerce 360’s Top 1000 list, Walmart found itself a distant No. 2 behind Amazon. Operating as a hybrid marketplace – selling goods directly from Walmart locations alongside products from 3P sellers – Walmart had 155,000 3P sellers in 2022 compared to Amazon’s 1.9 million. In 2022, 3P sales accounted for 27.5% of Walmart’s Gross Merchandise Value (GMV).
Walmart has a long way to go to catch up with Amazon, but the marketplace is making strides to narrow the gap by continually improving its platform and attracting new products. It is also building it’s brand protection initiatives by introducing tools like Walmart Brand Portal.
A major indicator of Walmart’s anticipated e-commerce growth came during its first-ever Seller Summit in August 2023. At the summit, Walmart launched its Brand Shops and Brand Shelves programs. Similar to Amazon’s A+ Content tool, Brand Shops are dedicated digital storefronts that allow brands and sellers to create product pages and listings that are optimised with engaging media. Brand Shelves can be created to feature curated product listings for a seasonal promotion or around a theme, category, or benefit.
A Look at the Walmart Brand Portal
As an increasing number of 3P sellers jump on board Walmart’s marketplace, it has become vitally important for brands to ensure their IP and consumers are protected. As covered in a previous GreyScout blog, Amazon’s Brand Registry offers sellers, even those without products listed on the platform, a defence against the misuse of IP such as logos, product images, video, and written content. Similarly, Walmart’s Brand Portal provides a mechanism for IP holders to submit infringement claims against sellers violating trademarks, patents, and copyrighted material.
Types of Claims Supported on Walmart Brand Portal:
As is the case with Amazon’s Brand Registry, the Walmart Brand Portal is open to all rights owners with registered trademarks, authorized third-party brand protection agencies (such as GreyScout), and authorized legal representatives. Through the portal, brands can submit and monitor claims, however, brands need to be aware of few things:
· The Walmart Brand Portal does not accept World Intellectual Property Organization (WIPO) or European Union Intellectual Property Office (EUIPO) trademarks. Only United States Patent and Trademark Office (USPTO) registered trademarks are accepted.
· The Walmart Brand Portal does not support unauthorized reseller claims. However, Walmart does encourage brands that to interact with sellers directly to resolve the matter. This is where brand protection platform’s like GreyScout can help to engage with unauthorized and unknown 3Ps at scale with automated verification notifications.
Cause for Concern
As reported by Business Insider, Amazon remains the most popular online retailer for gifts heading into the holiday shopping season with two-thirds of consumers in the United States saying they will utilize the site for their holiday shopping.
However, Walmart is making progress to keep up with Amazon, ranking No. 2 in JungleScout’s most recent Consumer Trends Report. Behind them in that ranking is Target, another brick-and-mortar giant looking to make a splash in the e-commerce space.
What does this mean for brands?
When it comes to brand protection, Amazon is not the only marketplace IP holders should be concerned with anymore. With the rise of emerging e-commerce giants like Walmart, the need for online businesses to implement brand protection processes is becoming increasingly vital. As new e-commerce platforms and technologies enter the industry, so do increased threats, particularly against IP and consumer safety.
The Bottom Line
While tools such as Walmart’s Brand Portal provide some level of protection, using the Brand Portal alone – against IP infringements, counterfeits, and unauthorized sales on the burgeoning Walmart marketplace is not the right approach.
This is why the implementation of online brand protection software such as GreyScout, which automates detection, verification and enforcement against suspected bad actors on e-commerce marketplaces like Amazon, Walmart, eBay and Google shopping is vital for eCommerce success for brands heading into 2024.
