Sears, Walmart Get Into eBay-Style Business
Sears and Walmart want to help other retailers sell big.
Both retail giants recently took a gamble on the online-marketplace business pioneered by Amazon and eBay. On online markets Walmart Marketplace and Sears Market, third-party retailers sell anything from apparel to toys, collectibles, and garden and wellness products on the mass merchandisers’ Web sites.
Walmart Marketplace debuted in August. Participating in the program are e-retailers including Boston-based CSN Stores, Denver-based online luggage-store eBags and sports-collectible store ProTeam. Participating retailers will have their products sold on Walmart.com. On the Web pages, their products will be distinguished with the banners “Sold by Marketplace Retailer.”
According to Walmart Marketplace Chief Marketing Officer Kerry Cooper, the new marketplace will be a consumer magnet to Walmart.com.
“Working with select retailers, known for their strong customer service and large online assortments of new merchandise, gives our customer more reasons to choose Walmart.com when shopping online,” Cooper said.
While the third-party retailers will be able to use Walmart.com’s checkout system, the retailers will be responsible for their own shipping and customer service. The companies currently participating on Walmart Marketplace were chosen because they can handle mass shipping and customer service.
Vendors on Sears Market are charged on a cost-per-click basis or a flat fee when a customer visits the retailer’s Web site. The cost-per-click for a workwear and uniforms site is $0.30. The cost for jewelry is $0.55.
Another alternative is the “fulfilled by merchant” option. The merchant sells through Sears’ checkout system and then invoices Sears. The retail giant charges a monthly fee of $39.99 to participate in its market. It also asks for a commission on sales. For example, Sears charges a 15 percent commission for workwear and uniforms, according to the Web site.
Other retailers have been jumping into the business of online marketplaces. Boston-based e-commerce boutique Karmaloop debuted Karmaswap in August. It’s an eBay market for the streetwear-focused boutique, said Karmaloop founder Greg Selkoe.
Selkoe said he started Karmaswap because many of his customers were collectors who were already selling on eBay. He saw a need to give them a well-trafficked Web site filled with like-minded customers. He saw another opportunity, too. “A lot of people are broke. They have stuff, and they need to sell it,” Selkoe said. “But when they sell, they can buy more on Karmaloop.”—Andrew Asch
