Walmart’s e-commerce business has become a key growth engine, now representing about 20% of revenue, driving double-digit online gains even as in-store comps flatten, and supporting new profit streams in marketplace services and digital advertising.
Key Takeaways
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Store network powers e-commerce: Walmart’s 5,000 U.S. stores act as fulfillment and delivery nodes, enabling the company to reach 95% of Americans in under three hours and helping e-commerce surpass $150 billion in sales last year, with 27% U.S. growth in Q4.
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Marketplace expansion reshapes assortment: Marketplace revenue is growing around 20%, with categories like home, hardlines and fashion up more than 30% as Walmart triples its holiday seller count, targets roughly 300 “must-have” brands (including names like Apple), and builds a 500-million-item catalog that attracts more affluent shoppers.
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Profit model shifts to services and ads: While fulfillment services for Marketplace are not yet profitable on their own, U.S. e-commerce is profitable when advertising and fulfillment revenues are included, with global ad sales up 46% to about $6.4 billion and U.S. ad growth of 41% boosted by Marketplace expansion and the Vizio acquisition.
