As the largest retailer in the world, Wal-Mart’s online business only accounts for less than three percent of its overall sales. As a result, the retailer is placing more emphasis on its online business to increase revenues. The first step it is taking toward being a multichannel retailer is to provide a continuous shopping experience through it various channels. This approach allows shoppers to make a purchase at its online store, and pick up at the closest Wal-Mart physical store. The retailer fulfills online orders with the inventory of its closest store. In addition, Wal-Mart offers shoppers the option to pay for their online order with cash at the time of pick-up.

Second, Wal-Mart plans to enhance delivery efficiency to keep customers interested in its online store. The retailer offers same-day delivery for its online orders, by making the delivery directly from its stores on the same day using its own vehicles.

Finally, the retailer is planning to add groceries online because they account for 50% of its revenue. With this service, shoppers can place the order online and pick up in stores. If this service expands nationwide, then e-commerce sales will surely increase.

Although Wal-Mart is somewhat new to e-commerce, it is expected achieve its goals through its development of an efficient supply chain for online orders.  It certainly has the resources to do so.

Discussion Question:

What is Wal-Mart doing to ramp up its e-commerce business?

 

Source: Trefis Team, Forbes, March 27, 2014