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Important points:
- Faced with a tough retail environment, Walmart is looking to make money by selling its technology to other companies.
- The deal will help Walmart gain valuable insight into customer needs.
- By partnering with Walmart, Salesforce will be able to provide customers with much-needed business solutions to help them grow.
A partnership between Walmart and Salesforce to offer delivery services doesn’t make much sense on the surface. However, a deeper understanding of what the partnership offers for both parties reveals that it can be mutually beneficial.
Here’s a closer look at this delivery service and its impact on the retail industry as a whole. We will also discuss how Q.ai can help investors in this space.
What Salesforce and Walmart Offer
Walmart and Salesforce have created a partnership to enable small and large retailers to offer online purchasing and pickup services to their customers through an app called AppExchange. Walmart opens up its omnichannel ordering and delivery system to independent retailers, allowing them to grow their businesses and serve more customers.
The service is intended to give retailers access to online ordering and delivery systems not available to small and medium-sized retailers. While Salesforce’s role is to provide technology to retailers/clients, Walmart allows retailers to sell under their own name and offer white label services from purchase to delivery.
With AppExchange, retailers can easily select orders and get them picked up or delivered to their customers in less time and with fewer issues. Retailers can use the AppExchange to scale their operations and meet current customer demands.
Impact on retailers
Independent retailers have access to a variety of services through the Salesforce AppExchange. This includes Walmart’s employee buy-and-pick-up technology (BOPIS) used by Walmart employees called Store Assist, a delivery service for businesses called Walmart GoLocal, Salesforce’s Commerce Cloud and order management system. increase.
Prior to the partnership, these services were available only to Walmart and customers who could afford to use Salesforce’s system. This meant many small retailers were using small retail ordering software and figuring out how to get their products delivered quickly.
Retailers can choose which services to use as part of the order fulfillment process. Store Assist turns retail stores into fulfillment centers for customers who want to pick up their purchases, which is the primary purpose of the software. Retailers can use Walmart’s GoLocal delivery service to pick up packages and deliver them to local customers.
In addition, the software suite enables retailers to closely manage and monitor their customers’ shopping experience while providing up-to-date information on purchase completion and delivery.
Why Salesforce and Walmart Competitors Should Worry
Some might say the move is altruistic, as Walmart has been known to bankrupt local retailers. On the surface, Walmart appears to be reaching out to retailers by encouraging them to become strong competitors.
What’s really happening is that Walmart is gaining more insight into customer needs, deciding how to improve its product offerings, increasing the number of packages delivered in one stop, and expanding its local delivery fleet operations. Walmart has already signed major retailers and their delivery services, including Home Depot.
The company aims to make more money by making its technology available to other retailers and finding ways to gain more insight into shopper habits. We are also focusing on increasing third-party sales through our website to compete with Amazon.
Salesforce profits through the management of software and its users. Retailers who want to sign up will have to go through Salesforce as Walmart doesn’t offer it. Salesforce will take care of IT operations for the software, and Walmart will help fulfill orders.
Retailers of all sizes can benefit from the AppExchange because it helps them become more competitive. Combine this with the opportunity to sell on Walmart’s third-party website without losing your business identity, and you have the opportunity to escape Amazon’s restrictive warehousing requirements for prime sales.
Amazon and similar websites will lose sellers if they can’t turn around and compete with AppExchange and Walmart’s GoLocal.
Impact on Salesforce and Walmart Investors
Wall Street usually welcomes the introduction of novel ideas that help improve a company’s bottom line. When this news broke his January 12, 2022, Walmart’s stock closed at his $144.81 and has been little moved since.
Salesforce’s stock price had already surged before the news was announced, closing at $149.60 on the day of the announcement. The stock price is also flat at the $148 level. The fact that both of these stocks have seen little movement suggests that Wall Street has yet to sell the concept as a money maker.
It’s important to check for updates from both companies on how the service will grow over time. Walmart previously said more than 3 million deliveries have been made since the company’s launch of his GoLocal service. While this won’t create new revenue streams right away, it could benefit both companies in the long run.
Investors who want to take advantage of technological advancements should consider the Emerging Tech Kit provided by Q.ai. The kit uses artificial intelligence to identify market trends and invest accordingly. Investors are instantly diversified because they invest in multiple companies, helping to reduce some of the risk when investing in the stock market.
Conclusion
Walmart and Salesforce are eyeing a long-term partnership. The insights Walmart can learn about its customers will help retailers by providing additional revenue streams and meeting the needs of more customers. You can register a new customer by providing it.
That said, investors will have to see how profitable the deal is.
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