In a seemingly paradoxical move Walmart signs a partnership with a third-party group, San Diego-based Acenda, to help it optimize its portfolio offerings across e-commerce marketplaces with the end goal of getting the right product in front of the right consumer at the right moment (i.e.: intent to purchase) on the Path to Purchase. The move is paradoxical because Acenda already partners with Walmart main rivals Amazon, Google and eBay. (https://p2pi.org/article/walmart-teams-acenda-improve-third-party-listings?eid=362039299&bid=1862676).
In doing some brief research (https://mixergy.com/interviews/gavin-mandelbaum-acenda/) I learned a little bit of the history behind the founder of Acenda but also what it is, exactly, that Acenda does. It’s actually a marketplace integrator. So it enables individuals to establish a presence on different e-Commerce marketplaces. The curious part is that Acenda can actually see all of the revenues that are passing through each of the marketplaces. Also it has created a direct relationship in-between the marketplaces and the Customers. Both are valuable if Acenda were to try to pivot and become the direct-seller to Customers removing both the individual seller and the marketplaces. Hence, the paradox.
What do you think? Is this the right move for Walmart? Given Marc Lore’s background is this something that Walmart should be able to build internally? And in that vein with Amazon’s tech chops why does it need Acenda? If it’s just the ease of use and getting access to a list of sellers why not just mimic what Acenda is doing?
Back in the day Amazon used to sell books but it also had a strategic approach to broaden it's portfolio. That was to establish a seemingly non-hostile relationship with brick & mortar retailers like Toys 'R Us (see bankruptcy), Borders Books..etc. The goal? To get in front of the customer interaction. Amazon sold itself as an expert in the digital space and allowed for cost efficiencies (i.e: not having to build out a web-site or deal with the head-ache of how to fulfill product or the logistics on from where) from the brick and mortar company to focus on what it did best (selling in a physical store) while letting Amazon manage it's digital footprint which was a low volume mix relative to the traffic that was walking into the brick & mortar stores on a daily basis. But, as we all know now, by insinuating itself in the path to purchase and putting its brand in-between the customer and the brick & mortar brand Amazon was able to create a wedge that has grown
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