Report: Walmart pushes $10-and-up pricing online—to stay profitable
A discount giant may be moving away from offering the lowest prices online.
Walmart is asking vendors to supply it with more merchandise priced at $10 and up. This is part of a major push to finally turn a profit at its online business, according to Reuters.
Sources told Reuters that Walmart is especially focused on dry grocery products, such as sauces, soaps and general merchandise items, including toys and home furnishings. Walmart’s goal is to see higher profit margins selling these more expensive items, given the built-in cost of delivering goods purchased online.
By offering the lowest prices online on every item, Walmart is incurring a shipping cost of $4 or $5. “It is not sustainable, and more importantly their shareholders won’t allow it,” one source said in the report.
To read more, click here.
Walmart is asking vendors to supply it with more merchandise priced at $10 and up. This is part of a major push to finally turn a profit at its online business, according to Reuters.
Sources told Reuters that Walmart is especially focused on dry grocery products, such as sauces, soaps and general merchandise items, including toys and home furnishings. Walmart’s goal is to see higher profit margins selling these more expensive items, given the built-in cost of delivering goods purchased online.
By offering the lowest prices online on every item, Walmart is incurring a shipping cost of $4 or $5. “It is not sustainable, and more importantly their shareholders won’t allow it,” one source said in the report.
To read more, click here.