Walmart partners to provide financing to third-party sellers
Sellers on Walmart Marketplace have a new option to receive capital.
The retail giant is launching a new initiative with financial infrastructure company Parafin to provide third-party retailers and brands selling on Walmart Marketplace financing through the Walmart Marketplace Capital advance funding program.
Eligible sellers can now obtain access to capital through Parafin, an approved Walmart Marketplace solution provider. Parafin offers full-scale financial services programs and employs machine learning to analyze sales data from millions of businesses to determine offer eligibility and terms.
"Parafin is on a mission to help grow small businesses," said Sahill Poddar, CEO of Parafin. "Walmart is a leader in the small-medium business economy and is driving life-changing growth for these businesses that ultimately deliver on Walmart’s mission of helping people save time and money. We are incredibly fortunate to begin working with Walmart to offer small-to-mid-sized businesses new resources to grow on Walmart Marketplace."
This is not the first time Walmart has partnered with a third-party funding provider for marketplace sales. In June 2023, the discounter added Austin, Tex.-based e-commerce funding specialist Onramp to provide independent sellers and small retailers access to flexible funding packages to help drive scale.
[READ MORE: Walmart offers third-party sellers funding via new partnership]
Walmart Marketplace sees growth
Walmart has been expanding the scope of Walmart Marketplace. This week, the retailer began making hundreds of pre-verified sneakers from online marketplace StockX available directly on its site, with significant expansion planned for 2025.
And at its annual "Let’s Grow! 2024 Walmart Marketplace Seller Summit," the discount giant announced new offerings including a resale storefront, expanded categories, and several fulfillment and logistics services.
Other recent examples include offering third-party sellers of Chinese products a new avenue to sell directly to Walmart customers and connecting tire sales on its online marketplace to its in-store auto care centers.
According to the retailer, Walmart Marketplace has achieved more than 30% sales growth in each of the past four quarters and is helping drive double-digit U.S. e-commerce growth for six consecutive quarters. The number of sellers listing items on Walmart.com grew 20% during fiscal 2023.
