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Walmart offering China sellers ocean , customs pathway to US buyers

By Eric Johnson

Walmart has begun offering ocean freight capacity and customs clearance services for China-based sellers using its online marketplace .

The product , called Walmart Cross Border , is initially being offered on a port-to-door basis for full containerloads to the US from three load ports in China : Yantian , Shanghai and Ningbo .

Sellers using the service get access to Walmart ’ s negotiated ocean freight rates for 20-foot , 40-foot and 45-foot high cube containers , the retail giant said in a statement . To participate , sellers must source or manufacture their goods in China and have enough product to fill a container . They must also be participants in the Walmart Fulfillment Services ( WFS ) program , which hooks sellers into Walmart ’ s two-day US domestic delivery network . Sellers have the option of using Walmart ’ s preferred US customs broker .

The offering portends growing demand from overseas sellers for something resembling end-to-end logistics services that encompass ocean freight and customs coordination . Walmart brings consumer demand through its online marketplace , helping sellers reach buyers they might not ordinarily be able to access .

Targeting Amazon

Adding logistics services to the demand and fulfillment sides of a transaction signals Walmart ’ s intent to go toe-totoe with Amazon , which has also begun providing ocean freight and customs services to sellers on its marketplace . The difference is Walmart has long been a beneficial cargo owner ( BCO ), able to command preferential ocean rates from shipping lines , whereas Amazon has only slid into that world over the past decade as it became a BCO and not just a marketplace .

Walmart ’ s new service is also a competitive threat to the combination of e-commerce storefront technologies , similar to Shopify , and digital customs brokers or forwarders that aim to help sellers unfamiliar with the challenges of international logistics .

For Walmart , aggregating ocean volume from sellers on its marketplace helps its negotiating position with shipping lines . The retailer is generally considered one of the largest US container importers , and adding more volume would only increase that leverage .

Walmart also operates a non-vessel-operating common carrier called WMSC Logisitics Services .

email : eric . johnson @ spglobal . com

Adding international logistics services signals Walmart ’ s intent to go toe-to-toe with Amazon . Dewar Photography / Shutterstock . com

24 Journal of Commerce | October 21 , 2024 www . joc . com