Walmart (WMT) - Get Report has teamed-up with e-commerce platform Shopify (SHOP) - Get Report to expand its third-party marketplace site and take advantage of a surge in online shopping spurred by the coronavirus pandemic.
Shares of the world's largest retailer were up slightly to $118.26 in pre-market trading on Monday, while Ottawa-based Shopify was up 5.2% to $718.50.
Shopify said in a statement that the agreement "marks the first time Walmart has partnered with a commerce platform empowering small to medium-sized businesses to sell through its online marketplace."
Shopify said it will automatically keep merchants’ products synced with Walmart.com.
Jeff Clementz, vice president of Walmart Marketplace, said in a blog post that the company is looking to add 1,200 Shopify sellers this year.
"The U.S. e-commerce business grew 74% in total last quarter, and growth in marketplace outpaced the overall business even as first-party sales were strong," Clementz said.
Walmart's third-party marketplace site currently offers more than 75 million products and the company is seeking to expand its $21.5 billion U.S. e-commerce business.
The agreement will provide Shopify's network of millions of merchants access to Walmart's customers. Shopify claimed the second-largest share of online retail sales in the U.S. last year.
Walmart has in recent years rolled out a fulfillment service for third-party sellers, allowed customers to return marketplace items in its physical stores and gotten rid of millions of third-party items that didn't meet quality standards.
Last month, Shopify reported first-quarter results that topped estimates, saying it saw a 62% increase in new stores created between March 13 and April 24, during the height of the coronavirus outbreak.