Walmart Q4 Earnings Shows Strong Marketplace Growth In Collectibles & Other High Value Categories
Walmart reported Q4 and full year financial results this week, revealing strong ecommerce growth particularly in Collectibles and other key high value categories where the company is actively working to take market share from competitors like eBay.
In a company press release, SVP Marketplace and Fulfillment Services Manish Joneja shared that US commerce sales grew 20% in Q4, largely attributable to continued success in bringing higher income shoppers to the site.
jake0
Our U.S. Marketplace grew 34% in the last quarter, continuing the strong trends we saw all year. This includes achieving our highest ever sales day and setting a record for the highest single day conversion rate during Holiday.
A broad assortment of general merchandise and our relevance with customers contributed to a 20% growth in U.S. eCommerce sales in Q4—our eleventh consecutive quarter of double-digit growth. And we continued gaining market share with upper-income households.
Higher-income shoppers represented the majority of Walmart’s market share increase for another straight quarter. It’s clear that we are in a great position to continue growing together.
The release goes on to show multiple new categories where Walmart is seeing growth, including premium beauty products, tires and automotive, pre-owned electronics and fashion, and collectibles - even going so far as to say they are targeting a "growing audience of enthusiasts" in what is undoubtedly a direct callback to eBay CEO Jamie Iannone's "enthusiast buyer" initiatives in these same categories which Walmart is clearly aiming to take a bite out of.
And it's not just "enthusiast buyer" language Walmart is taking on as their own - their foray into these high value categories has largely been directed by a team of ex-eBay talent who appear to have been strategically recruited for this exact purpose.
VP Categories, Michael Mosser was GM Lifestyle/Media/Toys at eBay from 2015 - 2019 with a stop at Borderx Lab before joining Walmart in 2021 and just 1 month after he was promoted, Bob Means left his position at eBay in 2023 to join Mosser's team at Walmart as General Manager Electronics, Toys & Seasonal.
That was the just the start of an exodus of collectibles talent from eBay to Walmart which has included GM Collectibles Mayank Hajela, Senior Director Business Strategy Kohl Perkins, Senior Business Development Analyst Antonio Cox, Manager Business Development Jason Cobb and more.
Liz Morton
Mosser also brokered a deal last year with then CEO of Stock-X Scott Cutler (who coincidentally was VP eBay Americas from 2017 - 2019) to expand Walmart's footprint in the pre-owned sneakers market.
Liz Morton
In addition to the in store tire installation initiative mentioned in that press release, Walmart has also been targeting the auto parts and accessories category more broadly, recruiting NASCAR driver and (now) ex-eBay Senior Partnership US Motors Events Manager Sarah Burgess to take on a Senior Management Business Development role in Parts and Accessories for Walmart Marketplace.
Liz Morton
And last month, Walmart announced they were adding tens of thousands of pre-owned luxury handbags, jewelry and watches to its marketplace thanks to a new partnership with resale platform Rebag, coinciding with the launch of a new website section focused on luxury resale - led by ex-Head of Business Development Luxury Goods and Fashion at eBay, now Director Enterprise Sales for Fashion and Beauty at Walmart Kinsey Griffin.
Liz Morton
It's all part of Walmart's Resold initiative launched in August 2024, leveraging strategic partnerships with brands and other marketplaces and allowing 3rd party sellers to list used electronics, fashion, auto parts, and more for the first time.
Liz Morton
Looking at Walmart's current business development talent bench, particularly in these key categories, it's difficult not to notice a familiar pattern - one that seems to be repeating with other recent eBay business development exits.
Ironically, current eBay CEO Jamie Iannone rejoined the company in 2020 after stints as CEO at SamsClub.com and COO Walmart eCommerce and has spent much of his tenure at the helm developing what he calls his "high value enthusiast buyer focus vertical" strategy - investing heavily in growing market segments with highly engaged buyer-bases like sneakers, trading cards, luxury fashion and accessories (handbags, watches and jewelry), and auto parts.
At the moment, it looks like eBay's leadership losses have been Walmart's gain and a powerful play to win market share in high value pre-owned categories.
That should leave shareholders with some serious questions for eBay executives and board members about how they allowed such a key part of their business to walk out the door and into the waiting arms of a competitor - just like Scott Cutler did with Stock-X years ago.
The fact that key talent in those exact categories has systematically migrated to Walmart over the last few years to challenge eBay in those verticals should be of interest to investors in both companies - and it will be interesting to see if Iannone faces any questions about it when eBay reports Q4 earnings on February 26th.
