With increasing competition from online retailers, how has Walmart's e-commerce strategy influenced its stock performance?

Summary: How Walmart’s E-Commerce Strategy Impacts Its Stock Performance Curious about why Walmart’s stock has held up so well even as online retailers like Amazon have taken over the world? I’ve spent the last few years following Walmart’s digital transformation, talking to a couple of ex-Walmart managers, and combing through SEC filings and industry analysis. Here, I’ll break down—using real data and my own “oops” moments—how Walmart has tackled e-commerce competition, what’s worked (and what’s flopped), and how that’s shaped Walmart’s stock trajectory. Plus, I’ll weave in what the experts say, include some candid screenshots and public forum banter, and even compare international “verified trade” standards, just to give the full picture. What This Article Solves If you’re an investor, Walmart shopper, or just someone who wonders why a big-box retailer still matters in the age of one-day shipping, this article will answer: How has Walmart transformed its business to compete with digital-first giants? Does their e-commerce push actually influence the WMT stock price (and how)? How do international “verified trade” policies affect Walmart’s global operations? Walmart’s E-Commerce Journey: Not Just Copying Amazon Back in 2015, I remember logging into Walmart.com and thinking, “Wow, this looks like a 2008 website.” Fast-forward to 2024, and you’d barely recognize it. The real story is how Walmart went from e-commerce underdog to a real threat to Amazon’s grocery and general merchandise dominance. Step 1: Buying Their Way In In 2016, Walmart acquired Jet.com for $3.3 billion. At first, it looked like a desperate move—industry forum posts (see Seeking Alpha) called it “either genius or desperation.” But it gave Walmart a digital-native team and a fresh approach to online retail. Here’s a screenshot I grabbed from the official Walmart newsroom back in 2016: Did I think this would matter for the stock? Honestly, not immediately. Jet.com was shut down by 2020, but the tech and team stuck around—Walmart’s online grocery and app experience improved massively. In my own household, we switched from Amazon Fresh to Walmart Grocery Pickup after a few tries, just because it was smoother and the substitutions were less annoying. Step 2: Omnichannel—Blending Physical and Digital Unlike Amazon, Walmart already had thousands of stores in suburban and rural America. Instead of trying to out-deliver Amazon in big cities, they used stores as mini-warehouses—a concept called “omnichannel.” I had a funny moment where I ordered a vacuum online, and when I went to pick it up, the associate said, “Oh, you’re the online guy!” Turns out, this mix of online ordering and in-store pickup is what keeps people coming back. Real impact? According to Walmart’s own Q4 2024 earnings report: Walmart U.S. eCommerce sales grew 17% year-over-year. Same-store sales were up, but digital drove most of the growth. Grocery pickup and delivery were credited for higher frequency and new customers. Here’s the actual chart from their investor relations site (see source above): Step 3: Marketplace and Advertising While Amazon built its empire on third-party sellers, Walmart was slower to the game. By 2022, though, Walmart Marketplace opened its doors to more sellers, and they invested in Walmart Connect (their ad network). I tried listing a product myself—terrible experience at first, but by 2023, onboarding was smoother, and the ad dashboard looked suspiciously like Amazon’s. Industry experts like Kantar’s Leon Nicholas told CNBC that Walmart’s ad revenue is growing in double digits, and it’s now a key profit driver. Step 4: International E-Commerce and “Verified Trade” Standards Walmart is a global player, so their e-commerce strategy has to navigate “verified trade” standards that vary wildly by country. For example, the European Union’s AEO (Authorised Economic Operator) certification requires rigorous vetting, while the U.S. follows C-TPAT (Customs-Trade Partnership Against Terrorism). To illustrate, check out this quick table I compiled from WTO and WCO documents: Country/Region Standard Name Legal Basis Enforcement Agency United States C-TPAT Trade Act of 2002 U.S. Customs & Border Protection European Union AEO EU Regulation 648/2005 National Customs Authorities China AA-Enterprise General Administration of Customs Order No. 225 China Customs Australia Trusted Trader Customs Act 1901 Australian Border Force The tricky part is these standards aren’t fully harmonized. In one case, a Walmart supplier in India got stuck because their local certification didn’t match up with U.S. C-TPAT documentation. It delayed a whole container shipment, costing weeks and thousands in fees. Even Walmart’s scale doesn’t always smooth out these regulatory potholes. Expert View: Executing at Scale I reached out to a supply chain consultant, “James,” who’s helped large retailers integrate e-commerce globally. He told me, “Walmart’s advantage is physical infrastructure. But when it comes to customs and regulatory compliance, they’re playing by the same rules as everyone else. The difference is, they can afford to build specialist teams for each region.” OECD’s latest report highlights that “large multinational retailers leverage economies of scale to manage customs compliance, but SMEs face much higher friction.” So, for Walmart, these headaches are costly but manageable—whereas for smaller rivals, it’s make-or-break. How Has This Affected Walmart’s Stock? Walmart’s e-commerce pivot hasn’t just been about survival—it’s about growth. If you look at the stock chart (just pull up Yahoo Finance: WMT), you’ll see that since 2016, Walmart’s stock has more than doubled. Every time they report a blowout quarter for online sales, the stock pops—like in May 2023 and February 2024. Here’s a quick screenshot I grabbed from a Reddit discussion (r/stocks), where retail investors debate whether Walmart is “old school” or actually a tech company now: One user, “DividendDon,” puts it bluntly: “If Walmart keeps growing digital 15%+ a year, that’s all I need for my portfolio.” But another, “ValueTrapHunter,” worries that “Margins are razor-thin—one slip in e-commerce execution and the stock tanks.” Statistically, Walmart’s e-commerce now accounts for around 13% of U.S. sales, and analysts at Morgan Stanley believe this could hit 20% by 2027. That incremental growth has underpinned solid, steady upward movement in the WMT ticker—and more importantly, insulated it from the “retail apocalypse” that hit rivals like Sears or JCPenney. Case Study: Certification Clash Between A Country and B Country Let’s say Walmart sources electronics from “A Country,” using their local “Trusted Shipper” program, and ships to “B Country,” which has stricter “Verified Trade” requirements. If the two certification systems aren’t mutually recognized, Walmart’s shipment gets flagged. For one electronics supplier, this meant a weeklong hold at B Country’s customs, only cleared after emergency legal intervention. According to WTO’s trade facilitation agreement, there’s a push for harmonization, but progress is slow. In my own attempts to help a friend’s small import business, we faced a similar nightmare—forms lost in translation, requests for “original seals,” and a customs official who shrugged, “Your papers are good in A, but not in B.” Walmart’s advantage is they have teams for this; us, not so much. Conclusion: What’s Next for Walmart and Its Stock? Walmart’s transformation wasn’t just about copying Amazon, but about fusing its store network with digital tools. Real earnings data shows it’s working—e-commerce is now a pillar, not an afterthought. The stock reflects this, offering stability with upside, even as retail faces huge headwinds. But as global trade rules stay messy, even giants like Walmart can get tripped up, especially when “verified trade” standards clash. If you’re investing for the long haul, keep an eye on how Walmart navigates these cross-border challenges—because that, more than flashy app redesigns, will shape its next decade. If you want to dig deeper, track Walmart’s quarterly filings (here), and follow trade policy updates from WTO and WCO. For everyday investors, the lesson is clear: digital transformation and trade compliance are now core to retail investing—not just quarterly sales numbers.

Forrest's answer to: How has Walmart adapted to e-commerce competition, and has it affected its stock?

Summary: How Walmart’s E-Commerce Strategy Impacts Its Stock Performance

Curious about why Walmart’s stock has held up so well even as online retailers like Amazon have taken over the world? I’ve spent the last few years following Walmart’s digital transformation, talking to a couple of ex-Walmart managers, and combing through SEC filings and industry analysis. Here, I’ll break down—using real data and my own “oops” moments—how Walmart has tackled e-commerce competition, what’s worked (and what’s flopped), and how that’s shaped Walmart’s stock trajectory. Plus, I’ll weave in what the experts say, include some candid screenshots and public forum banter, and even compare international “verified trade” standards, just to give the full picture.

What This Article Solves

If you’re an investor, Walmart shopper, or just someone who wonders why a big-box retailer still matters in the age of one-day shipping, this article will answer:

How has Walmart transformed its business to compete with digital-first giants?
Does their e-commerce push actually influence the WMT stock price (and how)?
How do international “verified trade” policies affect Walmart’s global operations?

Walmart’s E-Commerce Journey: Not Just Copying Amazon

Back in 2015, I remember logging into Walmart.com and thinking, “Wow, this looks like a 2008 website.” Fast-forward to 2024, and you’d barely recognize it. The real story is how Walmart went from e-commerce underdog to a real threat to Amazon’s grocery and general merchandise dominance.

Step 1: Buying Their Way In

In 2016, Walmart acquired Jet.com for $3.3 billion. At first, it looked like a desperate move—industry forum posts (see Seeking Alpha) called it “either genius or desperation.” But it gave Walmart a digital-native team and a fresh approach to online retail.

Here’s a screenshot I grabbed from the official Walmart newsroom back in 2016:
Walmart acquires Jet.com screenshot

Did I think this would matter for the stock? Honestly, not immediately. Jet.com was shut down by 2020, but the tech and team stuck around—Walmart’s online grocery and app experience improved massively. In my own household, we switched from Amazon Fresh to Walmart Grocery Pickup after a few tries, just because it was smoother and the substitutions were less annoying.

Step 2: Omnichannel—Blending Physical and Digital

Unlike Amazon, Walmart already had thousands of stores in suburban and rural America. Instead of trying to out-deliver Amazon in big cities, they used stores as mini-warehouses—a concept called “omnichannel.” I had a funny moment where I ordered a vacuum online, and when I went to pick it up, the associate said, “Oh, you’re the online guy!” Turns out, this mix of online ordering and in-store pickup is what keeps people coming back.

Real impact? According to Walmart’s own Q4 2024 earnings report:

Walmart U.S. eCommerce sales grew 17% year-over-year.
Same-store sales were up, but digital drove most of the growth.
Grocery pickup and delivery were credited for higher frequency and new customers.

Here’s the actual chart from their investor relations site (see source above):
Walmart eCommerce growth chart

Step 3: Marketplace and Advertising

While Amazon built its empire on third-party sellers, Walmart was slower to the game. By 2022, though, Walmart Marketplace opened its doors to more sellers, and they invested in Walmart Connect (their ad network). I tried listing a product myself—terrible experience at first, but by 2023, onboarding was smoother, and the ad dashboard looked suspiciously like Amazon’s.

Industry experts like Kantar’s Leon Nicholas told CNBC that Walmart’s ad revenue is growing in double digits, and it’s now a key profit driver.

Step 4: International E-Commerce and “Verified Trade” Standards

Walmart is a global player, so their e-commerce strategy has to navigate “verified trade” standards that vary wildly by country. For example, the European Union’s AEO (Authorised Economic Operator) certification requires rigorous vetting, while the U.S. follows C-TPAT (Customs-Trade Partnership Against Terrorism).

To illustrate, check out this quick table I compiled from WTO and WCO documents:

Country/Region	Standard Name	Legal Basis	Enforcement Agency
United States	C-TPAT	Trade Act of 2002	U.S. Customs & Border Protection
European Union	AEO	EU Regulation 648/2005	National Customs Authorities
China	AA-Enterprise	General Administration of Customs Order No. 225	China Customs
Australia	Trusted Trader	Customs Act 1901	Australian Border Force

The tricky part is these standards aren’t fully harmonized. In one case, a Walmart supplier in India got stuck because their local certification didn’t match up with U.S. C-TPAT documentation. It delayed a whole container shipment, costing weeks and thousands in fees. Even Walmart’s scale doesn’t always smooth out these regulatory potholes.

Expert View: Executing at Scale

I reached out to a supply chain consultant, “James,” who’s helped large retailers integrate e-commerce globally. He told me, “Walmart’s advantage is physical infrastructure. But when it comes to customs and regulatory compliance, they’re playing by the same rules as everyone else. The difference is, they can afford to build specialist teams for each region.”

OECD’s latest report highlights that “large multinational retailers leverage economies of scale to manage customs compliance, but SMEs face much higher friction.” So, for Walmart, these headaches are costly but manageable—whereas for smaller rivals, it’s make-or-break.

How Has This Affected Walmart’s Stock?

Walmart’s e-commerce pivot hasn’t just been about survival—it’s about growth. If you look at the stock chart (just pull up Yahoo Finance: WMT), you’ll see that since 2016, Walmart’s stock has more than doubled. Every time they report a blowout quarter for online sales, the stock pops—like in May 2023 and February 2024.

Here’s a quick screenshot I grabbed from a Reddit discussion (r/stocks), where retail investors debate whether Walmart is “old school” or actually a tech company now:
Reddit Walmart stock discussion

One user, “DividendDon,” puts it bluntly: “If Walmart keeps growing digital 15%+ a year, that’s all I need for my portfolio.” But another, “ValueTrapHunter,” worries that “Margins are razor-thin—one slip in e-commerce execution and the stock tanks.”

Statistically, Walmart’s e-commerce now accounts for around 13% of U.S. sales, and analysts at Morgan Stanley believe this could hit 20% by 2027. That incremental growth has underpinned solid, steady upward movement in the WMT ticker—and more importantly, insulated it from the “retail apocalypse” that hit rivals like Sears or JCPenney.

Case Study: Certification Clash Between A Country and B Country

Let’s say Walmart sources electronics from “A Country,” using their local “Trusted Shipper” program, and ships to “B Country,” which has stricter “Verified Trade” requirements. If the two certification systems aren’t mutually recognized, Walmart’s shipment gets flagged. For one electronics supplier, this meant a weeklong hold at B Country’s customs, only cleared after emergency legal intervention. According to WTO’s trade facilitation agreement, there’s a push for harmonization, but progress is slow.

In my own attempts to help a friend’s small import business, we faced a similar nightmare—forms lost in translation, requests for “original seals,” and a customs official who shrugged, “Your papers are good in A, but not in B.” Walmart’s advantage is they have teams for this; us, not so much.

Conclusion: What’s Next for Walmart and Its Stock?

Walmart’s transformation wasn’t just about copying Amazon, but about fusing its store network with digital tools. Real earnings data shows it’s working—e-commerce is now a pillar, not an afterthought. The stock reflects this, offering stability with upside, even as retail faces huge headwinds.

But as global trade rules stay messy, even giants like Walmart can get tripped up, especially when “verified trade” standards clash. If you’re investing for the long haul, keep an eye on how Walmart navigates these cross-border challenges—because that, more than flashy app redesigns, will shape its next decade.

If you want to dig deeper, track Walmart’s quarterly filings (here), and follow trade policy updates from WTO and WCO. For everyday investors, the lesson is clear: digital transformation and trade compliance are now core to retail investing—not just quarterly sales numbers.