Could Walmart become the next tech giant?

Numerous major brands have jumped on the e-commerce train and developed their own proprietary technologies to further monetize their products. But why stop there – why not make money from ecommerce yourself?

That’s exactly what walmart (NYSE: WMT) does. The world’s largest retailer announced Wednesday that it will now begin offering subscriptions to its own e-commerce “technologies and capabilities” to small and medium-sized businesses, in partnership with Adobe (NASDAQ: ADBE) to integrate its Marketplace, retrieval technologies, and online and in-store fulfillment into the software giant’s Adobe Commerce platform.

“We have developed new capabilities to meet the evolving needs of our own customers, and we have a unique opportunity to use our experience to help other companies do the same,” said John Furner, CEO of Walmart US. “Commercializing our technologies and capabilities helps us to sustainably reinvest in our customer value proposition.”

Walmart: Software Goliath?

Does this mean that Walmart is now a software giant? Maybe not, but it works Amazon (NASDAQ: AMZN) as one of the few major retailers to sell its e-commerce technology to other companies. 2006, Amazon Web Services started providing cloud computing services to other brands. Over the next 15 years, the company has developed a stranglehold on the cloud computing market, with a 41% share more than doubling its closest competitor, Microsoft (NASDAQ: MSFT), as of 2020. And there’s no slowdown in sight — AWS posted revenue of nearly $15 billion in the second quarter of 2021, up 37% from the same period last year.

But nowadays every company is a technology company, and Walmart is no exception as it enters the e-commerce space to try and get a slice of Amazon’s pie. With the new partnership, businesses using Adobe Commerce can list items through Walmart’s Marketplace, leverage the two-day fulfillment network, and access in-store software to help them manage inventory at their physical locations.

“The core mission of helping people save money and live better lives is at the heart of every idea, including Scan & Go and POS technologies, AI-powered smart replacements, and pickup and delivery,” said Suresh Kumar, Chief Technology Officer and Chief from Walmart. development officer. “By combining Adobe’s power of commercial experience with our unparalleled omni-customer expertise, we can accelerate the digital transformations of other companies.”

Join the digital revolution

The move comes as Walmart continues its own digital transformation. Over the years, Walmart has included a cloud-powered POS system, mobile check-in technology, app-based checkout and an artificial intelligence-powered replacement tool that replaces sold-out products with similar items.

The company has seen huge success with its e-commerce activities in recent years. In the first quarter of 2021, Walmart reported e-commerce profits of 37%, 47% and 49%, respectively, in the US, Sam’s Club and International segments, and in the US branch, e-commerce sales have more than doubled in the past two years.

Now, after dominating e-commerce sales, Walmart is on the brink of a new high-growth market through the sale of its e-commerce technology. per hour 2020 report, the global e-commerce technology market is expected to grow at a compound annual growth rate of 12% between 2020 and 2024, adding more than $5 billion in value over that period.

Related: Read: acquisition of Sauceda puts e-commerce activities under 1 umbrella Read: Walmart rules in grocery delivery wars, but Instacart is pushing hard

“We are excited to partner with Walmart to help Adobe sellers expand their business into new channels and deliver shopping experiences that increase their competitiveness and fit well with changing consumer behavior in an increasingly digital economy,” said Anil Chakravarthy , executive vice president of Adobe and general manager of Digital Experience Business and global field operations.

Companies like Shopify (NYSE: SHOP) have long dominated the digital economy. But it could soon be time for the Walmarts and Amazons of the world to crowd out the little guy and usurp the Squarespaces and the BigCommerces—for better or for worse.

You may also like:

Amazon’s second-quarter revenue falls short of estimates

The 5 Most Fascinating Drone Deliveries of 2021 (So Far)

How an AV car company helps keep the lights on

Image by jimaro morals by Pixabay

See more from Benzinga

© 2021 Benzinga does not provide investment advice. All rights reserved.