Shopify surges 8% after striking a partnership deal with Walmart
- Shopify surged as much as 8% on Monday after Walmart announced in a blog post that the two companies are "joining forces" to help more small businesses sell products online.
- The partnership will open Walmart.com to Shopify sellers, allowing small businesses to reach a wider audience with their product listings and better compete with Amazon.
- Walmart plans to add 1,200 Shopify sellers to its Marketplace this year as it looks to capitalize on a surge in ecommerce shopping amid the coronavirus pandemic.
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A partnership between Walmart and Shopify helped boost shares of the Canadian ecommerce company by as much as 7.6% in Monday's trading session.
In a blog post, Walmart announced that it was "joining forces" with Shopify in order to expand its Marketplace offerings and add more small business sellers to its platform. Walmart plans to add as many as 1,200 Shopify sales to its platform by the end of the year.
The move comes just one month after Walmart decided to drop its Jet.com brand name to instead focus on its Walmart.com Marketplace.
The partnership should help both Shopify and Walmart better compete against Amazon, as consumers' ecommerce spending surges due to the coronavirus pandemic.
"As we launch this integration with Shopify, we are focused on U.S.-based small and medium businesses whose assortment complements ours and have a track record of exceeding customers' expectations," Walmart said.
Additionally, Walmart complements Shopify's ability to help small businesses scale and its customers would benefit from a greater assortment of product listings on its Marketplace, the company said.
Shares of Shopify traded up as much as 7.6% to $799.02, and Walmart shares traded up as much as 0.80% to $118.68 Monday. Shopify is up nearly 100% year-to-date.
