Walmart marketplace growth accelerated in Q2 FY27, with U.S. marketplace net sales increasing by more than 50% year over year. Walmart U.S. ecommerce grew 24%, while Walmart Connect’s U.S. advertising business increased 43%, excluding VIZIO. Nearly half of Walmart’s marketplace business also flowed through fulfillment services during the quarter.
The numbers point to three areas that deserve attention from sellers: marketplace assortment, fulfillment, and advertising.
Walmart Marketplace Is Growing Fast
Marketplace was one of the strongest parts of Walmart’s U.S. ecommerce business during the quarter.
Walmart reported:
- More than 50% growth in Walmart U.S. marketplace net sales.
- 24% growth in Walmart U.S. ecommerce.
- 40% growth in store-fulfilled delivery.
- Nearly 50% of marketplace business flowing through fulfillment services.
Global ecommerce grew 23% during the quarter, showing that Walmart’s digital business is expanding across its markets as well.
For sellers, the marketplace growth is the clearest signal. More customers are buying through Walmart’s digital channels, while the company continues expanding the infrastructure around those sales.
Fulfillment Is Becoming a Bigger Part of the Marketplace
Nearly half of Walmart’s marketplace business now flows through fulfillment services. Walmart says marketplace and fulfillment services are part of its effort to strengthen the business and improve the economics of the company.
Walmart is also using its physical stores as part of its delivery network. Store-fulfilled delivery increased 40% in Q2.
Walmart Connect Is Growing Too
Advertising is another fast-growing part of Walmart’s business.
Global advertising grew 38% in Q2 FY27. Walmart Connect in the U.S. grew 43%, excluding VIZIO.
For marketplace sellers, this creates a simple question: are your best Walmart products getting enough visibility?
Advertising should be considered alongside:
- Product demand
- Inventory levels
- Fulfillment performance
- Conversion rate
- Contribution margin
Walmart Is Expanding Its Digital Business
Walmart reported that ecommerce now represents about 23% of Walmart U.S. sales. The company also expanded its marketplace platform into markets outside the U.S. during Q2.
The broader direction is clear. Walmart is investing in marketplace, fulfillment, ecommerce, and advertising while continuing to connect those services with its physical store network.
That gives sellers more reasons to evaluate Walmart as its own sales channel instead of simply copying an Amazon catalog onto the platform.
Amazon remains a much larger marketplace, and Walmart does not make sense for every product. The right approach is to identify the products that already show demand and determine what is limiting their growth.
What Walmart Sellers Should Do Now
Start with the products already getting traction.
Review your Walmart catalog and identify the SKUs with the strongest combination of sales, traffic, and margins. Then check whether fulfillment, inventory, or advertising is holding them back.
A practical review can include:
- Check demand: Identify products already generating Walmart sales or traffic.
- Review fulfillment: Look at whether WFS or another fulfillment setup can support faster delivery.
- Check inventory: Make sure high-demand products have enough stock to support increased sales.
- Review advertising: Determine whether additional Walmart Connect spending makes sense for products with healthy margins.
- Watch contribution margin: More sales do not automatically mean better results if fulfillment and advertising costs consume the additional revenue.
Walmart’s Q2 results show strong growth across the parts of its ecommerce business that sellers rely on. The next step is deciding where that growth fits into your own marketplace strategy.
Ready to Build a Stronger Walmart Marketplace Strategy?
Walmart is growing its marketplace, fulfillment network, and advertising business quickly. That creates opportunities for sellers, but each product still needs the right mix of inventory, fulfillment, visibility, and margin.
Our ecommerce experts can help you identify which Walmart products have room to grow and where your current strategy may be holding them back.
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