Is Walmart B2B or B2C in 2024? (Full Breakdown)
With over 11,500 stores worldwide, Walmart dominates the global retail landscape. But with both business-facing and consumer-facing operations, there is much debate whether Walmart functions more as a B2B or B2C company. Based on in-depth analysis of their business model, revenue streams, and customer base, Walmart exhibits hybrid characteristics but operates predominantly as a B2C retailer.
Defining Key Differences Between B2B and B2C Companies
First, let‘s overview some key differences between business-to-business (B2B) and business-to-consumer (B2C) companies:
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| B2B Companies | B2C Companies |
|---|---|
| – Sell products or services to other businesses and organizations | – Sell products and services directly to individual consumers |
| – Higher average transaction values | – Lower average transaction values |
| – Limited number of customers | – Mass consumer base |
| – Relationship-focused sales approach | – Marketing-driven sales approach |
This table summarizes how B2B companies cater to organizational customers while B2C companies sell directly to household consumers.
Analyzing Walmart‘s Operations and Revenue Streams
Walmart operates over 11,500 retail stores internationally along with ecommerce sites like Walmart.com and Sam‘s Club. Here are some key stats about their business:
- 2021 Revenue: $573 billion
- Online Sales: $77 billion, making them #2 behind Amazon in global online retail
- Top Product Categories: Groceries (56% of sales), Health/Wellness, Apparel, Home Goods
Walmart collects revenue through the following main streams:
1. In-Store Sales (86% of Total Revenue)
The majority of Walmart‘s sales come from consumers shopping in Walmart stores for everyday household items and groceries. Data shows that over 140 million Americans shop at Walmart monthly, spending over $100 per trip on average. This amounts to over $600 billion in total brick-and-mortar store sales.
2. Walmart.com Sales (14% of Total Revenue)
Walmart‘s ecommerce channels like Walmart.com and grocery delivery have boomed recently. They did $77 billion in online sales in 2021 – second only to Amazon. These online sales to consumers amount to 14% of total Walmart revenue.
3. B2B Sales (<10% of Total Revenue)
Walmart Business Solutions caters specifically to small business owners by offering discounts on bulk purchases of supplies. They also enable wholesale purchasing for convenience stores, hotels, restaurants, and other clients. However, these B2B sales make up less than 10% of Walmart‘s total revenue.
So in summary, over 90% of Walmart sales and revenue result directly from consumer transactions, whether instore or online through their retail ecommerce site Walmart.com. This dwarfs the company‘s supplemental business-facing sales channels.
Arguments for Walmart as a B2B Company
Those that contend Walmart operates more as a B2B company point towards their:
- Dedicated business sales division – Walmart Business Solutions targets B2B accounts with tailored bulk pricing
- Wholesale pricing – Stores offer special "business member" rates to organizations
- Bulk packaging/sizing – Inventory includes higher-volume packaging for business buyers
However, counterarguments state that:
- B2B revenue makes up less than 10% of total sales, rendering it a secondary income stream
- Bulk options merely supplement Walmart‘s core consumer offerings
- Many B2C brands have wholesale partners without fundamentally changing their consumer focus
Conclusion: Walmart Primarily B2C with Some B2B Elements
Given that over 90% of annual revenue comes directly from everyday consumers shopping in stores and online, Walmart clearly aligns with a B2C business model. From a product assortment targeting household needs to mass-reach advertising campaigns, their strategy zeroes in on serving the end consumer.
While Walmart sells bulk sizes and offers discounted business rates, this constitutes less than 10% of total sales. Fundamentally, their identity lives as a consumer brand powering modern commerce through value, convenience, and selection. So Walmart exhibits some B2B traits but operates predominantly as a B2C retailer – making them one of the largest B2C enterprises on the planet.
