Business
5 takeaways from CNBC’s investigation into Walmart Marketplace
Walmart‘s online marketplace has become a key part of its strategy to grow profit faster than sales and better compete against its longtime rival, Amazon.
As the largest U.S. retailer with more than 4,600 locations nationwide, growing sales online is also critical for its future.
But a CNBC investigation found Walmart’s digital boom came as it made it easier for third-party sellers to join and sell on its marketplace, a strategy that has come with a cost.
Some consumers have received counterfeit, potentially dangerous products after shopping on the marketplace, CNBC found. The investigation also uncovered dozens of third-party sellers who had stolen the credentials of another business to set up an account, including some who were offering fake health and beauty items.
In the early days of Walmart’s online marketplace, former employees and sellers said it had strict policies for vetting third-party sellers and the products they offer. But over time, Walmart loosened those controls in a bid to woo sellers away from Amazon and appear more friendly than its rival, according to sellers, e-commerce consultants, and current and former employees.
When asked for comment on CNBC’s reporting, Walmart said “trust and safety are non-negotiable for us.”
“Counterfeiters are bad actors who target retail marketplaces across the world, and we are aggressive in our efforts to prevent and combat their deceptive behavior,” Walmart said. “We enforce a zero-tolerance policy for prohibited or noncompliant products and continue to invest in new tools and technologies to help ensure only trusted, legitimate items reach our customers.”
CNBC’s investigation uncovered new details about Walmart’s strategy to grow its online marketplace and the risks it took to take market share from Amazon.
Here are five takeaways from the investigation.
Stolen identities and product tests
During CNBC’s investigation into Walmart’s marketplace, it found at least 43 third-party sellers who had used the identity of another business to set up their account. Some of these sellers were impersonating large, publicly traded companies such as Thermo Fisher Scientific and Rockwell Medical, while others were smaller, private businesses, such as a New York grocery chain and a Chicago pizzeria.
CNBC purchased and tested six items for its investigation, all of them highly rated, deeply discounted beauty products offered by sellers that were impersonating legitimate businesses. All of them were fake, according to brands and lab testing.
Walmart trailers sit in storage at a Walmart Distribution Center in Hurricane, Utah on May 30, 2024.
George Frey | AFP | Getty Images
Some of the companies that were being impersonated on Walmart.com told CNBC they had received mysterious packages at their homes or businesses that they later realized were customer returns.
One of them, Lifeworks-ACS, received at least 14 returns and mailed them to CNBC for authentication. All of them were found to be counterfeit.
Employee pressure
During the Covid pandemic, Walmart’s marketplace boomed and the company gradually made it easier for sellers to join and list items on the platform, former employees said.
One of those former employees, Tammie Jones, said when she first joined Walmart’s seller vetting team, the requirements to join the marketplace were strict. But she said over time, there was pressure from management to approve more sellers, even when she had concerns about the applicant’s credentials or documentation.
“It got to a point where they were just like, ‘You know what? Just go ahead and approve everybody,'” said Jones. “They wanted that business, so they were willing to take a chance on it.”
Onboarding and product vetting
The requirements to join Amazon’s and Walmart’s marketplaces are different. Amazon often makes sellers conduct a video interview with a company employee, while Walmart’s marketplace does not list a video interview as a requirement to join.
Over time, Walmart also made changes to the documentation it requires sellers to submit during the application process. In the past, applicants were required to provide their employer identification number and both a W-9 and EIN form, according to a video of Walmart’s application uploaded in February 2022.
As recently as late March, applicants still needed to provide their EIN, but they were no longer required to upload their W-9 and EIN form, according to a video of Walmart’s seller application posted to YouTube on March 31.
At the time, the only document U.S. sellers were required to upload was a copy of their driver’s license or passport, according to the video. Additional IRS documentation was listed as “optional,” the video shows.
There are also differences in the documentation Amazon and Walmart require from sellers about the products they want to list. On Amazon, some sellers are asked to provide invoices showing how they sourced their products, which includes proof they purchased between 10 and sometimes as many as 100 units. The Walmart sellers CNBC spoke to, who were interviewed before Walmart changed some aspects of its vetting process in July, said they were rarely, if ever, asked to provide details on how they sourced their goods. Those who were asked to submit documents said they often only needed to show an invoice for one unit and occasionally, answer a few questions about their supplier.
Providing an invoice that only shows one unit, compared with 10 or 100, makes it easier for people to resell stolen or counterfeit goods, experts said.
Walmart’s changes
About three weeks after CNBC shared its reporting with Walmart, the company changed some of its marketplace vetting policies for beauty and personal-care products in late July.
In an email Walmart sent to some sellers, the company announced new restrictions for the category and said it would start requiring certain sellers to participate in an “enhanced vetting program” for those kinds of items. The changes would address some of the issues raised in CNBC’s reporting.
As part of the new program, some sellers would have to provide documentation for each personal-care or beauty item in their assortment, such as an invoice that demonstrates the product was sourced directly from a brand owner or manufacturer.
Numerous beauty and personal-care listings were taken down from the platform after the change, some sellers said.
Legal landscape
The nature of online marketplaces makes it difficult to get rid of counterfeit goods entirely, partially because of a lack of regulation. While selling counterfeit goods is a crime, platforms face almost no liability for facilitating their sale, as long as they take down listings for fake goods after brands bring them to their attention.
The Shop Safe Act, a bipartisan federal bill, is designed to curb the sale of fakes online by incentivizing platforms to better vet sellers and the products they’re offering. When platforms comply with certain anti-counterfeiting measures, they could be shielded from liability if a seller offers a fake product.
Brands widely supported the legislation, but it has so far failed to pass at least three times, partially because Walmart and other online marketplaces like Amazon, Etsy and eBay have lobbied against aspects of it, two U.S. Senate aides, who spoke on the condition of anonymity because the discussions were private, told CNBC. The legislation is expected to be reintroduced in the current Congress, they said.
In the absence of more concrete policy changes, legal experts said the argument that certain platforms could be held responsible for the sale of harmful products like counterfeit body lotion or faulty fire alarms is gaining momentum, even if they were technically sold by a third party.
Business
BAE workers can continue to strike following High Court decision
Workers at BAE Systems in Lancashire can continue to strike following the dismissal of a bid for a High Court injunction aimed at blocking industrial action.
The company asked a judge to order Unite the Union members at the Warton and Samlesbury sites to cease their planned action in a last-minute hearing on Tuesday.
Strikes were due to start on Wednesday and last until November 25, according to the union.
But Mr Justice Soole refused to grant the injunction on Thursday.
He said: “Having considered the evidence, the application is dismissed. I will give my reasons later.”
Bruce Carr KC, for BAE, said in written submissions for the hearing on Tuesday that Unite had given notice to ballot on September 24 after rejecting the 2025 pay offer.
He said that following this, union representatives told members not to train managers in aircraft testing and that this amounted to a call to industrial action, therefore invalidating the lawfulness of the upcoming strike.
The barrister added: “It is the claimant’s case that the evidence clearly demonstrates that at that meeting and thereafter, Unite called on its members employed as quality professionals, to take industrial action in the form of refusing to undertake the training of managers employed by the claimant.”
Mr Carr said that in mid-September BAE wanted the training after “a number of absences” and while it was “considering business continuity plans in the event of possible industrial action”.
This training occurred between September 22 and October 10, after which the quality professionals refused to continue following instructions from the union, Mr Carr said.
These workers breached their duty to BAE because they are “required to act in the best interests of the company to carry out such duties in respect of their appointment as they may reasonably be called upon to undertake”, the barrister added.
Oliver Segal KC, for Unite, said the training was a “request”, not an “instruction” and therefore workers who refused were not in breach of their contract.
He described managers being trained for the testing role as “unprecedented” and that union representatives had asked workers to get the “request” in writing while they seek legal advice.
In written submissions, he said: “The evidence in this case is that the defendant never even suggested, let alone ‘called’ on, its members who are quality professionals to refuse to comply with a management instruction to provide training to management executives.”
Mr Segal said BAE was “ludicrously interpreting” emails between union representatives discussing the training as instructions for union members not to comply.
The barrister also said there was no refusal to train the managers after October 10 and that one of the quality professionals gave a statement saying his team never stopped providing training.
He continued: “The reality is that this application is a last-minute, desperate attempt by the claimant to neuter the industrial action, which is both factually mis-premised and legally misconceived.”
Mr Carr said on Thursday that BAE is considering an appeal.
A BAE spokesperson said: “We note the ruling by the High Court. We believe we had good grounds for the legal challenge and will consider the court’s judgment.
“We respect the right of employees to engage in industrial action and remain committed to a partnership approach with all our trade union groups.”
The PA news agency understands that less than 70 employees out of 12,000 are involved in the strike action while production lines are continuing to operate.
Speaking after the decision, Unite general secretary Sharon Graham said: “This unsuccessful attempt by BAE to prevent a lawful strike will have severely damaged the goodwill it has with its workforce.
“BAE is a multibillion-pound company making record profits.
“It now needs to come back to the negotiating table with an acceptable offer for striking workers in its Air division, rather than wasting money on pointless legal threats.
“Otherwise, our members will be taking strike action throughout November in their fight for fair pay.”
Rachel Halliday of Thompsons Solicitors, which represented Unite, added: “This is a clear win for Unite and for workers everywhere.
“The High Court has confirmed that the union acted lawfully at every stage, and that BAE’s attempt to block strike action had no basis.
“Today’s decision will send a strong message to employers that the courts cannot be used to silence workers standing up for fair pay and respect.
“Unite acted responsibly throughout, adhering to all statutory requirements, and this important decision reinforces the union’s members’ right to strike.
“Thompsons is proud to have stood with Unite in defending this principle. Working people have the right to be heard – and to take lawful industrial action when negotiations fail.”
Business
FM asks banks to ensure staff speak local language – The Times of India
MUMBAI: Finance Minister Nirmala Sitharaman has urged banks to ensure that customers are able to get their work done in branches speaking in the local language. She also called upon banks to tweak HR policies to give weightage to local language proficiency during appraisals. She asked banks to restore the human connect in customer service, insisting that technology must complement—not replace—personal interaction.Language friction between PSU bank staff has come to the fore, particularly in Maharashtra and southern India, especially Karnataka. There was recent outrage after a public sector bank manager in Bengaluru refused to speak Kannada with a customer. The incident prompted condemnation from the chief minister, a transfer of the official, and an apology from the bank. Similar cases have exposed ongoing tensions as staff from other states struggle with local languages, causing communication gaps and customer resentment.In a Q&A session with SBI chairman CS Setty at the bank’s 12th Banking and Economic Conclave, she said the sector must rethink its approach to customer engagement, especially at the branch level. “You cannot say you will do everything digitally and reach customers only online. Person-to-person contact was the strength of Indian banks, even before technology, and it helped you make big strides.” A key part of this human touch, she stressed, is language.Calling it “basic etiquette,” Sitharaman said banks must ensure customers can converse in their own tongue at branches. “Language is an important way to communicate with your customers. Even if they know Hindi or English, it gives a nice touch when you speak their language,” she said. “We Indians go abroad and say a few words in French or Spanish to please people—but in our own country, because of HR policies, staff are posted without knowing the local language. That human touch gets lost.”The finance minister linked customer service to HR policy, asking banks to incentivise linguistic and cultural familiarity. “HR policies must ensure that every staff member posted at a branch understands the customer and speaks the local language. Performance appraisal should also factor in proficiency in the local language,” she said.While acknowledging the gains of digitisation, she cautioned banks against becoming impersonal. “Technology can bring advantages, efficiency, productivity, and profit—but that human touch is what many earlier private banks had before they were nationalised. You don’t have to struggle like the old bankers who travelled to villages, but you still need that connection. Please don’t be carried away only by technology.”Sitharaman also called for restoring accountability in credit assessment, especially for small businesses. “Credit rating of a customer—particularly MSMEs—has to be your own. You should not outsource it,” she said. “Earlier, you knew your customers because the staff posted there understood who was reliable and who was not. That has gone, and it needs to be restored.” She urged banks to simplify paperwork and reduce the burden on borrowers. “Paperwork has to be simple. You cannot keep putting the onus on the borrower to keep proving and providing documents endlessly. If you simplify processes, you will be among the most appreciated institutions.”Bankers said that the language issue largely arose because the response to recruitment drives was not uniform across states. While in some states like Gujarat, young candidates were more inclined towards business, youngsters in Karnataka got more opportunities in private IT sector and preferred these jobs which were non-transferrable. In some northern states however the priority was for government jobs leading to differences in language skills.
Business
India services sector loses steam: Growth moderates amid rains, competition; HSBC PMI shows softest rise in 5 months – The Times of India
India’s services sector saw its slowest pace of growth in five months during October, as competitive market pressures and heavy rainfall in some regions weighed on business activity.According to the monthly HSBC India Services PMI Business Activity Index, compiled by S&P Global, the seasonally adjusted reading fell to 58.9 in October, down from 60.9 in September, signalling the weakest expansion since May. Despite the moderation, the figure remained comfortably above the neutral 50 mark—which separates growth from contraction—and higher than the long-term average of 54.3, as per news agency PTI.Pranjul Bhandari, chief India economist at HSBC, said, “India’s services PMI softened to 58.9 in October, which represented the slowest pace of expansion since May. Competitive pressures and heavy rains were cited as contributors to the sequential slowdown.”The survey, based on responses from around 400 service sector firms, indicated that while demand buoyancy and GST relief helped improve business conditions, factors such as increased competition and adverse weather dampened momentum.External demand for Indian services also grew further, though the rate of increase was the weakest since March. The report noted that the GST reform had a positive influence on price pressures, with input costs and output charges rising at their slowest pace in 14 and seven months, respectively.Companies remained optimistic about future business activity, expressing strong confidence in growth prospects over the next year. To meet new orders and ensure timely service delivery, many firms added staff in October.The HSBC India Composite PMI Output Index, which combines manufacturing and services data, also reflected slower growth—dropping from 61 in September to 60.4 in October, marking the weakest expansion since May. “India’s composite PMI fell on a sequential basis from 61 in September to 60.4 last month, largely due to the slowdown in the services sector,” Bhandari added.Composite PMI indices are weighted averages of the manufacturing and services PMIs, adjusted to reflect their share in India’s GDP.
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