Walmart is enhancing its third-party marketplace security to combat fraudulent sellers and protect consumers. Accoding to RetailDive, the retailer employs a combination of vetting, category restrictions, AI monitoring, and human oversight to maintain trust and integrity on its platform.
Multilayered enforcement system: Walmart vets sellers, restricts merchant categories, uses brand protection tools, educates sellers, and has a trust and safety team investigating violations. AI and real-time monitoring help detect intellectual property infringements and policy breaches.
Marketplace growth and challenges: With over half a billion products from third-party sellers, Walmart faces issues with fraudulent sellers who undermine trust despite representing a small minority. The company has expanded its marketplace categories and partnered with StockX for sneaker offerings.
Industry-wide efforts and regulatory scrutiny: Other marketplaces like eBay and Amazon also use AI to combat fraud, with Amazon removing millions of counterfeit items in 2023. Meanwhile, Walmart and Amazon received FTC warnings about misleading “Made in USA” claims by third-party sellers.
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