Walmart Eyes R&A Data Acquisition for Marketplace Fraud
Walmart is reportedly in talks to acquire R&A Data, a startup that already serves as a third-party vendor helping the retailer screen listings on its online marketplace for counterfeiting and other compliance issues.
Reducing counterfeits and scams on online marketplaces is R&A Data’s specialty, and Walmart decided to acquire the company after working with it, CNBC reported Wednesday (Nov. 19), citing unnamed sources.
Walmart did not immediately reply to PYMNTS’ request for comment.
R&A Data could not be reached by PYMNTS because, as noted in the CNBC report, the company’s website has been taken down.
Walmart’s third-party marketplace has become a critical growth engine for the retailer, and an acquisition of R&A Data could help it monitor the listings hosted by its marketplace, according to the CNBC report.
R&A Data uses artificial intelligence to scan listings and provide online marketplaces with protection, per the report.
An archive of the company’s website captured on Sept. 5 invited people interested in the software to submit their details but said the registration for early access had closed, the report said.
During an earnings call in August, Walmart CEO Doug McMillon said the retailer’s marketplace is one of the newer businesses boosting its profits.
“Globally, we grew our marketplace by 17% and membership income by 15%,” McMillon said. “We grew global advertising by 46%, including Vizio. Walmart Connect in the U.S. was up 31%, and that excludes Vizio. These strong growth rates in our newer businesses continue to change the shape of our income statement.”
It was reported in September that Walmart’s marketplace has opened the door to scammers and sellers of counterfeit goods and that customers on the site sometimes receive counterfeit and potentially dangerous products.
A CNBC investigation found at least 43 vendors who used the identity of another business to establish their account on Walmart’s marketplace.
Walmart said at the time, in a statement provided to PYMNTS: “Counterfeiters threaten brands and marketplaces worldwide, undermining trust and integrity. At Walmart, we continuously strengthen our marketplace to protect customers and sellers. Even with over half a billion products on our platform, we take swift, decisive action to remove any counterfeit goods and bad actors who fail to meet our standards.”
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