I think Shopify is in a much better bargaining position than Walmart.
Shopify's customers are merchants, businesses and manufacturers, each advertising their very own store and sales channels. For them it's hard not to consider Shopify as their ecommerce platform of choice. Meanwhile I'd argue that end customers couldn't care less about which ecommerce platform their store of choice is using. Therefore I think the Shop app isn't all that important actually. Or do people really seek out Shopify stores in particular? That seems ridiculous to me.
I do though. I tried to place an order on an online service providers website to get some work done that I couldn't do on my own with my work laptop. They used shopify to process all payments and my order got denied. Not by the provider, not by my bank. But by shopify. I got a hold of one of the companies cs staff who looked into it and told me I was sol. Shopify had flagged my transaction as fraudulent and there's nothing he could do. Calling my bank didn't help, they didn't see the transaction as suspicious and would have authorized the transfer. Ultimately I gave up and will have a vile taste in the back of my mouth whenever I hear of shopify. The company I tried to patronize lost a customer, and shopify gets free bad press from me.
So, while shopify doesn't need discovery or awareness among customers, shopify can't afford to get bad press without decent consumer ad spend else their actual customers may jump ship to avoid being tainted by their brand.
If shopify fubars this deal with walmart that could start a snowball.
Amazon could have done so, but they didn't. Shopify can do so building upon there Webshop and POS environment. And they seem to do.
That's how thousands of businesses have operated for decades or more.
It used to be a popular app called Arrive for automatically tracking packages by parsing tracking numbers from connected email accounts. Arrive was also the branding for shipping updates by check in Shopify Checkout on all Shopify based eCommerce sites.
A few months ago Shopify:
1. Rebranded the app as "Shop"
2. Rebranded every Shopify site's checkout to "Shop Pay."
3. Began forcing users on Shopify based sites to create a "Shop" account at checkout
4. Changed the Arrive SMS shipping updates feature to text you an app store link for the Shop App (which you already have an account for now)
5. Integrated every item from every Shopify based eCommerce site with the Shop App for direct purchase, using the universal Shop account you just created.
So they took an already popular app with high engagement, forced people to make accounts for it, used dark UX patterns to get millions to text themselves a download link.
In a matter of months they went from being one of the largest eCommerce platforms for independent retailers to being a one-stop "shop" for every eCommerce site that used them, with millions of daily active users.
It badly needs a prominent browse feature if it wants to take on Amazon. Or maybe I just missed something in my brief tour.
Walmart sounds just like Amazon.