Online marketplaces have revolutionized how brands connect with customers globally. While Amazon dominates this arena, its vast number of sellers makes standing out a significant challenge. Enter Walmart Marketplace. With the eCommerce sector projected to surpass a trillion dollars by 2028, diversifying sales platforms is key to growth and success.
Walmart Marketplace presents a lucrative opportunity for sellers eager to broaden their reach and establish a strong presence. Getting in on the ground floor, the potential for your brand is limitless—inventory pending, of course.
Overview of Walmart Marketplace
Walmart launched its eCommerce marketplace in 2009. Although fairly established, the pandemic significantly boosted its growth, positioning it as the second-largest eCommerce marketplace.
For sellers, it works similarly to how Amazon does, offering Walmart Fulfillment to help with supply chain needs and a set fee for using the platform. It also offers two-day shipping, a key selling point for buyers. Additionally, Walmart Marketplace features Sponsored Product ads, which operate on a cost-per-click basis.
Advantages of Selling on Walmart Marketplace
On the surface, Walmart Marketplace and other platforms might look like copies of one another. However, there are plenty of benefits to selling on this platform compared to others:
Customer Base and Brand Exposure
Walmart.com boasts a massive audience, with an average of 120 million monthly website visitors. This number surged to 542.2 million in November 2022, at the peak of the holiday shopping season. Although these figures vary throughout the year, such high traffic volumes during key periods highlight the significant exposure brands can gain on this platform. As more consumers shift to online shopping, Walmart’s reach continues to grow.
According to Statista, grocery made up 58.8% of Walmart’s net U.S. sales in 2023, followed by general merchandise at 28.2%. The significance of this category, which encompasses items like apparel, toys, and home goods, reaches across demographics to a vast customer base that encompasses 18 to 74-year-olds looking for quality products to meet their needs.
Access to Infrastructure and Logistics
Sellers can access Walmart Fulfillment Services (WFS) to help with shipping costs associated with their products. With advanced inventory management tracking, Walmart Marketplace can reduce the risks of overselling while ensuring your supply chain keeps moving. The platform also offers two-day shipping options, tracking visibility, and straightforward pricing, enhancing transparency and operational support for sellers.
Improved Credibility and Trust
Although the focus of Walmart.com is on its online presence, the physical storefronts of the company cannot be overlooked. As of 2023, Walmart boasts more than 10,500 locations worldwide, with approximately 240 million visitors per week. This tenured and established reputation as a trusted retailer translates to valuable benefits for sellers using its eCommerce platform. Using the Walmart Marketplace, you benefit from their credibility as a company and existing customer trust. This association can enhance your brand’s perceived reliability and the quality of your products, encouraging more purchases.
Reasonable Sellers Fees
Walmart Marketplace offers a transparent pricing model that is unique from competitors. Rather than a monthly subscription or a set-up fee, you only pay for the items you sell. These referral fees range from 6% to 15%, depending on the product. Returns and shipping fees are also covered in this model, saving you on additional costs.
Opportunities for Growth
Walmart Marketplace offers growth opportunities through diverse ad placements like Sponsored Product ads, display ads, and Sponsored Brand campaigns. Coupled with dedicated support and analytics access, businesses can enhance visibility, drive sales, and solidify their standing in the competitive eCommerce arena.
Dedicated to the adoption of omnichannel marketing, Walmart is also keen to support brands through the intertwining of their physical and digital retail spaces, such as with in-store ad experiences. Currently, these are incrementally being rolled out across their stores in the U.S., including opportunities for product demos and ad slots on Walmart Radio. These shopping experiences help to transcend online-only marketing tactics and grow brands at a local level.
Key Features and Requirements for Joining Walmart Marketplace
The brand competition on Walmart Marketplace is significantly less compared to other platforms. That’s in large part due to their strict seller selection criteria. Approval as a seller on Walmart can take two to three weeks, a longer duration than most platforms which may only require a few days. Therefore, preparing the necessary documentation in advance is crucial for a streamlined application process. Relevant documentation and qualifications include, but are not limited to:
- A valid Business Tax ID or Business License Number.
- Verification documents for your business name and address.
- A proven track record of success in marketplace or eCommerce sales.
- Products with GTIN/UPC GS1 Company Prefix Numbers.
- A product catalogue that adheres to Walmart’s Prohibited Products Policy.
After your brand has been approved, Walmart simplifies the account setup process, claiming it can be completed in about a minute with just three straightforward steps. The platform also offers guidance to help brands meet all requirements effectively.
After completing the setup, Walmart Marketplace provides sellers with a range of solutions to improve their selling experience, focusing on enhanced security, convenience, and logistics.
Tips and Best Practices for Maximizing Success on Walmart Marketplace
Maximizing success on Walmart Marketplace requires strategic implementation across various facets.
- Optimal product listing strategies involve meticulous attention to keywords, high-quality images, and detailed product descriptions, ensuring visibility amidst competition.
- Leveraging Walmart’s marketing and advertising tools is pivotal; utilizing Sponsored Products and display ads can boost product visibility, increasing sales potential.
- Excellent customer service and feedback management are imperative for reputation building. Timely responses to inquiries and addressing feedback foster trust and enhance the buying experience.
- Adopting competitive pricing strategies is crucial. Offering competitive prices without compromising quality or profitability helps attract customers and distinguish your brand from competitors.
Final Thoughts on Walmart Marketplace
Joining Walmart Marketplace extends numerous advantages for eCommerce enterprises. The platform offers enhanced visibility, wider reach, and access to a vast customer base. Leveraging Walmart’s infrastructure and marketing tools facilitates growth and scalability, fostering increased sales potential.
Overall, embracing Walmart Marketplace strategically expands reach, elevates brand presence, and presents a lucrative avenue for businesses seeking substantial sales and market outreach growth. It is a pivotal move for enterprises aiming to fortify their position and expand their sales horizons within the dynamic eCommerce landscape.
⸻ Author Bio ⸻
Krishna Vemulapali is the Chief Product Officer at Trellis, an eCommerce merchandising software. With a focus on data-driven optimization and machine learning, Trellis offers eCommerce merchandising tools that integrate seamlessly with major eCommerce platforms like Amazon, Walmart, and Google Shopping. As the CPO at Trellis, Krishna is committed to revolutionizing the eCommerce landscape and empowering business partners for success.
