As one of the world’s largest retailers, the Walmart marketplace is a powerhouse in the e-commerce industry, with a growing online presence that offers immense opportunities for sellers.
With over 120 million unique monthly visitors to their website and a customer base that spans across the United States, Walmart has become a major player in the online marketplace.
However, with the growing competition among sellers and the recent changes to Amazon’s policies, more and more Amazon sellers are considering Walmart as a viable option to expand their reach and grow their business.
In fact, according to a recent survey, 42% of Amazon’s active sellers also sell on Walmart. In this blog post, we will explore why Amazon sellers should consider selling on Walmart and the benefits of doing so.
We will also discuss tips to help you get started as an Amazon seller considering Walmart selling.
Features of the Marketplace
The Walmart Marketplace offers several key features that make it an attractive platform for sellers looking to grow their eCommerce business.
These features include enhanced product visibility, reliable fulfillment services, and access to a built-in customer base.
Product visibility is crucial for sellers to succeed in the online marketplace. With over 110 million unique visitors per month, Walmart provides sellers with a vast customer base and significant exposure to potential buyers.
By listing your products on the Walmart marketplace, you can increase your brand visibility and reach a broader audience.
Another key feature of the Walmart marketplace is its reliable fulfillment services. Through the Walmart Fulfillment Services program, you can store your inventory in Walmart fulfillment centers and have your products picked, packed, and shipped by Walmart.
This program ensures fast and efficient order fulfillment, allowing you to focus on other aspects of your business, such as product development and customer service.
In addition, the Walmart marketplace provides sellers with access to a built-in customer base. With millions of customers already shopping on Walmart, you can tap into this customer base and increase your sales potential.
Walmart’s reputation as a retail giant and its customer care and service standards help build trust with customers, leading to increased customer satisfaction and loyalty.
In essence, the Walmart marketplace offers features such as enhanced product visibility, reliable fulfillment services, and a built-in customer base that greatly benefit sellers.
With these features, you can increase your chances of success and grow your business in the competitive world of e-commerce.
Why should Amazon Sellers Consider Walmart Selling?
Before you decide to get into Walmart selling, it only makes sense for you to consider its benefits as an Amazon seller. That being said, here are some of the benefits that make Walmart selling a lucrative endeavor:
1. Lower Competition and Less Saturation
When it comes to online marketplaces, Amazon is undoubtedly the largest and most well-known player in the game. However, Walmart Marketplace is a rapidly growing platform that is quickly gaining traction among online sellers.
While Walmart may not have the same vast active seller base and extensive range of product categories as Amazon, it has several unique features and benefits that make it an attractive option for online sellers.
One of the main advantages of the Walmart marketplace is its smaller seller base. Amazon has about 1.9 million sellers as of March 2022. Walmart, on the other hand, currently has only a fraction of that number, with the marketplace recently surpassing 150,000 sellers. This means there is less competition for sellers on the platform.
Additionally, the Walmart marketplace has a stringent vetting process for its sellers, which ensures that only high-quality, reputable merchants are allowed to sell on the platform. This focus on quality over quantity has resulted in a more streamlined and reliable shopping experience for Walmart customers.
Additionally, Walmart Marketplace has been investing heavily in improving its platform and features, such as adding a third-party logistics program, expanding international shipping capabilities, and improving the seller dashboard.
This shows that Walmart is committed to the success of its sellers and is continuously working to provide them with the tools they need to grow and succeed on the platform.
While Walmart may not have the same large seller base and extensive range of product categories as Amazon, its unique features and benefits make it an attractive option for online sellers looking to diversify their sales channels and potentially reach new customers.
2. Lower Fees and Higher Profit Margins
Walmart and Amazon are two of the largest marketplaces in the world, and each has a unique fee structure.
Walmart’s fee structure is generally lower than Amazon’s, with a referral fee of between 6% to 15% of the sale price depending on the product category.
In contrast, Amazon’s referral fees range from 6% to 45%, depending on the category and product price.
Walmart also has no monthly subscription fee for its basic seller account, whereas Amazon charges a monthly subscription fee of $39.99 for its professional seller account.
Lesser fees to pay on Walmart means that you get to mark up your products at the standard selling price you’d get on Amazon and still get a decent profit.
Moreover, Walmart focuses on selling high-quality products at competitive prices, which means that sellers can set their prices higher and still remain competitive on the platform.
Walmart also provides sellers with a higher level of control over their pricing strategies, which can help sellers to maximize their profits.
3. Better Support
Walmart provides better support to its sellers in several ways, making it a more attractive marketplace to sell on compared to Amazon.
Firstly, Walmart has a dedicated support team for its sellers, which includes an account manager who works closely with each seller to help them optimize their listings and increase sales.
This personalized Walmart seller support can be invaluable for sellers, particularly those who are new to the Walmart marketplace.
In addition to this, Walmart offers more extensive and transparent seller performance metrics than Amazon.
Walmart’s seller performance scorecard, which is available in the seller center, provides detailed information on a seller’s performance in areas such as on-time shipping, order cancellations, and customer service, allowing sellers to identify areas for improvement and take action to address any issues.
Walmart also offers more flexible payment options than Amazon, with the ability to receive payment via direct deposit or wire transfer. This can be particularly beneficial for international sellers who may face restrictions or higher fees when using Amazon’s payment options.
4. More Flexibility
As a Walmart seller, you have more freedom over customer service, returns, and more compared to Amazon sellers.
Walmart’s policies are designed to empower sellers to manage their businesses in a way that is best for them and their customers.
Here are some ways that Walmart provides more freedom to its sellers:
1. Customer Service
Walmart allows sellers to handle customer service issues directly with customers, rather than through Walmart’s customer service team. This gives sellers more control over the customer experience and allows them to build relationships with their customers.
In addition, the Walmart marketplace provides sellers with tools and resources to help them provide excellent customer services, such as customer feedback reports and best practices guides.
2. Returns
Walmart has a more lenient return policy compared to Amazon, giving sellers the ability to set their own return policies for their products.
Walmart also provides sellers with access to tools and resources to help them manage returns more effectively, such as a returns dashboard that tracks returns and provides insights into customer behavior.
3. Shipping
Walmart provides more flexibility in terms of shipping options compared to Amazon. Walmart allows sellers to choose their own shipping carriers and rates, and also offers discounted rates through its shipping partners.
This gives sellers more control over their shipping costs and helps them to stay competitive in the marketplace.
4. Advertising
Walmart offers a more flexible advertising platform compared to Amazon, allowing sellers to choose from a variety of advertising formats and targeting options.
Walmart also offers lower advertising fees compared to Amazon, making it more accessible to small and medium-sized sellers.
5. Diverse Selling Options
Walmart Marketplace provides its sellers with various selling options to choose from, just like Amazon, allowing you to select the option that best suits your business needs.
Walmart offers two primary selling options: the first is the seller-fulfilled option, and the second is the Walmart Fulfillment Service option (WFS).
The seller-fulfilled option allows the seller to handle all aspects of the order fulfillment process, including shipping and customer service. This option is ideal for sellers who have an established logistics and customer service infrastructure in place and can handle these tasks effectively.
On the other hand, Walmart fulfillment services is similar to Amazon’s Fulfillment by Amazon (FBA) program, where Walmart handles the order fulfillment process for the seller.
Walmart stores the seller’s products in its warehouses, handles all shipping and handling, and manages customer service inquiries. This option is perfect for sellers who want to save time and resources on order fulfillment and focus on other aspects of their business, such as marketing and sales.
Walmart Marketplace also provides its sellers with the option to use third-party integrations such as Shopify and BigCommerce to streamline their business operations.
This allows you to manage your listings, inventory, and orders from a single dashboard, simplifying the selling process and reducing the time and resources required to manage multiple channels.
Steps for Becoming a Seller on Walmart Marketplace
Becoming a seller on Walmart Marketplace is a simple and straightforward process that can open up new opportunities for your eCommerce business. Here’s a step-by-step guide on how to get started:
1. Meet Basic Requirements: To sell on Walmart Marketplace, your business must be registered in the United States, have a U.S. tax ID, and a history of successful online sales. It’s also necessary to have a scalable business model since Walmart prioritizes sellers that can handle a large volume of orders.
2. Create a Seller Central Account: Your next step will be to create an account on Walmart Seller Center. Click on the “Sign Up” button and provide the necessary information to create your account.
3. Verify your business: Once you’ve signed up, you’ll need to verify your business. This involves providing essential details such as your business name, tax identification number, and contact information. You may be required to submit supporting documents as well.
4. Set up payments: After verifying your business, you’ll need to configure your payment methods. Walmart Marketplace offers various options, including electronic funds transfer (EFT) and Payoneer. Choose the option that suits your business needs and follow the prompts to complete the setup.
5. Configure shipping: Next, you’ll need to set up your shipping methods. This involves defining your shipping zones, adding carrier information, and selecting your preferred shipping services. Walmart Marketplace also provides fulfillment services through their network of fulfillment centers.
6. Configure returns: Lastly, you’ll need to configure your preferred returns method. Walmart Marketplace offers a variety of options, including self-managed returns and integration with third-party returns providers. Select the method that aligns with your business’s return policy and customer service standards.
By following these simple steps, you can become a seller on Walmart Marketplace and tap into a vast customer base.
With their competitive pricing, extensive product categories, and comprehensive seller support, Walmart Marketplace provides a valuable opportunity to expand your eCommerce business.
Tips for Amazon Sellers Considering Walmart Selling
If you are an Amazon seller considering the Walmart Marketplace, it is important to note that Walmart has its own unique requirements that differ from those of Amazon.
Here are some tips to help you adapt to Walmart’s requirements and successfully sell on the marketplace:
1. Meet Walmart’s strict product standards
Walmart has strict product standards that all sellers must meet to sell on their platform. Make sure your products meet Walmart’s requirements for quality, safety, and performance.
2. Optimize your listings for Walmart’s search algorithm
Walmart’s search algorithm is different from Amazon’s. Make sure to conduct thorough keyword research to optimize your product titles, descriptions, and images for Walmart’s search algorithm. Check out our Walmart product listing optimization article to learn more.
3. Provide competitive pricing
Walmart is known for its low prices, and it is important for sellers to provide competitive pricing to be successful on the platform.
There are tools like the Ecom Circles Walmart Repricer that can help you price your listings automatically in such a way that you offer competitive pricing while staying profitable.
4. Follow Walmart’s shipping guidelines
Walmart has specific shipping guidelines that sellers must follow, including providing fast and accurate shipping. Make sure to familiarize yourself with these guidelines and adjust your shipping strategy accordingly.
5. Stay up to date with Walmart’s policies and requirements
Walmart’s policies and requirements are subject to change, and it is important for sellers to stay up to date with any updates or changes to these policies.
6. Use Walmart’s advertising tools
Walmart makes it to deploy your advertising strategies through the tools they provide, such as Sponsored Products and Sponsored Brands. They help sellers promote products and increase visibility on the platform.
Take advantage of these tools, which are available in Walmart Connect, to increase your sales and reach more customers.
7. Provide excellent customer service
Walmart places a high priority on customer service, and it is important for sellers to provide excellent customer service to be successful on the platform. Respond to customer inquiries and issues in a timely and professional manner, and make sure to prioritize.
Conclusion
In conclusion, Walmart Marketplace presents a compelling opportunity for Amazon sellers looking to diversify their sales channels and expand their reach.
With its smaller seller base, unique customer demographic, lower fees, and higher profit margins, Walmart offers a competitive advantage for sellers looking to maximize their profits.
Additionally, Walmart’s focus on seller support, flexibility in customer service and returns, and various selling options make it a viable alternative to Amazon for many sellers.
However, sellers need to be prepared to adapt to Walmart’s unique requirements and regulations. If you want to learn more about Walmart selling, check out our comprehensive guide to Walmart selling.
