Selling products on Walmart Marketplace can effectively reach a broader audience and grow your business. You can promote your brands and items to a larger population as a seller.
However, there are potential drawbacks you should consider before taking the plunge.
In this article, we’ll explore the pros and cons of selling on the Walmart Marketplace so you can make an informed decision.
What is Walmart Marketplace?
Walmart Marketplace is an online store created by Walmart.com, the largest retailer in the world. Walmart Marketplace allows third party retailers to list and sell their products on Walmart.com, giving independent brands and retailers access to Walmart’s substantial audience of more than 300 million shoppers.
Selling through the marketplace offers several advantages for third-party retailers, including:
- Unparalleled reach: Reaching 300 million+ monthly active users, the Walmart Marketplace gives brands and retailers an immense platform to advertise their products.
- Increased visibility: Being featured in promotional opportunities like digital ads helps increase visibility on a grand scale while also validating your brand amongst customers
- Improved efficiency: With proactive order processing, pricing automation tools, and optimized fulfillment capabilities, sellers can save time while also ensuring accuracy during order fulfillment
- Easy returns process: With a streamlined returns process that lets customers easily return products right on the product page, sellers can easily provide excellent customer service without having to do much extra work
The Pros and Cons of Selling on Walmart Marketplace
Selling on Walmart Marketplace has become a popular option for many ecommerce vendors. With the promise of access to an immense customer base, it is difficult to ignore the benefits of being part of the massive conglomerate. However, before you start selling on Walmart Marketplace, it’s important to understand the pros and cons associated with the platform. In addition, understanding creative marketing opportunities and potential pitfalls can optimize your seller experience and set you up for success.
- Reach a vast customer base – With hundreds of millions of customers and counting, Walmart Marketplace provides an unprecedented opportunity for ecommerce vendors to expand their visibility and sales potential.
- Benefit from Walmart’s branding– Walmart has been in business since 1962 and is known as one of America’s leading retailers. Joining their platform allows vendors to benefit from their brand name recognition, potentially resulting in increased online SEO rankings.
- Enjoy flexible fulfillment options – Vendors can choose their preferred product fulfillment method through either SELF (Ship & Earn Leveraged Fulfillment) or FWIS(Fulfilled by Walmart In-Store). In addition, product search visibility can be improved via optimized titles & descriptions on product profiles related directly to specific search terms customers use when searching for products within this marketplace.
- Competitive marketplace – With thousands of other vendors selling similar items, vendors must differentiate themselves to stay competitive & stand out from the pack including offering competitive pricing as well as buying specials & promotions if possible accordingly budget-wise . Also key here is taking advantage of Search Engine Optimization tools in order increase reach & traffic on your listings via keywords inclusion if possible .
- Shipping fees – Shipping fees are charged when customers order you products through this marketplace which could impact overall pricing competitiveness levelsso be mindful here accordingly budget-wise .
- Limited data access – Accessing sales data can take more time than expected when attemptingto get insights into customer purchase behavior across multiple channels so having at least basic reportings/analytics capabilities built into this process wherever possible will help you gain key insights into customer behavior/ purchasing patterns which could prove invaluable when tweaking/fine-tuning specific marketing campaigns going forward until more solid solutions here eventually roll out accessibly down the line over time evolving improvements relevant all around.
Requirements for Selling on Walmart Marketplace
If you’re looking to get started selling on Walmart Marketplace, there are some requirements that you must meet, such as being a US-based business, signing up for a Walmart Marketplace account, and having a valid tax ID.
In this section, we’ll discuss the specific requirements for selling on Walmart Marketplace and the pros and cons of doing so.
Before setting up your business to sell on Walmart Marketplace, meet the eligibility requirements. To become an approved seller, you must have a valid U.S. address; be in good financial standing and comply with applicable laws and regulations; have a valid federal tax ID or Social Security number; use a bank account located in the U.S.; offer products that meet Walmart Marketplace’s quality standards; and provide proof of authorization to resell any brands listed for sale on your Seller Center page. Additionally, Walmart Marketplace does not accept sellers from certain countries or states due to state or country laws and regulations concerning online sales.
While these are the biggest eligibility requirements, Walmart Marketplace may also require additional documents based on their review of your account application. Examples could include proof of domain ownership (if selling through domains other than Walmart eCommerce), additional certifications (such as Manufacturing Certificate/Run Sign Offs from manufacturers/original equipment manufacturers), product quality/safety certifications, dropshipping agreements with suppliers, or other documents stating compliance with standards like UL certification for electronics or Food Safety preventing measures for food items sold on the platform.
Selling on Walmart Marketplace is a great way to reach a wider audience and grow your business, with Walmart Marketplace shops now present in over 4,700 locations across the US. However, you’ll need to go through an application process to get started on the platform. Read on for more information on how you can get started selling on Walmart Marketplace.
The first step of the application process is to sign up with Walmart Partner Portal and complete the online Vendor Information Form to ensure your company details are provided correctly. Once this is completed, a representative will contact you within 3-5 business days with more information about accessing their network and setting up your seller account.
Once registered as an approved seller, sellers must provide consistent competitive pricing and product information that adheres to Walmart’s quality standards and timescales – meaning items must be shipped within 2-7 days depending on the fulfillment method chosen by the seller (standard or expedited shipping). Also, sellers must pay 15% commission per transaction and credit card processing fees (ranging from 0-2%).
As well as meeting this criteria and having a valid Tax Identification Number issued by their state revenue agency or sales tax collector website for their state or US territory where applicable, all vendors should also have a valid US-based residential address and telephone number listed in their user profile. Furthermore, sellers wishing to comply with Consumer Product Safety Commission requirements must provide outcomes such as product samples for further testing during registration or at any time requested by compliance prompts or reviews after registration as stipulated by Walmart rules. Finally it is important to note that international vendors must accept payments via Electronic Data Interchange bank transfer under applicable law; credit card payments are not accepted unless otherwise stipulated by applicable law.
When you sign up for Walmart Marketplace, you must agree to the Terms and Conditions set by Walmart. Some of these terms can include fees that apply while using the platform.
To start on Walmart Marketplace, you must create a Seller account and pay the registration fee. This fee pays for access to the platform’s services, such as listing and order management. The exact amount varies by marketplace, and according to your locations or business size; however, registration fees usually range from $30-100 USD per month.
Once registered, you must pay all applicable taxes for selling online at Walmart Marketplace. The amount of tax may vary depending on your location and type of product sold via this marketplace; however, it is expected that you will be familiar with local rules when selling in any jurisdiction. Additionally, sales on marketplaces attract Value-Added Tax (VAT) in many countries worldwide.
In addition to taxes and registration fee, merchants may have their products listed under an advertising or subscription plan inside the Walmart Marketplace website. In most cases these plans require an additional subscription fee which can be paid either monthly or annually depending on what plan Seller selects. Advertising has different characteristics across stores; therefore it should be carefully researched before selecting a particular plan that suits your goal best as Seller to optimize profit gains made through sales over marketplace platforms like Walmart Marketplace.
Setting Up Your Storefront
Setting up and managing your store on the Walmart Marketplace can be daunting. There are several steps to complete and many considerations to make. However, you can get up and running quickly with the right system and some guidance.
In this article, we’ll look at the pros and cons of selling on the Walmart Marketplace and discuss the steps to setting up your storefront.
Creating product listings
Before you can start selling products on the Walmart Marketplace, you must create listings for each item you want to offer. Creating listings includes uploading images and providing detailed descriptions of the items so customers can find and purchase them. You will also choose pricing and inventory levels for each item on your listing.
Creating product listings is a crucial step when setting up a store on Walmart Marketplace. It should be done carefully to ensure customers can access accurate information about your products. To create product listings, follow these steps:
1. Upload images of your products that meet the required criteria for size and resolution.
2. Create an accurate product title that clearly describes what customers are searching for and sets you apart from competitors.
3. Enter key attributes such as color, material type, pattern, size or any other relevant details about the item.
4. Provide a comprehensive description including facts about the product’s features and any warranties or guarantees it may have associated with it.
5. Choose appropriate pricing based on research of competitors offerings.
6. Set inventory levels to ensure items are available when customers make purchases.
7. Monitor your items regularly to keep product information up-to-date and accurate throughout their lifetime in the Marketplace.
Optimizing product descriptions
Product descriptions are key to setting up your store on the Walmart Marketplace. It is important to maximize the visibility of your products by creating compelling and engaging product descriptions that accurately and succinctly showcase what makes your product unique. The goal should be to generate customer interest, help them make informed shopping decisions, and ultimately increase sales.
When writing product descriptions for Walmart Marketplace, it is essential to remember that this text should be clear, concise, accurate, non-promotional and optimized with relevant keywords for search engine optimization (SEO). Additionally, as the customer scrolls through endless options from multiple brands, your product description must stand out as uniquely yours and highlight any key features or benefits. Here are some tips for optimizing product descriptions on Walmart Marketplace:
- Keep descriptions short – Aim for between 150-250 words and focus on describing key features simply but accurately
- Avoid promotional language – Be factual about the features of your sale item without using an excess of adjectives or hype
- Include relevant keywords – A few targeted phrases can increase visibility of your listings in search results
- Make use of lists – Turning list items into bullet points can make long descriptions more palatable to customers
- Include appropriate pricing information – Make sure customers know if any advertised prices include shipping costs or discount codes
Setting up payment methods
Setting up payment methods is one of the key steps to getting your store on the Walmart Marketplace. First, you must set up a payment provider, like PayPal or Stripe, to take customer payments. Setting up the payment provider is simple, and the setup process will vary depending on your chosen provider.
Once you’ve set up your payment provider, you can begin taking orders using that account. You may need additional merchant accounts in different countries to sell internationally. Depending on your customers’ location, this could involve setting up accounts with multiple local payment processors and banks.
In addition to setting up a payment processor, you must set up a business bank account to accept payments and manage your finances. Setting up a business bank account allows you to easily manage expenses, such as taxes, payroll costs and other related business expenses that come with selling products online.
Once your payment gateways and processes are complete, it’s time to begin marketing! Many business owners use content platforms such as YouTube or Instagram for their online stores; however, there are many more options available for promoting and publicizing your store online – for instance SEO optimization for search engines can be done as an effective way of reaching out customers or partnering with influencers or blogs for content placement can be used too!
Managing Your Storefront
Selling your products on Walmart Marketplace can be a great way to increase your brand’s reach and gain access to millions of customers, but doing so also comes with some challenges.
Managing your storefront effectively is essential to taking advantage of the advantages of selling on Walmart Marketplace. In this article, we’ll go over the pros and cons of selling on Walmart Marketplace and discuss how to manage your storefront.
Managing orders and inventory
Managing orders and inventory is important to successfully running a vendor storefront on Walmart Marketplace. This section will explore the various tools you can use to manage your orders and inventory.
Orders: Vendor Central provides a single interface for measuring past, present and future purchase orders. This includes tracking accepted, shipped and returned items and receiving forecast information for future sales. You can also view real-time changes in product and pricing information from Walmart Hosted Buyer systems direct to your owning system.
Inventory: Keep an up-to-date account of all your items in stock across multiple warehouses for accuracy and efficient management operations. This includes managing lead times and associated costs such as freight/handling, rush fees, etc. Use the feature to quickly determine what is available in stock – while being updated with real-time information on new inventory arriving continuously or replenishment strategies needed when stock hits critical points so you can always meet customer demand at Walmart Marketplace.
Reporting & analytics: To ensure accurate sales forecasts, track inventory trends such as demand forecasting or supplier performance history, Walmart offers reporting tools to help you better analyze your sales data. Dashboards are featured that help you quickly identify actionable intelligence garnered from past performance (e.g., successful campaigns), reducing time spent gathering insights from disparate sources cost analysis focusing on improving efficiency processes throughout the organization (e.g., fulfillment cost analysis) as well as segmented reporting on region/state performance or product focus areas (e.g., top products).
Handling customer service and returns
As a Marketplace seller, you manage customer service and returns for all orders placed through your storefront. This means responding to inquiries from customers and taking action if an order needs to be returned.
Developing a customer service plan is essential. Your customers should know who to contact and when they can expect to receive a response. In addition, providing consistent and quality service is important in maintaining positive customer relationships.
Regarding returns, the policy will depend on the returned item and what options you offer as a seller. For example, returns of broken, defective, or not as described items should be accepted without any questions asked — Walmart’s proprietary return process covers these type of events through the Resolution Center. Other returns, such as general non-defective ‘change of mind’ requests are at your discretion as a seller; you may or may not choose to accept them based on your policies:
- Keep in mind that you have 10 days from order delivery date to provide a response indicating whether the item will be accepted for return shipment, refused or denied outright;
- You should also note that if merchandise is refused or denied, Walmart reserves the right to close out the return request automatically;
- In cases where customers initiate chargebacks without first contacting us within company policy window times, those chargebacks must still be protected against accordingly with proper documentation required before release;
- Suppose requested item(s) were prepaid using a gift card. In that case, all refunds must still go back onto the same original gift card even if a request is initiated after 90 days from date of purchase upon OTCG verifying purchase date.
Walmart gladly bounds by Consumer Protection laws which require sellers acknowledge any customer concerns about returns under applicable statutes and regulations governing e commerce sales such as CALIFORNIA CIVIL CODE BILL 16711 PART 4 & 5 EXPLAINED OR State consumer protection laws like FEDERAL TRADE COMMISSION – MAGNUSON–MOSS WARRANTY ACT
Promoting your store
As a Marketplace seller, you can promote your store in various ways. Promotions boost visibility, increase sales and attract new customers. Here are some popular ways to promote your store:
-Launch promotions: Create coupons and offers such as free shipping or discounted items for customers to enjoy for a limited period. Promotions help draw attention to your listings, attract new customers and engage with existing ones.
-Advertise: As a Marketplace seller, you can create pay-per-click campaigns on Walmart’s advertising platform and target ads to potential customers interested in specific products or search terms. You control how much you spend and when you run the ads.
-Tap social media: Connect with current and potential customers on platforms like Facebook, Twitter and Instagram using relevant content tailored to each platform’s audience. For example, start conversations about recent news or trends related to your products to engage people in the discussion.
-Sponsor giveaways: Give away product samples, discount codes or other incentives as part of an engaging contest that directly connects people with your store. Use a combination of onsite promotions together with social media shares to get maximum exposure for your contest.
Selling on Walmart Marketplace is a great way to start selling your products online and reaching a huge audience. It has a great user experience, and you have the backing of a major brand. However, there are also some cons that you should consider before starting to sell on Walmart Marketplace.