- Cory Checketts
- On September 3, 2019
- 0 Comments
Now is the time to sell on Walmart. It’s poised to become a dominant online marketplace. Learn more about the opportunity to sell to millions of potential buyers.
As with any sleeping giant, not much is said until it awakes from its slumber to make itself known. Walmart.com—in comparison to Amazon—is the sleeping giant of e-commerce. The Walmart Marketplace is gaining momentum every year, with its sales 37% higher in Q1 2019 than in the same time period a year ago.
With all of this new growth, company acquisitions, and heavy investment into its online marketplace, it’s clear that Walmart wants to be the go-to destination for internet shoppers. It is to your advantage to sell on Walmart.
E-commerce 101: Sell on the Walmart Marketplace
Walmart.com claims to have more than 1,000,000 products available. Walmart has become increasingly focused on combining technology with world-class retailing. This is apparent with its recent investments in JD.com and acquisitions of Flipkart and Jet.com. All of these investments add up to one thing: getting more people to buy on Walmart.com.
With that being said, let’s dig into why you should sell on the Walmart Marketplace.
Millions of Potential Buyers
Myriad opportunities are available on Walmart.com for brands that want to grow sales and expand their reach. Walmart had more than 110 million unique visitors land on its website in April this year, which is a little more than half of what Amazon received.
Walmart shoppers want to buy known products from known brands. They don’t want to spend their time looking through dozens of similar products with the hope of maybe getting the right thing. To sell on Walmart adds a level of legitimacy because shoppers view Walmart as a trusted retailer that vets the products it sells.
Above all, Walmart is seeking to build relationships with reputable brands and retailers that make customer service, product quality, pricing, and quick fulfillment a priority.
With the increasing demand from consumers for quicker delivery times, Walmart has responded to Amazon’s one-day shipping promise by offering a comparable service. What’s more, Walmart customers don’t have to pay for an annual subscription to receive fast shipping, and they get free shipping on every order $35 and up.
Be aware that Walmart does not fulfill orders on behalf of Marketplace items. Sellers can either self-fulfill, work with a third-party vendor, or work with Deliverr, Walmart’s preferred fulfillment partner. Deliverr offers a service similar to Amazon FBA, and claims to have 95% coverage for two-day shipping in the US compared to 30% for self-fulfillment.
Those who decide to work with Deliverr will be pre-approved for Walmart’s free TwoDay delivery program. And sellers want to be part of the TwoDay delivery program. That’s because their products will get increased product visibility, Buy Box prominence, and improved regional shipping settings.
Sellers can only send products in non-branded boxes and can’t include materials from any company besides Walmart. Hence why it’s not possible to use Amazon FBA to fulfill Walmart.com orders.
Sellers who choose to fulfill their own orders will need to check their eligibility with Walmart when signing up. To be self-fulfilled eligible on Walmart, sellers must:
- Have sold on the Walmart Marketplace for a minimum of 90 days or fulfilled more than 100 orders.
- Have an on-time shipping and delivery rate greater than 95%
- Have a valid tracking rate greater than 95%
- Have a cancellation rate below 1.5%
- Offer a generous returns policy (this is open to interpretation)
Fees and Payments
Walmart has no setup, subscription or monthly fees. It deducts, what it claims to be a “reasonable” referral fee, once a sale happens. Credit Card fees are rolled into the referral fees.
Important things to know about fees and payments:
- Payment frequency is determined when a seller account is approved and is usually every 14 days or bi-weekly.
- Partners with an established marketplace tenure may be eligible for a weekly payment cycle.
- Payment activities are the same whether you are paid weekly or bi-weekly.
Now that you understand some of the basics of what it takes to sell on Walmart, it’s your turn to research whether or not the opportunity is worth the investment. We highly recommend that you spend some time reading the Walmart Marketplace website for more information on how to get started.
We’ll be publishing two more blog posts in the coming weeks about selling on Walmart. The next one will be on how to start selling, and we’ll finish up the series with a post on the key differences between Walmart and Amazon.