Despite being one of the largest big box retailers in the United States, Walmart’s e-commerce strategy has lagged behind other major players. They’ve spent years trying to grow that side of their business and it’s finally paying off.
While Walmart’s e-commerce sales are still no match for Amazon, it recently surpassed eBay (one of the original e-commerce giants) in sales. Walmart now accounts for 5.3% of all e-commerce sales in the United States.
With Walmart’s e-commerce dominance on the rise, it might be time for you to consider selling your products on Walmart Marketplace.
Why Sell on Walmart Marketplace
According to Walmart, it’s the largest multi-channel retailer. They boast that they’re able to provide sellers with an opportunity to get their products in front of millions of customers. In the last few years Walmart has completely changed its e-commerce strategy which is great for all of us here in the industry.
Instead of focusing on books, electronics and toys Walmart has broadened its horizons to now sell apparel, fresh food and everyday essentials as well. This shift allowed Walmart to really start growing its e-commerce channel to start competing for a share of the market.
This shift in strategy and continued growth is a good sign for e-commerce sellers. Having more competition in the market and more major platforms to sell on, creates more opportunities for success. In addition, walmart is a trusted brand and one that many customers could easily transition from shopping in-person to online.
So if you’ve been waiting to try out selling on Walmart until it became more of a major player, now might be a good time to give it a go. Walmart allows third-party sellers in 35+ products categories to offer their products on its marketplace.
Here’s a bonus if you have a Shopify! You can sync items and manage orders all from Shopify. They also boast that they don’t charge a set up or monthly fee. Something to consider if you’re on the fence.
The Pros and Cons of Selling on Walmart Marketplace
The Pros of Selling on Walmart Marketplace
Even though Walmart Marketplace isn’t the giant that Amazon is there are still many benefits to selling on their platform. Because they want to grow their platform they’ve made the process of getting started relatively easy and straight-forward. In addition like I mentioned earlier, there are no monthly or initial setup fees.
On top of this they have a wide customer base and the competition is still pretty low. As an up-and-comer Walmart doesn’t have nearly as many sellers as Amazon. Getting in at this stage while they’re still growing could mean a lot of success now and in the future for you on this platform.
You can also list products on Walmarts other affiliate sites like Jet.com, Shoes.com, Moosejaw.com, etc. Once you get approved to sell on Walmart Marketplace you can then start selling your products on these more niche sites as well which is great if they fit your products.
The Cons of Selling on Walmart Marketplace
While there are a lot of pros and opportunities when it comes to selling on Walmart Marketplace there are also some drawbacks to consider before you go all in. For example, with their focus on savings and their high commission fees your margins might take a hit. It’s up to you to decide if you can get the volume required to make those margins work.
While Amazon takes on the responsibility of dealing with customer service, shipping, exchanges and returns Walmart is just the opposite. They expect you to take care of all of that while delivering products in non-branded packaging. Some might consider this too big of an ask when they can’t even promote their own brand in the process.
Not only does Walmart want you to give its customers the biggest savings, they demand it! They will even de-list your product if they find out you’re selling it for cheaper somewhere else. That’s pretty intense!
The Takeaway
Walmart Marketplace isn’t a perfect platform but it’s up and coming and can provide a lot of opportunity. Since it’s a growing platform now is a good time to seriously consider getting on board. How many people have said to themselves, “I wish I had started selling on Amazon 5 years ago?” In this case you don’t need to have any regrets if you start when the getting is good.
One of the biggest roadblocks to getting started with selling on Walmart is the issue of fulfillment. Here at Ship Central we can help! We’ve got you covered for all your order fulfillment needs and syncing your orders and inventory has never been easier. We’ve even got you covered with returns and exchanges. Contact us today to find out how we can help your business grow.