As an online retailer or business owner, you’ve most likely heard of Amazon, a leading online marketplace in the world of ecommerce. Perhaps you are looking for ways to increase revenue in business and are wondering if selling on Walmart could be profitable for you.
The Walmart Marketplace is an online extension of the Walmart brick and mortar store and was launched in 2009. The Walmart online marketplace continues to grow and expand, becoming a go-to for millions of online shoppers.
In this article, we will cover all you need to know about how to increase online business revenue by selling on Walmart.
Here’s what this guide will cover:
Walmart was founded by Sam Walton during the 1960s. Ever since then Walmart has expanded to over 10,000 stores worldwide. However, in 2009, Walmart stepped into the online space called the Walmart Marketplace.
This space has over 50 million product listings and over 33,000 sellers. The platform works just like most online marketplaces. It allows online retailers all over the world to sell their products to a massive customer audience.
Do you know that Walmart.com has up to 100 million unique online visitors every month? This is a great opportunity for online retailers and third-party sellers to increase online business revenue. Here are a few among the many benefits that come with selling on Walmart Marketplace:
With up to 100 million unique online visitors, Walmart.com is an ideal platform to reach your ideal customers. Thanks to the platform's large customer base, you can save money you would otherwise use for marketing your own website. You can get your products seen by millions of customers, increase your sales and grow revenue with Walmart.
Many small businesses struggle to gain brand recognition. Walmart is a well-known online marketplace. By listing your products on Walmart, you can take advantage of the platform’s brand recognition to pull sales and profits to your business. In addition, you can save money you would otherwise spend on marketing and branding.
What sets the Walmart marketplace apart is that you only get to pay fees when you sell products on Walmart. Unlike platforms like Amazon, where you pay monthly fees including storage fees and referral fees, you only pay referral fees on Walmart when you make a sale. This can go from 6% to 20% depending on your product category.
Walmart has built a well-established infrastructure to help online retailers and third-party sellers sell products on Walmart. From advanced listing tools, inventory management tools, free two days shipping, and a hassle-free checkout process.
Now that you know the benefits of selling on Walmart, let's run through the process of getting started on the Walmart marketplace.
Unlike the Amazon marketplace, to start selling on Walmart, you need to send a request.
This request involves providing details including product information, business location, and tax ID. Here's a list of what is required:
To avoid any delays, it's a good idea to work with an expert to get all the details you need and fill in any gaps.
Once your application receives approval from Walmart, you will get an email that contains a link for business registration. Click the link and begin registration
After clicking the link, you will be redirected to create your username and password. You will need these credentials to log in to your Seller Center, Walmart's portal for seller account management. You will then need to review and sign the Walmart Retailer Agreement - this contains terms and conditions for selling on the Walmart marketplace.
Next, fill in your Display Name and Corporate Address. Your display name will be visible to customers on Walmart.
Next, fill in the W-9 tax form by including your name, address, and (TIN) Taxpayer Identification Number.
Walmart partners with two major payment platforms which you have to choose from to receive all payment from sales - Payoneer and Hyperwallet. You will need to register with any of the platforms to link them to your Walmart account. If you have the W-8ECI tax classification, you will only be able to use a Payoneer account.
There are default shipping methods that include Value, Expedited, Standard, and Next Day. You will need to select your shipping price model and the regions you will be shipping products to.
The final stage of becoming a seller on Walmart is to list your products and test them. Uploading and testing your products is crucial to identifying any hitches that could affect your customer’s shopping experience.
Set up your products and create your listings, provide accurate product information, and pricing. Include your product categories and link them to the right products.
The testing phase involves placing and acknowledging an order, performing an order cancellation, selecting your shipping, and completing an order refund. Once these tests are completed, Walmart will carry out a final review before your product goes live and becomes available for purchase. To see your products on search results, it could take between 24-48 hours.
So how much does it cost to sell a product on Walmart? The awesome thing about selling on Walmart is that it is low cost. No subscription fees, setup fees, credit card fees, or monthly fees. Walmart will only charge you a percentage with every sale you make on Walmart. This percentage depends on your product category.
Referral fees on Walmart typically fall between 6% and 20%. This is determined by the product category you are selling in. You can check out the referral fees of various product categories here.
As a Walmart seller, you are in charge of order fulfillment and returns. However, you can choose fulfillment by Walmart. With Walmart Fulfillment Services (WFS), you can have Walmart store, pack and ship your items, making the process a whole lot faster and cost-efficient. Fulfillment by Walmart comes with storage fees and fulfillment fees based on the weight of your product.
If you use the Walmart Fulfillment Services (WFS), you will be responsible for shipping fees made on returns found to be your fault. Examples of these types of returns include defective products, incomplete products, missing spare parts, wrong orders, and so on.
Now that you have created your Walmart account and know what fees you need to pay, here are tips to help you sell successfully on Walmart and ensure you stay ahead of the competition.
Your Walmart listing is the major game-changer for your business. Customers will make a buying decision based on the quality of your listing.
Thankfully, Walmart makes it easy to know what a quality listing looks like. Its sophisticated algorithm results in a Listing quality score expressed as a percentage between 0-99. This score appears at the catalog and item level for every seller. This score is based on four factors: content and discoverability, ratings and reviews, offer and post-purchase quality. To monitor your listing quality score, you can check the Listing Quality Dashboard on your Seller Center.
To make your listing attractive to customers, make sure it is informative and compelling. Use high-quality photos and provide any additional information that describes your product. To ensure your listing is top-notch, go through Walmart’s Marketplace Listing Quality.
On Walmart.com, your product price is an important factor to consider. Having the lowest prices puts you in the best position to win the Buy Box. When it comes to setting your prices, you want to watch out for your profit margin. Ensure your prices are competitive. Consider your product price and shipping before setting your lowest price.
Sponsored Products is a cost-per-click service that gives you the opportunity to increase brand awareness and drive sales to your product listing. These ads will appear on search results, product category pages, and item pages. You won't need to pay fees until a customer clicks on your ad. With Sponsored Products, you can run product campaigns and get your product in front of a wider audience.
Walmart Fulfillment Services (WFS) offers seamless shipping, returns, customer service, storage, and inventory management. As a business owner, this allows you to focus on the most important parts of your business. You also have access to a full support system and a call center for queries.
Giving your customers a good shopping experience will encourage them to leave good product reviews and make them repeat customers. Here are simple ways to give your customers a memorable shopping experience:
Investing in good customer service will boost your reputation as a Walmart Seller and attract repeat customers.
Selling on Walmart Marketplace gives you access to a truckload of benefits. From reasonable fees to access to a large customer base and Walmart Fulfillment Services (WFS), you can scale your business, double up sales and grow revenue.