Are you a business owner thinking about making the shift to selling through a digital marketplace like Amazon or eBay?
The COVID-19 pandemic has impacted just about every segment of the economy in the US and around the world. With social distancing rules, lockdown orders, and general skepticism about going anywhere, businesses large and small have moved into the digital sphere.
Ecommerce in the United States alone grew by leaps and bounds last year, with online spending representing a good chunk of all of the retail sales in the country.
All signs have been pointing to commerce increasingly shifting to the online space for many years now, and the coronavirus pandemic is only accelerating this migration.
One platform gaining traction for small businesses to sell their wares is Walmart Marketplace. But is it worth it to sell on Walmart Marketplace? What does becoming a Walmart Marketplace seller entail? Everything you need to know is here, so keep reading to learn if it’s worth your while to migrate your product catalogue to Walmart’s shiny new online interface.
What Is Walmart Marketplace?
We are going to make the wild assumption that you’ve probably heard of the enormous multinational corporation known as Walmart. Tačiau, what you might not have heard of it’s online counterpart. Walmart Marketplace is the corporate giant’s response to the booming ecommerce market.
This curated online market has more than 50 million product listings and over 33,000 sellers. It’s growing fast, and many people are catching wind of this digital marketplace and the possibilities that lie in selling through it.
Curious about ecommerce trends? Check out this article on the topic!
Why Should You Sell On Walmart Marketplace?
Selling online is one of the most popular ways for people to make extra money these days. Ecommerce is big business, and it’s no wonder that everybody wants a piece of the digital selling pie.
One of the fastest-growing marketplaces online, Walmart Marketplace is constantly rolling out new features to make the process more simple for brands and sellers to have access to their gigantic customer base.
Pavyzdžiui, customers can now return items they bought on Marketplace at physical retail stores, and 2-day shipping is available for millions of products.
While there are countless different platforms where you can sell and buy items, there are a few reasons why Walmart Marketplace stands out.
Buyer Behavior
Rather than building your own website from the ground up or using lesser-known platforms, you can take advantage of the fact that consumers trust Walmart. The company has easy return processes and strong customer satisfaction. This means that people feel comfortable buying items through Walmart, as they know that doing so is a low-risk activity.
Brand Equity
Unlike small brands that often struggle to gain broad recognition, Walmart is a well-known place to shop. When you list on Walmart Marketplace, you get to take advantage of their brand recognition. This helps you save both time and money on marketing and getting the word out about your products, and it makes it easy to get them in front of the right consumers.
Visibility and Reach
Did you know that 90% amerikiečių gyventi viduje 10 mylių Walmart parduotuvės? You’d be hard-pressed to find an individual in the United States who hasn’t been to a Walmart or at least have heard of it. There are over 100 million monthly visitors to Walmart’s online marketplace, which means that the visibility and reach that your offerings can have is unparalleled.
Paprastumas
Pagaliau, it’s easy to sell your items through Walmart Marketplace. While other platforms might be unnecessarily complicated, you will find that it is a breeze to manage all aspects of your business after you have become an approved selling partner.
(Are you curious how you can use viral content to boost your sales? Mokytis more here!)
Who Can Use This Digital Marketplace?
One of the reasons that Walmart Marketplace is successful is that there is a barrier to entry when it comes to sellers. This means that the market is not flooded with one-time trinket sellers or yard sale flippers.
There are a number of factors that will influence whether or not you are eligible to sell online through this platform. Taigi, what do you need in order to become a seller with Walmart’s online marketplace? Let’s find out:
You Are a Registered Business and You Have a US Address for Your Warehouses
In order to use this digital marketplace, you will need to already be established in the world of ecommerce. You will have already gained some experience through platforms like eBay or Amazon. Negana to, you have to be a registered company.
This does not necessarily mean that your company has to be based in the United States. It is possible for international sellers to obtain a DUNS number.
You Specialize In a Walmart Category
Walmart already has an established target audience. This means that what you sell needs to cater to who their buyers are.
Iš esmės, the product you are selling should be in one of Walmart’s categories, but it should also be compelling and unique. If you are just another vendor that is selling a product they have countless listings for, your chances of being approved will decrease.
Have Outstanding Customer Service and a Good Track Record
Another thing that carries a lot of weight when it comes to being approved as a seller on Walmart Marketplace is your customer experiences, Atsiliepimas, and reviews. Walmart needs to know that you have a high standard when it comes to customer service and customer care. They will take a look at how quickly you responded to customer inquiries and how you handle and resolve complaints and problems.
The Application Process
To sell on Walmart Marketplace, you’ll have to become an approved Walmart Seller. This process consists of five steps, which are:
- Fill out an application
- Sign a contract
- Registruotis
- Onboarding
- Final review
Once you have completed this process and been approved, a truly enormous customer base will be waiting there to buy your products!
Selling Online: How Much Does It Cost?
One of the awesome things about being a Walmart Marketplace seller is that they keep it simple. With Amazon, they require you to pay to be a seller. Walmart, iš kitos pusės, does not have monthly fees, credit card fees, setup fees, or subscription fees.
Iš esmės, the main cost to you will be a referral percentage. Walmart will charge you a percentage of the sales price of the items that you sell. How much this percentage is will depend on the category of the product you’re selling.
Referral Fees
How much you are charged as a referral fee can range between 6% ir 20%. The percentage is determined by the category of the product that you have sold. You can take a look at the referral fees for each category here.
Exceptions to Referral Fees
There are a few exceptions to the referral fees. This applies to some higher-value items, such as expensive jewelry. When an item has a higher sales price, there is often a significant reduction in the referral percentage.
Pavyzdžiui, the jewelry category is charged a 20% referral fee for the first $250. Po to, the rest of the cost is only charged 5%. Not a bad deal!
Fulfillment Fees
As a seller, you are in charge of both fulfilling orders and returns. Tu gali, tačiau, choose to use Walmart Fulfillment Services (WFS) and have Walmart take care of storing, pakavimas, and shipping your items. This can make the process way more cost-efficient and a whole lot faster.
To participate in WFS, there is a fulfillment price that is based on the weight of the item as well as a monthly storage fee.
Return Fees
If you use Walmart’s Fulfillment Services rather than handling fulfillment on your own, you will only be responsible for shipping charges on returns if the return is found to be your fault. Examples of this type of circumstance include damaged products, defective products, incorrect products, sending a product other than what was described, or sending a product that is missing parts.
How Do You Get Paid and Make Extra Money?
Now for the fun part. How does payment work once you’ve become an approved seller?
For US dollars, you will receive your payments directly in your US bank account every two weeks. International sellers can participate in this digital marketplace through software integrations, but many of the steps in the process are a bit more complicated than for US-based sellers.
Walmart Marketplace: Is It Right for You?
Selling on Walmart Marketplace isn’t a platform where you can simply be selling belongings you no longer need. This is a place where legitimate small businesses can have access to a huge market and enter the ecommerce world.
There are a lot of reasons why Walmart Marketplace might be a wiser choice for your business than some of the competitor sites. With a reasonable commission and no fees, access to WFS, a barrier for entry ensuring that the market isn’t flooded, and access to an enormous pool of potential buyers, joining Walmart Marketplace might just revolutionize your business and your revenue stream.
Are you ready to start selling your items online? Are you looking for a white label ecommerce solution? Jei taip, check out our pricing today to find the right plan for your business!
