Why Ecommerce Businesses Should Sell on Walmart Instead of Amazon: Our Advice

Overview:

In the highly competitive world of ecommerce, choosing the right marketplace to sell your products can make all the difference. While Amazon has long dominated the online retail space, Walmart is now emerging as a viable alternative for ecommerce businesses seeking a larger customer base and lower fees. In this article, we'll examine why ecommerce businesses should sell on Walmart instead of Amazon and provide our expert advice on how to get started with Walmart Marketplace.

Introduction: The Ecommerce Landscape

The global ecommerce market continues to grow at an unprecedented pace, with online sales projected to exceed 7 trillion USD by 2025 (Shopify Research). Amazon has long been the dominant player in this space, capturing over 38% of online retail sales in the US alone. However, with the entry and expansion of Walmart into the ecommerce arena, businesses now have a viable and cost-effective alternative for selling their products online.

Moreover, the rise of social media platforms has also contributed significantly to the growth of ecommerce. With billions of active users, businesses are leveraging these platforms to reach a wider audience and drive sales. In fact, a recent study found that 58% of online shoppers have made a purchase through a social media platform (Business.com). This trend is expected to continue, with social commerce projected to reach 120 billion USD by 2025 (Statista).

A Brief Overview of Walmart Marketplace

Walmart Marketplace is an online platform that allows third-party sellers to list and sell their products alongside official Walmart products. As of 2023, Walmart Marketplace boasts over 150 million unique monthly visitors and more than 100,000 sellers, offering a substantial opportunity for ecommerce businesses to expand their reach (Business of Fashion).

One of the primary benefits of selling on Walmart Marketplace is the potential for increased visibility and sales. With such a large customer base, sellers can access a wider audience and boost their revenue. Additionally, Walmart offers various tools and resources to help sellers optimize their listings and improve their sales performance, including advertising solutions and data analytics.

However, sellers should carefully consider the fees and requirements associated with selling on Walmart Marketplace. There are fees for listing, selling, and fulfillment, and sellers must meet specific performance metrics to maintain their account in good standing. Despite these challenges, many sellers have found success on Walmart Marketplace and continue to grow their businesses through the platform.

Walmart vs Amazon: Which One is Better for Ecommerce Businesses?

Amazon has long been the go-to platform for ecommerce businesses looking to expand their customer base. However, Walmart is now emerging as a viable alternative with several distinct advantages over Amazon. Let's take a closer look.

Focus on Local Suppliers: Walmart has a strong commitment to supporting local businesses and sourcing products from within the community. This can be a major selling point for ecommerce businesses that prioritize sustainability and ethical sourcing.
Physical Presence: While Amazon dominates the online marketplace, Walmart has a vast network of brick-and-mortar stores that can be leveraged for ecommerce purposes. This allows for faster delivery times and the option for customers to pick up their orders in-store, a significant convenience factor for many shoppers.

Advantages of Selling on Walmart Marketplace

1. Walmart's Lower Fees and Commission Structure

One of the biggest advantages of selling on Walmart Marketplace is its lower fees and commission structure. While Amazon charges referral fees ranging from 6% to 45% depending on the category, Walmart's referral fees are generally capped at 15%. Additionally, Walmart does not charge a subscription fee, unlike Amazon's Professional Seller Plan, which costs $39.99 per month.

2. Better Control Over Your Brand on Walmart Marketplace

Unlike Amazon, Walmart allows sellers to retain greater control over their brand and product listings. Sellers can create their own store page on Walmart Marketplace, helping to build brand recognition and foster customer loyalty.

3. A Large and Growing Customer Base on Walmart Marketplace

Walmart's online presence is growing rapidly, with over 150 million unique monthly visitors to its ecommerce platform as of 2023. By selling on Walmart Marketplace, sellers can tap into this expansive customer base and potentially expand their reach beyond Amazon's customer pool.

4. Reaching Out to Underserved Demographics on Walmart Marketplace

Walmart has a strong presence in underserved communities and rural areas where Amazon may not be as well-established. Selling on Walmart Marketplace allows businesses to reach these underserved demographics and expand their customer base.

5. Walmart's Commitment to Sustainability

Walmart has made significant commitments to sustainability, setting ambitious goals to reduce its carbon footprint and increase the use of renewable energy sources (Walmart Sustainability Report 2020). By selling on Walmart Marketplace, businesses can align themselves with Walmart's sustainability efforts, appealing to environmentally conscious customers.

6. Access to Walmart's In-Store Pickup and Delivery Services

Walmart offers in-store pickup and delivery services for online orders, providing customers with flexible options for receiving their purchases. By selling on Walmart Marketplace, businesses can leverage these services to enhance customer satisfaction and convenience.

How to Get Started with Selling on Walmart Marketplace

Getting started with Walmart Marketplace is a straightforward process. Interested sellers must apply and meet specific criteria, including a record of positive customer feedback and a commitment to customer service excellence. Once approved, sellers can create their store page and upload their product listings to the platform.

It is important to note that Walmart Marketplace charges a referral fee for each item sold on the platform. The fee varies depending on the product category but typically ranges from 6% to 20% of the item's sale price. Additionally, sellers must adhere to Walmart's strict policies and guidelines, including shipping and return policies, to maintain their status as a trusted seller.

Tips for Optimizing Your Product Listings on Walmart Marketplace

Optimizing your product listings on Walmart Marketplace is essential for attracting customers and driving sales. Here are some tips:

High-Quality Product Images: Use clear, high-resolution images that showcase your product from multiple angles.
Detailed Product Descriptions: Provide comprehensive and accurate descriptions, highlighting key features and benefits.
Competitive Pricing: Research market prices to ensure your products are competitively priced.
Regularly Update Inventory and Pricing: Keep your inventory and pricing information up to date to avoid overselling or disappointing customers.
Utilize Walmart's Advertising Tools: Take advantage of Walmart's advertising and promotion tools to increase visibility and drive traffic to your product listings.

By implementing these strategies, you can improve your chances of success on Walmart Marketplace and increase your sales.

Best Practices for Managing Your Orders and Fulfillment on Walmart Marketplace

Managing orders and fulfillment is a critical component of selling on Walmart Marketplace. Here are best practices to consider:

Provide Fast and Reliable Shipping: Ensure that orders are shipped promptly and reliably to maintain customer satisfaction.
Maintain Accurate Inventory Levels: Keep track of your inventory to prevent stockouts and overselling.
Provide Excellent Customer Service: Respond to customer inquiries and resolve issues promptly to foster positive customer relationships.
Monitor Seller Metrics and Performance: Regularly review your seller metrics, such as on-time shipping, order defect rate, and customer satisfaction, to ensure compliance with Walmart's standards.

By adhering to these best practices, you can ensure smooth order management and fulfillment, leading to a positive shopping experience for Walmart customers.

How to Build Trust and Credibility with Your Customers on Walmart Marketplace

Building trust and credibility with your customers is essential for establishing a loyal customer base on Walmart Marketplace. Here are some strategies:

Provide Accurate Product Descriptions: Ensure that your product descriptions are truthful and detailed to set proper customer expectations.
Offer a Fair Return Policy: Implement a clear and fair return policy to give customers confidence in their purchases.
Respond Promptly to Customer Inquiries: Timely and helpful responses to customer questions can enhance their trust in your brand.
Maintain Consistent Communication: Keep customers informed about their order status, shipping information, and any updates related to their purchase.
Offer Competitive Pricing and Promotions: Providing the best possible value for customers reinforces your commitment to their satisfaction.

These practices can lead to repeat business and positive reviews, attracting new customers to your Walmart Marketplace store.

Leveraging Marketing Opportunities on Walmart Marketplace

Walmart Marketplace offers various marketing opportunities for sellers, including sponsored product listings and promotions. Leveraging these opportunities can help attract more customers and increase sales.

Optimize Your Product Listings: Use relevant keywords in your product titles and descriptions, and provide high-quality images and detailed product information to improve search visibility and attract potential customers.

Engage with Customers: Respond to customer inquiries and reviews in a timely and professional manner to build trust and loyalty. Positive interactions can lead to word-of-mouth marketing and repeat business.

Use Walmart's Advertising Solutions: Invest in Walmart's advertising options to boost the visibility of your products and drive more traffic to your listings.

By effectively utilizing these marketing strategies, you can enhance your presence on Walmart Marketplace and drive higher sales volumes.

Conclusion: Is Walmart Marketplace the Right Choice for Your Ecommerce Business?

While Amazon has long been the dominant player in the online retail space, Walmart is rapidly emerging as a viable and cost-effective alternative for ecommerce businesses. By listing your products on Walmart Marketplace, you can tap into a large and growing customer base, retain greater control over your brand, and potentially lower your fees and commissions.

The decision to sell on Walmart Marketplace ultimately depends on your business's unique needs and goals. However, it is worth considering as a complement or alternative to Amazon.

One advantage of Walmart Marketplace is its more streamlined and straightforward onboarding process compared to Amazon. This means you can get your products listed and start selling faster, without navigating a complex and time-consuming registration process. Additionally, Walmart's customer service is known for being more responsive and helpful than Amazon's, which can be a significant benefit if you encounter any issues or need assistance with your account.

However, it's important to note that Walmart Marketplace is still growing, and it may not yet have the same level of brand recognition and customer loyalty as Amazon. This means you may need to invest more time and resources into marketing and promoting your products to build your customer base and generate sales. Ultimately, the choice to sell on Walmart Marketplace should be based on a careful evaluation of your business's needs and goals, as well as an understanding of the platform's strengths and limitations.