By Amy Lubell, ChannelAdvisor
Walmart recently announced that it is opening up its third-party marketplace to more sellers in an effort to expand its online assortment. The news has many retailers chomping at the bit to launch on Walmart. What seller wouldn’t want to make their products visible on the website of the largest retailer in the U.S.?
Walmart Marketplace was launched in 2009 and is open to select retailers. Products from third-party retailers are displayed alongside Walmart’s own inventory and are called out as Walmart Marketplace items. Sellers on Walmart’s global marketplace gain access to special promotion opportunities like Value of the Day offers. Walmart displays the seller name on third-party items, so you have an opportunity to build your brand recognition as well.
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Below are tidbits of information that are good to know as you start thinking about selling on Walmart:
- All sellers of the same product (including Walmart itself) will appear on the same product detail page;
- Product identifiers are required;
- You set your own returns and customer service policies;
- Walmart owns the buyer. You can’t remarket to the buyer during or after the sale; and
- Commissions are paid within two weeks, and you can expect them to be in line with those from other online marketplaces.
Unlike some marketplaces, Walmart requires an extensive selection process to launch on its global marketplace. Below are three strategies to consider as you seek Walmart’s approval to sell on its site.
1. Find A Gap To Fill.
Approaching Walmart with a product that is currently unavailable on the company’s site goes a long way in the approval process. As Walmart VP of Global Marketplace Seth Beal has said, “Our partnership with marketplace retailers allows us to provide our customers with more brands and products on Walmart.com.”
Beal’s comment hints that the company is trying to broaden its selection to create a compelling customer experience. If your product will help Walmart fill a selection gap, you probably have a greater chance of getting approval to sell on its marketplace.
2. Offer Competitive Prices.
“Always Low Prices” isn’t just a slogan for Walmart’s physical stores. It’s a key strategy for the company’s e-Commerce business as well. By partnering with Walmart, you’re expected to offer competitive prices. Skim through your competition, not just on Walmart but on other marketplaces as well, and see how your prices stack up. If you’re typically setting higher prices than other retailers in similar categories, consider investing in a repricing tool that will help set you apart from the competition.
3. Build Your Reputation.
Walmart emphasizes the importance of reputation when selecting sellers for its marketplace. The company is looking for proven sellers that can live up to customer demands. You use your own fulfillment solution for Walmart orders, so make sure you have a seamless process in place. Walmart wants to see that your own fulfillment team can get the job done to customers’ satisfaction.
Once you’re on Walmart, the company requires a feedback rating at or above 95%, or 4.5 stars. If you can show Walmart that you’ve had success on other marketplaces, particularly Amazon, chances are high that Walmart will work quickly to get you in the door.
Selling on Walmart can be a major e-Commerce opportunity for sellers. For more information about selling on Walmart to maximize your e-Commerce sales, please visit http://bit.ly/SellOnWalmart.
As Director of Product Marketing at ChannelAdvisor, Amy Lubell is responsible for the messaging and positioning of our Marketplaces, Digital Marketing and Brands product offerings, in order to communicate value and drive global demand. With more than 10 years of industry experience and overseeing worldwide professional services teams for both Marketplaces and Digital Marketing, she has rich knowledge of ChannelAdvisor customers and products, as well as key players in the e-Commerce industry.
