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

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 is growing at an unprecedented pace, with online sales projected to reach 4.9 trillion USD by 2021. 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 of Walmart into the ecommerce space, businesses now have a viable and cost-effective alternative for selling their products online.

Moreover, the rise of social media platforms has also contributed to the growth of ecommerce. With the increasing number of users on social media, businesses are now leveraging these platforms to reach a wider audience and drive sales. In fact, a recent study found that 55% of online shoppers have made a purchase through a social media platform. This trend is expected to continue, with social commerce projected to reach 84 billion USD by 2024.

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 2020, Walmart Marketplace has over 120 million unique monthly visitors and over 70,000 sellers.

One of the benefits of selling on Walmart Marketplace is the potential for increased visibility and sales. With such a large customer base, sellers have the opportunity to reach a wider audience and increase their revenue. Additionally, Walmart offers various tools and resources to help sellers optimize their listings and improve their sales performance.

However, it’s important for sellers to carefully consider the fees and requirements associated with selling on Walmart Marketplace. There are various fees for listing, selling, and fulfillment, and sellers must meet certain 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.

One advantage of Walmart over Amazon is its 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.

Another advantage of Walmart is its 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, which can be a major convenience factor for many shoppers.

Advantages of Selling on Walmart Marketplace

1. Walmart’s Lower Fees and Commissions Structure

One of the biggest advantages of selling on Walmart Marketplace is its lower fees and commission structure. While Amazon charges a referral fee of up to 45% on certain products, Walmart’s referral fee is capped at 15%. Additionally, Walmart does not charge a subscription fee, unlike Amazon’s Professional Seller Plan that 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 have the ability to create their own store page on Walmart Marketplace, which can help build brand recognition and customer loyalty.

3. A Large and Growing Customer Base on Walmart Marketplace

Walmart’s online presence is growing rapidly, with over 120 million unique monthly visitors to its ecommerce platform. By selling on Walmart Marketplace, sellers can tap into this customer base and potentially expand their reach beyond Amazon’s customer base.

4. Reaching Out to the Underserved Demographics on Walmart Marketplace

Walmart has a strong presence in underserved communities and rural areas, where Amazon may not be as well-established. By selling on Walmart Marketplace, businesses have the potential to reach out to these underserved demographics and expand their customer base.

5. Walmart’s Commitment to Sustainability

Walmart has made a commitment to sustainability and has set ambitious goals to reduce its carbon footprint and increase the use of renewable energy. By selling on Walmart Marketplace, businesses can align themselves with Walmart’s sustainability efforts and appeal 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, which can be a convenient option for customers. By selling on Walmart Marketplace, businesses can take advantage of these services and offer their customers more options for receiving their orders.

How to Get Started with Selling on Walmart Marketplace?

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

Tips for Optimizing Your Product Listings on Walmart Marketplace

Optimizing your product listings on Walmart Marketplace is essential for attracting customers and driving sales. Some tips for optimizing your product listings on Walmart Marketplace include providing high-quality product images, detailed product descriptions, and competitive pricing.

Another important tip for optimizing your product listings on Walmart Marketplace is to regularly update your inventory and pricing information. This ensures that your customers have access to the most up-to-date information about your products, and helps to avoid any confusion or frustration that may arise from outdated information. Additionally, consider utilizing Walmart’s advertising and promotion tools to increase visibility and drive traffic to your product listings. By taking these steps, 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 part of selling on Walmart Marketplace. Best practices for managing your orders and fulfillment on Walmart Marketplace include providing fast and reliable shipping, maintaining accurate inventory levels, and providing excellent customer service.

In addition to these best practices, it is also important to regularly monitor your seller metrics and performance. Walmart Marketplace has specific performance standards that sellers must meet, including on-time shipping, order defect rate, and customer satisfaction. By regularly monitoring your metrics and addressing any issues that arise, you can ensure that your account remains in good standing and that you continue to provide 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 key to building a loyal customer base on Walmart Marketplace. Some tips for building trust and credibility include providing accurate product descriptions, offering a fair return policy, and responding promptly to customer inquiries.

Another important factor in building trust and credibility with your customers on Walmart Marketplace is to maintain consistent communication with them. This can be achieved by sending regular updates on order status, shipping information, and any other relevant information related to their purchase. By keeping your customers informed, you are showing them that you value their business and are committed to providing them with a positive shopping experience.

In addition, offering competitive pricing and promotions can also help to build trust and credibility with your customers. By providing them with the best possible value for their money, you are demonstrating that you are committed to their satisfaction and are willing to go above and beyond to earn their trust and loyalty. This can lead to repeat business and positive reviews, which can help to attract new customers to your Walmart Marketplace store.

Leveraging Marketing Opportunities on Walmart Marketplace

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

One of the most effective marketing strategies on Walmart Marketplace is to optimize your product listings. This involves using relevant keywords in your product titles and descriptions, as well as providing high-quality images and detailed product information. By doing so, your products are more likely to appear in search results and attract potential customers.

In addition to optimizing your product listings, it’s also important to actively engage with customers on Walmart Marketplace. Responding to customer inquiries and reviews in a timely and professional manner can help build trust and loyalty with your customers. This can lead to positive word-of-mouth marketing and repeat business.

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 now 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. While the decision to sell on Walmart Marketplace ultimately depends on your business’s unique needs and goals, we believe it’s definitely worth considering as a viable alternative to Amazon.

One advantage of Walmart Marketplace is that it has a more streamlined and straightforward onboarding process compared to Amazon. This means that you can get your products listed and start selling faster, without having to navigate through 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 major benefit if you encounter any issues or need assistance with your account.

However, it’s important to note that Walmart Marketplace is still a relatively new platform, and it may not have the same level of brand recognition and customer loyalty as Amazon. This means that you may need to invest more time and resources into marketing and promoting your products in order to build up your customer base and generate sales. Ultimately, the decision 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.