Walmart is changing the face of online retail. They recently purchased Jet.com, changed their focus to distribution, and opened their doors to more third-party merchants.
This presents a big opportunity for many retailers who want to give their online sales a boost thanks to Walmart’s massive (and loyal) customer base. But how do you know if it’s the right fit for your business?
In this post we look at some of the sellers who should immediately consider hopping on the Walmart marketplace bandwagon.
Sellers Who Don’t Sell Commodity Products
We all know Walmart’s biggest strength (and the reason so many people are loyal to the brand): you can get anything you want for the lowest price possible. This can make finding success with commodity items a bit of a challenge.
If you offer unique products, however, you may just have an in. It gives customers a reason to purchase from your brand, and there is also less pressure to drive down your prices.
Sellers with Private Label Products
Price is a key driver for conversions on Walmart’s marketplace, but branding plays a role as well. Private label products with effective marketing can also find success on the site. You can tap into a large volume of sales with the right product.
Before listing your product, look at the existing competition in your category. In particular, top-selling products can be a good place to start your research. You can sort by “best sellers” to bring those products to the top of your search.
This can help you determine demand and see what’s already working. The key will be ensuring your marketing sets your product line apart.
Sellers Whose Products Are Price-Competitive
If you are still debating whether or not selling on Walmart.com is right for you, consider your pricing strategies.
Walmart’s pricing strategy is simple: their customers want the lowest prices. Period. If your products are price-competitive, you already understand the mindset of Walmart’s customers and how they purchase products.
Planning your pricing before signing up with Walmart is important. Look through the site’s current inventory and see how your offerings compare to the existing competition.
Sellers Whose Products Have a High Enough Margin
Walmart’s commission ranges from 8 to 20% depending on the category. Your product catalog has to be able to absorb this fee and still turn a reasonable profit.
Your first stop should be Walmart's commission rate chart. If you offer products across many categories, it’s worth crunching the numbers to see what works and what doesn’t.
Sellers Who Have the Ability to Scale
With the right product, you can see a massive jump in sales immediately after integrating your products on the Walmart marketplace. But can your operation handle the sudden increase in demand?
Consider the state of your existing systems. Are they running smoothly? Are you able to deliver products to customers on time? Do you have an efficient system for handling customer service issues? Is your staff trained and ready to handle the expansion?
Walmart offers one of the most exciting opportunities in online retail. Savvy merchants will look to piggyback off Walmart to reach thousands of new shoppers and give their online sales a boost. But it pays to have a plan in place to handle the growth that the Walmart marketplace may bring. Otherwise, success there may not be sustainable for the long-term.