You may already know that Walmart acquired Jet.com, one of the fastest-growing ecommerce sites, earlier this month. The news comes as Walmart continues to make a big push to expand its ecommerce footprint.
But what does this mean for the future of both brands? And, more importantly, how can you use this change to benefit your brand and sell more products?
One Company, Two Avenues on Which to Sell
Walmart plans to allow Jet.com to be run independently from their regular marketplace. So if you want to sell on both marketplaces, you will need to sign up separately for each one.
Seems like nothing has changed? Well, yes and no.
Because this is Walmart we’re talking about. The biggest retail company in the world – with a massive customer base to go along with it.
A relative upstart, Jet.com is sure to benefit from the added exposure and marketing muscle that comes with being a part of Walmart. And because Jet.com caters to a very different audience than the retail giant, both marketplaces should end up bolstering each other.
Let’s look at the benefits of selling your products on each.
We recently shared a more expansive post on why you should sell on the Walmart marketplace, but here are the top benefits:
- Huge, loyal audience – Not only does Walmart attract millions, it’s actually the fastest-growing marketplace right now. And those customers cut across demographic lines.
- Amazing brand exposure – Lots of people shopping means lots of brand exposure. And since many of them are repeat customers, your brand has a better chance to get cemented in their memory.
- Walmart wants you – Walmart may still be the biggest, but Amazon is catching up. Which means Walmart is fighting for customers and Because of this, there are plenty of incentives sellers can take advantage of.
- Walmart has muscle – Amazon has been able to run away from the online retail pack in part because it’s the biggest… but Walmart is bigger. Unlike other competitors, they have the resources and brand trust to really fight back.
- You’re getting in on the ground floor – In 2014, Walmart’s online marketplace had six third-party retailers. Six. That number jumped somewhere north of 300 in 2016, but it’s still quite low. Starting to sell there now means you can benefit from the minimal competition and forge relationships with customers before other merchants jump on the bandwagon.
Seen by some in online retail as the “sexy” version of Walmart, making it acceptable to buy high-end products at low prices, there are a number of good reasons to sell on Jet.com.
- You only get charged a commission fee – Many other marketplaces bog you down with fees – listing fees, signup fees, monthly fees, and more. But Jet only takes a single commission once your sold items are fulfilled.
- There’s not the Walmart stigma – Though this may change with their acquisition of Jet, there are some who see Walmart – and Walmart products – as “cheap.” Because Jet’s branding makes saving “sexy,” selling there can help you avoid this stigma while introducing a different customer base to your offerings.
- Sales taxes are handled for you – While some marketplaces leave figuring out sales taxes to sellers, which can be a headache, Jet does this for you.
- Simplified selling strategy – If you’ve ever tried to figure out how to win Amazon’s Buy Box, you know that the way marketplace sales are awarded can be complicated. But not at Jet. They keep it simple: the lowest price wins.
- Customer access – When you sell on Jet, you can not only see buyers’ contact information, but are also allowed to contact them directly. This can help to bolster brand recognition and engagement and foster loyalty.
- Open API – Translation: many inventory management systems and other tools, including GoDataFeed in the near future, are compatible with Jet, making it easy to keep track of products on the site.
- Returns may be reduced – Jet still allows returns, but their rules are strict and they even reward customers for not returning items. It is possible that this may mean fewer returns for your business.
Ultimately what Walmart’s acquisition means for sellers is a bit of peace of mind. If you were nervous to sell on either marketplace before, this investment should ease your fears.
Walmart really is making a huge push into the online marketplace arena, and they’re not going anywhere soon. And now that Jet has the substantial backing and resources of Walmart behind them, they’re likely to be a big player for years to come as well.
If selling on both marketplaces is an appropriate move for your business, now is the time to integrate with Walmart and Jet. This holiday season is going to be one of the biggest seasons for ecommerce yet.
Prepare your brand and your products by giving multiple marketplaces a time period of trial runs and adjustment before you are thrown into holiday rush.