If you are an Amazon Seller, you must always be considering alternative sales channels to diversify and to “escape” Amazon's expensive fees. Well, Amazon is the second Marketplace on the USA and India and I'm sure you know them by now, especially if you live in the US.
Table of Contents
So… welcome to the world of Walmart Marketplace. Hopefully, this guide will help you roadmap the Walmart Marketplace from scratch and understand it's pros and cons. As usual, enough talk, let's do this!
What is Walmart Marketplace?
Walmart Marketplace operates as an online hub where third-party sellers list products alongside Walmart’s offerings. It’s a digital marketplace connecting millions of customers to a diverse range of products and categories. As much categories as Amazon, if you ask me. And it's a great opportunity because it's not (yet) high competited. Although it has 100,000 active Sellers so far so… hurry up!
Walmart 3P Sellers are responsible for order fulfillment, including shipping and customer service, and have the option of using Walmart’s Fulfillment Centers as well.
Walmart Marketplace vs. Walmart Suppliers
Distinguishing between Walmart sellers and suppliers is key. Sellers operate on the online marketplace (3P), managing their e-commerce operations, while suppliers provide products for Walmart’s physical and online stores (1P / Retail), working directly with Walmart’s buying teams.
So it's kinda an Amazon Seller vs Amazon Vendor situation: 3P vs 1P.
Marketplace Size and Scope
With over 100,000 sellers and growing, Walmart Marketplace is a rapidly expanding platform, offering a wide-reaching customer base and significant sales potential. Are there International Sellers on the ground? Yes, sir.
Walmart started allowing international sellers in March 2021. It hosted a seller conference in Shenzhen, China, to announce the change because most of the new international sellers would be coming from China. It began onboarding sellers in India in January 2022, the U.K. in June 2022, and Canada in August 2022.
Walmart’s criteria for inviting new Sellers
It's not as easy as it gets when you want to Sell on Amazon. Take a look at the requirements:
Essential Qualifications
To join Walmart Marketplace, sellers must have:
- Business Tax ID or Business License Number
- Supporting documents verifying business name and address
- Proven e-commerce success
- Products with GTIN/UPC GS1 Company Prefix Numbers
- Catalog compliant with Walmart’s Prohibited Products Policy
- Fulfillment options through Walmart Fulfillment Services (WFS) or a U.S.-based B2C warehouse
Walmart's focus on customer satisfaction
Yes, they use performance scorings as well. And Walmart prioritizes customer satisfaction and service quality as well. Sellers are expected to offer competitive pricing, efficient fulfillment, and excellent customer service. Otherwise, you're out.
How to Get Approved on Walmart
Again, it's trickier than the Amazon process. Let's check it out:
The Approval Process
Applying to Walmart Marketplace involves:
- Business Verification: Submit business details for Seller Profile completion.
- Payments: Provide payment details.
- Shipping: Configure shipping methods and costs.
Required Documents
- U.S. Business Tax ID
- W8/W9 tax forms
- EIN Verification Letter
- Product-related information, including catalog size and integration method
Approval Timeline
The process can take from 48 hours to 2-4 weeks. Walmart may request additional information during this period.
How to start selling on Walmart Marketplace
This process is quite similar to Amazon's Seller Central signup:
1. Setting Up Your Account
Upon approval, sellers receive instructions to create a Seller Center account, involving:
- Account Creation
- Agreement to Walmart’s terms and services
- Company Registration
- Tax Information
- Payment Setup
- Shipping Information Setup
2. Completing the Partner Profile
This includes providing company info, customer service policy, contact details, shipping, and return policies.
Why join Walmart Marketplace?
If you ask me, because you must always be diverisfying sales channels. Don't put your eggs into one, two or three baskets. Go big or go home.
Walmart's Marketplace advantages and benefits
- Access to a vast customer base
- Trust and credibility associated with the Walmart brand
- Significant web traffic for increased visibility
- A suite of advertising tools and fulfillment services
- Opportunity for international growth
Managing Sales Channels
Diversifying sales channels through Walmart Marketplace can enhance brand visibility and sales potential and you have tools to simplfy that. Check our Best Multi-Channel Inventory Management Software ranking and you'll find lots of tools supporting Walmart WMS: SKU Grid, Finale Inventory, Zentail, Ordoro, Listing Mirror…
Best Practices for Walmart Selling
Not so different than Amazon because, at the end of the day, it's all about exceptional client's service, pricing and convenience:
- Ensure well-optimized product listings for better visibility
- Encourage customer reviews
- Utilize Walmart advertising effectively
- Adhere to Walmart’s performance standards and policies
- Regular analysis and strategic expansion of the product catalog
Software for Walmart Sellers
- Helium 10: A suite of tools for keyword research, sales estimation, and PPC management. Magnet, Cerebro and BlackBox have support for Walmart
- StreetPricer: repricer for Amazon eBay and Walmart
- Zentail: multi channel solution for managing listings, inventory and orders, including Walmart
- Ordoro: multi channel solution for managing listings, inventory and orders, including Walmart
- Baselinker: multi channel solution for managing listings, inventory and orders, including Walmart
Selling on Walmart: FAQs
Can individuals sell on Walmart Marketplace?
No. Primarily, Walmart Marketplace is designed for registered businesses, not for individuals. Sellers need to have a business Tax ID and a professional setup for order fulfillment. It's targeted towards businesses with an established online sales track record.
Is selling on both Amazon and Walmart possible?
Yes, it's very common for sellers to list their products on both Amazon and Walmart and you can do that using multi channel tools such as Ordoro, Listing Mirror or Baselinker. This approach can expand your reach and increase sales potential.
However, it requires effective management of listings, inventory, pricings and customer service across both platforms.
Can you use Amazon Multi Channel Fulfillment to deliver Walmart orders?
No, it's strictly forbidden. And it's the same for eBay so don't try it or your account will be abnned for good.
What are the costs implications and fee structure on the Walmart Marketplace?
- No Listing or Annual Fees: Walmart doesn't charge for listing products or an annual subscription fee.
- Referral Fees: Sellers pay a referral fee per sale, which varies from 6% to 20% depending on the product category.
How can I check the status of my Walmart Marketplace application?
- Seller Center: Log into your Walmart Seller Center account to check the status.
- Email Notifications: Walmart also communicates through email regarding the status of your application.
How can I generate product reviews on Walmart?
- Walmart's Review Programs: Utilize Walmart’s Review Accelerator Program and Review Syndication to encourage and showcase customer reviews.
- Customer Engagement: Request reviews from customers post-purchase via follow-up emails or through the packaging inserts.
What are Walmart Marketplace's referral fees by category?
- Apparel & Accessories – 15%
- Automotive & Powersports – 12%
- Automotive Electronics – 8% (various categories)
- Baby – 8% for items ≤ $10, 15% for items > $10
- Beauty – 8% for items ≤ $10, 15% for items > $10
- Books – 15%
- Camera & Photo – 8%
- Cell Phones – 8%
- Consumer Electronics – 8%
- Electronics Accessories – 15% up to $100, 8% over $100
- Indoor & Outdoor Furniture – 15% up to $200, 10% over $200
- Decor – 15%
- Gourmet Food – 15%
- Grocery – 8% for items ≤ $10, 15% for items > $10
- Health & Personal Care – 8% for items ≤ $10, 15% for items > $10
- Home & Garden – 15%
- Industrial & Scientific – 12%
- Jewelry – 20% up to $250, 5% over $250
- Kitchen – 15%
- Luggage & Travel Accessories – 15%
- Major Appliances – 8%
- Music – 15%
- Musical Instruments – 12%
- Office Products – 15%, 8% for Calculators
- Outdoors – 15%, 8% for specific items
- Outdoor Power Tools – 15% ≤ $500, 8% > $500
- Personal Computers – 6%
- Pet Supplies – 15%
- Plumbing Heating Cooling & Ventilation – 10%
- Shoes, Handbags & Sunglasses – 15%
- Software & Computer Video Games – 15%
- Sporting Goods – 15%
- Tires & Wheels – 10%
- Tools & Home Improvement – 15%, 12% for Base Power Tools
- Toys & Games – 15%
- Video & DVD – 15%
- Video Game Consoles – 8%
- Video Games – 15%
- Watches – 15% up to $1,500, 3% over $1,500
- Everything Else – 15%
NOTE: Lower Referral Fees may be applicable to some items in the categories: Baby, Beauty, Electronics Accessories, Grocery, Health & Personal Care, based on total sales price.
What are the best advertising strategies for Walmart?
- Walmart Connect: Use Walmart's advertising platform for sponsored product listings and brand promotion.
- Targeted Ads: Focus on cost-per-click campaigns targeting specific keywords and demographics.
- Analyzing Performance: Regularly review campaign performance and adjust strategies for optimization.
What are Walmart Marketplace's product restrictions?
Adherence to Walmart’s Prohibited Products Policy is mandatory, with certain categories requiring pre-approval.