Despite the slowdown in demand due to the risk of recession ahead, the eCommerce industry has been growing fast. While online sales have increased in the post-pandemic era, it gives online sellers a massive opportunity to grow their online businesses.
One of the major shifts for sellers has been building their presence on multiple marketplaces such as Walmart, Amazon, eBay, etc. While marketplaces like Amazon have become competitive, more sellers look to sell on Walmart Marketplace.
In this blog, we will list the reasons why Walmart.com is the next untapped marketplace for sellers in 2023 to build an online presence, make more sales, and increase market share.
What is Walmart Marketplace?
Walmart Marketplace is an e-commerce platform that allows third-party sellers to list and sell their products on Walmart.com alongside Walmart’s own products. Launched in 2009, Walmart Marketplace offers its customers a wider range of products.
Walmart is currently growing at a rapid pace and recently saw a 79% eCommerce growth in 2020. The number of sellers doubled between July 2020 and July 2021 and increased by two-thirds in 2022. Owing to the pandemic, the shift in how customers make purchases have occurred so drastically that experts believe there is no going back. Online sellers increasingly realize the importance of diversifying the existing channels portfolios and leveraging the benefits of selling on Walmart Marketplace.
Walmart Marketplace is the second biggest marketplace in terms of e-commerce market share. The platform continues to welcome online retailers from all over the globe by approving more seller applications since the pandemic and its new partnerships.
So here are the top reasons why Walmart marketplace is growing its customer base, the number of sellers, and why you should consider selling on Walmart Marketplace.
9 reasons to sell on Walmart Marketplace
Walmart is dedicated to creating an experience allowing customers to shop anytime, anywhere, and deliver what they want and when they want. Customers are searching for this convenience, and Walmart is capitalizing on this opportunity. Here are the top reasons to sell on Walmart Marketplace:
1. Walmart infrastructure
Walmart built and developed an impressive infrastructure over the years. Sellers gain access to cutting-edge features that make selling seamless.
- Get access to free 2-day shipping: Walmart allows eligible sellers to provide free two-day shipping for their customers. This is an excellent opportunity to stand out, boost your search ranks, and increase sales.
- Use Walmart Fulfillment Services: Third-party sellers on Walmart Marketplace have access to the Walmart Fulfillment Services (WFS) to decrease or consolidate shipping costs. It is the best platform for sellers who struggle to manage their inventory, as it protects you from overselling products and keeps the supply chain moving. Other benefits of WFS are straightforward pricing, fast delivery, tracking visibility, and a friendly return policy.
- Outsource fulfillment: Sellers on Walmart can use different shipping methods, such as Delivery, for managing fulfillment or marketing their goods on Sponsored Products. These are effective options to promote goods at a low cost while enhancing revenue.
Sponsored Products is a self-service method that uses cost-per-click, similar to other ad services. Depending on the products you sell, you get complete control over the listing you want to promote.
2. Walmart brand
Walmart Marketplace has become a dominant brick-and-mortar leader. The company currently commands impressive brand recognition as one of the best online marketplaces worldwide. Sellers on Walmart Marketplace have access to a huge customer base that spends time and purchases on the platform.
After you get approved as a seller on Walmart Marketplace, you automatically leverage Walmart’s brand value to boost your brand’s authority. Walmart also has strict seller selection criteria that sellers must pass through so customers are assured that not everyone will make it to the platform. The top benefits of strict selection and brand value at Walmart include:
- Walmart Marketplace has a lot less competition compared to other sites like Amazon.
- The site’s exclusivity encourages customers to trust the brands and products sold on the platform more.
3. New audience
In the past few years, Walmart has maintained a solid upwards trajectory for customer acquisition amidst stiff competition from other online marketplaces. The consistent growth of the marketplaces opens the door for business owners to reach fresh buyers worldwide.
Additionally, Walmart Marketplace focuses on creating a loyal customer base to ensure shoppers are devoted to the brands they interact with. With loyalty, business owners can capitalize on Walmart’s decades of brand recognition without putting effort into or investing in advertising. In turn, Walmart achieves over 100 million shoppers monthly, and 99% of them usually make an online purchase once a month.
Walmart’s demographics for its online customers are also compelling. Over half of the customers are homeowners with a moderately high income, while a third of the customers are millennials, the working majority. It is also the most popular marketplace for families; over half of the customers are married or in a relationship, and most have children.
These numbers show why it’s important to sell on Walmart Marketplace due to the growth potential and access to a new audience. Customers who come to Walmart are looking for deals since Walmart created a brand that saves money for its customers. Business owners can gain new customers and enhance their profit by offering competitively priced products.
4. Lower cost
Business expenses are one of the most important factors to consider, apart from the user base and seller competition. Most platforms charge sellers monthly fees, whether they make sales or not, in addition to item and referral fees. Walmart Marketplace has a different pricing model that makes it stand out where you only pay when you sell. The selling fee ranges from 6% to 20%, depending on your product category.
The other potential costs you may cover on the platform are those associated with returns or shipping. This means you will save on high-volume listing fees and avoid closing fees and additional costs related to e-commerce marketplaces.
5. Simple pricing structure
Another key advantage to using Walmart Marketplace is its transparent pricing structure. There are no hidden fees which is a significant downside to other marketplaces like Amazon, with a complex fee structure that can affect the sellers’ profitability. Walmart Marketplace does not charge a yearly fee or product listing fee. Sellers only pay for the referral fee for items sold and don’t have to worry about hidden costs, although you may still need to calculate the referral fees ahead of time to understand your spending.
6. Less competition
Competition is inevitable, especially when selling on an online marketplace. For people to buy your products when other sellers offer the same, you must convince them you are the best. Amazon currently has over 8 million sellers worldwide. When customers log into the shop, thousands of retailers will offer the same product. This is a different story from Walmart.
Walmart is a mere speck compared to Amazon, although the number of sellers on the platform is growing steadily. The vetting process is strict, and there is more freedom to sell on the site without spending too much on ads and dealing with competition.
7. First movers’ advantage
With few sellers on the Walmart Marketplace, there is a chance to avail first movers’ advantage. Being an early mover, you can dominate your category and grow your market share among the loyal Walmart customer base. Even if you are a new online seller and don’t sell on other marketplaces, you can take advantage of making the first move. This makes Walmart Marketplace a tremendous opportunity for new sellers to take advantage of Walmart’s huge retail infrastructure and customer base.
8. Seamless checkout process
Walmart.com has a fast, secure, and efficient checkout process. This gives customers confidence in making purchases or dealing with returns. Brands that sell on Walmart Marketplace ensure their customers are protected and feel safe when entering credit card details. Walmart creates that credibility bridge between the Walmart customers being introduced to new sellers leading to more sales and increased conversions.
9. Embrace innovation
When you partner with an online retailer giant like Walmart, you get access to a plethora of innovative tech solutions. Walmart works with several technology partners to enhance the customer experience by improving security, convenience, and logistics.
Walmart embraces working with tech partners like Trellis that provide sellers with a better selling experience, ultimately looking to satisfy their customers. For instance, Walmart sellers can rely on Walmart advertising automation to save time and cost while enjoying the full benefits of attracting new customers without hassle.
Become a seller on Walmart Marketplace seamlessly with Trellis
Walmart Marketplace presents an opportunity for sellers to reach a new audience and sell their products with ease. Trellis enables e-commerce businesses to grow with straightforward, automated tools. Our dynamic market-aware technology automatically sets you up for success with competitive pricing, automated advertising, detailed analytics, and collaboration with established business owners.
The top advantages of using Trellis for Walmart Marketplace advertising include the following:
- Advertise with confidence: Receive daily insights on your performance.
- Manage more using less: Automate finding new keywords and creating campaigns within seconds.
- Expand your target market: Thrive in new marketplaces and attract customers everywhere.
- Gain a competitive edge: Outbid competitors on the platform with advertising optimization.