Walmart ‘Done for you’ stores are fully managed eCommerce businesses that generate money. It only requires a little involvement but comes with a huge upfront cost and a revenue-sharing model with the service provider. Managed service covers a wide range of tasks, such as listing products, running ads, responding to customers, managing order fulfillment, handling return requests, and optimizing your listings for increased profitability.
While it can be a ‘set-and-forget’ endeavor, it is highly risky. In fact, many Walmart automation services could be get-rich-quick schemes.
In this blog, we cover everything you need to know about Walmart ‘Done for you’ store and how automation services work.
What is Walmart ‘Done for you’?
Walmart ‘Done for you’ is an eCommerce automation service that has become popular in the last few years. Sellers contract “agencies” that set up the store and do the day-to-day operations.
Walmart ‘Done for you’ store is a fully managed business where sellers act more like silent investors. The eCommerce management team will list you on Walmart, brand your store, optimize the business for growth, configure workflows and automation, and do anything else that keeps your Walmart store churning sales. The automation providers make money through a percentage of your sales. In return, sellers enjoy near-passive income through Walmart Marketplace.
What is Walmart Automation Service?
Walmart automation service is an unbranded term for Walmart ‘Done for you’ stores. Walmart automation means a service that manages part or all of your Walmart store and seller operations. Stores may use various software or tools and create a workflow with a manual workforce to manage the store.
For example, listing products in bulk could be automated through software, and optimizations to improve product listings or running ads could be done by PPC managers. It varies from every provider based on how they want to run your store.
This business model is for people who want to invest in an eCommerce business but don’t want to run it themselves or don’t have the expertise. You could be a silent partner, which requires you to trust and build a relationship with the service provider. However, not knowing eCommerce and investing in a Walmart ‘Done for you’ can be risky. You may not know how successfully your store is managed.
Why Walmart?
After Amazon, Walmart is becoming an attractive marketplace for eCommerce sellers to start building their stores. Walmart is growing five times faster than Amazon and competition is relatively less with a growing number of loyal customers and fewer sellers. Therefore, at the moment, Walmart is the hottest marketplace for eCommerce sellers to grow.
What are the requirements to build a Walmart store?
Walmart’s barrier to entry is higher than Amazon’s. Walmart sellers usually need an established business or some experience selling products with a successful sales history.
If you do not have any of those, Walmart automation service can help you with the ‘Done for you’ store. If they cannot get you onto the Walmart marketplace, you have to look elsewhere. If your business and products meet the criteria, you can expand your existing eCommerce business to sell on Walmart’s marketplace.
Here is a full list of requirements to build a Walmart store which you can fulfill through your automation service provider:
1. Have a registered US business.
- Business Name,
- Corporate Address,
- Tax ID,
- Licensing, and
- Matching IRS records.
First, you’ll need an existing US business. You will be required to register your business in a state and have a tax ID. You need to have your own business name, corporate address, and any necessary licensing to operate in your state or with your products. Your business will also need to match registered IRS records.
2. History of successfully selling online
- Personal Online Store,
- Different Online Marketplace, and
- ECommerce Platform.
Not only do you need an established business, but also need established eCommerce success. You will have to sell a few products through another channel. That channel can be a private online store, another online marketplace, or an eCommerce platform. This proves to Walmart that your products have demand and you are prepared for online sales.
3. Compliant Products
- Not prohibited by Walmart’s product policy, and
- Unique GTIN/UPC GSI Company Prefix Numbers
Walmart has two requirements for your products. First, your products must not violate the Walmart Prohibited Products Policy. These include regulated products like alcoholic beverages and ammunition, explosive products like paint and lighter fluid, temperature-controlled products, and tires.
Every item must have a unique barcode number in the format of a GTIN/UPC GSI Company Prefix. It helps with logistics and shipping in warehouses.
4. Reliable order fulfillment
- Walmart Fulfillment Services, and
- B2C US Warehouse that Processes Returns.
Lastly, Walmart needs you to have a good order fulfillment record at a warehouse level. You can fulfill through Walmart’s Fulfillment Service (WFS), or use a third-party warehouse that handles returns (business-to-consumer).
However, if you don’t have all your requirements, your Walmart Automation partner can help you find the answers or do it themselves. But if it’s a ‘Done for You’ store, they should do most of the application work.
What are the benefits of an automated Walmart store?
Putting money down on a Walmart ‘Done for you’ store has several benefits if you choose the right partner.
List you on Walmart Marketplace
Getting listed on Walmart as a seller is challenging if you do not have online selling experience. By leveraging their experience and name, an automation service helps you get listed. If you already sell on Amazon, then it becomes easier to build a Walmart store. One of the biggest challenges is getting listed on Walmart which is why these automation services come in handy.
Easy access to Walmart’s customer base
One of the biggest challenges for eCommerce sellers is creating an audience. Walmart already has millions of loyal customers that visit Walmart.com every day. This helps sellers focus on providing high-quality products to sellers who are searching for solutions rather than building traffic to their own stores.
Minimal effort to expand your market
If you already have an operating business, you can expand to new audiences. One of the biggest challenges for eCommerce sellers is finding new audiences when your ad campaigns have dried up or a market is saturated.
Generate passive income
An automated Walmart store can help you earn passive income, while you focus on other parts of your business or portfolio. This could be an attractive benefit for people who want to diversify their investments or grow other ventures.
How Does Walmart Automation Work?
Walmart automation works with software through fine-tuned workflows. Some processes can be manual depending on store management services, but for investors or brands, everything is taken care of. Therefore, some may refer to it as fully automated, while others may refer to it as partially managed.
Once they have all the details about your business, they list your brand. When the products are imported from the supplier, the store is organized and products are uploaded. They then start marketing through various channels and once sales start coming in, they ship orders directly through the supplier in most cases.
One of the challenging situations is dealing with the returns, Walmart Automation teams will process returns and offer a full refund if the items are damaged. They will then alert you or use your authorization to restock the warehouse when supplies run low.
In other words, Walmart Automation is a professional service that runs your Walmart store from top to bottom.
How does Walmart Automation dropshipping work?
Dropshipping is when you never actually store your product. You deliver the product directly from the supplier to the customer when you receive an order. Dropshipping is a popular strategy for eCommerce sellers, allowing you to save warehouse costs and sell as many products as the supplier can deliver.
Most Walmart automation services use dropshipping models which makes it easier to source and list products in volume. In some cases, automation services build a brand around these products that they never actually see. However, it may require extra operational costs from the investor.
Often, suppliers or vendors lack the skills to sell, so they partner with sellers and only manage warehousing. The margins on dropship products may be low if they are developed in the same country. If the products are delivered directly to the customer through Chinese suppliers, for example, the product margins are higher. Since the delivery cost takes up a significant chunk of the selling price.
How much does a Walmart ‘Done for you’ store cost?
Walmart automation services get paid through upfront investment, operational credit lines, and revenue share.
A Walmart ‘Done for you’ store can cost anywhere from $5,000 to $50,000 to build and manage. It ranges in price depending on the automation partner and the size/complexity of the store you want to run. In order to manage the team and buy inventory, operational funds are also required.
Should you invest in a Walmart ‘Done for you’ store?
Letting someone else manage your eCommerce business is risky, unless you trust their work. While there are scammers that could make money off other people’s investments, it can be an excellent opportunity if you already have eCommerce experience.
It is worthwhile to note that your Walmart ‘Done for you’ may take time to result in sales and even longer to become profitable. Therefore, it is critical to set expectations:
- How much of the store is automated and handled by the team?
- What are realistic target expectations in the short and long run?
- How will the upfront cost, operational expenses, and revenue model work?
- What if after some time you want to self-manage the Walmart store?
Self-Managing Walmart “Done for you’ Store
If you have a Walmart store already and want to manage it yourself, you can add marketing and merchandising automation through various platforms.
Trellis offers advertising automation on Walmart marketplace which uses AI to optimize campaigns. It saves you time and money by automating keyword research, bid adjustment, and budget management. To learn more about Walmart advertising automation and advanced analytics, book a demo with us for your Walmart store.
If you want to learn more about the Walmart marketplace, check out our other Walmart blogs.
