Should You Expand Your Amazon Business to Walmart?

As an established Amazon seller, you may be considering expanding your e-commerce presence to new platforms. One increasingly popular option that's catching the attention of many sellers is Walmart Marketplace. This growing platform has been making significant strides in the online retail space, prompting many Amazon-based businesses to explore its potential.

Walmart Marketplace, while not as expansive as Amazon, has been steadily gaining traction in the e-commerce world. Its rising popularity has led to increased interest from sellers looking to diversify their online sales channels. If you've been successfully selling on Amazon for some time, you might be wondering if Walmart could be a valuable addition to your business strategy.

However, expanding to a new platform is a significant decision that requires careful consideration. It's not just about listing your products on another website; it involves understanding a new ecosystem, adapting to different policies, and potentially adjusting your business operations.

In this post, we'll take a balanced look at the prospect of selling on Walmart. We'll explore the advantages and challenges, helping you assess whether this expansion aligns with your business goals. Our aim is to provide you with the information you need to make an informed decision about whether Walmart is the right next step for your e-commerce journey.

So, let's delve into the world of Walmart together. By the end of this article, you'll have a clearer picture of what this platform offers and how it could potentially fit into your business expansion plans.

Why Consider Walmart?

Walmart's increasing focus on e-commerce has transformed its online marketplace into a compelling option for sellers. The company's commitment to this digital shift is evident in initiatives like the annual Walmart Seller Summit, which showcases new features and opportunities for online retailers. This dedication stems from Walmart's ambition to compete more effectively with major e-commerce platforms, particularly Amazon.

The platform's evolution has brought forth several new initiatives that present unique opportunities for sellers. For instance, Walmart has launched a premium beauty storefront, opening doors for brands in this category to reach a broader audience. Additionally, the "Resold at Walmart" program demonstrates the company's venture into the growing resale market, potentially offering new avenues for sellers in this space.

One of Walmart Marketplace's notable strengths lies in its potential for niche categories. In areas where Amazon's competition is particularly intense, Walmart's platform may offer a less saturated environment for certain products to stand out. This could be especially advantageous for sellers looking to differentiate themselves or those with products that align well with Walmart's customer base.

As we continue, we'll delve deeper into these aspects, helping you understand how they might align with your business goals and whether they present worthwhile opportunities for expansion.

Key Differences Between Amazon and Walmart

Let's examine some key differences between Amazon and Walmart that could impact your selling experience:

Search Algorithms:

Understanding the nuances of Walmart's search algorithm is crucial for sellers considering the platform. Unlike Amazon's A9 algorithm, which heavily weights factors like sales history and customer reviews, Walmart's algorithm places a stronger emphasis on product relevance and competitive pricing. This difference can be significant for new sellers or those introducing new products, as it potentially allows for quicker visibility without the need for an extensive sales history on the platform.

Walmart's algorithm also considers the completeness and quality of product listings, including detailed descriptions, high-quality images, and accurate categorization. This focus on content quality can benefit sellers who invest time in creating comprehensive, informative listings.

Advertising and Seller Support:

One of Walmart's distinguishing features is its approach to seller support, which often feels more personalized compared to Amazon's. Walmart offers dedicated account managers to many of its sellers, particularly those meeting certain sales thresholds. These account managers can provide tailored guidance on advertising strategies, marketplace best practices, and optimization techniques.

This personalized support from Walmart's seller center contrasts with Amazon's seller support, which many sellers describe as more automated and impersonal. While Amazon's system is designed to handle a massive volume of sellers efficiently, it can sometimes leave sellers feeling like they're navigating complex issues without individualized assistance.

Walmart's advertising platform, while not as mature as Amazon's, is evolving rapidly. It offers similar formats like Sponsored Products, but with potentially less competition and lower costs per click in some categories. The presence of dedicated account managers can be particularly valuable here, offering insights into effective ad strategies and helping sellers maximize their return on ad spend.

It's worth noting that while this more hands-on approach from Walmart can be beneficial, it may also come with higher expectations for seller performance and adherence to platform standards. Sellers should be prepared to maintain high levels of customer service and product quality to fully benefit from this support structure.

Walmart’s Unique Selling Points

Walmart Fulfillment Services (WFS):

Walmart fulfillment services are a key differentiator that deserves attention from sellers considering expansion. WFS offers several advantages that may be particularly appealing to businesses looking to streamline their operations and reach new markets.

One standout feature of Walmart fulfillment services is its cross-border fulfillment capabilities for Canada and Mexico. This service allows sellers to easily expand their reach into these international markets without the complexities typically associated with cross-border selling. By leveraging Walmart's existing infrastructure and logistics network, sellers can potentially tap into new customer bases with minimal additional effort.

Furthermore, Walmart has made a commitment to maintaining competitive fulfillment fees. The company has stated its intention to keep Walmart fulfillment services fees lower than those of other major e-commerce platforms. This pricing strategy could lead to improved profit margins for sellers, especially when combined with the efficiency of a centralized fulfillment system.

Potential for In-Store Opportunities:

One of Walmart's most unique advantages is its vast network of physical stores, which opens up possibilities that pure e-commerce platforms can't match. Success on Walmart.com can potentially pave the way for opportunities to sell products in Walmart's brick-and-mortar locations.

This online-to-offline pathway represents a significant opportunity for brand exposure and sales growth. Walmart's physical stores receive millions of visitors daily, providing an unparalleled level of foot traffic and potential customer interactions. For sellers whose products align well with Walmart's in-store offerings, this could represent a major avenue for business expansion.

It's important to note that the transition from online to in-store selling is not automatic or guaranteed. Typically, it requires consistently strong performance on the marketplace, products that align with Walmart's in-store strategy, and often, additional negotiations and agreements. However, for sellers who can navigate this process successfully, the rewards in terms of increased sales volume and brand recognition can be substantial.

These unique selling points highlight how Walmart isn't just another sales channel, but a platform with distinct advantages that could significantly impact a seller's growth trajectory. As we continue, we'll examine how these features might align with different business models and goals, helping you assess whether they present valuable opportunities for your specific situation.

Who Should Sell on Walmart?

High-Volume Sellers Looking to Diversify:

For sellers who have already established a strong presence on Amazon or other e-commerce platforms, expanding to Walmart can be a strategic move to diversify revenue streams. This diversification is crucial for several reasons:

1. Risk mitigation: Relying too heavily on a single platform exposes a business to significant risk if that platform changes its policies or if the seller encounters account issues. By expanding to Walmart, sellers can create a safety net for their business.

2. Market reach: Walmart attracts a somewhat different demographic than Amazon, potentially allowing sellers to tap into new customer segments.

3. Competitive advantage: Being present on multiple platforms can give sellers insights into different market dynamics and consumer behaviors, which can inform overall business strategy.

Brands with Unique Products:

Walmart has been actively expanding its product range, making a concerted effort to include more diverse and specialized offerings. This shift makes the platform increasingly attractive for sellers with unique or niche products. Some areas of particular interest include:

1. Collectibles: Walmart has shown growing interest in this category, offering opportunities for sellers in areas like trading cards, limited edition items, and memorabilia.

2. Premium beauty: With the launch of its premium beauty storefront, Walmart is creating space for higher-end beauty and skincare brands.

3. Sustainable products: As consumer interest in eco-friendly options grows, Walmart has been expanding its offerings in this area.

For brands that offer distinctive products in these or other specialized categories, Walmart could provide a platform to reach customers who might not find these items through traditional Walmart channels.

New Sellers to eCommerce:

Interestingly, Walmart can also be an attractive option for sellers who are new to e-commerce. Here's why:

1. Less competition: While growing rapidly, Walmart still has fewer sellers than Amazon in many categories. This can make it easier for new sellers to gain visibility and traction.

2. Gaps in product offerings: There are still categories and niches on Walmart that are underserved, presenting opportunities for new sellers to fill these gaps.

3. Brand association: For new sellers, association with a well-known brand like Walmart can lend credibility and trust to their products.

4. Potentially lower advertising costs: With less competition, the cost of advertising on Walmart's platform may be lower in some categories, allowing new sellers to stretch their marketing budgets further.

Challenges to Keep in Mind

However, it's important to note that while Walmart can be more accessible for new sellers, the platform still maintains high standards for product quality and seller performance. New sellers should be prepared to meet these standards to succeed on the platform.

As we consider the potential benefits of expanding to Walmart, it's equally important to be aware of the challenges you might face. Let's examine some key points to keep in mind:

Less Traffic Compared to Amazon: While Walmart has been making significant strides in e-commerce, it's crucial to recognize that its online presence is still catching up to Amazon's dominance. This difference manifests in several ways:

1. Lower overall traffic: Walmart.com generally receives less traffic than Amazon, which can translate to fewer potential customers viewing your products.

2. Different shopping habits: Many consumers still primarily associate Walmart with in-store shopping rather than online purchases, which can impact browsing and buying behaviors on the platform.

3. Brand awareness in e-commerce: Although Walmart is a household name, its reputation as an online marketplace is still developing. This means that some customers may not think to check Walmart.com when shopping online, particularly for certain product categories.

These factors can potentially lead to slower initial sales growth on Walmart compared to what you might experience on Amazon. It's important to set realistic expectations and potentially adjust your sales projections accordingly when expanding to this platform.

Different Seller Policies and Onboarding Processes: Transitioning to Walmart requires adapting to a new set of rules and processes, which can present some challenges:

1. Strict listing requirements: Walmart maintains high standards for product listings, including detailed product information, high-quality images, and accurate categorization. While these standards can benefit sellers by ensuring a quality shopping experience, they may require significant time and effort to meet, especially when first onboarding your products.

2. Pricing policies: Walmart places a strong emphasis on competitive pricing. Their Price Parity Rule requires that prices on Walmart Marketplace be equal to or lower than on other platforms. This can impact your pricing strategy and potentially affect profit margins.

3. Performance metrics: Walmart has its own set of performance metrics that sellers must meet, including order defect rate, on-time shipping rate, and valid tracking rate. These may differ from metrics you're accustomed to on other platforms.

4. Approval process: Unlike Amazon's relatively quick seller approval process, Walmart's can be more rigorous and time-consuming. They carefully vet potential sellers to ensure they align with Walmart's standards and target market.

5. Limited API functionality: While improving, Walmart's API and integration capabilities may not be as robust as Amazon's, which can impact inventory management and order processing for sellers used to more advanced systems.

6. Different return policies: Walmart's return policies may differ from what you're accustomed to on Amazon, potentially requiring adjustments to your customer service processes.

While these challenges are not insurmountable, they do require careful consideration and planning. Sellers expanding to Walmart should be prepared to invest time in learning the platform's unique requirements and potentially adjusting their operations to meet these new standards.

Final Thoughts

Ultimately, the decision to sell on Walmart should align with your overall business strategy and growth goals. For many sellers, especially those looking to diversify their sales channels or tap into Walmart's substantial customer base, the potential benefits may well outweigh the challenges of expansion.

As you consider this opportunity, remember that e-commerce is an ever-evolving landscape. Walmart's continued investment in its online marketplace suggests it will play an increasingly important role in the future of online retail. By carefully evaluating your readiness and aligning your offerings with Walmart's platform, you could position your business to capitalize on this growth and open up new avenues for success.

Whether you decide to take the plunge now or wait and watch, staying informed about Walmart and other emerging sales channels will be crucial for navigating the future of e-commerce. Your path forward should be guided by your unique business needs, resources, and long-term vision for growth in the dynamic world of online retail.

Ready to sell on Walmart.com? Open your account here!

If you've decided that Walmart is the right next step for your business, remember that your product listings play a crucial role in your success on the platform. Crafting compelling, SEO-optimized listings that meet Walmart's strict requirements can be challenging, but it's essential for standing out in this growing marketplace.

Need expert help in creating Walmart listings that convert? Reach out to Marketing by Emma. Our team of e-commerce copywriting specialists can help you create product listings that not only meet Walmart's standards but also resonate with your target audience. With our expertise, you can ensure your products shine on Walmart Marketplace, maximizing your potential for success on this exciting platform. Contact Marketing by Emma today to get started on your Walmart Marketplace journey with confidence.