The Walmart Marketplace presents an opportunity for sellers looking for new audiences for their products and to grow their businesses.  This article will explain the four key reasons why Walmart Marketplace is a prime choice for sellers while exploring a step-by-step guide to start selling on Walmart.com. 

Reasons to sell on Walmart.com

 

A Growing Online Marketplace

Walmart is now one of the world’s largest retailers, attracting millions of shoppers daily. Selling on Walmart.com exposes your products to a massive and diverse customer base. Walmart has been steadily growing its online sales with each passing year.  On Walmart.com, your products will be in front of loyal Walmart shoppers and a growing number of online consumers searching for various products.

No Subscription Fee

Walmart.com uses a fee structure that is different from many other online marketplaces. Instead of charging multiple fees (like listing, subscription, etc.), Walmart.com primarily charges its third-party sellers a Referral Fee Based on Product Category.  The referral fee is a percentage of the sale price of each item (including the item price and any shipping or gift wrap charges). This percentage varies from 6% to 15% depending on the type of product you sell.  Here are some fees based on categories:

• Books: 15%
• Photo & Camera: 8%
• Consumer electronics: 8%
• Cell phones / Mobile phones: 8%
• Personal & health care products: 8% for less than $10 sales, 10%
• Tires & wheels: 10%
• Automotive & powersports: 12%
• Musical instruments: 12%
• Video Game Consoles: 8%
• Video Games: 15%
• Watches: 15% for the portion of the total sales price up to $1,500, 3% for the portion of the total sales price greater than $1,500
• Everything Else: 15%

Pricing structure

Walmart’s payment process: Once an item sells, Walmart deducts the referral fee from the payment. The remaining amount (minus the referral fee) is what the seller receives. One of the advantages of this model is its simplicity and transparency. Sellers can predict their costs upfront without worrying about hidden charges or complex fee structures. This makes it easier to manage finances and calculate potential profits. Plus, Walmart.com does not charge any fees for listing your products on its platform, unlike some marketplaces that charge you each time you list a product or if your product is listed for an extended period without selling. 

TwoDay and ThreeDay

Sellers can apply for the TwoDay and ThreeDay shipping programs, which provide customers with a quick and convenient shipping option at no additional cost. For third-party sellers on Walmart.com, participating in the 2-day shipping program can increase the visibility of their products. Being part of this program can lead to a “2-Day Shipping” tag on their listings, making them more attractive to potential buyers. However, sellers must ensure they meet the delivery commitments to remain in good standing.

How to become a seller on Walmart Marketplace

Follow the next steps to start selling on Walmart.

Get approval

To start selling on Walmart’s online marketplace, you must follow Walmart’s Application Process. The first step is to get approval to sell your products on the platform. You have to fill out an application that explains what your business does, other marketplaces you use, basic operation information, the types of products you sell, and, of course, contact details:

 

The approval process takes a few weeks, and once you’re approved, you have to sign the Walmart Marketplace Program Retailer Agreement, which outlines information like Walmart’s role and responsibilities, your responsibilities as a seller, the order and fulfillment process, return management, and pricing details.

Set up your Partner profile

Once your application is approved, you’ll receive an invitation to set up a Walmart Seller account. You’ll need to provide financial information like your banking information to ensure you receive payments for your sales. Once your seller account is ready, the next step is setting up your Partner profile, which offers more details about your business to potential customers.

• General Settings – Fill in your “Company Info,” including your display name (how customers will see your company), description, and logo. Provide your shipping details, including rates, regions you ship to, and processing times.
• Customer Service Details – Add specifics about your customer service, like phone number, email, and hours of operation. This ensures customers know when and how they can reach you.
• Return Policy – Clearly state your return policy. Walmart requires sellers to match or exceed their return policy, so ensure yours is compliant with Walmart’s marketplace standards.
• Privacy Policy – If you have a privacy policy for your business, provide it. If not, Walmart will use its standard privacy policy on your behalf.
• Shipping Settings – Define your shipping rates (if they vary by location or weight) and specify regions you don’t ship to. You can also set up any promotional shipping rules if you have them.
• Tax Setup – Based on your business’s location and where you’re selling, set up appropriate tax codes for the products you’ll be listing. This ensures that the right sales tax amount is charged to your customers.
• Items & Inventory – Once your profile is set up, you can add your products. Depending on your assortment size, you can add items manually, use a bulk upload feature, or integrate with an API for larger inventories.

Remember, maintaining an up-to-date, detailed, and accurate partner profile that complies with Walmart’s guidelines helps to build trust with your potential customers. Ensure all information provided is current and represents your business appropriately. Periodically review and update your profile as necessary.

Walmart logistics strategy

Walmart provides sellers with different logistics strategies with various options for handling inventory and order fulfillment when selling on Walmart.com.

 

Self-Fulfillment (Ship with Your Own Carrier)

Sellers handle their own inventory, packing, and shipping processes. They use their own warehouses and choose their own shipping providers to deliver products to customers. Self-fulfillment sellers must abide by Walmart’s Shipping Requirements and packaging rules. Essentially, they manage the entire order fulfillment process in-house. Pros:

• Sellers maintain control over their inventory and fulfillment process.
• Direct customer interactions during shipping and returns.
• Sellers have the flexibility to choose what fits best to their company and customer’s needs.

Cons:

• Sellers have full responsibility for ensuring fast and accurate deliveries.
• They must ensure compliance with Walmart’s performance standards, including shipping speed and reliability.

Walmart Fulfillment Services (WFS)

In this model, sellers send their inventory to Walmart’s dedicated fulfillment centers. It is Walmart’s equivalent of Amazon’s FBA, so they are very similar. Once a customer places an order, Walmart takes care of storing, packing, shipping, handling customer service, and managing returns for these products on behalf of the seller. Pros:

• Using Walmart’s vast and efficient logistics network can result in faster shipping times and increased sales, as your products are highlighted with the “TwoDay” delivery tag.
• Simplified logistics as sellers don’t need to handle individual shipments.
• Walmart handles customer service related to shipping and returns, providing consistency in the customer experience.

Cons:

• Sellers pay fees for storage and fulfillment.
• There’s less direct control over inventory and the fulfillment process.
• Potential for additional fees if inventory doesn’t turn over quickly (long-term storage fees).

 

 

Dropshipping (or Direct-to-Consumer)

Sellers list products on Walmart.com without holding the actual inventory. The seller sends the product from a third-party supplier when an order is placed. This supplier then ships the product directly to the end customer, meaning the seller acts more as a middleman. Pros:

• Low, upfront costs since sellers don’t have to purchase and store inventory ahead of sales.
• It offers flexibility to sell a wider range of products without needing warehousing.

Cons:

• Lower profit margins, as products are often bought at near-retail prices.
• The seller has less control over product quality and shipping times, which can impact customer satisfaction and reviews.
• It’s imperative to have reliable suppliers to ensure product availability and quality.

Conclusion

Walmart.com is a great marketplace for sellers looking to diversify their online presence. With its expanding online consumer base, simplified fee structure, and efficient shipping programs, Walmart offers a competitive platform for eCommerce success. With thoughtful preparation and following Walmart’s guidelines, sellers have a significant opportunity to sell their products and grow their businesses in a successful online marketplace. Adapting to Walmart’s rules and algorithms may be challenging if you come from other eCommerce platforms like Amazon. BellaVix can help you with this process. We help our clients with our Walmart Marketing Services to grow their brands and increase sales.  If you have any further queries or require assistance on your Amazon journey, feel free to reach out to the BellaVix Team. We are always here to help.

 

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