When Walmart announced the Walmart Marketplace in August 2009 to select retailers to offer additional products online that were not available in stores, few people could have imagined the impact it would have today. As a Walmart e-commerce solution populated by products from over 70,000 Marketplace Sellers, Walmart brings millions of brands, products, and selections to its customers. It provides third-party sellers a means to list their products on Walmart.com, similar to what they can do on eBay or Amazon.
Growth and Scale
Walmart is the largest multichannel retailer, with more than 474 million visits each month. Selling on Walmart Marketplace is one of the most effective ways to connect millions of shoppers with your products.
Walmart Marketplace grew to an estimated 70,000 sellers in 2020, driven by an upsurge in online shopping due to the pandemic. The company also made significant investments in technology and creating new vendor partnerships. Data firm Marketplace Pulse reported the number of sellers on Marketplace is expected to grow by 146 percent by the end of 2022.
Is selling on Walmart Marketplace worth it? Yes. Marketplace offers a considerable advantage by eliminating fees. Sellers only pay a referral fee when they make a sale. Compare this to Amazon, where sellers pay monthly dues and variable closing fees in addition to referral fees.
Walmart also undercuts Amazon on the commission it takes on sales. The commission is 3 to 20 percent on items sold versus Amazon’s 6 to 45 percent rate, depending on the type of product.
Many people who shop Walmart Marketplace aren’t Amazon Prime Members or don’t use Amazon very often. Some don’t want to pay for the membership but can reap the benefit of two-day shipping on Walmart without joining a special program.
With just over 70,000 sellers on Marketplace, the competition is lower. Marketplace offers prime real estate for new sellers who get 13-times more visitors a month than sellers on Amazon, reports Walmart, due to a less saturated space.
Why is there less competition on Marketplace? Walmart cares about which companies they allow to sell on their site, so the vetting process is more challenging than on Amazon.
For millions of consumers, Walmart is an established and trusted name. Shoppers feel confident purchasing products from a retailer with a legacy of providing low-cost, high-quality products. For almost 60 years, Walmart has built trust and confidence in their customers’ shopping experience.
When you sell your products on Walmart Marketplace, you inherit that trust and confidence. Shoppers realize that the suppliers who sell products through Walmart Marketplace have been appropriately vetted and qualified to sell products on their website.
Walmart’s checkout process is quick and easy for shoppers, and the process is safe.
When you sell products on Walmart Marketplace, shoppers feel secure entering their card information and are more likely to follow through on a purchase leading to more sales for your business.
Walmart’s analytic tools help you monitor sales performance, understand how shoppers interact with your products, and provide insights to help you improve product listings. With these tools, you can make informed choices that enhance your listings, be more competitive and boost sales for your business.
Get Started Selling on Walmart Marketplace Today
Woodridge Retail Group makes it easy to start selling on Walmart Marketplace. Our integrated e-commerce strategy creates a user-friendly experience, builds shopper confidence, creates repeat sales, reduces returns, and helps brands maximize their exposure and visibility, ensuring they thrive on dot com.
Contact us today to get started.