Today, online sellers have a tough decision on where to sell their products. Whether it’s your webstore platform or marketplace, there are a lot of choices to pick from. When it comes to marketplaces though, Amazon and eBay have always been the top picks.
However, Walmart recently made a slew of changes that allow their marketplace to compete directly with Amazon. Should you sell be selling on Walmart marketplace? Read this article to find out!
Walmart Marketplace Aims to Compete with Amazon
All online channels are chasing Amazon who has set the standard for online selling. This forces players like Walmart to take serious initiatives to catch-up.
And recently, Walmart has.
They no longer want to be known as just the low-cost leader. Instead, they want to appeal to a larger audience. As Walmart CEO Doug McMillion was quoted, “We’re moving quickly to respond to the current opportunities as well as to innovate and transform the shopping experience for our customers in the future.”
The changes they’re making are getting results too. In the first quarter of 2018, Walmart’s eCommerce sales grew 63%. Most of the growth was organic through Walmart.com.
A major force behind Walmart’s transformation is their current spree of acquisitions. In August 2016, they acquired Jet.com for $3.3 billion. There are also talks of adding eCommerce giant Bonobos. Walmart’s other acquisitions include Shoebuy.com, Moosejaw, and Modcloth.
These changes help Walmart go up against Amazon. By some estimates, Amazon and Walmart accounted for almost 50% of U.S. eCommerce in 2016. Learn more about Walmart’s recent transformation here.
Walmart seems to making strides in the right direction. However, does this make Walmart marketplace the right place to sell your products? Check out some of the advantages and disadvantage of selling on Walmart.
Advantages of Selling on Walmart Marketplace
Some of the top advantages of selling on Walmart include:
- Reach a large audience – In mid-2016, Walmart.com was the second-most-popular eCommerce site in the US in terms of traffic.
- Recently acquired Jet.com – This widens product assortment and improves back-end processes for order management and fulfillment.
- Offers free two-day shipping on 2 million items at a $35 minimum order value– This competes with Amazon Prime.
- They sell more than 15 million varieties of items, and about 1 million items are added per month.
- eCommerce sales are growing, as noted above, making Walmart one of the best opportunities currently.
Disadvantages of Selling on Walmart Marketplace
While Walmart is making improvements, there are still some disadvantages of selling on their marketplace to be aware of:
- Merchants must apply to be approved as a seller. This process can take 2 to 4 weeks.
- While their audience reach is growing, it still doesn’t compare to Amazon. Depending on what you sell, the marketplace might not be a good fit yet.
- Seller portal needs updated.
- Walmart tends to favor brand owners over retailers.
So should you sell on Walmart marketplace? The decision is up to you! Walmart is making impressive improvements to their operations making them an exciting opportunity. However, they still have more to do. If the time isn’t right now, it could be in the future.
If you do want to start selling on Walmart marketplace, check out this guide to get started.
Whether Walmart is the right marketplace for you or not, check out these other articles about selling on online marketplaces: