In the ever-evolving world of eCommerce, brands often find themselves at a crossroads when deciding on the right platforms to sell their products. Luxury eCommerce sales are on track to slightly outpace overall eCommerce sales this year, and department store sites and apps are leading the pack, as can be seen in the graph to the left. While some may associate Walmart Marketplace with affordability, it's important to recognize that this platform can also be a great opportunity for businesses offering higher-priced items. Let's delve into why businesses with premium offerings should consider joining Walmart Marketplace.
- Access to a Wide Customer Base: Walmart is a retail giant with a massive customer base. While affordability is a cornerstone of their brand, their customer demographic isn't limited solely to budget-conscious shoppers. In fact, 28% of US households with incomes above $150,000 are currently subscribed to Walmart+, Walmart’s subscription service. By joining Walmart Marketplace, businesses with high-priced items gain access to a diverse audience actively seeking quality and value. These customers are willing to invest in products that align with their preferences and needs, regardless of price.
- Enhanced Brand Exposure: Walmart's extensive reach provides unparalleled brand exposure. Selling on Walmart Marketplace grants your business visibility to millions of potential customers browsing the platform. Even if your products are higher priced, being present on this platform allows you to showcase your brand to a vast audience and establish your reputation for premium quality.
- Credibility and Trust: Walmart's reputation for quality and trust extends to its marketplace. When customers see your products listed on Walmart, it lends an air of credibility to your brand. This can be especially valuable for businesses selling higher-priced items, as customers are more likely to invest in products from a reputable and recognized platform.
- Less Saturated Market Niche: While many eCommerce platforms are saturated with low-priced
products, Walmart Marketplace presents an opportunity to stand out in a less crowded niche. Additionally, research from eMarketer indicates that Walmart eCommerce sales are expected to grow by 11.3% in 2024, as seen in the graph to the right. The competition is comparatively lower, allowing your high-priced products to capture the attention of customers seeking unique and superior offerings. - Premium Shopping Experience: Walmart Marketplace has been actively working on enhancing the customer experience, including its online shopping platform. By aligning with this trajectory, businesses selling high-priced items can tap into a marketplace that's striving to provide a premium online shopping experience to match the caliber of their products. Additionally, Walmart has a huge advantage over some other marketplaces with its ability to provide brands with both online and in-store spend data and analytics, providing sellers with a better image of how successful their brand is at Walmart. As can be seen in the image below, Walmart's product catalog spans across a large array of prices and can still reach the target audience. Utilizing Walmart's platform provides brands with an expansion opportunity without compromising reaching the target consumers.
In conclusion, the perception of Walmart Marketplace as a platform solely for budget products is outdated. Businesses with higher-priced items can find valuable opportunities to showcase their offerings to a diverse and engaged audience. Access to a wide customer base, enhanced brand exposure, credibility, a less saturated niche, and a premium shopping experience are all compelling reasons for premium businesses to consider joining Walmart Marketplace. This platform isn't just about affordability; it's about connecting quality with value and capturing the attention of customers seeking the best that the market has to offer. For more information about Walmart Marketplace and to learn more about why your brand should expand to Walmart, download our white paper here.
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aiCommerce is a global digital marketing agency with a focus on retail and eCommerce marketplaces. Started by three digital marketing experts, aiCommerce is primed with decades of digital marketing experience and backed by our 90-day grow and know guarantee, we can help your brand grow across eCommerce channels to gain brand awareness and increase sales! Now is the perfect time to utilize our eCommerce experts to help grow your business.
