Meet the Marketplaces Part 1: Walmart Marketplace
Walmart is the nation’s largest retailer, and 90% of the US population lives within 10 miles of a store. In the last month, nearly two-thirds of US consumers made a purchase from Walmart, and their marketplace is currently the second largest online marketplace in sales behind Amazon. When it comes to selling online with marketplaces, Amazon is only the beginning.
Why Should Brands Sell On Walmart?
Walmart eCommerce sales are predicted to grow by 11.3% in 2024, as seen in the graph to the right. A major advantage that Walmart has over some other marketplaces is its ability to provide brands with both online and in-store spend data and analytics. The marketplace welcomed over 8,000 new sellers in the third quarter of 2022, with marketplace SKUs growing by 50%. While there are millions of products available on the marketplace, competition is much lower than other major competitors, making the marketplace a great place for brands to emerge and grow their online presence. It is important for brands and sellers to carefully review Walmart’s standards before listing their products in order to ensure they are adhering to all policies. Any brand or seller that offers products that are aligned with Walmart’s customer base and values can sell on the marketplace, including consumer goods and household items to electronics, clothing, and more. Brands need to be able to provide high-quality service, meet demands, and maintain product quality and safety.
Benefits of Walmart Marketplace
- Wide Customer Base: Walmart is one of the largest retailers in the world, with a massive customer base. By listing their products on Walmart Marketplace, brands can access this vast customer base and potentially increase their sales and revenue.
- Low Fees: Walmart Marketplace charges lower fees compared to some other online marketplaces, which can be appealing for brands looking to reduce their expenses.
- Brand Loyalty & Trust: Walmart is a well-known and trusted brand, which can give customers confidence in the products listed on Walmart Marketplace. This can lead to increased sales for brands that list their products on the platform.
- User-Friendly: Walmart Marketplace is designed to be user-friendly and easy to navigate, which can make it easier for brands to list and sell their products on the platform.
- Data Insights: Walmart Marketplace provides brands with detailed data and analytics, which can help them understand their customers' behavior, preferences, and purchase patterns. This information can be used to improve their marketing strategies and product offerings.
- Customer Search Trends: As can be seen in the graph below, 37% of consumers start their online search by looking at Walmart. This is a 6% increase since 2021, and only falls behind Amazon and search engines, both of which have seen decreases from 2021 until now. More customers are choosing to start their search on Walmart over other online options, providing brands with a greater opportunity to reach their target audience.
Overall, Walmart Marketplace can be a good option for brands looking to expand their online presence and reach a broader customer base. However, as with any marketplace, brands should carefully consider the fees, terms, and conditions before deciding whether to list their products on the platform.
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