As online marketplaces continue to revolutionize the ease of selling products online, Walmart is earning a large part of the market share. Learning how to sell on the walmart marketplace creates more opportunity to sell products. With eCommerce and online shopping growing rapidly, competition is becoming more fierce. Therefore, you need to be an expert in the community to dominate. Companies such as Amazon and Walmart offer online marketplaces that consumers frequent. On these marketplaces, there are third-party sellers, which allows the host to profit and attract more consumers without managing more products. To start your journey as a Walmart seller, keep reading to learn how to sell on the Walmart marketplace.
What is Walmart Marketplace?
Just like Amazon, the Walmart marketplace is a platform where consumers can find just about everything they need. Within the marketplace though, products are sold by third-party sellers. This means that although consumers are on the Walmart site – they are not dealing directly with Amazon. You can compare the marketplace to eBay or Amazon. The idea behind the marketplace for Walmart is that the partnerships compliment first-party offerings on Walmart. Selling on Walmart is easy with no setup or monthly fees. Sellers will just need to pay a commission rate that can vary by category. Rates range from 6% to 20%.
What are the requirements to sell on Walmart marketplace?
While requirements are not written in black and white, there are some that are. At a minimum business will need to meet the following requirements:
- Have and present proof of a US Business Tax ID (SSN not accepted)
- Verification of businesses address or physical operation location (W9 or W8 and an EIN verification letter)
- Located in the United States
- Product information (example – total number of SKUs, used vs. refurbished)
- List and link of marketplaces you currently sell on
- Explanation of why you are a qualified seller that’s good for the marketplace
- Company website
- Average online revenue figures
Additionally, it’s recommended that your business have at least $500,000 per year in total sales that can be proven. Sales should be through Amazon or another online marketplace. Walmart is looking for experienced sellers that provide superior customer service, hence the requirements. Plus, they will want to see that your product is different from what is already on their site. As a final step, Walmart will want to ensure that you can fulfill products in a timely manner.
Pros and cons of selling on Walmart Marketplace
- Low seller fees. Merchants are only required to pay a referral fee, which can vary depending on the product category. For example, video game consoles are 8% and jewelry is 20%.
- Opportunity to facilitate and manage return policy. Walmart does not regulate return policies, which is a good thing for sellers, but maybe not such a good thing for consumers. Sellers on Walmart must have a written return policy less than 4,000 characters.
- Less competition. Walmart is a healthy marketplace with 70,000+ sellers, but compared to other major players such as Amazon, the marketplace is fairly small. Amazon has about 2.4 million active sellers.
- Access Walmart customer base. Walmart customers are after value. And Walmart often delivers more than what they are looking for. Therefore, their marketplace attracts traffic and most visitors believe they will find value through the Walmart brand.
- Pricing parameters can be strict. Sellers are held to standards that force them to make sure products are not available for a cheaper price elsewhere. Check out Walmart’s Price Parity Rule or Price Leadership Rule. To be clear, sellers can set their own prices, but they could not offer the same product for less on Amazon.
- Reduced profit margins. Walmarts slogan Everyday Low Prices may require sellers to offer products for cheaper than they want.
- Less traffic than other marketplaces. Walmart is not the biggest player in the online marketplace space. Amazon generates about 80 million more visitors per month compared to Amazon.
- Unfair advantage as the result of a first-come, first-serve system. Walmart marketplace prioritizes sellers that come first. Therefore, when it comes to the Buy Box, the seller that listed first may be prioritized. To get more Buy Box time, you’ll need to compete on price.
Walmart Marketplace Fees Explained
Walmart has a unique fee schedule for sellers. With no setup, subscription, or monthly fees you can rest assured that Walmart is still profitable. Walmart charges sellers referral fees which vary depending on the category of product. You can visit the Walmart site to find a complete list of referral fees. For example, consumer electronics are 8% and kitchen is 1%.
How to Sell on Walmart Marketplace in 3 Easy Steps
Step #1: Complete the application process
If you meet the requirements to sell on Walmart, you can apply. Before applying you should gather documentation that may be requested, some of which we referenced above. Documentation includes W9 or W8, U.S. Business Tax ID, and so forth. If you have documentation handy, the application can be completed in as little as 10-15 minutes.
Step #2: Once approved, it’s time to register
After submitting your application, Walmart can approve it. Once approved, they should email you a link to register your business. The registration process includes six steps as follows:
- Account creation
- Walmart Retailer Agreement
- Company registration
- Tax forms
- Payment info
- Shipping info
Step #3: List products, test listings, and start selling live!
As a final step, you’ll need to create listings. To ensure listings are functional, Walmart encourages sellers to test items first. This means you will make sure the listing works properly by adding items to your cart, changing quantities, and ordering. Products will not show up live on Walmart until testing is complete. When ready to go live, Walmart will perform a final review and make your account go live when complete.
Is it easy to sell on Walmart Marketplace?
Selling on an online marketplace is easy, but that does not mean hard work and creativity are not driven factors of success. You’ll have plenty of competition so your products and service will need to stand out. Not to mention that your prices will need to be competitive. Selling volume can help drive prices down, so if needed, consider using funding to afford more inventory or secure bulk discounts.
How to get approved to sell on Walmart Marketplace
First, you’ll need to meet the requirements as discussed. While approval is partially left up to Walmart discretion, here are some of things they are looking for when approving sellers:
- Must be a legitimate company
- Prove that customer service matters – and that you’re taking care of customers
- Sell products that compliment Walmart’s marketplace
- Keep prices competitive
- Demonstrate an effective and capable fulfillment process
- Be prepared to provide Walmart with inventory info once approved
Although it may seem obvious, you also cannot sell prohibited or restricted products like animals, alcohol, drugs and medical devices, certain jewelry items, weapons, offensive products, and more.
Tips for getting started
Starting a new business venture is exciting, but it does not come with an investment of time, resources, and money. Before diving in as a Walmart seller – be prepared. Walmart is not looking to be a gateway for rookie sellers. While they make it easier to sell online, they want companies that have established sales and processes and a care for customer service. Your brand reflects theirs, so do what you can to demonstrate that you will be a valued partner – just as they are!
How Kickfurther can help
Selling online requires sellers to compete on price. Part of keeping costs low is ordering in bulk. Plus, you always want to ensure you have enough inventory in stock so you don’t miss a sale. Online sellers can benefit from affordable inventory funding, which Kickfurther can help provide.
Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.
- No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
- Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
- Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.
- Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.
- Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.
The rapidly growing Walmart marketplace is attracting new sellers daily. But, to get in, you’ll need to prove your worth. Part of that is demonstrating a plentiful inventory supply and efficient fulfillment practices. Inventory funding for Walmart can free up cash flow so you can invest in your business all while stocking plenty of inventory.
Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:
#1. Create a free business account
#2. Complete the online application
#3. Review a potential deal with one of our account reps & get funded in minutes
Learn more about Walmart Inventory Financing options with Kickfurther.