If you’ve been honing your skills on Amazon, a number of elements of Amazon online selling are directly transferable to Walmart’s marketplace. 

There are however more than a few differences between selling on Amazon and selling on Walmart that are worth noting. 

For Amazon sellers considering a move to Walmart’s platform, understanding the key differences between these two giants can be the deciding factor between success and struggle. 

This blog post will explore ten strategies that leverage these differences, helping you make a smooth and profitable transition to Walmart’s marketplace.

1. Capitalize on Lower Competition

This is a big one. Who doesn’t love the idea of less competition? 

One of the most significant advantages of Walmart’s marketplace is its relatively uncrowded nature compared to Amazon. This presents a golden opportunity for you to gain higher visibility and capture market share more easily.

Actionable Tip: Identify niche products in your inventory that face high competition on Amazon but have fewer competitors on Walmart. Prioritize these items for your initial launch on the platform to maximize your chances of standing out and gaining traction quickly.

2. Take Advantage of Walmart’s Selective Onboarding

Unlike Amazon’s more open approach, Walmart employs a selective onboarding process for its marketplace sellers. While this may seem like a barrier, it’s actually an opportunity to position your brand as more exclusive and trustworthy.

Actionable Tip: Before applying to sell on Walmart, ensure your business meets or exceeds their criteria. Focus on demonstrating your ability to offer fast shipping, maintain competitive pricing, and provide excellent customer service. This preparation will not only increase your chances of approval but also set you up for success on the platform.

3. Adjust Pricing Strategies for Walmart’s Value-Oriented Shoppers

Walmart’s customer base is known for being particularly price-conscious, often prioritizing value over other factors. This doesn’t mean you need to slash your prices across the board, but it does require a thoughtful approach to pricing.

Actionable Tip: Conduct a thorough analysis of your product line to identify items that can be competitively priced without sacrificing profitability. Consider creating value packs or bundles that offer perceived savings to customers while maintaining your margins. Remember, the goal is to appeal to Walmart’s cost-conscious shoppers without undermining your brand’s value proposition.

4. Optimize Listings for Walmart’s Search Algorithm

While both Amazon and Walmart use sophisticated search algorithms, they sometimes prioritize different factors. Many experts are of the opinion that Walmart’s algorithm places a stronger emphasis on product quality and relevance, rather than solely focusing on sales history and conversion rates.

Actionable Tip: Invest time in optimizing your product titles, descriptions, and attributes specifically for Walmart’s search criteria. Use clear, concise language that accurately describes your products and incorporates relevant keywords. Pay special attention to Walmart’s category-specific attributes, as these play a crucial role in search visibility.

5. Utilize Walmart Fulfillment Services (WFS)

Similar to Amazon’s FBA program, Walmart’s WFS generally features lower storage and fulfillment fees compared to FBA, which can be particularly advantageous for sellers with slower-moving inventory. Also, while Amazon charges for returns, WFS handles returns at no additional cost to sellers. 

Actionable Tip: Enroll in WFS for your best-selling items to benefit from Walmart’s fast shipping tags and increased customer trust. This can lead to higher conversion rates and improved search rankings. Analyze your inventory and after considering factors like size, weight, and sales velocity, determine which products are best suited for WFS. 

Ultimately, while FBA offers a more comprehensive suite of services and wider reach, WFS can be more cost-effective and less competitive for sellers looking to expand onto Walmart’s growing marketplace. Use that to your advantage. 

6. Adapt to Walmart’s Marketplace Policies

While there are similarities, Walmart’s marketplace policies differ from Amazon’s in several key areas. Understanding and adapting to these differences is crucial for maintaining good standing on the platform.

Actionable Tip: Thoroughly review Walmart’s seller policies, paying close attention to areas like return policies, product restrictions, and performance metrics. Take the time to set up internal processes to ensure compliance with Walmart’s specific requirements, such as their stricter requirements for product content, often requiring more detailed specifications and attributes. Regularly audit your listings and operations to maintain alignment with Walmart’s policies.

7. Leverage Amazon Experience to Excel in Customer Service

This might be where Amazon’s intense emphasis on the customer experience might come in handy. 

Your experience meeting Amazon’s high customer service standards can be a significant advantage on Walmart’s platform. Use this expertise to set yourself apart from competitors who may not be as customer focused.

Actionable Tip: Implement proactive customer service practices, such as sending follow-up emails after purchases, promptly addressing customer inquiries, and going above and beyond to resolve issues. Regularly monitor your customer feedback and ratings on Walmart, using this information to continuously improve your service and maintain high performance metrics.

8. Experiment with Exclusive Products or Bundles

Even though Walmart is almost universally viewed as a store for the masses, everyone likes to feel special. 

Offering products or bundles that are exclusive to Walmart can create a unique value proposition for customers and potentially lead to featured placement on the platform.

Actionable Tip: Develop Walmart-specific product bundles or variations that cater to the platform’s demographic. This could involve creating new color options, size variations, or packaging multiple related items together in a cost-effective bundle. Monitor the performance of these exclusive offerings and be prepared to iterate based on customer feedback and sales data.

9. Monitor and Adapt to Market Trends

Walmart’s marketplace may exhibit different trends compared to Amazon due to its distinct customer base and historical shopping patterns. It’s important to do specific research and treat it as its own channel. Staying attuned to these trends is crucial for long-term success.

Actionable Tip: Regularly analyze data from Walmart’s Seller Center and consider investing in third-party analytics tools that provide insights into Walmart-specific trends. Pay attention to seasonal fluctuations, category-specific patterns, and emerging product trends. Use this information to guide your inventory planning, pricing strategies, and product development efforts.

10. Don’t Stop at Walmart, Build a Multi-Channel Strategy

Successfully selling on both Amazon and Walmart allows you to create a robust multi-channel strategy, reducing your dependence on a single platform and expanding your overall market reach. 

Why stop there? 

Although the TikTok Shop and eBay are on somewhat opposite trajectories, they’re an example that selling on Amazon and Walmart isn’t the only game in town. 

Actionable Tip: Develop an integrated approach to managing your presence across different platforms. This might involve using multi-channel inventory management software to prevent stockouts, creating a unified marketing strategy that leverages insights from both platforms, and streamlining your fulfillment processes to ensure consistent service across channels. Regularly assess the performance of each channel and adjust your resource allocation accordingly.

How Canopy Management Can Help

The move from Amazon to Walmart’s marketplace can represent a big opportunity for ecommerce sellers looking to expand their reach and diversify their revenue streams. By understanding and leveraging the key differences between these platforms, you can position yourself for success in this new environment.

Start by implementing these ten strategies, but don’t stop there. Keep experimenting, analyzing your results, and refining your approach.

Ready to scale your ecommerce business to the next level? Consider taking the step that many of Amazon’s top brands have in order to separate themselves from the increasing competition. Reach out to the Amazon – and Walmart – experts at Canopy Management. 

This is where Canopy’s vast experience as a multi platform, ecommerce marketing agency is worth its weight in gold. 

The opportunity is there – it’s up to you to seize it.

Ever wonder what adding 67% more organic sales might mean for your brand?

Turns out that when you combine the massive experience of Canopy’s ecommerce experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post 10 Strategic Moves Amazon Sellers Can Use to Thrive on the Walmart Platform appeared first on Canopy Management.

That’s why forward thinking entrepreneurs are turning their attention to the Walmart Marketplace as a complementary sales channel. 

Wondering if it’s time to make the move yourself? 

This post looks at the top five reasons why Amazon sellers should consider adding Walmart shoppers to their bottom line. 

1. Less Competition: A Clearer Path to Visibility

Feeling crowded in your Amazon niche? One of the most significant advantages of selling on the Walmart Marketplace is the considerably lower level of competition. Let’s break down the numbers: 

• Amazon: With over 9.7 million sellers worldwide, the tidal wave of competitors can make it challenging for any one individual seller to stand out, especially in a popular niche.
• Walmart Marketplace: The Walmart Marketplace has approximately 150,000 sellers. This drastically reduced number of competitors creates a less saturated environment for your products, increasing your chances of visibility and success with Walmart customers. 

Still, it’s going to feel familiar. Just like selling on Amazon, you use Walmart Seller Center to register your company, update your account settings, view reports, and manage catalog performance. If you don’t want to use Walmart’s APIs, your Walmart Seller account is where you will manage your items and orders.

What does this mean for you as a seller?

• First-mover advantage: You’ll have the opportunity to establish a strong presence before the platform becomes more competitive.
• Easier product discoverability: With fewer competing listings, your Walmart products have a better chance of appearing in search results and category pages.
• Reduced advertising costs: Less competition has a tendency to translate to lower costs for Walmart sponsored product placements and other advertising options.
• Quicker path to the Buy Box: The Walmart Buy Box, similar to Amazon’s, is going to be easier to win with fewer competitors vying for the same spot with their product listing. 

2. Access to a Large and Diverse Customer Base

There’s no question that the Amazon marketplace is unrivaled in scale. Still, Walmart.com presents a unique opportunity for sellers to tap into a different demographic. Walmart’s strong brand presence, extensive network of physical stores, and loyal customer base provide an additional platform to reach millions of potential buyers who might not be as active on Amazon.

By leveraging both marketplaces, sellers can maximize their exposure, diversify their revenue streams, and enhance their overall market presence

Key demographic differences:

• Geographic reach: Walmart has a strong presence in rural and suburban areas where Amazon’s penetration might be lower.
• Income levels: Walmart tends to attract more budget-conscious shoppers, which can be advantageous for certain product categories.
• Age groups: Walmart’s online platform is gaining traction among older shoppers who are familiar with the brand from their many trips to Walmart’s brick and mortar, shopping center locations.

3. Walmart’s Lower Fees Help You Boost Your Bottom Line

Sometimes Amazon’s fee structure can feel like a death by 1000 cuts. The accumulated small charges all add up. One of the most attractive aspects of selling on Walmart Marketplace is its reduced fee structure, which can lead to higher profit margins for sellers. Here’s how it compares to Amazon’s fee structure:

• Walmart Marketplace:
  • No monthly fees
  • Referral fees range from 6% to 20%, depending on the product category
• Amazon:
  • Monthly subscription fee for Professional sellers ($39.99/month)
  • Referral fees typically range from 8% to 45%, depending on the category

When it comes to the difference between Walmart’s Fulfillment Services (WFS) and Fulfillment by Amazon (FBA), the choice between them may depend on specific needs such as cost, storage duration, product type, and additional services. Walmart WFS tends to have simpler, more predictable pricing.

The impact on your business:

• Lower overhead costs: Without monthly fees, you can list products without ongoing expenses.
• Potentially higher margins: Lower referral fees in many categories can translate to better profitability per sale. Sometimes a few cents are enough to tip a high volume product into the black. 
• Simplified accounting: A straightforward fee structure makes it easier to calculate profits and manage your finances.

4. Leverage Walmart’s Brick and Mortar Presence to Build Social Proof

Selling on Walmart Marketplace allows you to benefit from the company’s established brand reputation and consumer trust. Here’s why this matters:

• Long-standing reputation: Walmart has been a household name for decades, with a reputation for value and reliability.
• Trust transfer: When customers see your products on Walmart.com, a percentage of that trust can extend to your brand.
• Perceived legitimacy: Being accepted as a Walmart Marketplace seller can lend credibility to your business, increasing customer confidence.

How this benefits your brand:

• Increased conversion rates: Customers may be more likely to purchase from an unfamiliar brand when it’s associated with a trusted platform like Walmart.
• Enhanced brand image: Association with a major retailer can elevate your brand’s perceived status.
• Potential for cross-channel growth: Success on Walmart Marketplace can lead to opportunities in Walmart’s brick-and-mortar stores or other retail channels.

5. Walmart Connect – Next-Level Ad Tech

Entrepreneurs KNOW how important pay-per-click advertising is to success on Amazon.

Similarly, Walmart Connect, their inhouse advertising platform helps sellers succeed by enhancing product visibility, enabling more precise audience targeting, and providing valuable performance insights. 

Through features like sponsored product, sponsored brand, customizable display ads, and geo-targeting, Walmart marketplace advertising helps sellers reach relevant customers and drive sales. 

Walmart Connect’s flexible budgeting and pay-per-click model ensures cost efficiency, while seamless integration with Walmart’s ecosystem enhances the shopping experience and boosts conversion rates. 

Here’s a closer look at Walmart Connect capabilities: 

Targeted Advertising – Walmart’s wealth of shopper data helps sellers target ads based on demographics, interests, and shopping behavior, ensuring ads reach the most relevant customers.

Geo-Targeting – Focus ads on specific geographic locations to attract local shoppers, which is particularly useful for regional sellers and smaller niches.

Performance Insights – Access detailed performance reports that track ad effectiveness, sales impact, and return on ad spend (ROAS). This helps sellers optimize their campaigns, make data-driven decisions, and put their product catalog in the spotlight.

Integration with Walmart’s Ecosystem – Ads are integrated into the Walmart marketplace, creating a seamless shopping experience that can lead to higher conversion rates.

Omni-Channel Reach – Walmart Connect supports both online and in-store sales, allowing sellers to reach customers across multiple channels and drive omnichannel success.

Custom Solutions – Walmart Connect’s ad team can create custom advertising solutions that align with specific business goals and marketing strategies.

Seasonal and Event-Based Promotions – Leverage Walmart Connect for special promotions during key shopping events like Black Friday, Cyber Monday, and seasonal sales, maximizing exposure during peak times.

How Canopy Management Can Help

For Canopy Management, it’s not really a question of selling on Amazon OR Walmart. By leveraging the strengths of BOTH platforms, you can create a more resilient and diversified business model. Expanding to the Walmart Marketplace could be the strategic move that takes your online selling business to the next level.

Walmart onboarding (from A to Z) is our specialty. Find out how Canopy’s Walmart team can help you take this big step forward with your ecommerce brand. 

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Walmart Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon AND Walmart is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Selling on Amazon? Here’s Why the Walmart Marketplace Should Be Your Next Move appeared first on Canopy Management.

That’s largely because of the millions of square feet of brick and mortar commercial real estate that Walmart occupies across the globe. That’s a lot of social proof to comfort online shoppers still new to the platform!

However, just like their (very) big brother Amazon, for a Walmart marketplace seller, there are associated fees.

If you’re considering selling on Walmart, understanding the Walmart seller fees is crucial. This guide will provide an in-depth breakdown of the expenses involved in selling on the Walmart Marketplace.

(ZERO) Monthly Fees and Setup Costs

A significant distinction of Walmart’s Marketplace is that compared to many other online marketplaces, there are no monthly fees. 

Walmart doesn’t charge you to maintain your seller account every month. Instead, the costs primarily revolve around the products you list and sell. When it comes to item setup or product listing, there are no fees involved either. This means that you can list multiple products without worrying about additional costs.

Walmart Marketplace Selling Fees

The primary cost to sell on the Walmart online marketplace is the referral fee. It’s based on the product category you list your items in. The Walmart referral fee is a percentage, most often around 15% for items in many categories. 

For example, if you have a product listed at $100 and it falls into a category with a 15% fee, Walmart will take $15, and you will receive $85, excluding other charges like shipping and sales tax.

However, it’s essential to check the specifics as some categories might have lower or higher percentages.

Here’s a look at the specific charges for some of the more popular Walmart product categories:

A full list of Amazon’s charges can be found here.

Walmart Fulfillment Service Fees

Just like Amazon’s marketplace, Walmart offers an all-in-one fulfillment service. And, like Amazon, there are referral fees associated with that program. With Walmart Fulfillment Services (WFS), you can ship and store any amount of inventory you choose, without minimums or maximums.

Standard Fulfillment Fee

An Item is considered standard when it meets these criteria:

• Unit weight is less than or equal to 150 lb.
• Longest side is less than or equal to 108 inches
• Longest side + girth* is less than or equal to 165 inches

For units that weigh less than 1 lb., use the unit weight to determine the fee. If your unit weight is between 1 lb. and 150 lb., Walmart specifies that you use the unit weight or dimensional weight, whichever is greater. The dimensional weight is equal to the unit volume in inches (length x width x height) divided by 139.

(Add 0.25 lb. for packaging materials to calculate the final shipping weight. Round up to the nearest pound.0

*Heavier items may require more than two days for delivery because they’re shipped using ground transportation.

Additional Fulfillment Fees for Standard Items

Big & Bulky Fulfillment Fees

Walmart requires big & bulky fulfillment fees when items meet at least one of the following criteria:

• Unit weight is greater than 150 lb. and up to 500 lb.
• Longest side is greater than 108 inches and up to 120 inches
• Longest side + girth* is greater than 165 inches

(Up to 500 pounds, the fee is $155 plus $0.80 per lb greater than 90 lbs)

Walmart Fulfillment Service Storage Fees

Walmart’s fulfillment service for third-party sellers, known as Walmart Fulfillment Services (WFS), was launched in February 2020 to provide a comprehensive solution for sellers looking to streamline their order fulfillment process.

By leveraging Walmart’s extensive logistics network and infrastructure, WFS enables sellers to store their inventory in Walmart’s fulfillment centers, with Walmart handling the picking, packing, and shipping of orders placed on Walmart.com.

This service offers several benefits to third-party sellers, including faster delivery times, competitive shipping rates, and access to Walmart’s vast customer base. Additionally, products fulfilled through WFS are eligible for Walmart’s two-day shipping program, increasing their visibility and potential for sales.

Walmart’s WFS program also offers fixed monthly storage fees for storing your items at a Walmart fulfillment center. It’s based on the volume of the product being stored and the length of time. Unit cubic feet is equal to the unit volume in inches (length x width x height) divided by 1,728.

You Need to Be Accepted to Sell On Walmart

This is one reason why Walmart might not be the ideal place for new sellers. Walmart requires that you show proof of having already found success in the ecommerce industry – particularly on similar platforms such as Amazon and eBay. 

What qualities does Walmart look for when inviting a seller to join Walmart Marketplace? Here’s Walmart’s answer to that question: 

“We are looking for relationships with reputable retailers and brands that provide first-class customer service, a compelling product assortment, competitive pricing and fast, reliable fulfillment.”

Once accepted, the process couldn’t be easier.

Walmart’s 3-Step Setup Process

To get instant access to millions of Walmart.com shoppers, Walmart is promoting a “newer, easier, and faster way to integrate your existing product catalog.” 

It’s as simple as these three steps:

• Verify your business – Submit your business details and complete your Seller Profile.
• Set up payments – Tell Amazon where to send your payments with no setup, subscription, or monthly fees. (This step will become available upon business verification)
• Set up your product catalog and shipping details – Import your product catalog from an existing marketplace with just a spreadsheet, and choose the shipping method that works the best for your business.

What Is the Walmart Buy Box? 

Once you’ve been accepted as a Walmart seller, and have paid your fees, there’s one more similarity with Amazon’s massive marketplace. Just like Amazon, Walmart also has a bullseye for online sellers to take aim at.

I’m talking about the Walmart Buy Box. 

If a product is sold by more than one seller, Walmart presents all the seller listings in one single page. This listing page contains all the merchants selling the product, even sellers with different prices. However, Only one seller can win the Walmart Buy Box.

The competition is stiff on Walmart, as with most online marketplaces. This is where the ‘Buy Box’ comes into play. Sellers often aim to win the Buy Box, a feature that directs potential buyers to purchase from the featured seller, typically the one offering the best price or value.

To enhance your chances of winning the Buy Box, you might consider investing in Walmart’s marketing services. However, selling on Walmart marketing fees can vary based on the services you choose. These could range from sponsored product listings to banner advertisements on the platform.

Canopy Management Can Help You Get Started Selling On Walmart

Walmart, being one of the largest retailers globally, provides an incredible platform for businesses to reach a massive audience. While the absence of monthly fees and item setup charges makes it enticing, success in the Walmart Marketplace requires understanding the full picture – from the registration process to the intricate nuances of the Buy Box.

Selling on Walmart’s marketplace is not a set-it-and-forget-it activity. You need to continuously adapt and optimize your listing as consumer behaviors and Walmart’s algorithm changes.

Because not everyone has the time to constantly stay on top of these changes, Canopy Management’s Walmart marketplace experts have their finger on the pulse of ecommerce and are at the front line so that you don’t have to be. 

Talk to our team about how you can get started selling on Walmart.

The post A Seller’s Guide to Walmart Marketplace Fees appeared first on Canopy Management.

However, as Amazon continues to reward sellers on its own marketplace for bringing off-Amazon traffic back to its own site, it might be a perfect time to branch out and explore other avenues. 

This post takes a brief look at how easy it is to sign up for Walmart’s all-in-one fulfillment platform, WFS. Walmart Fulfillment Services is very similar to their principal competitor’s Fulfillment by Amazon (FBA) that has attracted so many sellers with its simple selling model. 

Increasingly, entrepreneurs have found that multi-platform selling can be an absolute game-changer for ecommerce sellers. One marketplace that’s been gaining significant traction is Walmart. 

That’s because Walmart.com is not just another ecommerce site; it’s a platform with millions of dedicated shoppers. When you list on Walmart Marketplace, you’re positioning your products right in front of this vast audience. This exposure can be monumental for brand visibility and sales. 

Walmart is also one of the fastest-growing ecommerce platforms. In addition to that, by joining Walmart Marketplace, you have the unique opportunity to reach nearly 120 million unique Walmart.com visitors each month and take advantage of innovative Walmart programs that make selling easier and help you grow your business.

How to Sign Up to Sell On Walmart

One of the standout features of the Walmart Marketplace is the straightforward setup process. In just three steps, you can become a verified seller.

First, you need to submit your business details. After that, you can complete your Seller Profile. The verification process is quick, sometimes taking just a few minutes. 

This is what’s required to get started:

• Business Tax ID(s) (SSN not accepted) or Business License Number
• Supporting documents that verify your business name and address
• History of marketplace or ecommerce success
• Products that have GTIN/UPC GS1 Company Prefix Numbers
• A catalog that complies with Walmart’s Prohibited Products Policy
• Fulfillment through Walmart Fulfillment Services (WFS) or another B2C U.S. warehouse with returns capability

Next, tell Walmart where to send your payments. Again, there are no hidden fees, no setup, subscription, or monthly fees for selling on Walmart Marketplace. 

Last, configure your shipping methods and costs. Select your preferred returns method and carriers. 

Walmart’s improved catalog uploading feature allows sellers to integrate your existing product catalog effortlessly. Whether you’re migrating from another marketplace or starting from scratch, you can set up your product catalog and shipping details with just a spreadsheet. This simplification means that you spend less time on setup and more on what matters – selling.

Getting Started With Walmart Fulfillment Services 

The best part about getting started selling on Walmart is the very familiar, “Amazon-like” fulfillment platform that duplicates the ease of becoming an online seller that has allowed Amazon to grow so big so fast.

Once you’re on the Marketplace, you gain immediate access to Walmart Fulfillment Services (WFS) and Walmart Connect, their own version of Amazon pay per click (PPC) advertising. 

These tools are tailored to ensure that your operations run smoothly, from inventory management to advertising.

Simply put, WFS is where your next best-selling products meet Walmart’s world-class supply chain and expert team. Offering an end-to-end fulfillment service, WFS is a bridge between you and potential success on Walmart.com. 

Thanks to Walmart’s expansive supply chain, sellers get an unbeatable combination of scale, quality, cost, and efficiency.

Walmart has even purchased a fleet of cool electric vehicles to manage the troublesome last mile delivery issues that plague ecommerce fulfillment models.

With Walmart Fulfillment Services, sellers can keep their stock at fulfillment centers owned by Walmart. 

The WFS team will pick, pack, and ship your sold products as soon as you place it on Walmart.com. Just like Amazon’s FBA, once they are shipped Walmart handles customer service and returns for orders sent through WFS.

Signing Up for Walmart Fulfillment Services 

1. Sign up for the Walmart Marketplace: Before you can tap into WFS, you need to be a part of the Walmart Marketplace. Once you’re in, you can set up your products and take advantage of Walmart’s fulfillment network.
2. Ship Your Inventory: Send your items to a designated WFS facility.
3. Sit Back and Relax: Item setup is a breeze. Then, once a sale is made, Walmart will store, pick, pack, and ship your orders. Order fulfillment includes a promise of low-cost, 2-day shipping anywhere in the contiguous U.S. (though, keep in mind this might change during the peak season from September-January).

The Benefits of Walmart Fulfillment Services

• Meet Delivery Expectations: Walmart’s two-day shipping across the U.S. helps meet the expectations of customers increasingly accustomed to ultra-fast shipping. 
• Enhanced Visibility: WFS items are badged with special tags such as ‘Two-Day Delivery’ and ‘Fulfilled by Walmart’. This improves visibility and according to Walmart, increases sales by 50% on average.
• Discounted Shipping Rates: The WFS Preferred Carrier Program offers reduced rates on FedEx small parcel and less-than-truckload (LTL) deliveries.
• Fast Inventory Processing: Walmart says that (outside of peak season) items are “usually” stocked within two days after reaching the WFS warehouses. 
• Inventory Preparation Service: For a small fee, Walmart will prepare and label your fulfilled orders for you. At the moment, the fee is $0.45/unit. 
• Real-time Data Access: WFS dashboards and APIs allow sellers to monitor sales performance, manage inventory, and track shipments. Walmart says that Integration options include Seller Center, direct APIs, or solution providers like ChannelAdvisor and Sellercloud.
• Exceptional Customer Service: WFS associates are available seven days a week. With customer service a potential major time expenditure, that’s a big one. 
• Attract Brand Loyal Customers: Building brand loyalty is a key component of ecommerce growth. The inclusion of WFS items in the Walmart+ free shipping subscription program, can help build both new and repeat customers.

How Does Walmart Fulfillment Services Pricing Work? 

One of the most appealing aspects of Walmart Fulfillment Services is its straightforward and transparent pricing model. Unlike some other fulfillment services, WFS keeps things simple by basing its fees on the weight and dimensions of your products.

When you sign up for WFS, you won’t be hit with any surprising costs like setup fees, subscription charges, or monthly storage fees. This means you can focus on growing your business without worrying about hidden expenses eating into your profits.

The pricing for WFS is all-inclusive, covering essential services such as picking, packing, shipping, handling returns, and customer support. This comprehensive approach allows you to streamline your operations and provide excellent service to your customers without the need for additional investments.

To help you make informed decisions about your fulfillment strategy, Walmart provides detailed pricing information for various aspects of the WFS program:

• Fulfillment fees: These fees cover the costs associated with picking, packing, and shipping your products to customers. The fees are based on the weight and dimensions of your items, with larger and heavier products incurring higher costs.
• Storage fees: WFS storage fees are assessed based on the volume of your inventory stored in Walmart’s fulfillment centers. These fees vary depending on the time of year, with higher rates during peak seasons.
• Optional services: WFS offers additional services like labeling and bagging for a small fee. These services can help you save time and ensure that your products are properly prepared for shipment.

You can quickly estimate fulfillment and storage fees using the WFS Calculator here.

Frequently Asked Questions

Are there WFS inventory or SKU minimums?

There are no minimums. Walmart recommends that “to see the full potential of WFS, it’s recommended to have at least 50 items with continuous inventory replenishment.”

What is Walmart’s idea of an ideal WFS product?

Walmart is looking for top-selling items, premium brands, and products not currently on Walmart.com. It’s important that they follow Walmart Marketplace guidelines.

How are WFS products packaged?

Standard Walmart-branded packaging.

Does WFS fulfill non-Walmart.com items?

No, only items sold on Walmart.com.

How can I maximize revenue with WFS?

Walmart recommends that sellers “price competitively, maintain high-quality item content, ensure ample inventory, and consider joining the Walmart Sponsored Search program.”

Does Walmart ship internationally?

No, only within the U.S.

How Canopy Management Can Help Make WFS Easier

So, you’ve made it through the guide and you’re now thinking that WFS is probably the best path forward to get even more from your Walmart channel. But if you’re like most brand owners, your time is extremely limited, and you want to make sure you get it right the first time.

If this sounds like you, one of the best paths forward is to outsource the grunt work of setting up Walmart Fulfillment Services to a Walmart specialist. Our Walmart team has been through this process many times before, and can help you make a seamless transition into getting the most out of WFS. 

To learn more, click here to start the conversation with one of our in-house Walmart specialists.

The post Maximizing Your Walmart Sales: The Ultimate Guide to Walmart Fulfillment Services (WFS) appeared first on Canopy Management.

These numbers are important because they hint at the growth potential of Walmart and why Amazon might have a very concerned eye on their rear view mirror. 

This post is going to offer an introduction to selling on Walmart as well as a high level view of the Walmart marketplace versus Amazon. The main takeaway for Amazon sellers reading this post is that you’ve probably already done 95% of the work that will allow you to be a successful Walmart seller.

This might offer a perfect opportunity to put a few of your online-commerce eggs in a different basket. As always, the Walmart Specialists at Canopy Management are happy to help you with the process.

How to Sign Up to Sell On Walmart 

Much like selling on Amazon, getting started selling on Walmart is a simple process. The first step involves creating your selling account in Walmart’s Seller Center and (if you’re using Walmart’s all-in-one selling ecosystem, Walmart Fulfillment Services), adding your WFS details. If you’re already an Amazon seller, the similarities of WFS vs FBA will make it easy. It takes only one minute to create your Walmart Marketplace account. 

From there, you’ll just need to complete the 3-step setup to begin onboarding as a Walmart marketplace seller.

• Business Verification – Submit your business details to Walmart to complete your Seller Profile
• Payments – Tell Walmart where to send your payments. No setup, subscription, or monthly fees
• Shipping – Configure your shipping methods and costs. Select your preferred returns method and carriers for your budget

Next up, converting your products’ details into Walmart-fulfilled listings. After that, if you’re using Walmart’s WFS, it’s just a matter of sending your items into the Walmart Fulfillment Center. 

Now it’s time to discuss the biggest difference between selling on Amazon and selling on Walmart. Compared to Amazon, Walmart is a “gated” community. On Amazon, virtually anyone can register to sell and within a few days have a product listed. On Walmart.com, you need to apply and be approved before you can sell. 

Here’s what’s needed to begin the application process:

What are Walmart’s Business Requirements?

• Business Tax ID(s) (SSN not accepted) or Business License Number
• Supporting documents that verify your Business Name and Address
• History of marketplace or eCommerce success
• Products that have GTIN/UPC GS1 Company Prefix Numbers
• Catalog that complies with Walmart Prohibited Products Policy
• Fulfillment through Walmart Fulfillment Services (WFS) or another B2C US warehouse with returns capability

What Do the WFS Program Benefits Include?

If you know Amazon’s FBA or Fulfillment by Amazon platform, Walmart’s WFS (Walmart Fulfillment Services) will feel very familiar. 

Walmart Fulfillment Services (WFS) allows sellers to store their inventory at Walmart fulfillment centers. After placing an order on Walmart.com, Walmart picks, packs, and ships the item(s) to the customer. WFS also handles all customer support and returns for these orders.

WFS also gives sellers access to Walmart’s Free & Easy Returns program. Participating items are displayed with 2-Day Shipping and Fulfilled by Walmart tags that dramatically increase both visibility and conversion rates for sellers. 

Walmart’s WFS: 

• Stores your products
• Prepares them for shipping after orders are placed
• Tracks inventory, orders, and shipments with easy-to-read dashboards
• Delivers your items
• Gain higher search rankings and Buy Box prominence with 2-Day Shipping tags
• Supports customer inquiries
• Optimize your returns with Walmart’s omnichannel Free & Easy Returns program

Walmart’s fulfillment program features a fixed monthly storage fee and a fulfillment structure based on item weight alone. In addition there’s zero signup or monthly subscription fees!

WFS Product Requirements

There are some limits to the types of products that can be included in the program:

• Products must ship to Walmart fulfillment centers from within the United States
• No perishable or regulated products 
• No prohibited products
• Maximum product weight is 150 lb.
• Maximum product dimensions are 108″ in length and 165″ in length + girth

How to Set Up Your Walmart Items for Sale

Marketplace sellers have 3 options for integrating their catalogs with Walmart.com.

Solution Providers

• Walmart partners with a number of leading solution providers to offer a full range of eCommerce services to online sellers
• While some solution providers offer wide range of eCommerce services (including item setup inventory, order fulfillment, pricing etc), others provide more specific functions
• Integrations are tailored to the precise needs of individual Walmart sellers

API Connection

Marketplace sellers and supplier developers are able to access API tools allowing for integration with the Walmart eCommerce platform.

Seller Center 

Using Seller Center, you can Integrate your Walmart products with SellerSetup by Match, Single Item, or Bulk Upload Setup. 

How to Get Started with Walmart Sponsored Search Ads

If you’re an Amazon seller, this will feel very familiar! 

Just like Amazon PPC advertising, Sponsored Search advertising from Walmart Connect puts your brand and products in front of customers that are searching and browsing Walmart’s site and app for products like yours. 

And, like Amazon PPC, you only pay when customers click your ad.

Walmart Sponsored Advertising Variations 

Sponsored Products ads appear in high-visibility placements, including within relevant search results and on item pages. A click advances customers to your product’s item page.

Sponsored Brand ads send your brand logo and products to the top of relevant search results. These premium placements have the highest viewability on search pages and are available to Marketplace brand owners registered with the Walmart Brand Portal.

Automatic Ad Signup on Walmart

New Marketplace sellers are automatically registered to Walmart Ad Center, Walmart’s self-serve ad platform. It offers step-by-step information and strategies that help first time sellers set up their Walmart ad campaigns. 

Walmart Connect Advertising First Steps

• Check your product eligibility requirements then set your campaign goals
• Select the variation of the Walmart Sponsored Search campaign you want to run. Combine Sponsored Products and Sponsored Brands for the best results
• Determine your targeting strategy. Just like selling on Amazon, do your research and capitalize on relevant, searchable keywords in your campaigns

You’ve Promoted Your Products, Now Promote Your Brand! 

Sponsored Brands ads can help with the launch of new or seasonal items, when promoting items with lower search rankings and to help boost performance of higher-priced items. 

• Sponsored Brands ads include your brand logo, custom headline and up to four advertised items, with shoppable links.
• Sponsored Brands ads are designed to increase awareness and conversion by increasing your product’s and brand’s visibility and conversions
• Sponsored Brands ads are great for newer brands that may not yet have high organic search rankings at Walmart

To use Sponsored Brands, Walmart Marketplace sellers must be a brand owner and meet the following criteria:

• Based in the United States, China, Hong Kong or the United Kingdom; or a pre-approved seller in India
• Rights owner registered with the United States Patent and Trademark Office
• Onboarded to the Walmart Brand Portal, Walmart’s intellectual property rights management platform

How to Determine Your Walmart Ads Targeting Strategy

Choose from two campaign types:

Automatic campaigns

Automatic campaigns depend on Walmart’s algorithm to select the best keywords for your ad campaign. Just like Amazon’s ad program, this is perfect for those new to Sponsored Search advertising

Manual campaigns

With Manual Campaigns, you choose your own keywords. This is a better option for advertisers who have a good idea of the keywords that their products already rank (or are searched) for. 

What are the Biggest Differences Between FBA and WFS? 

Even though there are a number of ways that selling on Walmart is very much like selling on Amazon, there are significant differences. Here are a few of the biggest ones.

1. Sellers Need to Apply and Be Approved to Sell on Walmart.com

This might be the biggest difference between the two platforms and it’s where Amazon gets the win. With Amazon, virtually anyone can register to sell and within a few days have a product listed. On Walmart.com, you need to apply and be approved before you can sell. In fact, the following sentence is part of Walmart’s welcome page:

However, this does mean that there’s a good chance that you’ll have less competition from other sellers on Walmart’s marketplace. 

2. When It Comes to Pricing, Walmart Referral Fees Keep It Simple

Walmart marketplace fees are straightforward and feature a simple Walmart referral fee structure. 

There is no setup, monthly, or hidden fees for any sellers. Instead, on Walmart, you pay for what you sell. Walmart deducts a referral fee from each completed purchase. The commission rates vary by category and total sales price but range from 6% to 15%.

While Walmart’s fixed storage and fulfillment fee is based on the shipping weight of the product, Amazon’s storage fees also factor in the amount of inventory you have stored in their warehouses. 

3. Walmart – No Monthly Subscription Fee for Sellers

Amazon has two different selling plans to choose from. If you want to use Amazon PPC advertising (and who wouldn’t?), you need to opt for the Professional selling plan at $39.99 a month. 

By contrast, Walmart doesn’t charge its sellers a monthly subscription fee. 

4. Personalized Account Management

Walmart will connect sellers with a WFS fulfillment expert free of charge to develop personalized recommendations on business optimization and growth. 

To work with one of Amazon’s dedicated Account Managers, sellers are required to pay $1,600 per month plus a percentage of their sales.  

More Alike Than You Might Realize

Here are the similarities that really matter between the two eCommerce platforms.

1. Guaranteed 2-Day Free Shipping PLUS Free Returns 

Just like Amazon FBA, when sellers store their products in a Walmart Fulfillment Center, they’re able to offer 2-day free shipping to their customers. Walmart will pick, pack, ship, and deliver orders to your customers within 48 hours. Sounds familiar? Yep, that mirrors Amazon’s FBA features. 

2. Let Walmart Manage . . . Everything

Both Amazon and Walmart.com give sellers the option of fulfilling customer orders themselves or through their own proprietary fulfillment centers. 

Amazon began offering FBA in 2006, In 2020 Walmart introduced WFS to keep pace with Amazon’s increasingly popular fulfillment option. Much like Amazon’s FBA platform, Walmart manages customer service and returns for its sellers. (This benefit applies to sellers taking advantage of WFS fulfillment)

3. Seller Support 

Although Amazon’s seller support typically receives mixed reviews, Walmart will duplicate that effort with dedicated WFS call center associates to take care of marketplace sellers.  

4. Ultra-High Quality Listing Content

Both platforms offer their own version of ultra-high quality listing content. On Amazon, brand registered sellers can access A+ Content that features images, infographics, logos, and unique modules. 

Walmart sellers don’t need brand registry, but they do need to sign up for WFS. Then, they can create what’s called “Item Page Content.” If you’re not brand registered, this is a big plus for Walmart. 

5. Listing Optimization

This is a big one! 

As an ecommerce seller, you probably have a good idea how important it is to have your listings fully optimized. Selling on Walmart, that’s not going to change. 

If you’re going to sell products online, you need to make sure that your listing is found. 

Just like Amazon, it’s in Walmart’s best interest to connect shoppers with high-quality products that fit their needs.

That’s why the Walmart search engine is designed to provide the most relevant products for every search. Too many sellers focus on driving a high volume of traffic, and fail to consider relevancy to their audience.

Instead, you need to focus on selecting keywords and phrases that connect your product with the right shoppers at the right time in the purchasing journey.

How Canopy Management Can Help

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. 

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post What You Need to Know About Selling On Walmart in 2024 appeared first on Canopy Management.

Walmart announced Tuesday (Feb 20, 2024) that it’s buying TV maker Vizio for $2.3 billion. To expert ecommerce observers, it appears to be a great way for Walmart to accelerate its advertising business and position itself as a legitimate rival to Amazon’s own ad business.

Walmart is clearly NOT content to serve as an anchor of big-box shopping centers or to be known for selling groceries and household essentials. Like Amazon, it wants to carve out for itself a large chunk of the advertising revenue that Amazon has used to get to where it is today.

Although Walmart currently sells ads at physical stores and its website, by taking a page from Amazon’s advertising strategy and acquiring Vizio, Walmart will now be able to sell ads through streaming services on television.

Vizio’s Smart TV operating system, SmartCast, has over 18 million active accounts. This acquisition by Walmart dramatically expands their ability to offer ads through Vizio televisions, as well as create entertainment – and advertising – options for customers that own Vizio TVs.

Access to Shopper Data Offers Walmart an Inside Track

Walmart’s ad revenue is expected to total $3.14 billion in 2023. That’s a significant total, but well behind Amazon’s $49.9 billion. 

Selling a lot of groceries is great, but with such a small profit margin, that’s not going to be how Walmart closes the gap with Amazon. However, many of those brick and mortar shoppers share their data with Walmart.

That’s where the real gold lies. 

Both Amazon and Walmart have been running out of ways to squeeze more advertising dollars out of their existing advertising customers. With approximately 65% of shoppers admitting to purchasing from Walmart in the last 30 days, and its website and stores attracting over 160 million visitors a week, Walmart has an inside track on a data stream that even Amazon would be envious of. 

Walmart is Betting On TV to Help Convince Advertisers to Buy

The ecommerce marketing funnel is a big place. With this move, it’s pretty clear that Walmart is hoping that that big (TV) screen will help their advertising platform gain upper-funnel ad dollars from those brands both on, and off of Walmart. 

Internet cookies are going the way of the dinosaurs. This access to first-party data might be the best way for Walmart to connect the dots between buyer intent and purchase. 

Walmart’s purchase of Vizio helps them acquire an enormous amount of already established TV ad inventory. That’s a resource that up until now, it didn’t have.

If you’re looking for expert advice on how to implement this recent pivot by Walmart into your overall ecommerce business strategy, look no further. Click here to find out more about how Canopy Management’s Walmart experts can help you grow your brand, or to schedule a personalized strategy session.

The post Walmart Sets Its Sights on Amazon’s Ad Business appeared first on Canopy Management.

With those kinds of numbers, it’s no wonder that so many online sellers take advantage of the vast audience reach, powerful tools, and logistic capabilities offered by Amazon FBA – a nod to Amazon’s appeal as the preferred choice for ecommerce entrepreneurs.

Still, fixating on Amazon’s outsized position in the marketplace makes it more likely that sellers overlook a strategy that can significantly enhance the potential of their ecommerce business. I’m referring to multichannel selling.

In 2023, diversification has become a sort of cheat code helping entrepreneurs to manage a range of ecommerce challenges such as supply-chain disruptions, Amazon account suspensions, and rising advertising costs. Diversification might mean taking advantage of Walmart’s growing marketplace, or trending ‘Live” selling ecosystems. 

A multichannel strategy is a crucial asset for any online seller navigating the competitive digital marketing landscape.

Here are six reasons why it is worth considering:

1. Shocker – You Can’t Always Count on Amazon 

With all the challenges involved in ecommerce, relying on a single source of income can be dangerous. Putting all your eggs in one basket is almost never a good idea. Despite Amazon’s vast customer base and impressive sales records, the platform presents unique challenges for sellers. 

Amazon is notorious for its continuous updates and algorithm changes which can directly impact your product’s visibility in search results and subsequently, your sales. Even though these changes are aimed at improving customer service, they mean unpredictable fluctuations for Amazon sellers.

Algorithm updates can cause your product rankings to crater overnight, and can quickly result in decreased visibility and a subsequent drop in sales. Or, they can even cause a suspension of your Amazon seller account due to a customer complaint or a misunderstanding of Amazon’s policy.

Even minor changes in Amazon’s fees or policies can drastically impact your bottom line. Amazon frequently adjusts its fee structures, including Fulfillment by Amazon (FBA) fees and category-specific referral fees. These alterations directly affect profitability, compelling sellers to continually adapt their pricing strategies to protect their profit margin.

Adopting a multichannel strategy ensures you’re not bound by a single platform’s constraints. You have the flexibility to optimize your strategies according to each channel’s specific requirements and advantages. It distributes your risk, provides flexibility, and builds resilience in your business against sudden changes or challenges

2. It’s Time to Broaden Your Customer Reach

Shoppers can find pretty much anything they can dream up in the global ecommerce marketplace. Each separate online marketplace can end up attracting a unique customer base with different shopping habits and preferences. Relying solely on Amazon, even with its immense customer base, may restrict you from reaching potential customers who prefer other platforms.

Even though it seems like everyone shops on Amazon, some demographics may be underrepresented. A different channel might better cater to distinct customer niches that could perfectly align with your products.

It seems like every Amazon seller is taking a closer look at Walmart’s marketplace. When it comes to social proof, having grown up with a big brick and mortar Walmart store anchoring the local shopping mall is about as good as it gets. 

Etsy is the preferred platform for customers seeking unique, handmade, or vintage items, while eBay is renowned for its collection of second-hand items, collectibles, and unique finds. Moreover, niche-specific marketplaces like Newegg (popular among tech enthusiasts) or Poshmark (a favorite among second-hand fashion buyers) and even region-specific platforms like Allegro in Poland or MercadoLibre in Latin America offer opportunities to reach unique customer segments.

Additionally, the rise of social commerce on platforms like Instagram and Facebook has opened up entirely new avenues for connecting with customers. 

3. Creating Unique Marketing Opportunities

Each separate ecommerce platform provides unique marketing and promotional features to help sellers reach their target audience more effectively. Of course, Amazon offers Amazon Advertising, a comprehensive suite of advertising solutions, including Sponsored Products, Sponsored Brands, and Sponsored Display, which help boost product visibility in search results. Additionally, Amazon’s Demand Side Platform (DSP) helps sellers reach potential customers both on and off Amazon through programmatic advertising.

Similarly, the Walmart Marketplace offers the Walmart Connect advertising program, a cost-per-click advertising solution that positions products in highly visible positions across Walmart’s digital platforms. eBay provides Promoted Listings, allowing sellers to boost visibility and sales by placing products in prominent locations across the platform.

Most of us cannot make it through a day without interacting with Google. It makes sense that their advertising platform has such a powerful reach. Platforms like Etsy, and Instagram have their unique advertising solutions, all tailored to their specific user demographics and shopping behaviors. 

With your own ecommerce website, you can experiment with SEO, email marketing, content, brand affiliates, and more, all without the constraints of a third-party platform like Amazon.

By expanding your presence to multiple channels, you gain access to the distinct advertising tools each one offers. You can explore and find the best promotional mix that optimizes your product visibility, aligns with your marketing budget, and maximizes return on ad spend.

4. A Plan ‘B’ for Your Supply Chain 

Amazon’s FBA program is a big part of why so many sellers have chosen them as their primary marketplace. It simply makes every part of the fulfillment (and selling) process easier! 

Right up until it doesn’t. 

Amazon quickly transitioned from renting a single warehouse in 1996 to currently managing over 185 fulfillment centers all around the world. The supply chain that Amazon has built is extremely robust and dependable most of the time. 

The problem is when an individual segment of the supply chain is affected – because everything is so dependent on each other – the entire system can fail. That’s exactly what happened during the pandemic. Sellers with multiple fulfillment options were able to dominate their selling niches like never before. 

Selling on multiple channels allows you to explore different fulfillment options. Walmart’s Marketplace has a fulfillment program similar to Amazon FBA. More importantly, due to the slightly different products that they sell, platforms such as Shopify and Etsy might be sourcing their merchandise from another part of the globe entirely. 

Even though Google recently pulled the plug on their own Shopping app, it shows that the biggest ecommerce players all see the value inherent in competing head to head with Amazon. 

Having a presence on multiple platforms is going to require an efficient inventory management strategy. It’s crucial to keep track of your stock levels across all platforms to avoid overselling or stockouts. Leveraging inventory management software can be helpful in managing your inventory across multiple seller accounts and platforms. By comparing the costs and benefits of different fulfillment programs, you can choose the one that best suits your business needs.

5. Go to the Front of the (Amazon) Line

As mentioned above, Amazon Advertising offers powerful tools that help you increase your product’s visibility. Amazon Sponsored Display and DSP allow you to reach well beyond Amazon’s boundaries to reach shoppers on third-party websites and apps. But to really expand your reach, and go to the front of Amazon’s Buy Box line, you’ll want to consider advertising on other platforms as well.

That’s because, with each incremental change to their algorithm, Amazon has placed increasing importance on the value of sellers moving off-Amazon traffic back to the Amazon marketplace. It remains one of the best ways to increase your rank, and ultimately your traffic. 

Over the last few decades, we’ve enjoyed a wealth of innovations that have changed the way we work and live. Smartphones, online selling, and now, highly-interactive “live” selling events that blur the line between entertainment and commerce. 

Social media platforms also offer advertising options. With Facebook’s third-party seller tools, you can showcase your products to its enormous user base. Instagram’s shoppable posts make it possible to sell directly from the platform, creating a seamless shopping experience for customers.

6. Brand Building and Control

Building a strong, recognizable brand is a key factor that differentiates successful businesses from the rest. However, if you’re just selling on Amazon, the opportunities for individual brand building are somewhat limited.

Amazon views shoppers on their marketplace as their customers, and acts accordingly. The end result is that they exercise considerable control over how products are listed and presented. Amazon’s primary focus is on the overall customer shopping experience, not your individual brand.

Contrast this with having your own ecommerce website or using platforms like Shopify, where you have more control over your brand representation. You can design your store to reflect your brand’s personality, use custom branding for all your communications, and create a more unique and engaging shopping experience. 

That’s one reason why a lot of very successful Amazon sellers reach out to a top Amazon Agency like Canopy Management. Canopy’s Creative Services Team knows how to wring every last little bit out of the Amazon platform’s A+ Content allowing you to put your own stamp on Amazon real estate and make sure your brand is front of mind. 

How to Develop a Multichannel Strategy

While multichannel selling is clearly a major advantage for increasing brand growth, it’s not for the faint of heart. If your team is smaller or less experienced, the additional logistics could be too much to handle. That said, brand owners who can afford to hire people with experience growing brands on specific platforms will almost certainly get a return on their investment.

For brands who don’t want to hire in-house, many agencies specialize in channel management for Etsy, eBay, Walmart, and other marketplaces. Other agencies have larger teams with specialists in each platform, which can be advantageous as those team members can work together to make sure brand growth on one channel is not adversely impacting growth on the other.

At Canopy, we’ve built strong teams of experienced ads specialists and creative experts in both Amazon and Walmart. If you’re looking to expand your brand reach beyond your current platform and would like help developing a more in-depth strategy, feel free to reach out to one of our growth strategists by clicking here.

The post Selling on Multiple Platforms: Why Ecommerce Entrepreneurs Might Want to Look Beyond Amazon appeared first on Canopy Management.

Sure, the occasional open bar helps, but at these events you’ll find notoriously closed-mouth eCommerce sellers full-on swapping product launch, PPC, and last-mile logistics strategies with the competition.

That’s why it’s interesting to take a closer look at some of the similarities – and differences – between the Walmart and Amazon marketplaces. They both have attained a level of financial success that’s remarkably similar, but have achieved it in very different fashions.

The “community” aspect of eCommerce is particularly relevant when it comes to the two platforms because while there are a lot of ways in which making the move from one to the other might feel like slipping on a comfortable pair of shoes, there are significant differences. Particularly with their interpretation of online advertising.

But first, how exactly did these two companies end up on top of this financial mountain of cash?

How Did the Two Marketplaces Make All Those Billions?

This might be where the two companies differ the most. While their overall net sales are remarkably similar – with Walmart at $605.88 billion and Amazon at $513.98 billion – the way the two eCommerce competitors got to where they are now couldn’t be more different.

To begin with, look at their respective rates of growth. Even though they both ended up in the same place – after all, what’s a few billions between friends – the velocity with which they’ve reached those impressive numbers are very different. It feels as if Walmart has always been around. In 2007 they had already reached $345 billion dollars in net sales. Their growth since that point has been correspondingly slow and steady.

Amazon exploded onto the scene and their sales trajectory shows it. For example, back in 2007, Amazon’s net sales were less than $15 billion dollars. That’s 4.3 percent of Walmart’s sales in the same year.

Walmart reached their impressive $606 billion number through the strength of their 3335 physical locations. Even though their year-over-year eCommerce growth was 11.98% compared to Amazon’s 4.61% year-over-year eCommerce decline, brick and mortar is Walmart’s bread and butter.

It’s pretty clear that Amazon needs to keep their eyes on the rear-view mirror.

What is significant is that both companies are competing for more commercial bandwidth on each other’s traditional selling stronghold. Amazon is trying to gain a foothold in the retail market, while over the last 12 months, Walmart has exploded onto the eCommerce stage.

Walmart’s eCommerce Sales are Trending UPWARDS

According to forecasts, Walmart’s eCommerce sales are rapidly trending upwards. In 2022, Walmart’s online sales were estimated at 38.7 billion U.S. dollars. By 2023, it’s anticipated that their eCommerce sales will reach a value of nearly $45 billion, with $54.26 forecasted for 2024.

That’s a healthy increase from the 27.1 billion U.S. dollars recorded in 2020.

Historically, Walmart has been linked to shoppers with lower incomes. However, it has been making significant progress in attracting higher-income consumers. During a Q4 earnings call, Walmart CEO Doug McMillon stated, “We’re gaining share across income cohorts, including at the higher end which made up nearly half of the gains we saw in the U.S. again this quarter.”

Data supports this trend as well. Based on Prosper Insights & Analytics‘ monthly consumer survey, the proportion of high-income households ($150k+) enrolled in Walmart+ has consistently risen, from 12.7% in February 2022 to 28% in February 2023.

Sure, Walmart was a little late to the eCommerce party but they’ve been quickly making up ground on Amazon.

Amazon’s Sales Growth Has Been Impressive

Amazon’s growth since 2004 isn’t really a surprise to anyone with an internet connection. In the last year, Amazon’s net revenue was nearly $514 billion, up from $470 billion in 2021. When you subtract out AWS cloud revenue, third-party seller services, subscription sales, and revenue from their physical stores, Amazon’s online sales number is right at $220 billion.

The sheer magnitude of Amazon’s marketplace is undeniable. In Q4 alone, Amazon’s eCommerce sales outpaced Walmart’s annual eCommerce sales ($64.53B vs. $49.56B).

Prosper Insights & Analytics revealed that 61.8% of Americans identify Amazon as their most frequently used site for purchasing products, in contrast to just 8.6% for Walmart. However, it’s worth noting that Amazon’s figures have declined since 2022 when they were above 66%. Concurrently, Walmart’s market share has experienced growth.

5 Significant Advertising Differences to Consider

Not very long ago, pay-per-click advertising was just one of the many ways to launch an eCommerce product, now PPC might feel to a lot of sellers like a cover charge to get into an exclusive party.

While the rise of inflation over the last several months has weakened consumer demand affecting both Amazon and Walmart, their respective advertising business platforms  have exploded.

Knowing that advertising is a lever that both Amazon and Walmart have been leaning on heavily as they shore up their bottom lines, it’s probably a good idea to take a closer look at how the two ad platforms differ.

1. Amazon’s Hard-to-Ignore Visibility

It’s probably a good idea to stop and think about the vast difference in traffic between Amazon and Walmart. Amazon receives more than five times the number of visitors as Walmart, which means there may be more bidding competition for sellers. However, the increase in traffic also presents an opportunity for increased brand visibility on Amazon.

Amazon offers more ad placements than Walmart, including sponsored products in search results and banners at the top of the page. This improves the impressions of your ads on Amazon and increases your visibility.

As an eCommerce-only enterprise, Amazon offers three different ad types that can be used to create more nuanced ad strategies, ultimately raising your ad’s click-through rate (CTR) by generating more visibility.

It’s important to consider both the benefits and potential challenges of advertising on Amazon, given its significant traffic advantage over other platforms. By leveraging Amazon’s multiple ad types and placements, you can create a comprehensive advertising strategy that maximizes your visibility and ultimately drives more sales.

2. Not Having to Compete Against Walmart’s “House” Brand

It’s essential to understand the differing dynamics of Amazon and Walmart. While Amazon does provide a platform for third-party sellers, they also compete directly with these sellers through their own product offerings, sometimes rebranding generic items for in-house sales. This can make it challenging to thrive in the highly competitive Amazon marketplace.

On the other hand, Walmart is known for attracting consumers seeking well-known brands, providing a unique opportunity for marketers to leverage this preference. By choosing to sell on Walmart, experienced sellers can potentially sidestep the fierce competition present in Amazon’s product categories and capitalize on the demand for established brands.

3. Walmart’s Keyword Targeting Limitations

There are big differences between Amazon and Walmart when it comes to keyword targeting and ad spending strategies. While Amazon allows sellers to use auto targeted keywords and target product categories for increased bidding options, Walmart only offers keyword targeting. These differences can impact the success of different types of sellers on each market.

On Amazon, success relies on maintaining a presence in an attributes-driven market where shoppers search for specific types of products, regardless of the brand. In fact, studies show that 78% of Amazon searches are unbranded.

This means that optimizing your ad spending strategy with relevant keywords can be crucial to achieving success on Amazon.

By contrast, Walmart sellers may rely more on maintaining brand exclusivity to win bids for popular keyword targets. This can make it more challenging for lesser-known brands to compete on Walmart, as they may not have the same level of brand recognition as larger, more established companies.

Understanding these differences between Amazon and Walmart can help you tailor your advertising strategy to maximize your chances of success on each platform. By leveraging the unique strengths of each marketplace and optimizing your ad spending strategies accordingly, you can drive more sales and grow your business.

4. Amazon’s Lack of Transparency

Amazon has not exactly gained a reputation for offering intricate seller analytics, especially in the realm of customer behavior. In contrast, Walmart’s Sponsored Products already boast a wider range of metrics, enabling you to fine-tune your paid advertising strategies with greater precision.

The differences in data transparency on Amazon and Walmart are quite significant. Amazon, with its vast marketplace, tends to be more opaque in providing data to sellers.

This lack of transparency can make it challenging for you to access crucial information about your competitors and customers, ultimately impacting your ability to make informed decisions and optimize your strategies.

On the contrary, Walmart offers a more transparent approach, granting sellers better access to valuable data. Walmart’s openness enables you to better understand your target audience, market trends, and competition, allowing you to make data-driven decisions that can enhance your sales performance and overall success in the eCommerce landscape.

How Canopy Management Can Help

The Amazon and Walmart marketplaces are both designed for shopping, but there are important differences, particularly when it comes to advertising. That’s why it’s in your best interest to know how to capitalize on what each platform does best.

If you want to get a head start, reach out to the eCommerce experts at Canopy Management.

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Amazon vs. Walmart: Key Advertising Differences All Sellers Should Know appeared first on Canopy Management.

However, we think that a case could be made that actually choosing one – and not the other – might unnecessarily limit your potential for long term success. 

That’s because selling on both Amazon and Walmart is a great way for entrepreneurs to increase their sales and reach a wider audience. More importantly, the two platforms work TOGETHER synergistically to help sellers grow their business. 

By listing products on both platforms, sellers can take advantage of the unique features and benefits each platform has to offer. The two marketplaces are also just different enough to allow sellers access to a more diverse group of customers than had they only sold on a single platform. 

Lastly, having a presence on both platforms can provide sellers with an e-commerce safety net. The last 24 months have been a wild ride for online sellers. Amazon’s warehouse storage limitations (and new Storage Auction program), and problems with supply chains, adding a second selling platform can help mitigate the increased risk of selling during volatile times. 

In this article, we will dig into the top reasons why Amazon and Walmart sellers might want to sell on each other’s platforms, and why choosing between the two marketplaces might handicap your chances of overall success. 

Why Walmart Sellers Might Want to Expand to Amazon

Let’s start with the 800-pound, e-commerce selling gorilla in the room. Why might a Walmart.com seller want to take a closer look at this former online bookseller? 

Size Matters

With a much larger customer base, Amazon’s ability to potentially reach more customers and make more sales on the platform is hard to pass up. As of June 2021, Amazon was the most visited e-commerce site in the United States, with approximately 2.45 billion monthly visits. This simply means that there is a lot more potential to make sales. 

Brand Recognition

Sure, everyone has driven by (or shopped in) a Walmart store. But this isn’t brick and mortar, this is e-commerce. Amazon is the most well-known e-commerce platform in the world. Its reputation for convenience and selection is unparalleled. Amazon customers automatically navigate to the site when they want to buy something. What’s better than that?

Powerful Sales Data

You can’t repeat a process without data to back it up. Amazon’s ability to provide detailed analytics and sales data to sellers helps them to optimize their listings and make increasingly informed business decisions. The available data includes information on sales trends, advertising expenditures, customer reviews, ratings, competitor research and marketplaces trends. 

Amazon Tools

Entrepreneurs are constantly trying to add more tools to their toolbox. At this point, Amazon is unparalleled in its ability to offer e-commerce tool solutions to its sellers. Of course, that’s just the beginning. Software as a Service (SaaS) companies that have developed tools for Amazon sellers number in the hundreds (such as Helium 10 and Jungle Scout). 

Between the following Amazon tools and programs, and SaaS companies, Amazon sellers are not lacking for technological applications to get a head start on the competition. 

1. Amazon Marketplace Web Service (MWS) API: Allows sellers to integrate Amazon data into their own systems and automate key business processes, such as listing and fulfilling orders.
2. Amazon Advertising: Amazon PPC and DSP have become invaluable to sellers looking to promote their products on Amazon.
3. Fulfillment by Amazon (FBA): Sure, Walmart has WFS (Walmart Fulfillment Services) but FBA is the OG fulfillment service for online sellers. 
4. Amazon Brand Registry: This offers sellers on Amazon two for one benefits. Not only does it help protect their intellectual property and brand, it’s also the gateway to additional tools to manage their brand’s presence on the platform.
5. Amazon Stores: Allows sellers to create a branded storefront on Amazon to showcase their products and increase brand awareness.
6. Merch by Amazon: Do you have an artistic streak? Maybe it’s time to become a Merch on Demand content creator. With Amazon Merch on Demand, you can create graphic tees, accessories, and more, all printed on demand. 
7. Kindle Direct Publishing: Amazon Kindle Direct Publishing (KDP) allows you to self-publish eBooks, paperbacks, and hardcover books for free. It also gives you the option to expand your book’s availability on a global scale.
8. Amazon Influencer Program: Allows social media influencers to earn money from promoting products on Amazon to their followers.
9. Amazon Handmade: Allows artisans and craftspeople to sell handmade goods directly to customers on Amazon. 

Why Amazon Sellers Need to Take a Closer Look at Walmart

Amazon launched their third-party marketplace in 2000. That allowed everyone from small businesses to established brands to begin selling on their growing platform. Since then, Amazon – and the sellers that call it home – have become increasingly sophisticated. But, that’s not to say that Amazon has all the answers. 

Here are a few reasons why Walmart’s marketplace might offer online sellers a better opportunity. 

Lower Fees

With the smaller margins that sometimes exist in online selling, it all adds up. Compared to Amazon, Walmart typically has lower fees for sellers. That’s going to increase the profitability of sales for you as a seller. Amazon’s $39.99/month pro seller fee doesn’t exist on the Walmart platform. At Walmart, you only pay referral fees and fulfillment fees (similar to Amazon) only when you make a sale. 

Thinking about giving Walmart a try? It’s nice to know that on Walmart, you can set up your account without having to pay any fees. 

Less Competition

This is a big one. While Walmart does have less traffic than Amazon, not having to battle against the many (occasionally aggressive competitors) is a relief. There are about 1.9 million sellers on the Amazon platform and a little over 150,000 (and rapidly climbing) sellers on Walmart. That’s a lot less competition.

It’s just a question of odds. All other things being equal, more customers are going to view your Walmart listing. Amazon’s larger number of sellers can make it difficult for novice sellers to stand out. 

Brick and Mortar Stores

As I mentioned above, everyone has driven past a Walmart store. They’re part of the fabric of American life. Walmart has an entire customer base with loyal customers who might not otherwise see your products were they only listed on Amazon. Walmart’s large physical retail presence can be beneficial for sellers who want to reach customers who may not be comfortable shopping online.

If you’re successful selling online on Walmart, there’s also the chance that you’ll be invited to sell in a brick and mortar Walmart store. With over 10, 000 stores worldwide, that’s a significant benefit. 

4 Reasons Why E-Commerce Sellers Should Sell On Both Platforms

Why pick just one? There are increasing numbers of e-commerce sellers that are making a very good case that best business practices point towards selling on both platforms. Here are 10 reasons why that argument makes a lot of sense. 

1. Complementary Customer Base: Why not cover your bases? Amazon and Walmart customer bases are very complementary. Many experts view the two online marketplaces as pulling from large (differentiated) customer bases. That makes it easier for sellers to reach the widest possible audience. 
2. Increased Visibility: Selling on both platforms will absolutely increase the visibility of your products. It also strengthens the “social proof” that’s at the heart of a lot of purchasing decisions. Both Amazon and Walmart are well-known and respected brands. Showing up on both marketplaces doesn’t just double your chance of making a sale, it creates exponential awareness and trust for the consumer.  
3. Diversify and Conquer: As mentioned in the introduction to this post, the entire world – including e-commerce – has suffered through a bumpy, volatile last 24 months. Having a presence on both platforms can provide sellers with a level of diversification that can safeguard your online business from challenges that might be specific to either Walmart of Amazon. It’s always better to have a plan ‘B.’
4. No Need to Reinvent the Wheel: Lastly, much of the two marketplaces and selling ecosystems are very similar. From the fulfillment options such as Fulfillment by Amazon (FBA) and Walmart Fulfillment Services, to pay per click (PPC) advertising and listing optimization, the two e-commerce giants are more alike than they are different. This makes the learning process a quick one for those transitioning to selling on both. 

How Canopy Management Can Help

The entire online-selling marketplace has become increasingly competitive. It’s no longer enough to have “good business instincts” as many entrepreneurs do. 

It’s a different ballgame now. 

That’s why many experienced Amazon and Walmart sellers reach out to the team at Canopy Management. Our expert Creative Services, PPC and DSP pros are a big part of why Canopy partners show an 84% average profit increase. 

Want to be part of the Canopy Tribe? Find out more right here. 

Canopy Management is a full-service marketing agency for Walmart and Amazon sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post How to Win By Not Choosing – Why You Should Sell On Both Amazon AND Walmart appeared first on Canopy Management.