Founded in 1962, Walmart made its way to America’s most popular brick-and-mortar retailer that offers nearly 75 million products to its customers. With an annual revenue of over $500 billion, Walmart is the world’s biggest company. Besides its physical stores in the U.S., Walmart has expanded to 27 different countries, launched the Walmart US eCommerce website, and acquired big eCommerce brands such as Jet.com, Moosejaw, Bonobos, and Shoes.com.
Walmart’s eCommerce sales in the US were at $11.5 billion in 2017, growing 44% compared to the previous year. While it is only a small share of its annual revenue, it still shows in absolute numbers the huge market size Walmart is competing in. Since 2009, Walmart offers an online marketplace for third-party sellers similar to Amazon and eBay. While its application process is more strict than on other marketplaces, there are still 18,707 sellers on Walmart.com selling to around 100 million unique monthly visitors.
Walmart’s Buy Box Algorithm only takes a product’s price into account when raking sellers
One of the biggest advantages for Walmart sellers is the relatively low number of competitors compared to, for example, Amazon’s marketplaces. While this makes it easier for you to be seen by consumers, Walmart’s Buy Box algorithm ranks sellers based on their prices only, making selling on its marketplaces competitive independent of the numbers of competitors. By ignoring a seller’s reviews, performance, and other characteristics, Walmart paves the way for fierce price competition. This is good for Walmart’s customers because they will get products at much cheaper prices, which is one of Walmart’s main missions, but at the same time, makes it a challenge for third-party sellers on Walmart’s marketplace.
Algopix helps you gain valuable insights into your profit margin and any costs for selling a product enabling you to understand you lowest possible price and form a competitive pricing strategy to win the Buy Box Offering. Its detailed expenses analysis provides you with the total costs for selling on Walmart.com and breaks theses costs down by taxes, marketplace fees, shipping fees, and more.
Algopix’s Walmart US product research
Third-party sellers on Walmart’s marketplace don’t pay a monthly subscription fee but rather a referral fee every time they sell a product. This perk is hard earned, since Walmart is very thorough when it comes to allowing sellers on their marketplace. Until 2016, you could only join through an invitation;however, since 2016 all you need to do is apply. In this application process, Walmart assesses your fit to their marketplace based on your product assortment, eCommerce & Marketplace experience, and other seller quality indicators. This allows Walmart to only allow experienced high volume sellers on their marketplace, guaranteeing customer satisfaction and broadening the product range it offers.
Algopix’s Walmart US product research can help you in any situation of your Walmart seller journey, no matter if you’re looking to sell on Walmart soon or already are an approved Walmart seller. As an application prospect, you need to ensure that you have a wide product mix that is attractive to Walmart yet profitable for you. Algopix’s Walmart US product research tool allows you to research hundreds of products at once making it easier for you to put together a solid sales mix. In your bulk analysis, results you’re offered provides insights into your costs, estimated profit margin, and most importantly a product’s sales volume and gross merchandise volume for the past month.
If you’re already selling on Walmart’s marketplace, you can benefit from Algopix’s various insights into a product’s demand level, expenses breakdown, and profit calculation. This allows you to assess the profitability of new products for Walmart’s marketplace without committing to it.
Walmart’s target customers are different to other marketplaces
When selling on Walmart, chances are good that you already sell on other marketplaces like eBay or Amazon. This experience surely can help you on Walmart’s marketplace, but when it comes to targeting customers, Walmart is different from other big online marketplaces. On Amazon, you will find people from different backgrounds with no clear trend towards a specific demographic, which is mostly due to Amazon’s vast popularity. Walmart on the other side has made it a mission to deliver the best shopping experience for an affordable price, directly targeting lower income families, people who want to save money, and the middle and lower class. As a result, this means that not every product that sells well on Amazon or eBay also sells well on Walmart, making additional product market research a crucial task to succeed on Walmart’s marketplace.
Algopix’s Walmart US market research provides you with the most important information that is needed to make a qualified product sourcing decision. It’s easy-to-read dashboard gives you an overview over key information about a product’s demand level, profit margin, and recommended price. More detailed sections of Algopix’s Walmart US seller tool results grant deeper insights into a product’s sales volume and gross merchandise volume, as well as all the costs related to selling a given product on Walmart.com.
Algopix’s Walmart US marketplace research
The best insurance against sudden market demand drops and resulting cash flow problems is to offer a diverse product range. Online sellers on Walmart’s marketplace are a good example, where on average a seller has more than 2,500 products listed for sale. Reaching this size of a product catalogue, you will have to research thousands and thousands of products in total and won’t happen from one day to another. Even finding a handful of promising products means looking at tens of products, which is time consuming. Algopix’s Walmart US marketplace research makes analyzing products a fun and quick task thanks to its intuitive interface that delivers all relevant information on its dashboard and allows for deeper insights in dedicated sections. Additionally, researching multiple products at once is made possible with Algopix’s Bulk Analysis feature allowing you to upload a file containing up to 200 products at once. Algopix will deliver the results in a matter of minutes rather than hours or day when doing it manually. This will save you valuable time that you can dedicate to other important business tasks.