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Why 2024 is the year to start selling on Walmart

Walmart online desktop with AMZ Pathfinder logo

Walmart’s e-commerce store has been around since 2009, but it’s never reached the level of popularity that the Amazon marketplace has.

In 2024, we’re starting to see the huge investments they’ve made over the last few years pay dividends and put pressure on Amazon. This can only lead to a better set of options for consumers and a better deal for businesses selling on either marketplace.

Here are the most compelling reasons you should consider putting your brand on the Walmart marketplace.

Amazon’s ever-increasing fees


Year over year,  Amazon continues to take a larger percentage of the GMV transaction value that goes through their marketplace. What is a business to do? One smart move is to
diversify your sales channels. What used to be an “Amazon business” can, with a renewed focus on other marketplaces, become an e-commerce business that benefits from a steadily increasing percentage of sales split amongst multiple channels.

Walmart Marketplace has a fee model that sets it apart from Amazon, where you only pay when you sell. Their selling fee ranges from 6% to 20%, depending on your product category. Walmart simply charges a referral fee for each item sold. There is no product listing fee, and last but not least, there is also no yearly fee either!

Another key advantage of using Walmart Marketplace is its transparent pricing structure. There are no ever-changing opaque fees, which is a significant downside on the Amazon Marketplace, or in general, complex fee structures that can affect the sellers’ profitability. Sellers only pay for the referral fee for items sold and don’t have to worry about hidden costs, although you should always calculate referral fees ahead of time to understand your cost structure.

Bar Graph about Number of Walmart’s Marketplace Sellers between May 2019 and May 2022, According to Statista

Walmart is less competitive than Amazon


Competition is inevitable when you’re in any marketplace. If you want people to buy your products, you’ll have to compete with not only other vendors but also the marketplace whose traffic you are borrowing. Amazon has over 9.7 million sellers all over the world. When a customer logs on to shop, there is a lot of competition for their attention. But it’s a different story with Walmart.

Walmart is still relatively small in comparison to Amazon. The number of sellers on their marketplace recently surpassed 150,000. Because there are fewer sellers, there is a lot more freedom to sell on Walmart.com without having to devote a lot of energy or ad spend to deal with competition.

Walmart is more picky about which businesses they allow to sell on their platform and has minimum requirements for revenue. Getting accepted to sell on Walmart is a difficult process, but worth it in the end. That same barrier to entry means there is less competition in the market.  Less competition means you earn a bigger slice of the pie when first entering the market. 

Get ahead of the pack with a first movers’ advantage


With fewer sellers on the Walmart Marketplace, there is a chance to get the first movers’ advantage. Simply put, this is the advantage gained by a company that first introduces a product to the market. A head start gives you a chance to dominate your category and grow your market share amongst the loyal Walmart customer base before others enter the arena. The newness of the marketplace means Walmart offers a tremendous opportunity for new and experienced sellers alike to take advantage of its huge retail infrastructure and vast customer base. By acting now, you can establish a presence and take the lead before it becomes more saturated, which it inevitably will in time.

Exposure to a new audience and the power of physical stores


According to ComScore, Walmart has become one of the most highly trafficked online marketplaces in the US. Every month, the site receives over 100 million unique visits. There’s no doubt that selling on the marketplace will broaden your reach to customers
beyond Amazon. Sure, the two have similar customer bases, but they are not identical. Consider the scenario of a shopper finding your product on Amazon but preferring to buy it on Walmart because they have a Walmart+ membership, or they simply trust the brand more.

Walmart boasts a wealth of users that make up demographics that are appealing to sellers. More than half of Walmart customers are homeowners with a moderately high household income. Over a third of Walmart’s online customers are millennials, which means people aged 23 to 38. The marketplace is extremely popular with families. More than half of Walmart shoppers are married or in a relationship, and nearly as many have children.

People frequently come to Walmart looking for a deal because Walmart has built its brand around saving money for its customers. You have an especially good chance of gaining net new customers and increasing your profit if you offer competitively priced products.

Walmart is one of the largest retail chains in the world, and its online presence is growing rapidly. The online and physical presence of Walmart stores means sellers who sell at Walmart are presented with an opportunity for both e-commerce success and the possibility of having their products found in stores.  Meanwhile, Amazon is ending their Just Walk Out technology and shutting down some Amazon Fresh stores, which even at their peak had a tiny footprint compared to Walmart.

Walmart’s marketplace is growing rapidly


Walmart is serious about growth, and it shows in its numbers. According to their most recent annual results report, they crossed $100 billion in e-commerce sales in 2023, which is up 23% globally. Globally, their advertising business grew 33%, and 22% for Walmart Connect if you look at just the US alone. They even bought Vizio (yes, the TV company) to expand their advertising presence on TVs as a platform. Diving even deeper into their international numbers reveals their ad business grew 76% internationally, led by Flipkart in India and Walmex, their Mexican and Central American department of Walmart. 

It also shows in their investment in trade shows. Events typically dominated by Amazon, such as The Prosper Show, now see a large Walmart presence with giant booths and big teams ready to answer questions and point you in the right direction. This is more anecdotal than numbers-based, but their on-the-ground presence is clear.

Walmart sellers managing control over returns

Walmart offers sellers more control over returns


Another key benefit of doing business at Walmart is the opportunity to set your own shopping policies. Amazon’s policies always favour the buyer, to the point where it’s become too much, and their no-questions-asked returns leave the seller footing a big bill. This opens the door for abuse of the system, and many business owners have first-hand experience dealing with the hassle of someone ripping them off.

However, Walmart sets minimum requirements on return policies, such as a 30-day return window, and customers have the option to return via a physical Walmart location. 

Walmart also offers a fulfilment service, Walmart Fulfilment Services (WFS), which can handle the storage, packing, and shipping of products for sellers. This can simplify logistics for sellers, allowing them to focus on other aspects of their business.

Save money from Advertising

Advertising is less costly

 

We wouldn’t be much of an advertising agency if we didn’t mention this one! We’ve consistently observed lower aCPCs (average cost-per-click) on Walmart’s marketplace for the same keywords that we are used to paying more for on Amazon. For example, looking at an account in a highly competitive space we manage on both platforms shows that the aCPC for a top-spending search term is $2.23 on Amazon but only $0.77 on Walmart. This is not a cherry-picked example, but rather indicative of a larger trend where traffic for the same searches is cheaper. This is often the case in a newer online marketplace where competition is less and fewer advertisers are vying for the same keywords. As a result, the cost of advertising can be significantly lower, allowing businesses to gain visibility at a reduced cost while the marketplace is still growing.

Conclusion


2024 marks a pivotal year for e-commerce brands considering expansion beyond Amazon. Walmart’s marketplace, with its growing traffic and sales, presents a compelling alternative for sellers looking to diversify their online presence. With competitive advantages such as lower fees, less saturation, and a more straightforward return policy, Walmart not only provides a fertile ground for new entrants but also offers substantial opportunities for growth and profitability. With Walmart’s vast retail infrastructure and unique demographic appeal, sellers can tap into a new customer base while enjoying the benefits of a less crowded marketplace. Whether you’re a seasoned seller or just starting out, exploring Walmart as a sales channel could be a strategic move to enhance your e-commerce strategy in 2024.

Build Your Presence On Walmart!


Are you still contemplating on how to take your e-commerce journey ahead? Are you still uncertain on making a start on Walmart? Do you need help with making your presence known on Walmart? Whatever the case maybe, we at AMZ Pathfinder are here to help you get cracking on Walmart! Feel free to book a call with our team now.

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Why 2024 is the year to start selling on Walmart

Walmart online desktop with AMZ Pathfinder logo

Walmart’s e-commerce store has been around since 2009, but it’s never reached the level of popularity that the Amazon marketplace has.

In 2024, we’re starting to see the huge investments they’ve made over the last few years pay dividends and put pressure on Amazon. This can only lead to a better set of options for consumers and a better deal for businesses selling on either marketplace.

Here are the most compelling reasons you should consider putting your brand on the Walmart marketplace.

Amazon’s ever-increasing fees


Year over year,  Amazon continues to take a larger percentage of the GMV transaction value that goes through their marketplace. What is a business to do? One smart move is to
diversify your sales channels. What used to be an “Amazon business” can, with a renewed focus on other marketplaces, become an e-commerce business that benefits from a steadily increasing percentage of sales split amongst multiple channels.

Walmart Marketplace has a fee model that sets it apart from Amazon, where you only pay when you sell. Their selling fee ranges from 6% to 20%, depending on your product category. Walmart simply charges a referral fee for each item sold. There is no product listing fee, and last but not least, there is also no yearly fee either!

Another key advantage of using Walmart Marketplace is its transparent pricing structure. There are no ever-changing opaque fees, which is a significant downside on the Amazon Marketplace, or in general, complex fee structures that can affect the sellers’ profitability. Sellers only pay for the referral fee for items sold and don’t have to worry about hidden costs, although you should always calculate referral fees ahead of time to understand your cost structure.

Bar Graph about Number of Walmart’s Marketplace Sellers between May 2019 and May 2022, According to Statista

Walmart is less competitive than Amazon


Competition is inevitable when you’re in any marketplace. If you want people to buy your products, you’ll have to compete with not only other vendors but also the marketplace whose traffic you are borrowing. Amazon has over 9.7 million sellers all over the world. When a customer logs on to shop, there is a lot of competition for their attention. But it’s a different story with Walmart.

Walmart is still relatively small in comparison to Amazon. The number of sellers on their marketplace recently surpassed 150,000. Because there are fewer sellers, there is a lot more freedom to sell on Walmart.com without having to devote a lot of energy or ad spend to deal with competition.

Walmart is more picky about which businesses they allow to sell on their platform and has minimum requirements for revenue. Getting accepted to sell on Walmart is a difficult process, but worth it in the end. That same barrier to entry means there is less competition in the market.  Less competition means you earn a bigger slice of the pie when first entering the market. 

Get ahead of the pack with a first movers’ advantage


With fewer sellers on the Walmart Marketplace, there is a chance to get the first movers’ advantage. Simply put, this is the advantage gained by a company that first introduces a product to the market. A head start gives you a chance to dominate your category and grow your market share amongst the loyal Walmart customer base before others enter the arena. The newness of the marketplace means Walmart offers a tremendous opportunity for new and experienced sellers alike to take advantage of its huge retail infrastructure and vast customer base. By acting now, you can establish a presence and take the lead before it becomes more saturated, which it inevitably will in time.

Exposure to a new audience and the power of physical stores


According to ComScore, Walmart has become one of the most highly trafficked online marketplaces in the US. Every month, the site receives over 100 million unique visits. There’s no doubt that selling on the marketplace will broaden your reach to customers
beyond Amazon. Sure, the two have similar customer bases, but they are not identical. Consider the scenario of a shopper finding your product on Amazon but preferring to buy it on Walmart because they have a Walmart+ membership, or they simply trust the brand more.

Walmart boasts a wealth of users that make up demographics that are appealing to sellers. More than half of Walmart customers are homeowners with a moderately high household income. Over a third of Walmart’s online customers are millennials, which means people aged 23 to 38. The marketplace is extremely popular with families. More than half of Walmart shoppers are married or in a relationship, and nearly as many have children.

People frequently come to Walmart looking for a deal because Walmart has built its brand around saving money for its customers. You have an especially good chance of gaining net new customers and increasing your profit if you offer competitively priced products.

Walmart is one of the largest retail chains in the world, and its online presence is growing rapidly. The online and physical presence of Walmart stores means sellers who sell at Walmart are presented with an opportunity for both e-commerce success and the possibility of having their products found in stores.  Meanwhile, Amazon is ending their Just Walk Out technology and shutting down some Amazon Fresh stores, which even at their peak had a tiny footprint compared to Walmart.

Walmart’s marketplace is growing rapidly


Walmart is serious about growth, and it shows in its numbers. According to their most recent annual results report, they crossed $100 billion in e-commerce sales in 2023, which is up 23% globally. Globally, their advertising business grew 33%, and 22% for Walmart Connect if you look at just the US alone. They even bought Vizio (yes, the TV company) to expand their advertising presence on TVs as a platform. Diving even deeper into their international numbers reveals their ad business grew 76% internationally, led by Flipkart in India and Walmex, their Mexican and Central American department of Walmart. 

It also shows in their investment in trade shows. Events typically dominated by Amazon, such as The Prosper Show, now see a large Walmart presence with giant booths and big teams ready to answer questions and point you in the right direction. This is more anecdotal than numbers-based, but their on-the-ground presence is clear.

Walmart sellers managing control over returns

Walmart offers sellers more control over returns


Another key benefit of doing business at Walmart is the opportunity to set your own shopping policies. Amazon’s policies always favour the buyer, to the point where it’s become too much, and their no-questions-asked returns leave the seller footing a big bill. This opens the door for abuse of the system, and many business owners have first-hand experience dealing with the hassle of someone ripping them off.

However, Walmart sets minimum requirements on return policies, such as a 30-day return window, and customers have the option to return via a physical Walmart location. 

Walmart also offers a fulfilment service, Walmart Fulfilment Services (WFS), which can handle the storage, packing, and shipping of products for sellers. This can simplify logistics for sellers, allowing them to focus on other aspects of their business.

Save money from Advertising

Advertising is less costly

 

We wouldn’t be much of an advertising agency if we didn’t mention this one! We’ve consistently observed lower aCPCs (average cost-per-click) on Walmart’s marketplace for the same keywords that we are used to paying more for on Amazon. For example, looking at an account in a highly competitive space we manage on both platforms shows that the aCPC for a top-spending search term is $2.23 on Amazon but only $0.77 on Walmart. This is not a cherry-picked example, but rather indicative of a larger trend where traffic for the same searches is cheaper. This is often the case in a newer online marketplace where competition is less and fewer advertisers are vying for the same keywords. As a result, the cost of advertising can be significantly lower, allowing businesses to gain visibility at a reduced cost while the marketplace is still growing.

Conclusion


2024 marks a pivotal year for e-commerce brands considering expansion beyond Amazon. Walmart’s marketplace, with its growing traffic and sales, presents a compelling alternative for sellers looking to diversify their online presence. With competitive advantages such as lower fees, less saturation, and a more straightforward return policy, Walmart not only provides a fertile ground for new entrants but also offers substantial opportunities for growth and profitability. With Walmart’s vast retail infrastructure and unique demographic appeal, sellers can tap into a new customer base while enjoying the benefits of a less crowded marketplace. Whether you’re a seasoned seller or just starting out, exploring Walmart as a sales channel could be a strategic move to enhance your e-commerce strategy in 2024.

Build Your Presence On Walmart!


Are you still contemplating on how to take your e-commerce journey ahead? Are you still uncertain on making a start on Walmart? Do you need help with making your presence known on Walmart? Whatever the case maybe, we at AMZ Pathfinder are here to help you get cracking on Walmart! Feel free to book a call with our team now.

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Finding the next big thing for Amazon Advertising just got easy.

Access The AMZ Pathfinder Bulletin, a monthly amazon advertising newsletter curating the best insights, news, and content to keep Amazon Sellers on top of their game.