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As an Amazon seller, there’s a good chance that you’ve experienced the highs AND lows of selling on the platform. While Amazon offers incredible reach and an ever-increasing wealth of tools for sellers, it’s also becoming increasingly competitive. 

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

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

Wondering if it’s time to make the move yourself? Hit the ground running by reaching out to the Walmart experts at Canopy Management!

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.