Walmart Marketplace is an e-commerce platform owned and operated by Walmart that allows third-party sellers to sell their products directly to consumers. The platform reaches more than 100 million unique visitors each month and hosts more than 150,000 third-party sellers. What makes Walmart Marketplace so attractive and how is it different from other online shopping platforms such as Amazon?
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What is Walmart Marketplace?
Walmart Marketplace works on a similar principle to other major e-commerce platforms. Third-party sellers can register on the platform, list their products and sell them directly to consumers. Walmart offers sellers a wide range of support services, including logistics services through Walmart Fulfillment Services (WFS), which allows sellers to easily manage the storage, delivery and returns of their products. This service is particularly important when we want to reach the entire US or Canadian market without an existing extensive distribution network.
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To sell on the platform, sellers must meet certain requirements, such as a US business ID. In addition, products must be compliant with Walmart’s Prohibited Products Regulations.
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Why is Walmart Marketplace growing and who is it for?
Walmart Marketplace has grown in popularity for many reasons. Walmart’s vast financial resources and strategic partnerships have strengthened the platform’s competitiveness. The attractiveness of any online marketplace comes from its wide availability and support network, both of which Walmart has invested heavily in over the past few years. Walmart is also already one of the best-known brands in North America, attracting a large number of third-party sellers to join its platform.
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The platform is particularly suitable for companies looking to expand their market in North America and take advantage of Walmart’s large customer base. While it can be more challenging for international sellers to join, Walmart has also started accepting sellers from selected other countries such as China, India and the UK. However, Finland is not currently on this list, so starting to sell on Walmart’s marketplace would require registering a business in the US.
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Will Walmart Marketplace come to Europe?
Currently, Walmart Marketplace is heavily focused on the US and North America, and there are no indications that the platform will expand to Europe in the near future. However, international businesses can sell their products in the US if they meet Walmart’s requirements and are registered in approved countries.
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Threats and opportunities for sellers
Walmart Marketplace offers many opportunities for sellers, but it also comes with challenges. The platform’s high foot traffic and comprehensive logistics services are significant advantages, but competition can be fierce. Although Walmart has fewer sellers than Amazon, its customer base is large and active. Walmart is also the most popular expansion destination for Amazon sellers in 2024, according to Jungle Scout‘s State of the Amazon Seller 2024 survey.
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Opportunities:
- Large customer base: Through Walmart, sellers can reach a huge number of potential customers. Through Walmart Marketplace, third-party sellers have access to a customer base of over 110 million monthly customers. This traffic already makes Walmart Marketplace the 2nd most popular online store in the US, just behind Amazon.
- Logistics Services: Walmart Fulfillment Service offers sellers an easy way to manage deliveries and returns. This is a significant benefit, especially when we are unwilling or unable to build an extensive distribution network ourselves.
- Strong brand: Walmart is a well-known and trusted brand that promotes a positive consumer image, including to third-party vendors. This is known to be particularly beneficial for smaller and new brands in the target market, if they are visible to customers in a familiar and trusted retail space.
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Threats:
- Competition: Although there are fewer sellers than on Amazon, competition can still be fierce in popular product categories. Walmart also sells products from its own catalogue on Walmart Marketplace, which often rise to the top of search results easier than third-party sellers.
- Background requirements: The Walmart sales requirements and application process can be complex and time-consuming. Unlike other platforms, Walmart requires sellers applying for the platform to have not only official documentation but also a proven track record of success in e-commerce. As a result, Walmart is not a viable choice for brands just starting to sell online.
- Internationality: It can be challenging for international sellers to join if the company is not registered in a recognised country. Walmart also only operates in North America and is therefore not yet suited to opening up international markets more widely.
Walmart Marketplace offers significant opportunities for sellers looking to expand their market in North America. The platform’s strong logistics services and large customer base make it an attractive option, although competition and the requirements to join may present their own challenges.
Our knowledgeable e-commerce experts will be happy to discuss the potential of your business in the Walmart e-commerce jungle – contact us
