Walmart is one of the largest retailers in the world so it’s no surprise that they have a significant online presence too. Walmart Marketplace is an online platform operated by Walmart that allows third-party sellers to offer their products to Walmart customers. By offering products on Walmart Marketplace, sellers can reach a wider audience and benefit from Walmart’s reputation for low prices and customer trust. With access to Walmart’s large customer base, becoming a seller on the platform can significantly increase demand for a company’s products. To our online sellers and entrepreneurs out there, retailing on third-party sites has its benefits so if you’re reading this, keep chasing the dream. Our hope is you find success that leaves you needing funding for inventory to keep up with sales.
To grow and sustain a business on Walmart marketplace, sellers often turn to Walmart inventory financing. Traditional financing methods can be costly, strict, and restrictive – and for these reasons and more Kickfurther was founded in true entrepreneurial fashion in spirit of solving a problem. Kickfurther can help Walmart sellers receive the funding they need for inventory up to 30% cheaper than comparable options. But, before you cross the path of funding, you’ll need to establish some success.
Interested in becoming a seller on Walmart marketplace? Here’s what you should know.
What is Walmart Marketplace?
Walmart Marketplace is an e-commerce platform operated by Walmart that allows third-party sellers to offer their products to Walmart customers alongside Walmart’s own products. The Marketplace launched in 2009 and has since grown to include millions of products from thousands of sellers. Walmart Marketplace is designed to be a competitive alternative to other online marketplaces like Amazon, eBay, and Etsy. The platform offers a wide range of product categories, including electronics, home and garden, toys, sports and outdoors, and more.
Sellers on Walmart Marketplace are responsible for setting their own prices, managing their inventory, and fulfilling customer orders. Walmart provides sellers with tools and resources to help them manage their listings, track sales, and optimize their product offerings. For Walmart customers, the Marketplace provides access to a larger selection of products at competitive prices. Walmart also offers free two-day shipping on many Marketplace items, as well as free returns to any Walmart store.
How to become a seller on the Walmart marketplace
To become a seller on Walmart Marketplace, you will need to follow these steps:
- Apply to sell: You can start the process by filling out the application form on Walmart’s Marketplace website. You will need to provide information about your business, such as your company name, contact information, and tax identification number.
- Meet the requirements: Walmart has certain requirements that sellers must meet in order to be approved. Some of these requirements include having a U.S. tax ID number, maintaining adequate inventory levels, and providing competitive pricing.
- Complete the onboarding process: Once your application is approved, you will need to complete the onboarding process, which includes setting up your seller account, creating product listings, and configuring shipping and payment settings.
- Start selling: After you have completed the onboarding process, you can start selling your products on the Walmart Marketplace. You will be responsible for managing your inventory, processing orders, and providing customer support.
It’s important to note that Walmart charges a referral fee for each item sold on the Marketplace, as well as a subscription fee for certain seller types. Additionally, Walmart requires sellers to maintain a high level of customer service, and failure to meet these standards can result in account suspension or termination.
What are the requirements for selling on the Walmart marketplace?
To become a seller on the Walmart Marketplace, you must meet certain requirements set by Walmart. Here are some of the key requirements:
- Business registration: Your business must be registered and in good standing with the appropriate government agency in your country.
- U.S. tax ID number: You must have a valid U.S. tax identification number (TIN), which can be an Employer Identification Number (EIN) or a Social Security Number (SSN).
- Product requirements: Your products must meet Walmart’s quality standards and be legal to sell in the United States. Certain product categories, such as firearms and tobacco products, are prohibited.
- Product pricing: Your product pricing must be competitive with other online retailers, and you must offer free shipping or a competitive shipping price.
- Shipping requirements: You must be able to ship your products to customers within two business days, and you must use Walmart’s approved carriers and shipping methods.
- Customer service: You must provide excellent customer service, including responding to customer inquiries within 24 hours and processing returns and refunds in a timely manner.
- Performance metrics: You must maintain a high level of performance on Walmart Marketplace, including meeting sales and order defect targets and maintaining a low rate of cancellations and returns.
It’s important to note that these requirements are subject to change, and Walmart may have additional requirements or restrictions for certain product categories.
Tips for pricing your products on Walmart marketplace
Pricing can be a key part of becoming a successful seller on Walmart marketplace. Before setting your prices, research your competitors to see how they are pricing similar products. This can help you stay competitive and avoid overpricing your products. Your prices should also cover your costs and leave room for a reasonable profit margin, while also meeting the Every Day Low Price (EDLP) that Walmart focuses on. This can keep Walmart shoppers happy to buy your products and keep them coming back for more.
It is also encouraged to use Walmart’s pricing tools, which provides reports to help you optimize your prices and stay competitive. Use these tools to track your sales and adjust your prices accordingly. Keep up-to-date with industry trends and changes in consumer demand as well to ensure your prices remain competitive and your products remain relevant.
How to ensure you have enough inventory to support your business
As a seller on Walmart Marketplace, it’s important to have enough inventory to meet customer demand and avoid stockouts. Here are some tips to ensure you have enough inventory.
- Use sales data to forecast demand
- Set up automatic reorder points
- Work closely with your suppliers
- Use inventory management software
- Monitor sales and inventory levels regularly
- Consider seasonal fluctuations
Perhaps the biggest tip though is maintaining healthy cash flow so that you can always stock enough inventory. As a business owner, you know this is easier said than done. Thankfully, Kickfurther makes getting the funding you need, when you need it, fast and hassle-free. Our platform engages a community of backers that want to help fund your business. The process allows entrepreneurs to share their brand and its mission to find backers that want to support it. Plus, repayment terms are flexible and business owners can maintain control of their business without the need to give up equity. Our team of entrepreneurs are real and here to support our fellow entrepreneurs in making small business fun – like it should be.
Expedite the growth of your business today with inventory funding. Talk to an expert at Kickfurther today!
What are the fees associated with selling on the Walmart marketplace?
As a seller on Walmart Marketplace, there are several fees and costs associated with using the platform. Here is an overview of some of the fees you can expect to pay:
- Referral fees: Walmart charges referral fees on each item sold on the platform. The referral fee varies depending on the category of the item, but typically ranges from 6% to 15% of the item’s sale price.
- Subscription fee: Walmart charges a subscription fee of $39 per month to access the Marketplace API, which is required to sell on the platform. This fee is waived for sellers who meet certain performance metrics. This fee is subject to change.
- Refund processing fee: If you process a refund on Walmart Marketplace, you can be charged a processing fee of $0.30 per item.
- Payment processing fees: Payment processing fees apply to all transactions processed through Walmart’s payment system. These fees vary depending on the payment method and can range from 2.2% to 2.7% of the transaction value, plus a fixed fee of $0.30 per transaction. Fees are subject to change.
- Shipping fees: You will be responsible for shipping your products to customers, and the cost of shipping will depend on the shipping method and carrier you choose.
- Other fees: Other fees may apply depending on the specific services you use on the platform, such as advertising and marketing tools.
What is the process for getting paid as a Walmart marketplace seller?
As a seller on Walmart Marketplace, you can receive payments for your sales through Walmart’s payment system. When a customer places an order on Walmart Marketplace, you should receive an order confirmation email from Walmart. You are then responsible for fulfilling the order by shipping the product to the customer within the agreed-upon timeframe.
Once the order is fulfilled, Walmart can process the payment and deduct any applicable fees (such as referral fees and payment processing fees) from the total amount. Walmart typically releases payment to sellers on a two-week cycle, meaning you should receive payment for all orders fulfilled during a given two-week period at the end of that period.Once payment is released by Walmart, it can be transferred to your designated bank account via electronic funds transfer (EFT).
Tips for optimizing product listings and increasing sales on the Walmart marketplace
Here are some tips for optimizing your product listings and increasing sales on the Walmart Marketplace:
- Use high-quality images: Use high-quality product images that showcase your products from different angles and in different settings. This will help customers get a better sense of what they’re buying and increase the likelihood of a purchase.
- Write detailed product descriptions: Write detailed, accurate, and compelling product descriptions that include key features, benefits, and specifications. Use bullet points and bold text to make important information stand out.
- Optimize your product titles: Use relevant keywords in your product titles to make them easy to find in search results. Use specific and descriptive titles that accurately reflect what the product is and what it does.
- Monitor and respond to customer reviews: Monitor customer reviews and respond promptly and professionally to any negative feedback. Addressing customer concerns can help improve your reputation and encourage repeat business.
- Optimize pricing: Use competitive pricing strategies to stay competitive with other sellers on the platform. This can include offering promotions, discounts, and free shipping to attract customers.
- Utilize advertising tools: Use Walmart’s advertising tools to promote your products and reach more customers. This can include sponsored product listings, display ads, and search ads.
- Maintain good customer service: Provide excellent customer service and respond promptly to customer inquiries and requests. This can help build customer loyalty and encourage positive reviews.
- Monitor and analyze performance metrics: Regularly monitor your performance metrics, such as sales, order fulfillment, and customer feedback, to identify areas for improvement and optimize your listings accordingly.
How Kickfurther can help
Kickfurther can help you become a successful Walmart marketplace seller by providing you with the necessary funding to purchase inventory without the constraints of tying up your existing working capital. Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. By removing the need to tie up all extra cash in inventory you can allocate resources to other parts of your business such as inventory systems, employees, and more. You may even be able to order larger quantities of inventory which can help you unlock better pricing.
With quick access to funding and no immediate repayments, you can take advantage of the financial freedom gained to grow your business.
Closing thoughts
Becoming a seller on Walmart marketplace can present a unique set of challenges for business owners. As demand for your products grows, maintaining working capital can be difficult while trying to fulfill a growing number of orders. By providing inventory on consignment, Kickfurther provides inventory funding that can free up the working capital necessary to keep growing and expanding your business.
Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:
#1. Create a free business account
#2. Complete the online application
#3. Review a potential deal with one of our account reps & get funded in minutes
