Selling on Walmart: What is the Walmart Marketplace?

Selling on Walmart Marketplace is a huge opportunity for eCommerce businesses. With over 120 million monthly visitors and fewer third-party sellers than Amazon, Walmart offers high visibility, strong brand trust, and lower competition. In this guide, you’ll learn what the Walmart Marketplace is, why it’s worth selling on, how to get started, and key strategies for success.

It operates similarly to the Amazon marketplace, where independent businesses can reach millions of Walmart customers while Walmart handles the website infrastructure, payment processing, and customer traffic.

Walmart Seller Center is the online portal where sellers manage their business via a Walmart marketplace account. It provides tools for listing products, processing orders, tracking performance, managing inventory, and accessing analytics.

Walmart Fulfillment Services

Third-party sellers on the Walmart Marketplace can get their items to Walmart customers through two main fulfillment methods:

1. Self-Fulfillment (Seller-Fulfilled): Walmart Marketplace sellers store inventory in their own warehouse or use a third-party logistics (3PL) provider and ship directly to customers.

2. Walmart Fulfillment Services (WFS): Walmart Marketplace offers Walmart Fulfillment Services (WFS), which is similar to Amazon FBA, as it provides 2-day shipping for increased sales potential. With WFS, Walmart stores, picks, packs, and ships sellers’ products from its fulfillment centers.

Why Sell on the Walmart Marketplace?

Selling on the Walmart Marketplace offers several advantages, especially for businesses looking to expand their online presence and increase sales. There are fewer sellers on the Walmart Marketplace compared to Amazon, which means there is less competition and better visibility for your products. Being an established and credible seller can further enhance your visibility and trust on the platform.

"Although Walmart does not have the largest market share compared to other marketplaces, there are a lot of niche opportunities, especially for under-represented product categories that do not have inventory that can ship fast. Deliver the Amazon prime experience to Walmart customers, especially when that customer doesn't have any other options on Walmart that compete with your product." - Paul Dworianyn, Founder of Awesome Dynamic

Since Walmart is a trusted retail brand, customers often prefer buying from its platform over lesser-known online marketplaces. This also means sellers have access to Walmart’s massive customer base of over 120 million visitors per month.

Another major benefit to selling on the Walmart Marketplace is that it’s cost-effective for sellers. Unlike Amazon FBA, there is no monthly fee. Walmart Marketplace sellers only pay a referral fee when items are sold, (typically 6-15% depending on the product category). This can lead to higher profit margins than on alternative marketplaces.

Walmart Marketplace Selling Fees

Selling on Walmart's online marketplace comes with various fees, primarily referral fees and optional fulfillment costs.

• Referral Fees (Commission per Sale): Walmart Marketplace charges a referral fee on each sale, which varies by product category. The fees typically range from 6% to 15% of the product’s selling price. As an example, the fee for Grocery items is 8%, and Apparel & Accessories is 15%.
• Walmart Fulfillment Services Fees (Optional): If you use WFS, you’ll pay additional storage and fulfillment fees based on item weight & dimensions, and storage duration (long-term storage fees apply). You can estimate your storage and fulfillment fees with the WFS Cost Calculator.
• Return Fees (If Applicable): When selling on Walmart, you may incur return processing fees if the Walmart Marketplace manages your returns (for WFS sellers).
• Advertising Fees (Optional): Walmart Marketplace offers sponsored product ads to boost product visibility when selling on Walmart. These work on a pay-per-click (PPC) model, similar to Amazon ads. You set a daily budget and bid for ad placements. Costs vary based on competition and bid strategy.

Who Can Sell on Walmart Marketplace?

Authorized brand owners, resellers & wholesalers, and private label sellers can all sell on the Walmart Marketplace.

If you own a brand, it is highly recommend to be Marketplace brand owner registered with the Walmart Brand Portal, to protect your intellectual property. Being brand registered provides benefits such as protection against unauthorized sellers, more control over your product listings, faster approval for listing updates and the ability to report IP violations against counterfeit products.

Being a Walmart Marketplace registered brand owner also provides access to premium ad placements, such as Sponsored Brand ads, which can significantly enhance visibility and attract more customers searching for related products.

If you are not the brand owner, you can still sell products on Walmart as a reseller or distributor, as long as you have the proper permissions and follow Walmart’s policies.

Is it Hard to Get Approved to Sell on Walmart?

A history of ecommerce success can be particularly beneficial for sellers on Walmart Marketplace, as it aligns with Walmart's commitment to credible sellers and can boost your chances of approval.

Creating your Walmart Marketplace account takes just a few minutes, but approval can take anywhere from 24 hours to several weeks. The timeline depends on how quickly you submit the required information. To expedite the approval process, ensure you meet all eligibility requirements in advance.

How to Get Started Selling on Walmart

Selling on the Walmart online marketplace is a great opportunity for businesses to expand their reach. But first, you need to meet these minimum qualifications:

• Registered U.S. business with a business tax ID, W-9 form, and EIN Verification Letter from the Department of Treasury
• Strong ecommerce selling experience (Amazon, eBay, Shopify, etc.)
• A good track record of customer support (your ratings from other platforms will be reviewed)
• High-quality products with competitive pricing
• Reliable fulfillment & fast shipping (2-day delivery preferred)

Once you meet the minimum requirements, you need to complete a Walmart Seller Application to get Walmart Marketplace Approval. Go to marketplace.walmart.com and click “Join Marketplace” to submit your application. Upon approval, you will receive an invitation to set up your Walmart seller account.

You will be asked to sign the retailer’s contract confirming that you agree to the Seller agreement policies. Next, complete your seller profile, shipping settings, and payment details. Then you can start creating your product listings.

What Products to Sell on Walmart Marketplace

The Walmart Marketplace offers a vast array of products across numerous categories, catering to a wide range of customer needs. Understanding these high-demand areas can help sellers align their sales strategy with market trends. Sales trends can fluctuate over time based on factors like seasonality, promotions, and emerging consumer preferences.

However, certain categories and items consistently emerge as top performers.

Top Selling Categories on Walmart

By focusing on selling products in these categories, sellers can better meet consumer demand and enhance their success on the Walmart platform. Here are some of the leading categories:

• Grocery: Essential products like food and household items becoming more popular during times of financial uncertainty.
• Home and Kitchen: Products such as kitchenware, appliances, and home décor are consistently popular.
• Cleaning Supplies: Items like detergents, disinfectants, and general household cleaners are in constant demand, making this a lucrative category for sellers.
• Personal Care Products: Essentials such as soap, toothpaste, shaving products, sunscreen, deodorant, and hair care items are among the top-selling products at Walmart.
• Baby Care: Products like diapers, wipes, baby formula, and baby food are essential for many households, leading to consistent sales in this category.
• Pet Supplies: With the increasing number of pet owners, items such as pet food, grooming products, and accessories have seen a surge in demand.
• Laundry Supplies: Laundry detergents and stain removers are recognized as essential items in many homes, contributing to their high sales volume.
• Health and Wellness: Products such as essential oils, vitamins, and supplements are particularly popular, reflecting the growing consumer focus on health and wellness.
• Fitness: Smart fitness tools are among the best-selling items on Walmart, reflecting the growing trend of combining physical activity with technology.
• Electronics: Electronics are often a top category during popular holidays and promotional periods.

For a comprehensive and up-to-date list of best-selling items, you can visit the Walmart Marketplace’s official best sellers page.

Product Listings and Optimization

Your listings are a crucial aspect of selling on Walmart Marketplace. By optimizing your product listings, you can increase visibility, drive more sales, and improve customer satisfaction when selling on Walmart Marketplace. To optimize your product listings, follow these best practices:

• High-Quality Images: Use high-quality product images that showcase your product from different angles. Clear, professional photos can significantly impact a customer’s decision to purchase.
• Detailed Descriptions: Write detailed and accurate product descriptions that include relevant keywords. This helps improve your product’s visibility in search results and provides customers with the information they need to make informed decisions.
• Concise Titles: Ensure that your product titles are concise, informative, and include relevant keywords. A well-crafted title can attract more clicks and improve your product’s search ranking.
• Relevant Categories: Use relevant categories and subcategories to help customers find your products easily. Proper categorization ensures that your products appear in the right searches.
• Competitive Pricing: Set competitive prices for your products based on market research. Competitive pricing can help you win the Buy Box and attract more customers.
• Product Variations: Use Walmart’s product variation feature to offer different sizes, colors, and quantities of your products. This allows customers to find exactly what they need and can increase your sales.

Marketplace brand owners can utilize Sponsored Brands ads to enhance product visibility, especially for launching new or seasonal items, improving the visibility of products with lower search rankings, and boosting the performance of higher-priced items.

Marketing and Customer Engagement

Marketing and customer engagement are essential for success on Walmart Marketplace. Here are some strategies to help you market your products and engage with customers:

• Sponsored Search Ads: Use Walmart’s Sponsored Search ads to promote your products to customers searching for similar products. These ads can increase your product’s visibility and drive more traffic to your listings.
• Brand Portal: Utilize Walmart’s Brand Portal to protect your intellectual property and ensure that your brand is represented consistently across the platform. This tool helps you manage your brand’s presence and prevent unauthorized sellers from listing your products.
• Customer Engagement: Engage with customers by responding to feedback in a timely and professional manner. (Walmart allows sellers to respond to negative seller feedback related to order fulfillment issues, shipping delays, and customer service complaints). Positive interactions can build trust and encourage repeat purchases.
• Excellent Customer Service: Offer excellent customer service by providing accurate product information, responding to customer inquiries promptly, and resolving issues efficiently. Good customer service can lead to higher satisfaction and better reviews.

By marketing your products and engaging with customers, you can build brand awareness, drive sales, and improve customer loyalty on Walmart Marketplace.

Performance Metrics and Analytics for Walmart Sellers

To measure the success of your Walmart Marketplace business, it’s essential to track performance metrics and analytics. Here are some key metrics to monitor:

• Sales Revenue: Track your total sales revenue to measure the growth of your business. This metric gives you an overall view of your financial performance.
• Conversion Rate: Monitor your conversion rate to see how many customers are completing purchases after visiting your product listings. A higher conversion rate indicates that your listings are effective in driving sales.
• Customer Satisfaction: Track by monitoring reviews and feedback. Positive reviews can boost your product’s credibility and attract more customers.
• Inventory Levels: Monitor your inventory levels to ensure that you have enough stock to meet customer demand. Proper inventory management can prevent stockouts and lost sales.
• Shipping and Fulfillment: Track your shipping and fulfillment metrics to ensure that orders are being processed and delivered efficiently. Timely delivery is crucial for maintaining high customer satisfaction. By monitoring these metrics, you can identify areas for improvement, optimize your business operations, and make data-driven decisions to drive growth and success on Walmart Marketplace.

How to Become a Successful Walmart Marketplace Seller

Selling on Walmart Marketplace can be highly profitable, but success requires the right strategies and a proven track record of marketplace or eCommerce success. Here’s how you can maximize sales and grow your business on Walmart.com.

• Offer competitive pricing: The Walmart Marketplace prioritizes the lowest price in search results and the Buy Box. Use a modern repricer to automatically adjust prices and maximize profit when selling on Walmart.
• Optimize product listings: Use relevant keywords in the title to improve search visibility. Include clear, accurate and detailed descriptions that convey the product benefits and key features. Use high-quality, professional images.
• Take Advantage of Walmart Fulfillment Services (WFS): If you want higher sales with less effort when selling on Walmart, WFS is highly recommended. It offers 2-day shipping eligibility, better Buy Box placement and less hassle since Walmart handles the storage and returns.
• Maintain High Seller Performance: The Walmart Marketplace rewards sellers with higher visibility if they maintain on-time shipping and delivery, low order defect rates, and good customer service.
• Use Walmart Sponsored Ads: Consider running PPC ads for seasonal promotions and to boost visibility and conversions. Walmart Connect is a valuable platform for increasing product visibility through sponsored search advertising.
• Monitor Performance & Optimize Regularly: When selling on Walmart, it’s important to keep a close eye on key metrics. Use Walmart Seller Center analytics to track conversion rates, traffic sources, and competitor analysis.

Helpful Tools for Walmart Marketplace Sellers

If you’re ready to start selling on Walmart, you can leverage various third-party tools to manage inventory, optimize pricing, improve advertising, and boost sales. Here are some of the best software tools to help Walmart sellers grow their business:

• Aura - Automatically adjusts prices to stay competitive and win the Buy Box when selling on Walmart.
• Algopix– Provides product research and insights for selling on Walmart.
• eDesk – Automates customer service responses for Walmart sellers.
• GeekSeller – Software for bulk listing management on the Walmart marketplace.
• Walmart Brand Portal – Protects intellectual property and helps manage brand presence on Walmart.com. Ensure you have necessary company information and trademark details ready for a streamlined registration process.