Starting to sell on Walmart’s online marketplace is an exciting venture that can open doors to a vast customer base and substantial revenue opportunities. Walmart is one of the largest retail chains in the world, and its online marketplace offers sellers access to millions of customers. However, before you dive in, there are several important aspects to consider to ensure your success on this platform. In this blog post, we’ll cover everything you need to know before you start selling on Walmart.


Understanding Walmart’s Marketplace

Walmart Marketplace allows third-party sellers to list their products on, providing access to Walmart’s enormous customer base. This can be a lucrative opportunity, but it requires a clear understanding of Walmart’s policies, processes, and customer expectations. Walmart has a reputation for low prices and high-quality service, and it expects its sellers to adhere to these standards.

Application Process

To sell on Walmart, you must go through an application process. Unlike some other marketplaces that allow almost anyone to sell, Walmart is selective about its sellers. So, you need to provide detailed information about your business, including your history, product assortment, fulfillment capabilities, and customer service policies. Here’s what you need to prepare for:

  1. Business Information: Ensure your business is legally registered. You will need to provide your EIN (Employer Identification Number), address, and contact details.
  2. Product Information: Walmart is interested in what you plan to sell. They’ll want to know your product categories, average price points, and inventory levels.
  3. Fulfillment and Logistics: Describe how you handle order fulfillment, shipping, and returns. Walmart prioritizes sellers who can deliver quickly and handle returns efficiently.
  4. Performance Metrics: If you sell on other platforms, be ready to share your performance metrics such as order defect rate, on-time delivery rate, and customer feedback scores.
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Meeting Walmart’s Standards

Walmart has stringent standards to maintain its reputation. Here are key performance metrics you should aim to meet:

  1. Order Defect Rate (ODR): Maintain an ODR below 2%. This includes metrics like cancellations, returns, and negative feedback.
  2. On-Time Delivery: Ensure at least 99% of your orders are delivered on time. Walmart customers expect prompt delivery, so your shipping process needs to be efficient.
  3. Customer Service: Respond to customer inquiries within 24 hours. Walmart values high-quality customer service and quick response times.

Pricing Strategy

Walmart is known for its low prices, and it expects its marketplace sellers to offer competitive pricing. Here are some tips for setting your prices:

  1. Competitive Analysis: Regularly check prices of similar products on and other marketplaces. Your prices should be competitive to attract Walmart shoppers.
  2. Price Parity: Walmart has a price parity policy, meaning you should not list your products at a lower price on other platforms. Violating this can result in your listings being deactivated.
  3. Promotions and Discounts: Utilize Walmart’s promotional tools to offer discounts and deals. Also, this can help increase your visibility and sales.

Listing Your Products

Creating detailed and accurate product listings is crucial for attracting customers and reducing returns. Here’s how to optimize your listings:

  1. Product Titles: Use clear and descriptive titles. Include key information like brand, model, size, and other relevant details.
  2. High-Quality Images: Provide high-resolution images from multiple angles. Walmart allows up to 8 images per listing.
  3. Detailed Descriptions: Write detailed product descriptions covering features, benefits, and specifications. Include keywords to improve search visibility.
  4. Categorization: Ensure your products are correctly categorized to help customers find them easily.
  5. Attributes: Fill in all relevant attributes such as size, color, material, and weight. This information helps customers make informed decisions.
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Inventory Management

Effective inventory management is critical to maintaining high seller performance metrics. Here’s how to stay on top of your inventory:

  1. Real-Time Inventory Updates: Keep your inventory levels updated in real time to avoid overselling and stockouts.
  2. Inventory Buffer: Maintain a buffer stock to account for unexpected spikes in demand.
  3. Inventory Turnover: Regularly review your inventory turnover rates to identify slow-moving items and consider running promotions to clear out old stock.

Order Fulfillment

Walmart has high expectations for order fulfillment. Here are the key aspects:

  1. Shipping Methods: Offer multiple shipping options, including expedited shipping. Walmart’s customers appreciate the fast delivery.
  2. Shipping Partners: Partner with reliable carriers to ensure timely delivery. Consider using Walmart’s own fulfillment service, Walmart Fulfillment Services (WFS), for faster shipping and better customer service.
  3. Packaging: Use sturdy and appropriate packaging to protect products during transit. Damaged products can lead to negative reviews and returns.

Returns and Customer Service

Handling returns and providing excellent customer service is vital for maintaining a good seller rating. Here’s how to manage these aspects:

  1. Easy Returns: Make the return process straightforward for customers. Clear return policies help build trust.
  2. Refunds and Replacements: Process refunds and replacements promptly to keep customers satisfied.
  3. Customer Inquiries: Respond to customer inquiries quickly and professionally. Address any issues promptly to prevent negative feedback.
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Leveraging Walmart’s Tools and Programs

Walmart offers various tools and programs to help sellers succeed. Here are some you should consider:

  1. Walmart Fulfillment Services (WFS): WFS can handle the storage, picking, packing, and shipping of your products, ensuring fast and reliable delivery.
  2. Walmart Sponsored Products: Use this advertising program to increase your product visibility on Sponsored products appear in search results and relevant product pages.
  3. Walmart 2-Day Delivery: Enroll in Walmart’s 2-day delivery program to attract more customers who prefer quick shipping.
  4. Walmart Marketplace APIs: Utilize Walmart’s APIs to automate inventory management, order processing, and other tasks.

Compliance and Legal Considerations

Ensure you comply with all legal and regulatory requirements. This includes:

  1. Tax Compliance: Understand and comply with tax regulations in the regions you sell. Walmart collects and remits sales tax on behalf of sellers in certain states.
  2. Product Compliance: Ensure your products meet all safety and regulatory standards. Non-compliant products can be removed from the marketplace.
  3. Intellectual Property: Respect intellectual property rights. Avoid listing counterfeit or trademark-infringing products.

Analyzing Performance and Optimizing

Regularly review your performance metrics and optimize your strategies. Here’s how:

  1. Sales Data: Analyze your sales data to identify trends and opportunities.
  2. Customer Feedback: Monitor customer feedback to identify areas for improvement. Address common complaints to enhance your product offerings and customer service.
  3. A/B Testing: Experiment with different product titles, descriptions, and prices to see what works best. Use A/B testing to optimize your listings.
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Selling on Walmart Marketplace can be a highly rewarding venture, but it requires careful planning, diligent management, and a commitment to high standards. By understanding Walmart’s expectations and leveraging its tools and programs, you can set yourself up for success. Keep learning, stay adaptable, and continuously strive to improve your offerings and customer service. With the right approach, Walmart can become a significant sales channel for your business, helping you reach new heights in the world of e-commerce.