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Blog > Walmart > The 14:1 Rule explains how and why to sell on Walmart

The 14:1 Rule explains how and why to sell on Walmart

Why should you be excited to sell on Walmart? Let’s paint a picture with some numbers.

Putting this in perspective, Walmart.com brings in almost 14% of the sales that Amazon does, yet has only 1-2% of the competition.

This powerful statistic shows the huge opportunity eCommerce sellers have to succeed on Walmart Marketplace with strategic advertising, at a fraction of the cost.

How to sell on Walmart

There are a few different ways you can take advantage of this opportune moment to start selling on Walmart.

  • Source the right products
  • Join Walmart Free 2-Day Shipping
  • Invest in Walmart Performance Ads

How do you know what products to source?

Amazon Brand Analytics will show you the top selling and frequently searched brands on Amazon, which we can assume is a good guideline for Walmart as well.

Here’s a formula for finding the sweet spot on Walmart.

Winning SKUs = High BSR (best seller ranking) on Amazon + Low competition on Walmart (ie. no fast shipping tags, lacking selection)

Other combinations of this formula are:

  • Low BSR on Amazon + Low competition on Walmart (risky)
  • High BSR on Amazon + High competition on Walmart (not unless you own the brand or have a significant cost-advantage)
  • Low BSR on Amazon + High competition on Walmart (don’t touch this)

A few examples of the sweet spot products include Method soap and Axe shampoo. These both sell well on Amazon, yet lack 2-day tags or even item coverage on Walmart.

Example: Method soap

There are pages and pages of Method soap products on Amazon, with multiple sellers per listing, and all top listings on Prime.

However, we can’t blame these sellers for trying to duke it out, as it ranks #18 on Amazon best sellers for dish soap when we checked.

According to Viral Launch, shoppers search for Method soap almost 30,000 times every month.

Over on Walmart, Method soap has coverage, but all Method products lack fast shipping. This is a big opportunity for sellers who can support 2-day shipping for this product.

Example: Axe 2-in-1

Moving on to Axe, Axe 2-in-1 shampoo and conditioner is one of the top Amazon best sellers in health and beauty.

On Amazon, we saw multiple results with multiple sellers, even when searching for “2-in-1” products specifically, with all but one of the top two rows of search results on Prime.

And according to Viral Launch, Axe products are searched approximately 12,000 times monthly.

When we look at the brand on Walmart, there are multiple products available, but none of the top results offer 2-day shipping.

Need more proof that 2-day shipping works? Take a closer look at the 2nd and 3rd rows of search results for Axe products. Multiple non-Axe products appear, some even beating out the Axe brand. What do they have in common? 2-day shipping tags.

Example: L’Occitane

When we checked on Amazon, L’Occitane was the #8 best selling item in hand creams and lotions. According to Viral Launch, L’Occitane gets about 20,000 searches on Amazon every month.

And a quick Amazon search will return many pages of options, all with Prime-fast shipping.

When we head over to Walmart, we can see that there are L’Occitane items available, but lacking the 2-day shipping tags.

These examples demonstrate big opportunities for sellers, such as Redfox Retail, who saw an opportunity and took it.

How one seller grew Walmart sales 300% in 1 week

Robert Kedzior of Redfox Retail discovered this formula. He saw steady sales of Oral B replacement toothbrush heads on Walmart before 2-day shipping. Once he added 2-day tags on his listings by fulfilling with Deliverr, sales jumped up 300%.

Following this formula, he was also able to capture the majority of search results, leading to more sales, which leads to more reviews, which circles back and leads to more sales in a flywheel effect.

These are large gaps that smart sellers can take advantage of by sourcing, selling, and activating these SKUs on 2-day shipping.

What is Walmart Free 2-Day Shipping?

Walmart Free 2-Day Shipping is Walmart’s fast shipping program that provides buyers with 2-day (or less) shipping on eligible items. These items can be filtered for within search results, and are prominent with green 2-day shipping tags.

As mentioned above, although there are 100 million Prime listings, there are only 2 million products on Walmart 2-day shipping today. This gap is waiting to be filled by smart, fast-moving sellers who understand the market demand for speed.

Tip: All Deliverr sellers are pre-approved for Walmart’s Free 2-Day Shipping program! Check out our webinar recording with the Walmart team for more information.

What are Walmart Performance Ads?

Walmart sponsored listings, also known as Walmart Performance Ads, is a CPC-program on Walmart that allows sellers to bid for certain search terms under which their listings would show up as “sponsored.”

Thanks to the limited competition on Walmart, Performances Ads work especially well and can be more affordable than their Amazon counterparts.

“We are getting bids at about ⅓ the cost of similar keyword bids that we are running on Amazon Sponsored Ads.” – Ross Baker, DRIVE Auto Products reaches top of search after activating Walmart Free 2-Day Shipping

Tip: All Deliverr sellers get pre-approved access to unlimited campaigns, with a max of 300 SKUs per campaign.

Learn more about Walmart Performance Ads here

Recap

Walmart is the marketplace to be on today in order to stay ahead of the game.

Look to Amazon to research whether a product will do well on Walmart, then take a look at the product on Walmart to gauge competition around it. If there isn’t a lot of competition, or the competition doesn’t have 2-day shipping tags, use Walmart Free 2-Day Shipping and Walmart Performance Ads to get your products to the top.

  • Source your products wisely, by looking at what’s successful on Amazon and lacking on Walmart, and what successful Walmart products don’t offer fast shipping.
  • Activate fast tags on your listings to boost search prominence, capture last minute shoppers, and increase your chances of winning the buy box.
  • Invest in Walmart Performance Ads to test out new SKUs and get in front of interested shoppers.

Tip: If you’re private label, this will still work for you, but make sure you compete on a very high-volume keyword and invest ad budget into it.

Happy selling!

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