Walmart.com is one of Amazon’s biggest rivals, with more than 100 million unique website visitors per month. However, success on the marketplace relies on product sourcing for your Walmart Marketplace store. You shouldn’t assume your offerings in other stores, like Amazon and Shopify, will also sell well on Walmart.com.
In this guide, we’ll try to remove some of the gamble of choosing a product to sell on the Walmart Marketplace by going over some product sourcing strategies and considerations.
Why sell on Walmart Marketplace
Walmart.com is an attractive marketplace for any multi-channel seller, bringing benefits including:
- Reach: Walmart is the second-largest eCommerce retailer in the US, attracting almost 450 million online shoppers and loyal customers every day.
- Trust: Walmart is a household name that customers know and trust, which in turn enhances your brand’s perceived reputation.
- Scope of products: Walmart.com has nearly 52 million products, attracting a range of customers, including Amazon shoppers.
- Marketplace features: The marketplace comes packed with seller features to increase your sales, including Walmart TwoDay, Walmart Sponsored Products, and the Walmart buy box.
Walmart only has 33,000 marketplace sellers, generating a high value to competition ratio (something we call the 14:1 rule).
However, you do have to apply to sell on Walmart.com, so choosing the right product is critical to success.
How to choose a product to sell on Walmart.com
There are six best practices for choosing a product to sell on Walmart.com.
1. Understand what you can’t sell on Walmart
Walmart’s prohibited product policy identifies the products you cannot list on the marketplace under any circumstances or without written pre-approval.
These range from the obvious (explosives, recalled items, law enforcement badges, and firearms) to the less obvious (loose gemstones, digital goods, padded crib liners, and solar eclipse glasses).
Always double-check the prohibited product policy when listing items because you never know what’s crept onto the list.
Any products not included in the prohibited product policy must still comply with all applicable laws.
2. Learn what’s performing well on Walmart.com
The products currently performing well on Walmart.com give you a healthy indication of the categories to go after with your product selection.
There are three great resources for analyzing Walmart’s current best-performing products and categories:
- Walmart Best Seller Ranking – a product research tool within Seller Central.
- Walmart top-selling items – a list of currently trending Walmart products.
- Algopix – a third-party multi-channel product research tool.
Note that when different sellers add two matching and identically priced products to Walmart.com, Walmart gives preference to the first product listed on the platform.
That means you shouldn’t sell a product already trending on Walmart if you can’t beat the existing price or shipping speed. Instead, use this information to predict Walmart’s next bestseller by exploring complementary products and related sub-categories.
For example, if garden planters are performing well on Walmart.com, and the listing already has a fulfillment speed and price you can’t beat, look into selling watering cans, plant misters, or plant food.
3. Research what’s performing well on Walmart’s competitors
Like any business, Walmart Marketplace has competitors — marketplaces like Amazon, eBay, and other channels are all vying to get more users, more revenue, and a better experience for their users. That makes them excellent tools to research what’s doing well.
If you can find what items work well on other platforms, you can identify gaps (and opportunities) to exploit on Walmart.com.
The leading competitor pages to check are:
However, be mindful of category relativity.
What is category relativity exactly?
It’s the concept that specific categories perform better on certain sales channels based on historical sales data. For example, if cosmetics rank fairly high on both Amazon and Walmart, you’d likely drive sales on both channels if you reinvested a chunk of your business into Walmart.
At Deliverr, we use our existing cross-sales channel data to identify sales velocity in a certain category on one channel and predict which alternative channel is best primed to follow.
4. Consider Walmart’s audience
Walmart prides itself on high-quality, reasonably priced items, which attract a largely budget-conscious, deal-hunting audience.
Popular categories among this audience include:
- Health & beauty
- Household essentials
- Clothing, shoes & accessories
- Pet care
It’s crucial to keep this audience in mind when choosing products to sell on Walmart, especially when targeting a gap in the marketplace. For example, you won’t find designer handbags or antique custom-made furniture on Walmart.com — not because they’re unexploited categories, but because Walmart’s audience isn’t using Walmart to look for these products.
5. Calculate profit margins
With the slogan “Save Money. Live Better,” it’s no surprise that price matters when choosing a product to sell on Walmart.com.
Walmart has strict pricing rules and will quickly un-publish listings that aren’t competitively priced. However, you still need to make a profit, making your sourcing fees crucial to success.
Calculate the potential profit margin of a product by adding up the following costs and deducting them from your ideal listing price:
- Product sourcing fees, including manufacturing, inbound shipping, and storage.
- Walmart’s seller fees, including promotions and advertising costs.
- Fulfillment fees, including storage, packaging, and shipping.
Tip: Use a fulfillment cost calculator to compare the cost of fulfilling potential products with different fulfillment services.
6. Get on Walmart TwoDay
Walmart TwoDay is Walmart’s fast shipping program. Shoppers enjoy free 2-day delivery while sellers benefit from:
- Increased visibility in the search results with fast shipping tags.
- Higher placement in the search results and fast shipping-filtered queries.
- A higher chance to win the Walmart buy box.
- Eligibility for Sponsored Product Ads.
To qualify for Walmart TwoDay, you must ship products within 2-day for free. This is an important consideration when choosing products to sell on Walmart.com, because you want to find items you have the capacity to fulfill quickly. The larger and heavier the item, the most costly and difficult it is to ship out quickly if you’re fulfilling in-house.
If you can’t achieve fast fulfillment speeds for your Walmart store, partner with an outsourced provider who can. We’ve seen it boost Walmart conversions 900%.
Tip: Merchants can use Deliverr to get pre-approved access to Walmart TwoDay.
Walmart Marketplace has a smaller merchant base than Amazon, which gives you the early mover advantage. Walmart.com provides excellent opportunities to increase brand awareness, grow sales, and dominate your market. Nevertheless, success on Walmart.com relies on successfully finding the right products to sell.
We hope this guide to picking the right product for Walmart will help you identify profitable opportunities on the marketplace and pave the way for ultimate Walmart success.