How to do Walmart US Product Research
Founded in the 1960s, Walmart had grown to become the most popular brick-and-mortar retailer in the United States. It provides customers with nearly 75 million items. Walmart is the world’s largest retailer with sales of more than $500 billion annually. As well as the United States, Walmart currently operates stores in 27 foreign countries. Walmart has launched a U.S. eCommerce website for the company, as well as acquired eCommerce and several fashion brands such as Jet.com, Shoes.com and Moosejaw
As of the end of the quarter, Walmart’s eCommerce sales in the US were $17.3 billion, up 8.8% from $15.9 billion at the same time last year. The figure still illustrates how huge Walmart’s market size is in absolute terms, even though it’s only a small proportion of its annual revenue. The Walmart marketplace, like Amazon and eBay, allows third-party sellers to sell their products online since 2009. The application process is stricter on Walmart.com, but still the site has 18,707 active sellers and 100 million monthly users.
In this article, we will talk about how to choose a product to sell on Walmart and what factors you should look at when deciding to sell a product on Walmart. Let’s get into it. If you are still in confusion about what to sell on Walmart and need help about Walmart account management, you can contact our experts at Urtasker.
What are the benefits of selling on Walmart Marketplace
A multitude of benefits are offered by Walmart.com to multichannel sellers, including:
- The reach. Walmart attracts almost 450 million online shoppers every day and is the second largest eCommerce retailer in the US after Amazon.
- The trust. You can enhance the reputation of your brand by leveraging Walmart’s name recognition.
- Scope of products. Customers, including Amazon shoppers, find Walmart’s nearly 52 million products appealing.
Walmart’s sellers have one of the biggest advantages over Amazon sellers because the number of competitors on their marketplace is relatively low. Thus, you will be able to reach more consumers. Walmart’s Buy Box algorithm ranks sellers only by price, so even the number of competitors does not affect how competitive its marketplace is. Walmart increases price competition by ignoring a seller’s reviews, performance, and other qualities. Walmart’s customers will benefit because they’ll get goods at much lower prices, which is one of Walmart’s goals, but on the other hand, it’ll be difficult for third-party marketplace sellers.
How Walmart.com selects its products
These 6 practices can help you choose a product for Walmart.com. An expert Walmart manager knows very well on how to implement these practices let’s get started.
- Discover what Walmart won’t let you sell
The prohibited product’s policy provides information about the kinds of products you cannot list on Walmart’s marketplace under any condition or without prior written permission. Exotics, recalled goods, firearms, loose gemstones, law enforcement badges, and digital goods are just some obvious ones.
You never know what may have gotten on the prohibited products list unless you double-check them when listing items. Additionally, all other applicable laws must still be adhered to, with the addition of the prohibited product policy.
Take a look at Walmart.com’s top performing products
Taking a look at the top-performing products on Walmart.com gives you a good idea of what product categories to target. Three great resources can help you find out which Walmart products and categories are the best-performing right now:
- Walmart Best Seller Ranking. A tool located within Seller Central for researching products.
- Walmart top-selling items. A list of the hottest products at Walmart right now.
On Walmart.com, customers are encouraged to choose the first matching and identically priced product when shopping with multiple sellers. Thus, if the current price or shipping speed of a product on Walmart can’t be beaten, you shouldn’t sell it. Explore related subcategories and complementary products to determine Walmart’s next bestseller using this data.
- Discover what makes your competitors successful
There is nothing special about Walmart Marketplace. Amazon, eBay, and other platforms compete for more subscribers, more revenue, and improved customer service. These platforms are great for monitoring what’s working. It is possible to identify gaps (and opportunities) on Walmart.com by looking at how items perform on other platforms.
To check your competitors, you should check the following pages:
- Amazon Best Sellers
- eBay’s most popular deals
- Wish’s top sellers
- Search trends on Google
Keep in mind, however, that categories are relative. Historically, certain categories have performed better on specific distribution channels. Investing a chunk of your business into Walmart, for example, would significantly increase your sales on both Amazon and Walmart.
- Walmart’s audience is worth considering
A large segment of Walmart’s customer base is budget-conscious and on the lookout for great deals. Choosing products for Walmart should take into consideration this audience, especially when targeting a market gap. Walmart.com does not sell designer handbags or custom-built antiques. That’s not because those categories are unexplored, but because Walmart’s audience isn’t searching for such products there.
- Calculate your profit margin
It’s no wonder that when choosing products to sell at Walmart.com, the slogan “Save Money, Live Better” means that price is always taken into consideration. Listings that don’t compete with Amazon’s prices will be quickly unpublished by Walmart. The key to success, however, is maintaining a profit, so the sourcing fees are indispensable.
In order to calculate the profit margin of a product, multiply the following costs by the ideal listing price:
- Fees associated with manufacturing and sourcing a product, including inbound shipping and storage.
- Advertising and promotion costs at Walmart.
- Fulfillment fees, including packaging, shipping, and storage.
Sign up for Walmart TwoDay
One of Walmart’s fast shipping programs is Walmart TwoDay. It offers two-day delivery for free to shoppers, while offering sellers the following benefits:
- With fast shipping tags, search results will be more visible.
- The search results page will have a higher ranking and shipping-filtering queries will load faster.
- The Walmart buy box is more likely be won.
- Sponsored product advertising eligibility.
It’s critical to select products that you will be able to fulfill quickly when selling on Walmart.com. Shipping out large, heavy items in-house is more expensive and more challenging.
You have an early mover advantage with Walmart Marketplace since it has fewer sellers than Amazon. There are many opportunities to increase sales, increase brand awareness, and establish a dominant market position on Walmart.com. Even so, finding the right products is important for success on Walmart.com.
We hope this article proves useful in finding relevant products to sell on Walmart for new sellers. If you need more guidance, reach out to us at Urtasker. Our Walmart experts can guide you if there is any confusion. We also offer Walmart account management services for existing sellers.