How to Start a Small Business on Walmart in 2024 | In-Depth Guide

Starting a Small Business on Walmart Marketplace in 2024: The Ultimate Guide

Starting a small business on Walmart Marketplace in 2024 offers a unique opportunity to tap into a vast customer base and benefit from Walmart’s trusted brand. This detailed guide will walk you through every step of launching and running your business on Walmart, from initial setup to scaling up. Whether you're a novice or have some eCommerce experience, this guide will provide valuable insights and actionable steps.

Why Walmart Marketplace?

Walmart Marketplace is a significant player in the eCommerce space, providing a platform for small businesses to reach millions of potential customers. Here’s why it’s an attractive option:

• Massive Audience Reach: Walmart’s website attracts over 100 million visitors each month, offering extensive exposure for your products.
• Cost-Effective Selling: Walmart's fee structure is generally lower compared to competitors like Amazon, which can result in better profit margins for small businesses.
• Established Trust: Walmart’s long-standing reputation for reliability and customer service can enhance your brand’s credibility.

Additionally, Walmart Marketplace’s integration with Walmart’s broader ecosystem, including physical stores and online shopping platforms, can help drive traffic and sales.

For a comparison with other platforms, our guide to starting a small business on Amazon provides further insights.

Step-by-Step Guide to Starting Your Walmart Business

1. Research and Select Your Products

Choosing the right products to sell is crucial for your success on Walmart Marketplace. Here’s how to approach product selection:

1. Conduct Market Research:
   • Trend Analysis: Use tools such as Google Trends, Walmart’s search bar, and industry reports to identify trending products. Pay attention to seasonal trends and emerging market needs.
   • Competitive Analysis: Study the products offered by competitors. Analyze their pricing, customer reviews, and market positioning. Identify gaps in the market that you can fill.
   • Profit Margin Calculation: Determine your potential profit margins by calculating all associated costs, including Walmart fees, shipping, and production costs. Aim for products with healthy margins to sustain profitability.

Example: If you’re considering selling fitness accessories, look for high-demand items like yoga mats or resistance bands. Check Walmart’s website and see how well these products are performing and if there’s room for differentiation.

For additional insights into product research, explore our eBay small business guide.

2. Set Up Your Walmart Seller Account

To start selling on Walmart, you need to create a Walmart Seller Account. Follow these steps:

1. Create Your Account:
   1. Application Process: Visit Walmart Marketplace and complete the application form. Provide accurate business information, tax identification, and banking details.
   2. Approval: Walmart reviews your application to ensure it meets their criteria. Make sure to provide complete and accurate information to avoid delays.
   3. Seller Center Access: Once approved, you’ll gain access to the Seller Center, where you can manage your store, upload products, and track sales.

Account Setup Tips:

• Verify Your Information: Double-check all submitted details to avoid potential issues with your account setup.
• Understand Walmart’s Policies: Familiarize yourself with Walmart’s selling policies and guidelines to ensure compliance and avoid potential penalties.

3. Optimize Your Product Listings

Effective product listings are essential for attracting customers and driving sales. Here’s how to optimize your Walmart product listings:

1. Title Optimization:
   • Use Relevant Keywords: Include primary keywords related to your product in the title. Make sure the title is clear and descriptive. For example, instead of "Handmade Mug," use "Handmade Ceramic Coffee Mug - Dishwasher Safe."
2. Description and Bullet Points:
   • Detailed Descriptions: Write comprehensive descriptions that highlight the product’s features, benefits, and unique selling points. Incorporate relevant keywords naturally within the text.
   • Use Bullet Points: Present key features and benefits in bullet points for easy scanning. This helps customers quickly understand what sets your product apart.
3. Image Optimization:
   • High-Quality Images: Upload high-resolution images showing the product from multiple angles. Include lifestyle images that demonstrate the product in use.
   • Image Alt Text: Use descriptive alt text for images, incorporating relevant keywords. This helps with SEO and accessibility.

Example: For a fitness tracker, your listing could include images of the tracker worn on the wrist, close-ups of the display, and photos showing the tracker’s various features.

Enhance your product listings with tips from our SearchGPT marketing guide.

4. Efficient Order and Inventory Management

Managing orders and inventory efficiently is critical for maintaining customer satisfaction and operational efficiency.

• Order Management:
  • Timely Processing: Process orders promptly to meet Walmart’s delivery standards. Aim for fast shipping to improve customer satisfaction and seller ratings.
  • Automated Tools: Utilize inventory management software that integrates with Walmart to automate order processing and inventory updates.
• Inventory Management:
  • Real-Time Updates: Keep your inventory levels updated in real-time to prevent overselling or stockouts. Regularly review your inventory data to make informed decisions.
  • Demand Forecasting: Analyze sales data to forecast demand and plan inventory purchases accordingly. This helps in maintaining optimal stock levels.

For additional tips on managing inventory and orders, refer to our eCommerce success guide.

5. Marketing and Advertising Strategies

Effective marketing and advertising are key to driving traffic and boosting sales on Walmart Marketplace.

• Walmart Advertising:
  • Sponsored Products: Utilize Walmart’s sponsored products ads to increase visibility. Set up campaigns targeting relevant keywords and monitor their performance.
  • Sponsored Brands: Consider using sponsored brand ads to promote your store and products, enhancing brand awareness.
• Social Media and Email Marketing:
  • Social Media Promotion: Share your Walmart listings on social media platforms like Facebook and Instagram. Use engaging content and interactive posts to attract followers.
  • Email Campaigns: Build and maintain an email list. Send newsletters with product updates, promotions, and exclusive offers to keep your audience engaged.

Example: Create a Facebook ad campaign promoting a seasonal sale on your products. Use eye-catching visuals and a clear call-to-action to drive traffic to your Walmart store.

Best Practices for Success on Walmart

• Competitive Pricing:
  • Monitor Competitors: Regularly check competitors’ pricing and adjust your strategy to remain competitive. Use pricing tools to automate price adjustments based on market trends.
  • Offer Promotions: Implement promotions and discounts to attract customers and increase sales. For example, offer a buy-one-get-one-free deal or seasonal discounts.
• Utilize Walmart’s Fulfillment Services:
  • Walmart Fulfillment Services (WFS): Consider using WFS to leverage Walmart’s logistics network. This can improve shipping times and enhance your product’s visibility.
  • Benefits: WFS provides advantages such as faster delivery, increased trust, and better search ranking on Walmart’s platform.

Tips for Scaling Your Walmart Business in 2024

Scaling your business requires strategic planning and execution. Here’s how to grow your Walmart business effectively:

• Expand Product Range:
  • Introduce New Products: Once your initial product line is successful, consider adding new products to diversify your offerings and attract a wider audience.
  • Cross-Sell Related Items: Recommend complementary products to increase average order value. For example, if you sell kitchen appliances, suggest related accessories or utensils.
• Customer Loyalty Programs:
  • Reward Repeat Customers: Create a loyalty program to reward customers for repeat purchases. Offer discounts, exclusive products, or early access to new items.
  • Encourage Reviews: Encourage satisfied customers to leave positive reviews. High ratings and positive feedback can enhance your store’s credibility and attract more buyers.

For further insights into scaling your business, explore our dropshipping success guide.

Conclusion

Starting a small business on Walmart Marketplace in 2024 provides a robust platform for reaching a wide audience and building a successful eCommerce venture. By following this guide—conducting thorough research, setting up your account, optimizing listings, managing orders, and implementing effective marketing strategies—you’ll be well-equipped to establish and grow your Walmart business.

Stay informed about market trends, continually refine your strategies, and leverage Walmart’s tools and services to enhance your business performance. With dedication and the right approach, you can achieve long-term success on Walmart Marketplace.

For additional guidance on starting and growing your business on other platforms, refer to our Amazon and eBay business guides and SearchGPT marketing insights.

Resources and Further Reading

• Starting a Small Business on Amazon
• Starting a Small Business on eBay
• SearchGPT for Small Business Marketing

External Resources:

• Walmart Marketplace Seller Guide
• Walmart Fulfillment Services (WFS)

Frequently Asked Questions

How do I start selling on Walmart Marketplace in 2024? +

To start selling on Walmart Marketplace in 2024, you need to apply to become a seller. Once approved, create a seller account, set up payment methods, and list your products. Optimize your listings with competitive pricing and detailed product descriptions. Using Walmart Fulfillment Services (WFS) can simplify order fulfillment and improve your customer experience by leveraging Walmart's logistics network.

What are the fees for selling on Walmart Marketplace? +

Walmart Marketplace charges referral fees that vary by category, typically ranging from 6% to 20%. Unlike Amazon, Walmart doesn’t charge listing fees or monthly subscription fees, making it a cost-effective platform for sellers. Other costs include fees for optional services like WFS, which covers fulfillment, storage, and shipping.

What are the requirements to become a Walmart Marketplace seller? +

To sell on Walmart Marketplace, you need:

• A US-based business with a valid Tax ID (EIN).
• A proven track record of successful online sales.
• The ability to provide a wide range of products.
• Capacity to meet Walmart’s standards for timely fulfillment, competitive pricing, and excellent customer service.

How does Walmart Fulfillment Services (WFS) work? +

Walmart Fulfillment Services (WFS) allows sellers to store their inventory in Walmart's warehouses. Walmart handles:

• Packing and shipping of your orders.
• Returns processing.
• Customer service for all orders fulfilled through WFS.

Using WFS can help boost your sales by providing faster shipping and increasing product visibility on Walmart's platform.

What’s the difference between selling on Walmart Marketplace and Amazon? +

While both platforms are leading eCommerce marketplaces, there are key differences:

• Fees: Walmart doesn’t charge monthly fees, whereas Amazon charges a subscription fee for professional sellers.
• Seller Base: Walmart focuses on US-based sellers, while Amazon has a global seller base.
• Competition: There’s generally less competition on Walmart, which could give new sellers better visibility.
• Fulfillment: Both offer fulfillment services, but Amazon’s FBA is larger and more established, while Walmart’s WFS offers a newer but growing alternative.