How to Start Selling on Walmart

Walmart has long been a dominant force in the retail industry, and its online marketplace is rapidly growing to rival other major e-commerce platforms. Selling on Walmart allows you to leverage the brand’s extensive reach, credibility, and customer base. With Walmart’s focus on competitive pricing, reliable shipping, and high customer service standards, sellers on the platform are expected to meet these benchmarks to ensure customer satisfaction and maintain a strong seller rating.

Walmart’s online marketplace offers a diverse range of product categories, from electronics to clothing, home goods, and more. The platform supports both small and large sellers, with various tools and services designed to help you manage your business efficiently.

Types of Seller Accounts

Before you start selling on Walmart, it’s important to understand the different types of seller accounts available:

1. Marketplace Sellers

Marketplace sellers operate independently on Walmart’s platform, listing their products for sale directly to consumers. As a marketplace seller, you are responsible for managing your inventory, setting competitive prices, handling fulfillment, and providing customer service. Walmart facilitates the sale by providing the platform, but the day-to-day operations, including shipping and returns, are managed by you.

This type of account is ideal for businesses that already have an established e-commerce operation and are looking to expand their reach through Walmart’s marketplace.

2. Drop Ship Vendors (DSV)

As a Drop Ship Vendor, you work more closely with Walmart. Products sold through the DSV program are listed as “Sold by Walmart,” even though they are shipped directly from your warehouse to the customer. This model provides greater visibility for your products since they appear as part of Walmart’s inventory.

The DSV model is beneficial for larger sellers who can manage higher volumes and wish to benefit from Walmart’s branding and customer trust. However, it comes with stricter requirements and higher expectations regarding inventory management and shipping times.

Step-by-Step Instructions on How to Create a Seller Account

Setting up a seller account on Walmart involves several steps. Follow these instructions to ensure a smooth registration process:

1. Prepare Your Business Information

Before starting the application, gather all necessary business details:

• Legal Business Name: Ensure that your business is legally registered and that the name matches the documents you’ll submit.
• Tax Information: You’ll need your Employer Identification Number (EIN) or, for sole proprietors, your Social Security Number (SSN).
• Bank Account Details: You’ll need a U.S. bank account for receiving payments from Walmart.

Having this information readily available will streamline the application process.

2. Apply for a Walmart Seller Account

To begin your journey as a Walmart seller:

• Visit the Walmart Seller Center.
• Click on “Request to Sell” and complete the application form. You’ll need to provide details such as your business name, tax information, and product categories you plan to sell.

During the application process, Walmart will ask you to provide information about your business history, sales volume, and experience selling on other e-commerce platforms. This helps Walmart determine your eligibility and ensures that you can meet their high standards for sellers.

3. Complete the Registration Process

Once your application is reviewed and approved, you’ll receive an invitation to complete your registration. During this phase, you’ll need to:

• Provide Detailed Business Information: This includes your legal business name, address, and tax identification number.
• Set Up Shipping and Payment Information: Configure your shipping options and link your bank account to receive payments.
• Agree to Walmart’s Seller Agreement: Read and accept Walmart’s terms and conditions to finalize your account setup.

Documents Needed and Approval Timeline

1. Required Documents

To complete your seller registration, you’ll need the following documents:

• Business Tax ID (EIN): This is required for all U.S. businesses. International sellers may need equivalent documentation from their home country.
• W-9 or W-8BEN-E Form: The W-9 is required for U.S.-based sellers, while the W-8BEN-E is for international sellers.
• Address and Contact Information: You’ll need to provide a physical address and valid contact details for your business.
• Product Information: If you have products ready to list, prepare details such as SKUs, pricing, and descriptions.

2. Approval Timeline

The approval process for a Walmart seller account typically takes between 2-4 weeks. However, the timeline can vary depending on the completeness and accuracy of your application. Factors that may influence the timeline include:

• Verification of Business Information: Walmart may take additional time to verify your business details, especially if you’re a new seller or if there are discrepancies in your application.
• Additional Documentation: If Walmart requests additional documents or information, it’s crucial to provide them promptly to avoid delays.

Tips on How to Research and Select Products that are Profitable

Choosing the right products to sell is critical to your success on Walmart. Here are some tips to help you identify profitable products:

1. Analyze Market Trends

Use tools like Google Trends, Walmart’s search bar suggestions, and keyword research tools to identify trending products. Look for seasonal trends, emerging product categories, and popular items that are gaining traction.

• Seasonal Products: Consider selling items that have a high demand during specific seasons, such as holiday decorations or summer apparel.
• Evergreen Products: These are items that sell consistently throughout the year, such as household essentials or electronics.

2. Evaluate Competition

Research existing sellers on Walmart to understand the level of competition. Look for product categories with high demand but lower competition. This approach can help you enter a niche market with better chances of success.

• Price Comparison: Compare prices across different sellers and marketplaces to determine if you can offer competitive pricing.
• Product Differentiation: Consider how you can differentiate your products from competitors, whether through quality, features, or branding.

3. Consider Profit Margins

Profitability is key when selecting products. Calculate the cost of goods sold (COGS), including manufacturing, shipping, and Walmart’s fees. Ensure that the products you choose offer a sufficient profit margin after these costs are deducted.

• Bulk Purchasing: Buying in bulk can reduce the cost per unit, increasing your profit margin.
• Exclusive Products: Offering exclusive products or private label items can help you maintain higher profit margins by reducing direct competition.

Information on Where and How to Source Products

Sourcing products effectively is crucial for maintaining profitability and ensuring consistent supply. Here are some common methods to source products:

1. Wholesale

Buying wholesale involves purchasing large quantities of products directly from manufacturers or distributors at a discounted rate. This method is ideal for sellers who can handle inventory storage and want to offer products at competitive prices.

• Popular Wholesale Platforms: Alibaba, Global Sources, and SaleHoo are popular platforms for finding reliable suppliers.
• Negotiating Terms: When working with wholesalers, negotiate terms such as payment schedules, minimum order quantities, and shipping arrangements to optimize your costs.

2. Dropshipping

Dropshipping allows you to sell products without holding inventory. Instead, when a customer orders a product, the supplier ships it directly to the customer. This model reduces upfront costs and is ideal for sellers who prefer a low-risk approach.

• Finding Dropship Suppliers: Platforms like Oberlo, Spocket, and AliExpress offer dropshipping services with a wide range of products.
• Pros and Cons: While dropshipping reduces inventory risk, it also means lower profit margins and less control over shipping times and product quality.

3. Private Labeling

Private labeling involves sourcing generic products and rebranding them with your own label or packaging. This strategy allows you to create a unique brand and differentiate your products in a competitive market.

• Working with Manufacturers: Collaborate with manufacturers who offer customization options for branding, packaging, and product features.
• Branding Strategy: Invest in professional branding, including logos, packaging design, and marketing materials, to establish a strong brand presence on Walmart.

How to Create Effective and SEO-Optimized Product Listings

Creating compelling and SEO-optimized product listings is essential for increasing visibility and driving sales on Walmart. Here’s how to do it:

1. Keyword Research

Start by identifying relevant keywords that potential customers are searching for. Use tools like SEMrush, Ahrefs, or Walmart’s own search suggestions to gather a list of high-volume keywords.

• Long-Tail Keywords: Incorporate long-tail keywords, which are more specific phrases that customers might use when searching for a particular product.
• Keyword Placement: Strategically place keywords in the product title, bullet points, and description to improve search rankings without overstuffing.

2. Optimized Titles

Your product title is one of the most important elements of your listing. It should include key information about the product while being concise and easy to read.

• Title Structure: A good structure includes the brand name, product type, key features, and important specifications (e.g., size, color, quantity).
• Character Limit: Keep the title within 50-70 characters to ensure it displays fully in search results.

3. Bullet Points and Descriptions

Use bullet points to highlight the key features and benefits of your product. The product description should provide more detailed information, addressing customer pain points and explaining how your product solves them.

• Clear and Concise: Use clear, concise language that is easy to read. Avoid jargon and focus on the benefits to the customer.
• Engaging Content: Make the description engaging by using persuasive language and storytelling techniques. This helps create an emotional connection with potential buyers.

Best Practices for Images and Writing Compelling Descriptions

Visuals play a significant role in online shopping, and high-quality images can significantly boost your conversion rates. Here’s how to make your product images and descriptions stand out:

1. Product Images

High-quality images are essential for showcasing your product’s features and benefits. Follow these best practices for product photography:

• High Resolution: Use high-resolution images (at least 1000×1000 pixels) to ensure clear, sharp visuals.
• Multiple Angles: Include images from multiple angles, showing different aspects of the product. Close-up shots of important details can help customers make informed decisions.
• White Background: Use a clean, white background for the main product image to make it pop. This is standard practice and ensures consistency across listings.
• Lifestyle Images: Consider adding lifestyle images that show the product in use. This helps customers visualize how the product fits into their lives.

2. Compelling Descriptions

Your product description should complement the images and provide detailed information that persuades customers to make a purchase.

• Focus on Benefits: Rather than just listing features, explain how those features benefit the customer. For example, instead of saying “Made from durable material,” you could say “Built to last, so you can enjoy long-lasting use without worrying about wear and tear.”
• Use Persuasive Language: Use words that create a sense of urgency or exclusivity, such as “limited edition,” “best-selling,” or “only a few left.”
• Storytelling: Where appropriate, tell a story about the product. This could be the story of how it was made, the inspiration behind it, or how it has helped other customers.

Fulfillment Options

How you choose to fulfill orders can impact your success on Walmart. There are two primary fulfillment options to consider:

1. Walmart Fulfillment Services (WFS)

Walmart Fulfillment Services (WFS) is Walmart’s answer to Amazon FBA. By using WFS, you can store your inventory in Walmart’s fulfillment centers, and Walmart will handle the packing, shipping, and customer service on your behalf.

• Benefits: WFS offers faster shipping options, increased chances of winning the Buy Box, and the ability to use Walmart’s trusted brand for fulfillment.
• Requirements: To use WFS, your products must meet specific criteria, such as weight, size, and inventory limits. Additionally, there are storage and fulfillment fees to consider.

2. Self-Fulfillment

With self-fulfillment, you handle all aspects of order fulfillment, including storage, packing, and shipping. This option offers more control over your operations but requires robust logistics and inventory management.

• Shipping Time: Walmart expects fast shipping times, so it’s important to have a reliable shipping process in place to meet customer expectations.
• Returns Management: Be prepared to handle returns and customer service inquiries efficiently to maintain a positive seller rating.

Pricing Strategy

Pricing is a critical factor in your success on Walmart. Here’s how to develop a pricing strategy that maximizes your profits while remaining competitive:

1. Competitive Pricing

Research the pricing of similar products on Walmart and other marketplaces to determine a competitive price point. Walmart customers are price-sensitive, so offering a competitive price can help you attract more buyers.

• Price Monitoring Tools: Use price monitoring tools to track competitors’ prices and adjust your pricing accordingly. Dynamic pricing tools can help you stay competitive in real-time.
• Promotions and Discounts: Consider offering promotions, discounts, or bundling options to entice customers and increase sales volume.

2. Price Parity

Walmart has a price parity policy, meaning your prices on Walmart should not be higher than those on other marketplaces. Failing to maintain price parity can result in penalties, such as lower visibility or removal from the Buy Box.

• Consistent Pricing: Ensure that your prices are consistent across all platforms to avoid penalties and maintain customer trust.
• Cost Management: Keep a close eye on your costs, including manufacturing, shipping, and fees, to ensure that your pricing strategy remains profitable.

Walmart Advertising

Walmart offers several advertising options to help you promote your products and increase visibility. Here’s how to make the most of Walmart’s advertising tools:

1. Sponsored Products

Sponsored Products are pay-per-click (PPC) ads that appear in Walmart’s search results and product pages. These ads are targeted based on keywords, helping you reach customers actively searching for products like yours.

• Keyword Targeting: Choose relevant keywords that match the intent of your target audience. Use a mix of broad, phrase, and exact match keywords to capture a wider range of search queries.
• Budget Management: Set a daily or campaign budget to control your ad spend. Monitor your campaigns regularly to optimize performance and adjust bids as needed.

2. Walmart Performance Ads (WPA)

Walmart Performance Ads are display ads that appear across Walmart’s website and partner sites. These ads are designed to drive traffic and increase brand awareness.

• Targeting Options: Use Walmart’s targeting options to reach specific audiences based on demographics, interests, and behavior. You can also retarget customers who have previously interacted with your brand.
• Creative Assets: Invest in high-quality creative assets, such as banners and videos, to capture attention and drive engagement.

Dealing with Competition

Walmart’s marketplace is competitive, and standing out requires a strategic approach. Here’s how to deal with competition and improve your chances of success:

1. Win the Buy Box

The Buy Box is the box on a product detail page where customers can begin the purchasing process by adding items to their cart. Winning the Buy Box is crucial for driving sales, as most customers buy from the seller who holds it.

• Competitive Pricing: Offer competitive prices to increase your chances of winning the Buy Box. However, avoid a race to the bottom that could erode your profit margins.
• Fast Shipping: Walmart favors sellers who offer fast shipping options. Consider using WFS or optimizing your self-fulfillment process to improve your shipping times.
• Excellent Customer Service: Maintain a high level of customer service, including quick response times and hassle-free returns. Positive reviews and high seller ratings can boost your chances of winning the Buy Box.

2. Differentiate Your Products

To stand out in a crowded market, focus on differentiating your products from competitors. Here’s how:

• Unique Selling Proposition (USP): Identify what makes your product unique and highlight this in your product listings and marketing. Whether it’s superior quality, innovative features, or exclusive branding, your USP should be clear and compelling.
• Bundling and Upselling: Offer product bundles or upsell related items to increase the value of each sale. This can also set you apart from competitors who only offer individual products.

Brand Registry and Intellectual Property

Protecting your brand and intellectual property is essential when selling on Walmart. Here’s how to safeguard your brand and prevent unauthorized sellers:

1. Walmart Brand Portal

The Walmart Brand Portal allows you to register your brand and protect your intellectual property on the platform. This tool helps you monitor and address issues such as counterfeit products or unauthorized sellers using your brand name.

• Brand Registration: To use the Brand Portal, you’ll need to have a registered trademark for your brand. Once registered, you can monitor and manage your brand’s presence on Walmart.
• Enforcement Tools: The Brand Portal provides tools to report and take action against sellers who violate your intellectual property rights, helping you maintain control over your brand.

2. Trademark Registration

A registered trademark is a key component of brand protection. It legally protects your brand name, logo, and other identifying elements from being used by others without your permission.

• Application Process: Apply for a trademark through the U.S. Patent and Trademark Office (USPTO) or the equivalent authority in your country. The process can take several months, so it’s important to start early.
• Global Protection: If you plan to sell internationally, consider registering your trademark in other countries where you intend to operate.

Handling Account Suspensions

Account suspensions can be a major setback, but they can often be avoided by following Walmart’s policies and best practices. Here’s how to prevent and manage account suspensions:

1. Avoid Policy Violations

Familiarize yourself with Walmart’s seller policies and guidelines. Common reasons for account suspensions include:

• Poor Performance: Failing to meet Walmart’s performance standards for order defect rate, on-time shipping, and customer service.
• Policy Violations: Selling prohibited products, price gouging, or failing to maintain price parity with other platforms.
• Intellectual Property Issues: Listing counterfeit products or infringing on other brands’ trademarks.

2. Appeal Process

If your account is suspended, Walmart provides an appeal process to resolve the issue. Here’s how to approach it:

• Understand the Reason: Review the suspension notice carefully to understand the reason for the suspension. Walmart typically provides specific details about the violation.
• Prepare a Plan of Action: Create a detailed plan of action (POA) that addresses the issues that led to the suspension. This should include steps you’ve taken to resolve the problem and prevent it from happening again.
• Submit the Appeal: Submit your POA through Walmart’s Seller Support. Be concise, factual, and professional in your communication.

Inventory Management

Effective inventory management is crucial for maintaining a successful Walmart business. Here’s how to manage your inventory efficiently:

1. Stock Levels

Maintaining optimal stock levels is essential to avoid stockouts and lost sales. Use inventory management software to track stock levels in real-time and receive alerts when inventory is low.

• Reorder Point: Set a reorder point for each product based on sales velocity and lead time. This ensures you have enough stock to meet demand without overstocking.
• Safety Stock: Keep a buffer of safety stock to account for unexpected spikes in demand or delays in replenishment.

2. Automated Reordering

Automating the reordering process can save time and reduce the risk of human error. Here’s how to set up automated reordering:

• Inventory Management Software: Use software that integrates with Walmart and your suppliers to automate reordering based on predefined thresholds.
• Supplier Integration: Work with suppliers who offer seamless integration with your inventory system, allowing for automatic order placement and tracking.