Welcome back! In this blog we are going over some of the cons selling on Walmart. In the last blog, we went over the pros of selling on Walmart so make sure to go check that out before reading today's blog! Selling on Walmart is a great opportunity for eCommerce sellers that would like another source of income. But like other eCommerce platforms, there are some cons. Let's get into it!
Before you are able to sell on Walmart, you have to go through the hurdle of being approved to sell on Walmart. It's not an easy peasy process. Many people get their applications denied if they don't know what they're doing. The unfortunate thing is sometimes you're going to need to register a new LLC or company to start the application process again.
Low Profit Margins
Walmart is known for its low prices for their customers. For sellers to be able to sell their products, they would need to have affordable prices which means profit margins could be lower, especially if your aim is just to compete on price alone. You would need to have a variety of products to be able to get big profits rolling in.
The thing about the Walmart marketplace is that it's a first come, first serve basis. What does this mean for Walmart sellers? The first seller to list a product, regardless of how many other sellers, that first seller will have priority when it comes to the buy box. For you to get buy box, you would need to have your price lower than the original seller.
Selling on an External Marketplace
Like most marketplaces, it's not 100% in your control. What do we mean by this? What we mean is the customers aren't yours, they're Walmart's. There's no certainty when it comes to the longevity of your business since it's in Walmart's control. Either way, best to get in while you can and make some dough!
These are just a few cons of selling on Walmart. Regardless of the cons, Walmart is still a great place to sell. Looking to sell on Walmart and be hands off? We offer Walmart Automation services, email us if you have any questions!