JGS Walmart Marketplace – a huge sales opportunity with Ken & David from Firing the Man (episode 371)

31st January by April Buencamino-dy

David Schomer & Ken Wilson are the hosts of the Firing the Man podcast, and founders of multiple 6 and 7 figure eCommerce businesses.

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About Ken And David

Ken got interested in eCommerce after seeing a YouTube ad of a guy selling an Amazon course. At the time, he was in network engineering but within three months of seeing the ad, he had already started a business. He first went into retail arbitrage, got into wholesaling, and eventually settled in private label.

David used to work for a CPA firm as a consultant, and even though he enjoyed his work, he always knew he wanted to get into business. He started his Amazon account five years ago and has since been selling private label products.

Why Walmart?

David outlines three factors that make selling on the Walmart marketplace an attractive prospect:

There is a much smaller pool of sellers so the competition level is low.
There are over 10,000 Walmart stores worldwide.
In 2021, there was no inventory storage limit, which made selling on Walmart an appealing opportunity.

Who Should Sell On Walmart?

Ken says if you’re selling a $3,000 product, you might not be a good fit for the Walmart marketplace.

But if you’re selling consumables or items that are under $50, then selling on Walmart provides a very good potential. Additionally, Ken mentions that the online market is like a test bed for the retail shelf space. So if you find products on a Walmart shelf that are similar to yours, then you’re most probably going to be a good fit.

Going Global

The Walmart marketplace is primarily US-centric, but has started to become global by adding non-US international sellers.

And touching on the subject of business growth, Ken says Walmart is going to expand, so you may want to get into the marketplace where there’s most opportunity.

The Application Process

David and Ken give a rundown of the application process and what to expect if you want to get into the Walmart marketplace:

It starts with an online application that takes a few weeks to process. This is part of the barrier to entry that keeps retailers from selling on the platform.
The next step is deciding on your fulfillment process. Options available are doing fulfillment yourself, using 3PLs, or using the Walmart Fulfillments Services (WFS).
- On Walmart, you want to get the 2-Day Delivery Badge because it can increase conversion rates by up to 50%.

David adds that you also have to consider the investment on inventory because you can’t dropship out of your Amazon inventory. He says it’s challenging, but this is also a barrier to entry that can limit the number of competitors you have on the platform.

Your Walmart Marketplace Checklist

Ken and David created a launch checklist for those who want to get into the Walmart marketplace. It also has a bonus section that covers what happens next after you get throught the basics.

Download your copy of the checklist here

eCommerce Book Top Tip

David: The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by by Timothy Ferriss
Ken: The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by by Hal Elrod

eCommerce Traffic Top Tip

David says not all traffic is profitable, so whatever strategy you use, make sure to measure its ROI. Good traffic should lead to conversions.
For Ken, it’s email. He says they use email marketing to connect their customers.

Tool Top Tip

For David, it’s the SellerBoard financial metric tool that can sync with your Amazon API.
For Ken, it’s Slack communication platform.

Growth Top Tip

David’s tip is to go with international expansion if you’re looking to grow your orders.
Ken’s growth hack is listen to customers and solve their problems.

Interview Links

365: JGS How to create a fast-growth startup with Immaculate Vegan’s Simon Bell
333: Expanding to £4m a year via international marketplaces with Trevor Ginn from Hello Baby Direct
286: A curated marketplace with social media at it’s heart, Greg Spillane from Fancy

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