Walmart Marketplace Statistics that Sellers Should Know
Online shopping has become commonplace over the last few decades, in large part because of the convenience of ordering goods and services from the comfort of your home, office, or anywhere. The global pandemic catapulted online shopping to the norm for many households, at least for a while, if not permanently. Walmart has gradually increased its online presence, with Walmart Marketplace rivaling Amazon. If you haven't jumped on the Walmart Marketplace bandwagon, you are missing out.
If you are an online seller with an established brand or want to build your brand, the following Walmart.com and Walmart Marketplace statistics reveal the current and future potential of selling on the platform.
How Many People Shop on Walmart.com?
Forbes reported that Walmart's online sales increased by 74 percent during the global pandemic, further catapulting them past eBay and making them the number two online retailer in the world. Walmart estimates that about 220 million customers visit its site each week to shop in more than 10,000 stores and clubs in two dozen countries across the globe. The number of people who shop on Walmart.com continues to increase, especially with more people working from home or working irregular hours because of the pandemic.
Walmart has traditionally been associated with low-income shoppers, but that narrative is no longer true today, especially online. Most Walmart Marketplace buyers have medium to high incomes and own homes. More than 30 percent of online shoppers are between ages 23 and 38, and more than 50 percent are married or partnered with children. Although those who shop online at Walmart.com have higher incomes, they are still budget conscious, making many loyal to the discount retailer.
What Is Walmart's U.S. E-commerce Revenue?
Walmart's e-commerce revenue has increased about 90 percent from before the arrival of COVID-19 to the end of January 2022. While the pandemic skyrocketed growth, Walmart.com was growing at a pretty steady rate before COVID-19. Here are some impressive statistics that offer more specifics about Walmart's e-commerce and total revenue.
- At the end of the first quarter of the fiscal year (January 31, 2022), Walmart reported total revenue of $152.87 billion, a 0.5 percent increase from the previous year's first quarter.
- Walmart reported 105.3 billion in total U.S. sales during the first quarter, a 5.7 percent increase from the previous year's first quarter.
- Walmart reported $567.76 billion in revenue during fiscal year (FY) 2021; they reported net e-commerce sales of $73.2 billion.
How Many Merchants Sell Products on Walmart Marketplace?
Since 2016, Walmart Marketplace has increased third-party sellers from less than 10,000 to more than 130,000 at the end of 2021. During the pandemic, they added close to 5,000 new sellers each month. For comparison, Walmart had 4,742 retail stores in the United States as of January 31, 2022. Walmart wants new sellers so they can offer various options for customers and pivot towards providing a great online user experience for customers.
To attract merchants and gain a little more control over user experience, Walmart also created a new program for Marketplace sellers—Walmart Fulfillment Services (WFS). Launched a few years ago, WFS gives sellers the option to let Walmart fulfill and ship their orders. In 2021, WFS fulfilled about 25 percent of sales on Walmart Marketplace. With WFS in place, Walmart sellers have three options:
- First-party sellers (1P) sell products to Walmart at a wholesale price, and Walmart sells them online and in stores.
- Third-party sellers (3P) have the most control and sell their products via Walmart Marketplace. They set their prices, control inventory, and ship to customers unless they choose to use WFS. Merchants who want to sell their products on Walmart Marketplace must apply and receive an invitation to the platform.
- Dropship vendors (DSV) sell products to Walmart at wholesale prices, and Walmart uses its name to sell them to customers. Walmart pays all shipping costs, but sellers need to ship products to the customer or the store for pickup.
One of the most significant benefits for merchants who sell products on Walmart Marketplace is that the competition isn't quite as steep as Amazon and some other platforms. The application and selection process reduces competition for sellers. Less saturation allows exceptional sellers to shine and build their brand somewhat more easily on Walmart.com than other outlets.
How Many Products Are for Sale on Walmart.com?
Walmart's online shelves have continued to grow over the years. Sources estimate that consumers can shop for between 50 and 60 million products when they browse online. As a seller, Walmart allows you to list as many SKUs as you want for free. Of course, you need to pick the right products to sell to ensure the most revenue.
Walmart supports more than 35 categories and subcategories of products on its site. The main categories of products for sale on Walmart.com include:
- Art & Craft
- Carriers & Accessories
- Cleaning, Safety, & Other
- Food & Beverage
- Garden & Patio
- Health & Beauty
- Musical Instrument
- Occasion & Seasonal
- Sport & Recreation
- Tools & Hardware
You need to know the main categories where you can list your products, but you also need to consult the guidelines when you join to ensure you are not listing a forbidden item. Each category and subcategory has one or more exceptions. However, this doesn't always mean you cannot sell a product; it often means sellers must place their product in a specific category. For example, if you sell pet products, you cannot list animal supplements under the subcategory of animal food. Instead, you need to sell pet supplements under the subcategory of Animal Health & Grooming.
What Is the Average Price of Products on Walmart.com?
Walmart.com carries products ranging from a few dollars to several thousand dollars depending on the product category. Data is limited on the average price among all products, but if you surf around Walmart.com, you will find the vast majority of products sold are listed between $10 and $150. Walmart has long held the reputation as a discount retailer that carries "cheap" stuff. However, Walmart has moved away from simply providing cheap finds for its customers. Over the past decade, they have trended towards value, providing better quality items at a reasonable price. However, you can also find high-ticket items in electronics, furniture, automotive, sports and recreation, and other categories.
Although Walmart has provided more options for shoppers, they still take measures to keep their reputation as a discount retailer. In fact, Walmart maintains strict pricing policies for sellers. Your sale price plus shipping must fall within Walmart's "low price guarantee," or you risk your product(s) getting delisted. Sellers also need to remain vigilant about their Walmart product pricing compared to other platforms. Sellers who list their products cheaper on eBay, Amazon, or another marketplace also face their products getting delisted.
How Many Walmart+ Members Are There?
Walmart+ is a new part of Walmart.com. It's a membership program/subscription service that offers same-day grocery delivery for free when members meet the $35 minimum and free shipping on Walmart.com orders, fuel discounts, and other benefits. Walmart has not directly announced how many Walmart+ members they have, but outside firms have gathered data. Consumer Intelligence Research Partners (CIRP) estimates that as of January 2022, Walmart+ shoppers represent slightly more than 25 percent of all Walmart.com customers, which translates to about 11.5 million members. However, other sources estimate that Walmart+ had between 32 and 50 million subscribers as of June 2021. Regardless of the actual number, Walmart+ has a ways to go before catching up with Amazon's more than 170 million Prime Members.
Walmart+ was created to compete with Amazon Prime directly. However, Amazon has also benefited from more online shopping during the pandemic. Amazon Prime accounts for close to 40 percent of online sales in the United States, while Walmart accounts for about 6.5 percent. Sellers can still benefit from Walmart because many buyer demographics and shopping behaviors are similar.
Those who spend the most money on Amazon fall between ages 45 and 64 and have a net worth of more than $500,000. Walmart shoppers tend to be a little younger, but they have similar incomes and homes. Approximately 64 percent of Amazon buyers choose price as the reason for shopping with them; competitive pricing also motivates Walmart.com shoppers. As budget-conscious shoppers Amazon shoppers become aware of the new Walmart+ program, it's fair to assume that some will jump ship from Amazon or compare the two options when making a purchase.
An Easy Solution to Launch Your Brand on Walmart Marketplace
Amazon is still the mammoth of online shopping, but Walmart Marketplace has experienced exponential growth over the last decade. Their competitive pricing policies for sellers, the offer of free shipping, and different avenues for selling make it the perfect place to expand your brand, build your brand, and sell more products. Zentail has the experience and knowledge to help sellers get started and optimized on Walmart.com to maximize sales. Contact us today for more information and learn how we can help.
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