PYMNTS-MonitorEdge-May-2024

Walmart Lures Third-Party Marketplace Sellers With New Incentives

Walmart is offering incentives for new third-party merchants to sell on its Marketplace.

The company said in a Thursday (Jan. 26) press release that it is providing a limited-time offer to new U.S.-based sellers that includes a commission rate reduction of up to 25% for 90 days when they launch on the marketplace and try several tools and services.

“Our New Year’s resolution is simple: To be our customers’ number one shopping destination and the preferred easy-to-use, low cost and profitable platform for sellers of all sizes,” Manish Joneja, senior vice president of Walmart U.S. Marketplace and Walmart Fulfillment Services, said in the release.

The New-Seller Savings offer provides rate reductions on Walmart Fulfillment Services (WFS), Walmart Connect Sponsored Search advertising and the Repricer automated pricing tool, according to the press release.

The offer is the latest salvo in the duel between Walmart and Amazon.

As PYMNTS reported in August 2022, as the two giants’ online platforms expand, it is the seller-focused marketplaces — integrating everything from catalogs to fulfillment — that will help craft a competitive advantage.

In the bid to boost critical mass among third-party sellers, helping enterprises to scale is a major selling point that gives rise to enterprise clients’ loyalty — and helps the platforms to scale right alongside them.

In September 2022, the Walmart-Amazon fight to win buyers and sellers escalated. First, Amazon announced a new suite of marketing tools aimed at attracting more sellers to its site. Within hours, Walmart answered with its own upgraded outreach to help sellers connect with shoppers.

The debut of Walmart’s New-Seller Savings program comes at a time when the number of sellers participating, and products offered, on Walmart Marketplace are rising. During the third quarter of 2022, the platform onboarded 8,000 new sellers and boosted its number of stock-keeping units (SKUs) by 50%, according to the press release.

“From large retailers to small businesses, we’re rolling out the welcome mat,” Joneja said in the release. “With the New-Seller Savings program underway and our digital channels poised for further growth, now is the perfect time for sellers to explore Walmart Marketplace and to see how our tools and services can help them scale their businesses.”

PYMNTS-MonitorEdge-May-2024