How To Start Walmart Automation Business


Having enjoyed massive success in the brick-and-mortar store era, Walmart is now trying to slay the online retail segment and dethrone giants like Amazon. Perhaps this led to the inception of Walmart Marketplace, a platform that lets third-party sellers list and sells their products on the online Walmart store.

The Walmart Marketplace turned out to be a ludicrous idea for the brand. It showed gradual but consistent growth, comprising thousands of sellers offering top-notch products in various niches, including fashion, electronics, and much more! If you have exciting products that complement the proposition of first-party Walmart brands, consider selling on Walmart, and that too, passively! 

But how to start Walmart Automation Business? While it’s definitely not a cakewalk, it isn’t inexplicably tough either. In this ultimate guide, we teach you the basics of Walmart automation – steps involved, eligibility, scalability, and viability, so read until the end!

Who Can Sell on Walmart Marketplace?

There are a few regulations and a predetermined procedure that you have to follow to be able to sell your products on the Walmart Marketplace. You will have to log on to the Walmart Marketplace application page and complete the application process, which typically takes around 15-20 minutes.

Before you start, make sure you have the following information and documents at hand:

  • US Business Tax ID. SSN is not accepted.
  • EIN verification letter from the Department of Treasury along with W9 or W98 to verify your business address/ the location of your physical operations.
  • Valid US business address
  • An integration method for product catalog (i.e., bulk upload, API, Solution Provider)
  • Primary product categories, catalog size, and other information such as verified UPS information of the SKUs you will sell on Walmart.

Once you have these, you can apply for Walmart Marketplace registration. But remember–Walmart isn’t just another eCommerce platform; you require a proven track record of eCommerce success to find a spot on Walmart. 

The higher requirements, standards, and highly curated nature are why ordinary sellers aren’t welcome on Walmart Marketplace. But if you manage to do right by your capabilities and go through it all, meet their parameters, and provide essential documentation, you’re all set to sell on Walmart!

Steps to Start Walmart Automation Business

Dropshipping a product you desire from a supplier and selling it on your Walmart automated store to generate a profit is what the Walmart Automation Business is all about. The bottom line of Walmart automation is to sell products to a client without incurring wholesale operating costs.

Follow these simple steps to start a Walmart automation business:

Account Setup

As mentioned earlier, you need certain tax, business, and identification proofs and certifications (check the above bullet points for the complete list) to set up a Walmart account.

Or, if you’re short on time and want to get things done quickly without too much trial and error, hire an automation service provider that’ll do all the work on your behalf.

Either way, you will need the following to get started:

  • A W 9 form
  • Employee ID number
  • Tax exemption (if applicable)
  • EIN verification letter
  • A business account on Walmart
  • A credit card
  • Integrated product catalog and a strategy formulated for the same

Note that you need ALL the above documents. So if you don’t even have one of them, apply for it and then apply to Walmart for successful onboarding.

Buy-in

The next step is to put together your finances to get your automation business rolling. Needless to say, capital is crucial for running your store. You need enough money to buy the orders – the customer will pay you later!

The good news is, this is a one-time investment. How’s that, you ask? You need capital to purchase your first few products only. Once the customer payments start coming in, you can then use that money (after drawing your profits) to buy the next lot of products and so on.

It’s imperative to mention here that Walmart releases payment every 14 days. Moreover, it may take an additional two or three days for the amount to reflect in your account.

Credit Balance

You will also need a financial backup in addition to the capital investment mentioned above for your Walmart Automation Business to thrive.

While you need a credit of at least $10,000 ready at your disposal, it will help your business grow to six-digit figures within a month if you have at least $50,000 in credit.

Remember – the more credit you have, the more products you can buy, helping you scale your business much more quickly!

Get LLC and DUNS

You will require an LLC registration and DUNS number to run your Walmart Automation Business in the US successfully. And if you don’t have one, you can hire an automation service provider to help you get them. 

Is Walmart Automation Business Worth It?

Walmart is not the only platform that offers automation dropshipping business opportunities. So, why choose Walmart over other brands?

Low Risk

Most online marketplaces do not employ rigorous criteria for the sellers to qualify for selling online. As a result, you can easily register and list your products and start selling not very long after. But what they don’t tell you is that you may get your account suspended for any irregularity afterward. 

On the other hand, Walmart onboards you only if you are a reliable seller and have a good reputation and prior experience selling online. Indeed this makes the process lengthier, but there will be fewer chances of you getting your account suspended later. There are fewer things better than long-term security in the online selling industry!

Great Profit Thresholds

One of the two ways to make significant profits selling products is to have huge profit margins – the other is selling enormous quantities.

Compared to other online marketplaces that offer 8 to 12 percent profit, Walmart offers better profit margins – between 18 and 30 percent. This means you stand to earn more via Walmart automation than any other marketplace. Plus, huge profit margins mean you don’t need ridiculous capital to rake in handsome returns.

Less Saturated Market

Another reason to go for Walmart over any other brand or company is that the vendor density here is much less. This again is because of Walmart’s strict onboarding policies!

Walmart doesn’t have millions of product listings, unlike Amazon, making it easier for your listings to find a place on search results and therefore sell. 

How To Improve Your Revenues With Walmart Automation Business?

Starting a Walmart automation business is just one side of the coin; you must also know how to enhance your revenues with it. For starters, you have to be consistent with catalog optimization such that your products are listed and available to be purchased by the customers as and when they should.

It’ll also serve you well to regularly monitor the health of your product listings with the Unpublished Items Dashboard. Also, try to improve the shipping services and programs as it will help you grow your existing customer base.

Try Enhanced Returns solutions as it’s highly cost-effective. Under this, Walmart looks after your customer service while you focus on your business. 

Pro Tip: Strive to get a Pro Seller Badge on the Walmart marketplace. This will boost your products’ reach (Walmart prioritizes them in search results), improving their conversion rate and visibility. 

Sadly, there isn’t a hard and fast procedure laid down by Walmart to apply for its Pro Seller Badge. Generally, if you stick to the following criteria, it may improve your chances of quickly qualifying for a Pro Seller Badge:

  • Ensure that your on-time delivery rate is not less than 95 percent for the last 90 days
  • The cancellation rate for the last 90 days should not be more than 1 percent.
  • All the products in your catalog should offer free online as well as in-store returns.
  • At least 60 percent of your trending products’ listing must have at least 50 percent quality.
  • Comply with all Walmart marketplace policies and guidelines.

Another way to multiply your visibility and sales is to advertise sponsored products on the Walmart marketplace.

Lastly, you can also rely on the various tools provided by Walmart that make it easier to list your products on the marketplace and improve your sales. Tools like Deliverr, Zentail, Selbrite, Helium, ShippingEasy, etc., will help you grow your automation business and revenues. 

Endnote

Walmart Automation Business is an excellent way to rake in high incomes without having to invest a lot of time or money. While it may not be as easy to get on board with Walmart as it is with other online marketplaces, rest assured, you’ll be earning ludicrous and guaranteed returns once you’re in. 

Besides, if your products are top-notch and you have ample experience, you can easily make it work. And if you can’t, or you don’t have enough time to familiarize yourself with the nitty-gritty of the business (which are essential to long-term success), seek expert advice and consult a Walmart automation service provider.

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