Is Walmart the Next Best Ecommerce Platform?
As the ecommerce industry continues to grow and expand, many Amazon sellers consider the idea of selling on Walmart’s online platform as well. But if you have seen Matt’s original video on the topic you will know that it’s not always the best idea. Watch this video to get a condensed version of the earlier one.
There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!
Video Transcript:
Business Advice Video:
Person 1: You need to start on somewhere that’s free. You ain’t got s**t to lose. And Walmart got is a Seller Central. I log in and it sells it on Walmart site, I don’t have to make a site.
Person 2: Yeah I know you said it is good that’s Walmart Seller Central is free.
Person 1: Yeah Walmart has way less competition again. Like way more people trust Walmart. So you
Matt’s Review:
Okay, well I’ll just give you my experience on Walmart versus Amazon of the over thousand ecommerce, sorry, over thousand ecommerce sellers that we have, a lot of them – once they get to a certain size on Amazon will decide to open a Walmart store. And it’s not for lack of trying, there it’s not for lack of having different products, or having a price differently, or not investing in ad spend or whatever else on Walmart. But 99% of our clients who are ecommerce sellers of all kinds, selling all different kinds of products, all different kinds of approaches, the biggest sellers on Walmart are selling 5% on Walmart of what they sell on Amazon. So if they’re selling 100,000 on Amazon, they’ll sell 5,000 on Walmart. It’s a fraction. Why is it not the same as Amazon? Because they’re different shoppers. People who go to Walmart are going for different reasons. A lot of them are going for groceries these days. Walmart is the biggest grocery outlet in the United States, a lot of people are going to Walmart for groceries, and then they’ll grab a couple of items they need that they wouldn’t necessarily buy on Amazon anyway. Socks, underwear, you know little stuff for the house. And then when somebody wants to buy a flat-screen TV or a new laptop or something that they wouldn’t necessarily wanna go shopping for, try four or five different places to find the right thing, they’’ll go on Amazon. And that item isn’t at Walmart or at least not the same quality, they’re not the same thing that they’re looking for. So the Amazon shopper and the Walmart shopper aren’t necessarily the same person. A lot of Amazon sellers don’t find much success putting their products on Walmart cause they’re not the same products as Walmart shoppers are looking for. And by large Walmart shoppers aren’t shopping online nearly as much as Amazon customers. Of course, there are some people who shop both, there is crossover. But fundamentally they’re different markets. And just saying “Well, I’m not gonna sell on Amazon, I’m just gonna sell on Walmart. Less competition, I’ll do so much better”, just doesn’t pan out in my experience. And my experience isn’t just my opinion, it’s you know cross over 1,000 ecom sellers. So I wouldn’t rush to Walmart saying “Well, I’m gonna do really well there because Amazon’s too competitive and too tough.” If you have the right kind of product for Walmart you can do well on Walmart, but it’s not just this Utopia of free customers clamoring to buy your product that Amazon isn’t. You have to know what you’re getting into just
