Walmart Marketplace Mastery: Your Guide to Selling Cosmetics on Walmart.com

Walmart, a retail giant, has expanded its reach with the Walmart Marketplace, allowing third-party sellers to offer their products alongside Walmart’s own inventory. This presents a significant opportunity for cosmetic brands to reach millions of Walmart customers. This comprehensive guide provides a detailed walkthrough on how to sell cosmetics on Walmart Marketplace, covering everything from the application process and product listing optimization to fulfillment options, fees, and marketing strategies. Learn how joining Walmart Marketplace can be the key to rapid growth.

Why Sell on Walmart Marketplace? The Benefits for Cosmetic Brands

Walmart Marketplace offers several compelling advantages for cosmetic brands looking to expand their online presence and reach:

• Massive Customer Base: Walmart is one of the largest retailers in the world, with millions of customers visiting Walmart.com and the Walmart app daily. Walmart employs a vast number of people, making the company very influential.
• Established Brand and Trust: Walmart is a well-known and trusted brand, which can lend credibility to your products and increase customer confidence.
• Targeted Reach: Walmart‘s customer base is diverse, allowing you to reach a broad range of demographics and target specific customer segments.
• Walmart Fulfillment Services (WFS): WFS allows you to leverage Walmart‘s extensive logistics network for storage, packing, shipping, and customer service.
• Marketing and Advertising Tools: Walmart offers various marketing and advertising tools, including Walmart Connect, to help you promote your products and increase visibility.
• Competitive Fees: Walmart Marketplace fees are generally competitive with other major online marketplaces.
• Streamlined System: Walmart provides tools and seller support to make operations seamless.
• Brand Exposure: Reach customers who might not otherwise find your products.

However, selling on Walmart Marketplace also involves competition, adherence to Walmart‘s policies, and meeting Walmart’s performance standards.

Eligibility Requirements: Becoming a Walmart Marketplace Seller

Walmart Marketplace is a curated community, meaning not all businesses are automatically approved to sell. Walmart has specific eligibility requirements to ensure a high-quality marketplace experience for its customers:

• US Business and Tax ID: You must have a registered US business and a valid US tax ID (EIN).
• Business Address: You need a US business address and a US bank account.
• Product Compliance: Your cosmetic products must comply with all applicable US laws and regulations, including FDA regulations for cosmetics.
• Inventory and Fulfillment: You must have the ability to ship products to customers within the US, either through your own fulfillment operations or by using Walmart Fulfillment Services (WFS).
• Customer Service: You must be able to provide excellent customer service, including prompt responses to inquiries and efficient handling of returns and refunds.
• Experience: Walmart generally prefers sellers with some e-commerce experience and a proven track record of selling online.
• Insurance: You may be required to have product liability insurance.

Meeting these requirements doesn’t guarantee approval, as Walmart also considers factors like product quality, pricing, and overall brand reputation. However, ensuring you have these in place will improve your chances of a quick and smooth application.

The Application Process: Step-by-Step Guide to Joining

Here’s a step-by-step guide to applying to become a Walmart Marketplace seller:

1. Visit the Walmart Marketplace Website: Go to the Walmart Marketplace website (marketplace.walmart.com) and click on the “Request to Sell” button.
2. Create an account, or sign in: If you do not already have a Walmart account, you will need to create one.

3. Complete the Application: Fill out the online application form, providing detailed information about your business, including:

   • Your company name and address
   • Your US tax ID (EIN)
   • Your contact information
   • Your business category and the product categories you plan to sell in
   • Information about your e-commerce experience and sales volume
   • Details about your fulfillment and shipping capabilities
   • Information about your products, including brands, categories, and estimated catalog size

4. Submit Required Documents: Be prepared to upload supporting documents, such as:

   • Your business license or registration documents
   • Your W-9 form (for US businesses)
   • Proof of product liability insurance (if required)

5. Wait for Review: Walmart will review your application, which can take several weeks. They may request additional information or clarification during this process.

6. Approval and Onboarding: If your application is approved, you’ll receive an email notification and instructions on how to proceed with onboarding, including setting up your Seller Center account and listing your products.

Applying to be a Walmart marketplace seller is a detailed process, but taking your time and reviewing all requirements is vital.

Listing Your Cosmetic Products: Optimization and Best Practices

Creating effective product listings is crucial for attracting customers and driving sales on Walmart Marketplace:

• High-Quality Images: Use professional, high-resolution images that showcase your cosmetic products clearly and attractively. Include multiple images from different angles, close-up shots, and lifestyle images (if applicable).
• Clear and Concise Product Titles: Use clear, concise, and descriptive titles that include relevant keywords that customers are likely to use when searching for cosmetics.
• Detailed Product Descriptions: Provide comprehensive product descriptions that highlight the key features, benefits, ingredients, and usage instructions. Use bullet points and clear formatting to improve readability.
• Keywords: Research relevant keywords and incorporate them naturally throughout your product listing, including the title, description, and attributes.
• Product Attributes: Fill in all relevant product attributes, such as brand, shade, size, formulation, skin type, and benefits. This helps customers find your products through filters and search.
• Variations: If your cosmetics come in different colors, sizes, or scents, create variations to allow customers to easily select their preferred option.
• Competitive Pricing: Research the prices of similar products on Walmart Marketplace and price your cosmetics competitively.
• Rich Media: Take advantage of Walmart‘s option to include videos and enhanced content.

Your product listing should be optimized for both search visibility (so Walmart customers can find your products) and for conversions (so customers are persuaded to buy). Optimize your Walmart presence by using Walmart‘s tools.

Fulfillment Options: Walmart Fulfillment Services (WFS) vs. Seller-Fulfilled

Walmart offers two primary fulfillment options for Marketplace sellers:

• Walmart Fulfillment Services (WFS): With WFS, you ship your inventory to Walmart‘s fulfillment centers, and Walmart handles storage, packing, shipping, and customer service for your orders. WFS offers several advantages:

  • Fast Shipping: WFS orders are typically eligible for two-day shipping, which can increase customer satisfaction and sales.
  • Simplified Logistics: Walmart handles the complexities of order fulfillment, freeing up your time and resources.
  • Improved Customer Service: Walmart handles customer inquiries, returns, and refunds related to fulfillment.
  • Increased Visibility: WFS products may receive preferential placement in search results and be eligible for the “TwoDay delivery” tag.

• Seller-Fulfilled: You are responsible for storing, packing, shipping, and handling customer service for your orders. This gives you more control over the fulfillment process but requires more effort and resources.

The best fulfillment option for you depends on your business model, sales volume, resources, and desired level of control. WFS is generally recommended for sellers with high sales volumes or those who want to simplify their logistics. Walmart Fulfillment Services and Walmart Connect can be combined to manage your business.

Pricing Strategies and Walmart Marketplace Fees

• Pricing Strategies:
  • Research Competitor Pricing: Analyze the prices of similar cosmetics on Walmart Marketplace to understand the competitive landscape.
  • Factor in Costs: Calculate your total costs, including product costs, Walmart fees, shipping costs, and any other expenses.
  • Determine Your Profit Margin: Decide on your desired profit margin and set your prices accordingly.
  • Consider Promotional Pricing: Offer discounts, promotions, or bundle deals to attract buyers and increase sales.
• Walmart Referral Fees: Walmart charges sellers a referral fee, a percentage of the sales price, which will vary depending on the product. The fee will depend on your product category.
• Walmart Marketplace Fees: Walmart charges sellers various fees, which may include:
  • Referral Fees: A percentage of the sale price, which varies by product category. Cosmetics typically fall under the “Beauty” category, which has a specific referral fee percentage.
  • WFS Fees (if using WFS): Fees for storage, fulfillment, and other services provided by WFS.
  • Other Fees: Potential other fees, such as return processing fees or long-term storage fees.

Understand Walmart‘s fee structure and factor these costs into your pricing strategy to ensure profitability. Walmart charges different rates for different services.

Marketing and Advertising on Walmart Marketplace

To increase visibility and drive sales on Walmart Marketplace, consider these marketing and advertising strategies:

• Walmart Connect: Walmart Connect is Walmart‘s advertising platform, offering various advertising options, including:

  • Sponsored Products: These ads appear in search results and on product detail pages, similar to Amazon’s Sponsored Products.
  • Sponsored Brands: These ads feature your brand logo, a custom headline, and multiple products.
  • Display Ads: These ads appear on Walmart.com and across Walmart‘s network of websites and apps.

• Promotions and Deals: Offer discounts, coupons, and special promotions to attract buyers.

• External Marketing: Drive traffic to your Walmart Marketplace listings from external sources, such as social media, email marketing, and your own website.

Experiment with different marketing and advertising strategies to find what works best for your cosmetic products and target audience. Walmart offers various promotional opportunities.

Providing Excellent Customer Service on Walmart

Excellent customer service is crucial for building a positive reputation and encouraging repeat business on Walmart Marketplace:

• Prompt Responses: Respond to customer inquiries and messages quickly and professionally.
• Accurate Information: Ensure your product descriptions and information are accurate and truthful.
• Efficient Order Processing: Process orders promptly and accurately.
• Issue Resolution: Address any customer issues or complaints efficiently and fairly.
• Returns and Refunds: Have a clear return policy and process returns and refunds smoothly.

Building a strong reputation for customer service can lead to positive reviews and increased sales.

Understanding Walmart’s Prohibited Products Policy

Walmart has a Prohibited Products Policy that outlines items that cannot be sold on Walmart Marketplace. It’s crucial to review this policy thoroughly before listing your products. For cosmetics, key restrictions may include:

• Counterfeit Products: Selling counterfeit or fake cosmetics is strictly prohibited.
• Products with Prohibited Ingredients: Cosmetics containing ingredients that are prohibited by law or by Walmart‘s policy cannot be sold.
• Products Making Unsubstantiated Claims: Cosmetics that make unsubstantiated health or medical claims are restricted.
• Used or Opened Cosmetics (Generally): Walmart typically requires cosmetics to be new and unopened.

Failure to comply with Walmart’s Prohibited Products Policy can result in listing removal, account suspension, or other penalties. Walmart requires suppliers to be aware of the rules.

Advanced Strategies for Success on Walmart Marketplace

To maximize your success on Walmart Marketplace, consider these advanced strategies:

• Build a Strong Brand: Develop a strong brand identity and create consistent branding across your product listings and packaging.
• Optimize for Walmart SEO: Research relevant keywords and optimize your product listings for Walmart‘s search algorithm.
• Utilize Walmart Analytics: Use Walmart‘s Seller Center analytics to track your performance, identify best-selling products, and understand customer behavior.
• Participate in Walmart Programs: Explore opportunities to participate in Walmart programs, such as Walmart+, which offers benefits to customers like free shipping.
• Expand Your Product Line: Consider expanding your product offerings to cater to a wider range of customer needs.
• Cross-Promote: Link to your products from other product pages.

Continuously learning, adapting, and optimizing your strategies will help you thrive on Walmart Marketplace. The Walmart brand portal can provide valuable insight. Walmart continues to expand, and this can be a great platform for your brand. Follow the Sell Better Blog to keep up to date on tips and advice.

Table: Comparing Walmart Marketplace and Amazon Seller Central

Table: Walmart Marketplace Referral Fees (Example – Beauty Category)

Note: This is an example, and referral fees can change. Always refer to the official Walmart Marketplace documentation for the most up-to-date information.

10 Key Things to Remember About Selling Cosmetics on Walmart Marketplace

1. Walmart Marketplace offers access to a massive US customer base.
2. Eligibility requires a US business, tax ID, and compliance with product regulations.
3. The application process involves providing detailed business information and potentially submitting documents.
4. Optimize product listings with high-quality images, descriptions, and relevant keywords.
5. Choose between Walmart Fulfillment Services (WFS) or seller-fulfilled shipping.
6. Price competitively, considering Walmart Marketplace fees (primarily referral fees).
7. Utilize Walmart Connect for advertising and consider external marketing efforts.
8. Provide excellent customer service to build a positive reputation.
9. Carefully review and adhere to Walmart’s Prohibited Products Policy.
10. Continuously analyze your performance and adapt your strategies to maximize sales and profit on the platform.

By understanding these key points and following the detailed steps outlined in this guide, you can leverage the power of Walmart Marketplace to reach millions of potential customers and grow your cosmetics business. This can be a route to get your product into Walmart stores, and into a new market. Walmart can be a game-changer for a brand. Use the Walmart Seller Center to make your business a success. You can optimize your Walmart presence and quickly grow.