Walmart Automation
Introduction:
Our client was an established wholesale seller on Amazon, but despite their experience, they struggled to generate significant profits due to high competition and price wars. The rising number of sellers in their niche led to constant price reductions, affecting overall profitability. To overcome this challenge, we proposed an expansion strategy leveraging Walmart’s marketplace, where competition is relatively lower, allowing for better profit margins.
Challenges:
High Competition on Amazon: The client’s wholesale business faced intense price competition, limiting their ability to scale profitably.
Lower Profit Margins: Due to frequent undercutting on Amazon, profit margins were thin, making it difficult to sustain and grow revenue.
Limited Platform Presence: The client was operating solely on Amazon, missing out on potential revenue streams from other marketplaces.
Approval for Walmart Marketplace: Walmart has strict policies and only approves mature sellers with a proven track record, making it challenging to gain access without an existing presence.
Solution & Results:
We utilized the client’s existing Amazon store and LLC details to secure Walmart account approval, as Walmart prioritizes experienced sellers.
After gaining approval, we conducted thorough product research to identify profitable wholesale brands suitable for both Walmart and Amazon.
The inventory strategy was diversified into two parts for Walmart: one for Walmart Fulfillment Services (WFS) and the other for self-shipping, ensuring maximum reach and efficiency.
With Walmart’s lower competition, we achieved higher profit margins, while Amazon continued to generate a high volume of sales despite lower profitability.
By strategically balancing inventory and pricing across both platforms, we successfully increased the client’s overall business profitability.
Conclusion:
Through data-driven insights and a multi-platform approach, we helped our client expand beyond Amazon, leveraging Walmart’s marketplace to enhance profitability while maintaining sales volume on Amazon. The client now enjoys steady profits and sustained growth, thanks to a well-optimized e-commerce strategy.