Walmart’s solid results in the fourth quarter of 2016 showed no signs of slowing down in 2017.
Online sales have risen nearly 30% in recent months, as the retail giant has acquired four e-commerce sites: Jet.com, Moosejaw, Shoebuy.com, and, most recently, Modcloth, which sells trendy clothing geared toward the millennial market.
Walmart has also made a big move into online grocery shopping, which is now available in some 600 locations in 100 markets.
Overall, the company now offers more than 23 million SKUs through its online channels.
This expansion clearly indicates that Walmart is going ‘all in’ on its plans to compete with Amazon in the e-commerce marketplace.
Will Walmart’s entry into the online marketplace squeeze out small and medium-sized sellers? Is there anything smaller sellers can do to stay alive in this new online landscape?
How to Attract Buyers on the Walmart Marketplace
If you are an online seller, the answer to these questions depends on how you adapt to this new reality over the next several months.
If you are trying to compete in terms of sheer size, product selection, or price, you are better off closing your doors. You cannot compete with Walmart on its home turf.
However, this does not mean no options are available.
Smaller sellers can still attract many buyers if they focus on a few basic principles.
First, Find a Niche Where You Can Own the Market
Now, before you think this means offering only exotic products, don’t worry.
If you find an angle that appeals to a certain public segment, you can own a niche in almost any market.
For example, if you sell socks, don’t just sell generic socks that people can buy through Walmart. Instead, find the socks that sock-lovers love and offer those socks.
The same goes for other products. Find a niche where you can deliver truly superb value.
This may force you to examine your offerings closely and eliminate products that don’t improve your bottom line.
But ultimately, you will be able to carve out market share in areas where Walmart chooses not to compete.
Second, Become a Thought Leader in Your Space
If you sell high-end electronics, you may want to present a webinar on the latest technological trends that have yet to reach the general consumer.
If you sell shoes, you will want your customers to come to you for information on how to select proper footwear or the health benefits associated with choosing the right shoes for the right activity.
Whatever the product, be the website people turn to for good information about your product or niche.
Third, They’re Not Just Your Customers; They’re Your Tribe
Walmart offers millions of products to millions of customers. This presents smaller sellers with an opening to build a loyal following.
There is simply no way Walmart can compete with you in personalizing customer service.
Treat each customer like a friend. Stay in touch with them on Facebook and via email.
Offer perks—not spam—according to your customer’s preferences, and they will spread the word about your business to other potential buyers.
Fourth, Focus on Creating a Unique and Unusual Experience for Your Customers
Think of the last time you walked into an Apple store. That is a lesson in customer experience.
The products they offer are just one part of the overall picture of creating an amazing customer experience.
As a result, Apple attracts more than mere customers. It creates some of the most loyal fans in the world.
Whatever product you are selling online, make sure you are creating an enjoyable experience for your visitors that goes beyond simply shopping for products.
Fifth, If You Can’t Beat ‘Em, Join ‘Em
Walmart is expanding its product offerings, which means it is actively looking for sellers.
If you can create a strong brand that can be scaled up to Walmart-sized proportions, take the initiative and apply to be part of Walmart Marketplace.
One Final Piece of Advice: Competition in the World of E-commerce Will Only Increase in the Years Ahead
Sellers will have to think out of the box in terms of marketing and customer retention.
This means that other aspects of your business, such as packaging, shipping, and inventory control, must run flawlessly.
The days are gone when this aspect of your business could be run in-house without the help of experts whose sole focus is these back-end needs.
Sellercloud has years of experience helping sellers streamline their online product placement, shipping, sales, and inventory needs. Schedule a free consultation with one of our customer representatives.
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