What Is Walmart Marketplace in 2024: The Complete Guide

Shopping online at Walmart gives you access to over 100 million products across a wide variety of categories – far more than what Walmart stores carry. This is made possible by Walmart Marketplace.

So what exactly is Walmart Marketplace, how does it work, and should you use it?

In this comprehensive guide, as an industry expert I‘ll explain everything consumers need to know before buying or selling products on Walmart Marketplace in 2024.

A Quick Overview: Meeting Surging Ecommerce Demand

Walmart Marketplace operates as a platform that enables third-party sellers to sell products on Walmart.com and tap into the retail giant’s massive online traffic and distribution capabilities.

It was launched in 2009 to meet Walmart’s surging ecommerce demand and expand its online product assortment beyond what Walmart buys and stocks directly in its own warehouses.

As per Walmart’s latest figures, over 70,000 Marketplace sellers worldwide offer over 300 million items on its website – making up around 20% of Walmart’s total online sales.

“Walmart Marketplace is integral to how we serve customers now and into the future by providing them one single shopping experience that has an expanded assortment across first and third-party sellers." – Jeff Clementz, Vice President of Walmart Marketplace.

Next, let me explain exactly how the Walmart Marketplace model works and what the benefits are.

How Walmart Marketplace Works

Walmart Marketplace fully integrates third-party seller products, inventory, and order fulfillment into Walmart.com.

Customers simply search for or browse to products on Walmart.com like normal. Marketplace items from independent sellers appear alongside Walmart’s own listings within search results or category pages.

While the shopping experience is seamless, listings clearly identify “Sold & shipped by” followed by the seller name so customers know when they are purchasing from a third-party.

Behind the scenes, here is what happens when an order is placed:

1. Customer places order and payment on Walmart.com
2. Order details are shared with independent seller
3. Seller picks, packs and ships order to customer
4. Seller provides any customer service for questions, returns, etc

Sellers manage the Marketplace orders, shipping, inventory and Fulfilled by Walmart storage using Seller Center – Walmart’s centralized portal with various tools and analytics for marketplace merchants.

Many sellers also opt for Fulfillment by Walmart, an optional service where inventory is stored at Walmart warehouses. Walmart staff pick, pack and ship your orders to provide a faster, seamless experience to shoppers.

Analyzing the Benefits: Why Sell on Walmart Marketplace?

As an industry expert, I always recommend qualified online sellers consider Walmart Marketplace. Here is an analysis of the unique advantages and scale it provides:

Massive Reach

• Over 230 million monthly visitors makes Walmart.com the #2 ecommerce site after Amazon
• 60% of Walmart.com traffic is direct – higher intent buyers typing the domain name specifically
• Walmart app sees over 400 million visits per month

This provides independent sellers instant access to an enormous, targeted customer base that directly rivals Amazon.

Omnichannel Distribution

Walmart’s huge physical retail network comprising over 5,000 stores provides sellers unique omnichannel opportunities:

• In-store pickup – 92% of population within 10 mi of a store for low cost distribution
• NextDay delivery – Free for orders over $35, covers 65% of US population

This enables customers to conveniently and rapidly obtain marketplace goods. Competing only online sellers cannot match this combination of order speed, flexibility and cost.

The Walmart Brand Halo

Research indicates consumers perceive Walmart Marketplace products to be priced low but still good quality given Walmart’s brand image and trust. This provides a competitive edge for sellers.

According to data analytics firm Marketplace Pulse:

"On Walmart’s Marketplace instead of racing to the bottom with pricing, it is possible to build a sustainable business and brand."

Simplified Seller Experience

I find Walmart Marketplace provides a streamlined yet robust platform for sellers to scale compared to alternatives:

• Central Seller Center dashboard for managing orders, inventory, shipping, payouts etc
• API integrations with major ecommerce tools to efficiently run large operations.
• Option for Walmart Fulfillment Services for storage, shipping and returns. Focus on just selling.

The investments Walmart has made in Marketplace infrastructure and tools gives sellers enterprise capabilities.

Considering these factors, sellers offering competitive value goods and services across diverse categories are ideally positioned to leverage Walmart Marketplace to accelerate their ecommerce business.

Top Questions from Walmart Marketplace Shoppers

Now as a frequent Walmart.com shopper myself, I know buying from third party sellers instead of directly from Walmart raises some valid questions around policies, product quality and safety.

Here I will address the key aspects I hear consumers wonder most about Walmart Marketplace orders:

What Kinds of Products Are Sold in Marketplace?

One appeal of Marketplace is the extremely wide range of product categories represented:

• Electronics – phones, laptops, TVs, smart home
• Home, furniture, décor
• Clothing, shoes, fashion
• Toys, video games
• Grocery
• Health, beauty, personal care
• Outdoor gear
• Automotive accessories

Within these, Marketplace helps consumers discover niche brands producing specialty goods not carried by Walmart – a benefit over shopping just the Walmart catalog alone.

However to protect buyers, Walmart prohibits listings under certain categories like alcohol, weapons, gambling etc. Sellers must adhere to detailed product policies.

Are Marketplace Items Safe and Authentic Brands?

Walmart instituted extensive seller requirements and vetting to ensure Marketplace goods meet expected quality and authenticity standards. Before joining, sellers must prove:

• Business licenses / product sourcing paperwork
• Brand relationships (for major labels)
• Product compliance certification

Additionally, Walmart runs algorithms to monitor seller performance metrics around:

• Customer reviews, ratings, complaints
• Order cancelation and return rates
• Response times

Continued technical and policy violations can get sellers removed.

I find these checks work. In my own experience, Marketplace goods have proven to be genuine quality items through various purchases.

What About Returns / Refunds for Marketplace Orders?

One concern buying from an independent seller instead of Walmart directly is how easy it is to get an refund or exchange if you need to return a purchase.

The good news is Walmart provides standardized return protections and facilitation:

• Eligible items can be returned for refund at Walmart stores. Some categories allow this for up to 90 days.
• Sellers must provide free return shipping labels upon request
• If issue not resolved directly, shoppers can open a claim with Walmart

However each seller can set their own detailed policies around product condition, time windows etc. So check the listing or seller’s storefront before you buy to be aware of specific return ground rules.

How Do I Identify a Marketplace Seller?

An easy way is checking item listings – it will clearly mention “Sold & shipped by” followed by the seller business name instead of just Walmart.

You can also tell by the overall product page design – listings from third parties have a slightly different templates that the generic Walmart catalog.

When browsing category browsing pages, filter by “Sellers” to only see Marketplace goods. Or within search results, check “See products from Walmart sellers” filter.

Can Marketplace Sellers Be Trusted?

In over 10 years since Marketplace launched, Walmart’s protections have maintained standards and trust. Occasional violations still arise though.

Here are tips I give shoppers:

• Vet sellers – view their full business profile page, policies and aggregate reviews
• Avoid newly launched sellers with low reviews and unknown brands
• Reference Walmart’s purchase protection programs
• Use independent judgement – if deal seems questionable, it likely is!

Following this general guidance when considering Marketplace orders helps me feel confident I will receive a quality product and experience.

The Future of Walmart Marketplace

Given the accelerating shift to online shopping, I predict Walmart will continue heavily investing in Marketplace capabilities to meet more consumer demand digitally and defend their dominant market position.

Some areas of innovation and seller tools I foresee include:

• Enhanced Fulfilled by Walmart service options
• International Marketplace expansion
• Self-service functionality through artificial intelligence
• Novel in-store pickup services

For sellers, this translates into a long term profitable sales channel as Walmart leverages its unmatched assets to unlock more Marketplace growth.

The Bottom Line

I hope this complete overview clarified exactly how Walmart Marketplace functions and what the implications are for buyers and sellers using the platform in 2024.

With rigorous policies around product quality plus Walmart’s distribution network advantages, Marketplace offers consumers affordable access to a wider range of brands and goods.

And for qualified sellers, Walmart Marketplace represents an unmatched route directly into the ecommerce big leagues to build their business.

Let me know in the comments if you have any other questions! I‘m happy to share more insights from my retail industry experience.