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OZ Suppliers Signing Up To US Walmart Marketplace

Australian distributors will soon be able to sell at Walmart the world’s biggest retailer.

The big US retailer has removed rules requiring sellers on its marketplace website to be registered in the U.S leaving Australian suppliers in a position to trade in the US market.

ChannelNews understands that several Australian suppliers have already signed up however the biggest problem appears to be the scale of the Walmart operation Vs what suppliers are used to in Australia.

According to Chris Lau the CEO of Laser Corporation his Company has already signed up to be a supplier with goods shipped directly from their manufacturer to US customers.

Australian distributors will longer need a U.S. address or business tax identification.

According to Walmart suppliers will still be carefully vetted, both locally and by Walmart’s global trust and safety team, to prevent the listing of questionable items.

According to Australian suppliers that ChannelNews has spoken to the biggest issue is “scale” with local suppliers having to ramp up production to meet the demand of a US market Vs Australia.

One supplier told ChannelNews that when they spoke directly with Walmart about supplying their store network in the USA, they were told that they had to have enough stock to supply 18,000 stores while also proving that they could financially support the supply chain while also guaranteeing a return rate of sub 2%.

They quickly chose to walk away.

According to Bloomberg Walmart is looking to expand its marketplace, where suppliers can offer their products via the company’s website, and the services that branch off of it, like fulfillment and advertising.

or retailers, marketplaces are attractive because they provide revenue from fees without the cost of storing inventory.

Last year, Walmart began offering fulfillment services for its marketplace sellers, a move that Amazon made 15 years ago.

Australian suppliers can also purchase advertising on Walmart’s websites, which supports the company’s new Walmart Connect media platform.

Chief Executive Officer Doug McMillon has said that Walmart’s marketplace business is a “huge opportunity” for the retailer, and in February told investors that Walmart would make a “greater push” to expand new services like fulfillment.

“We have strong relationships with many reputable companies around the world and we have some of the most rigorous seller requirements in the industry,” Walmart said in an emailed statement. “As a result, we are opening our U.S. marketplace to a limited number of international companies who share our commitment to customer trust and safety.”

As of January 2021, Chinese merchants represented 75% of new Amazon marketplace sellers, an increase from 47% a year earlier, according to researcher Marketplace Pulse, which monitors the site. Walmart will likely see a similar ratio, the firm estimates.

“This will get Walmart more selection, more affordable goods that already dominate Amazon best-sellers lists,” said Juozas Kaziukenas, founder and CEO of Marketplace Pulse. “To an investor, that reads as positive news.”

The move was noted earlier by Chinese e-commerce publication Ebrun.com but hasn’t been reported outside of China.

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