Walmart private label offers a promising opportunity for sellers eyeing the horizon for fresh markets.
A titan in the retail sector, Walmart offers a canvas for sellers to paint their ambitions, leveraging the retailer’s extensive network and trusted brand.
Let’s discuss the basics of a private label business on Walmart and how to build one. We’ll also answer common questions about the topic and offer actionable tips for sellers looking to explore this opportunity.
Walmart Private Label Brands
Let’s start with the basics before we dive deep into the topic of Walmart private label.
Private label products are items sold by merchants under their own brand name but manufactured by a third party. This model allows sellers to create a unique brand identity on marketplaces like Amazon and Walmart
Private label brands can offer products that fill gaps in the market or compete directly with existing offerings on quality, innovation, or price. This strategy is employed by market giants themselves to offer a wide range of products that compete with national brands.
As per 2022 data from Statista, Aldi reported that 77.5% of its revenue was generated from its own private label goods across grocery, household, and health and beauty categories. Trader Joe’s followed, with 59.4% of its revenue stemming from its exclusive store brands.
In the context of an Amazon or Walmart private label sold by a merchant, sellers have complete control over:
- Product design
This strategy enables them to build a distinct presence and customer loyalty in the marketplace where they are selling.
Why Sell Private Label Products on Walmart
Here are the advantages of selling Walmart private label products:
When you sell private label products on Walmart, you gain complete control over your brand. This autonomy allows you to foster brand loyalty and recognition that can be difficult to achieve when selling through more crowded platforms like Amazon.
Higher Profit Margins
The nature of private label Walmart sales means purchasing directly from manufacturers and bypassing middlemen. This setup often results in significantly higher profit margins compared to selling third-party branded products, where competition is fierce and margins are slim.
Customization and Differentiation
Walmart private label brands allow for customization that can make your products stand out. This differentiation is key to attracting and retaining customers in a competitive retail environment, offering them something they can’t find elsewhere.
Access to Walmart’s Vast Customer Base
Though Amazon continues to be the biggest player, Walmart has consistently been the second-largest ecommerce company in the US, according to 2024 data from Doofinder.
That said, Walmart’s marketplace is vast and varied, offering access to a wide demographic of shoppers. By listing your private label products here, you’re able to tap into an established customer base looking for quality and value, attributes that Walmart’s shoppers prioritize.
The Walmart private label strategy supports scalability. As your brand grows in recognition and loyalty, you can expand your product line, leveraging Walmart’s distribution network to reach more customers across the country.
Trust and Credibility
Being associated with a well-established retail giant can lend immediate credibility to your private-label brand. Shoppers trust Walmart for its commitment to value and quality, and your brand benefits from this association.
How to Launch Your Private Label on Walmart
Here’s a step-by-step guide to navigating the process of selling Walmart private label brands:
Market Research and Product Selection
Identify a niche with high demand and low competition that aligns with Walmart’s customer base. Use Walmart’s search functionality and browse through various categories to understand popular products, customer reviews, and pricing strategies.
Pay special attention to best-selling items and customer feedback to gauge demand and identify potential improvements for your product.
Additionally, consider leveraging external tools like Google Trends or specialized market research platforms that can provide insights into consumer behavior and emerging trends.
Supplier Sourcing and Product Development
Once you’ve pinpointed your product, the next step is sourcing a reliable supplier for your Walmart private label business.
Here are some of the biggest manufacturers that can be great starting points for sourcing products:
- Global Sources
When developing your product, consider how it can be improved or differentiated from existing items on Walmart. This could involve enhancements in quality, design, packaging, or sustainability aspects.
Branding and Packaging
Developing a strong brand identity is essential to increase Walmart private label sales. This includes the following basic elements:
- Memorable brand name
- A logo that reflects the brand identity
- Packaging design that resonates with your target audience.
Your branding should communicate the quality and value proposition of your product, distinguishing it from competitors on the shelf.
Walmart Seller Account Setup
To sell on Walmart, you’ll need to apply for a Walmart Seller Account. The application process involves providing detailed information about your business, including:
- Tax ID
- Legal business name
- Other supporting documents
Walmart will also assess your ecommerce experience, product categories, and fulfillment capabilities to ensure you meet their standards.
Listing Creation and Optimization
Creating compelling product listings is key to success in Walmart’s marketplace. This process involves:
- Writing detailed product descriptions
- Incorporating relevant keywords
- Highlighting the product’s unique features and benefits
- Uploading high-quality images and videos to enhance listing
Research similar products to understand the pricing landscape. Consider your Walmart private label sales strategy, factoring in costs, competition, and Walmart’s pricing policies to set a price that attracts customers while maintaining healthy margins.
Launch and Marketing
Launching your product on Walmart involves more than just making your listing live. Implement a comprehensive marketing strategy that may include:
- Walmart Sponsored Products
- Social media promotion
- Email marketing
Collecting reviews early on can also help boost your product’s visibility and credibility.
Fulfillment and Customer Service
Decide on your fulfillment strategy—whether you’ll fulfill orders yourself or use Walmart Fulfillment Services (WFS), which is typically compared to Amazon FBA.
WFS can enhance your offer by providing two-day shipping, easy returns, and customer service, aligning with customer expectations on Walmart.
For optimum customer satisfaction, you also need to prioritize excellent customer service, including prompt responses to customer inquiries and efficient handling of returns.
Analyze and Optimize
After launching your business at Walmart, closely monitor your sales performance, customer feedback and market trends.
Use Walmart’s analytics tools to understand your product’s performance and identify areas for optimization. This might include adjusting your pricing, enhancing your listings with additional keywords or images, or expanding your product line based on customer demand.
Tips for New Walmart Private Label Sellers
Here are a few tips to keep in mind to boost your Walmart private label strategy:
- Leverage SEO Strategies. Master Walmart’s search engine optimization by incorporating strategic keywords into your product titles and descriptions to boost your listings’ visibility.
- Focus on Packaging Design. Create attractive and functional packaging that not only protects your product but also enhances brand recognition and customer experience.
- Understand Walmart’s Algorithm. Familiarize yourself with how Walmart ranks products. Factors include price, availability, customer satisfaction, and sales performance.
- Offer Exceptional Value. Differentiate your products by offering added value through bundle deals, superior product features, or additional services that complement the purchase.
- Monitor and Adapt Pricing Dynamically. Keep an eye on market trends and competitor pricing. Adjust your prices dynamically to remain competitive without sacrificing your profit margins.
- Implement Quality Control Measures. Ensure every product shipped meets your brand’s quality standards to minimize returns and negative reviews, reinforcing customer trust in your brand.
- Invest in Professional Product Photography. High-resolution images that showcase your product’s features from multiple angles can significantly impact a shopper’s decision-making process.
Frequently Asked Questions (FAQs)
What are examples of private-label brands?
Walmart’s Great Value for groceries and household items, Target’s Threshold for home decor and furnishings, and AmazonBasics for electronics and everyday essentials.
What does unbranded mean on Walmart?
At Walmart, unbranded refers to products that do not carry a specific brand name associated with them, often marketed under a generic description of the item itself.
These products are typically offered to provide cost-effective options to consumers, focusing on the product’s utility rather than the brand identity.
Embarking on the Walmart private label journey opens up a new realm of possibilities for sellers eager to diversify their business beyond the confines of Amazon.
The key to success lies not just in understanding the mechanics of launching and selling, but in embracing innovation, customer focus, and quality that Walmart champions.
This venture not only promises financial rewards but also the satisfaction of creating products that resonate with consumers and stand the test of time in the dynamic retail landscape.
Carla Bauto Deña is a journalist and content writer producing stories for traditional and digital media. She believes in empowering small businesses with the help of innovative solutions, such as ecommerce, digital marketing, and data analytics.