Advertising options for Walmart marketplace
Before we proceed to the list of Walmart advertising strategies, let us briefly discuss the advertising options that your business can avail. Walmart provides four primary advertising formats.
Products that are supported by advertising.
The main way that companies advertise their products is through sponsored products. These paid ads can be seen on desktop and mobile devices, as well as the Walmart app.
There are two usual formats for these ads. The initial format is within the search results grid. These ads appear alongside other similar products in the search results and are labeled as “Sponsored product.”
The ads can also be found at the bottom of the page in a section called “sponsored products.” It is a carousel of sponsored products that are relevant to the user’s search. To display these ads, your product must appear in the top 128 organic search results.
Native banner ads
If you choose to use native banner ads, Walmart will display your products in a banner format at the top of the relevant product category pages. For instance, if you are selling women’s clothes on Walmart Marketplace, a native banner ad may be shown at the top of the “women’s clothing” section on Walmart.
To enhance brand awareness for your business, it is crucial to collaborate with the Walmart Media Group in order to utilize these advertisements effectively.
Catapult ads
One more advertising choice for your business is catapult ads, which are displayed at the top of a product listing. These ads include the text “Featured Item” to signify that they are paid content.
The ads mentioned above do not depend on keywords like sponsored product ads. Instead, they utilize product categories to determine relevance. The purpose of these ads is to assist you in boosting sales for your business. However, it is crucial to maintain a low Advertising Cost of Sales (ACoS) to ensure that you maximize the benefits of your ads.
Site search feature ads
The final advertising choice is the inclusion of site search feature ads which allow for the promotion of your brand on a relevant product page. Upon clicking the ad, individuals will be directed to a page showcasing all of your products.
In this Community Coffee example, their site search feature ad was displayed on a page dedicated to coffee makers. It is a relevant product that can redirect individuals searching for coffee makers to purchase coffee.
Walmart advertising strategies
After discussing the various ads that can be executed, let’s explore the advertising strategies to be employed. Below are six Walmart advertising strategies that can be implemented to increase sales through ads.
1. Competitively price your products
To ensure that your ads generate increased clicks and sales, it is important to competitively price your products. Given Walmart’s emphasis on offering products at the most affordable rates, it becomes crucial to establish the appropriate pricing for your products.
If your prices are competitive, it is more likely that someone will choose to click on your ad instead of another company’s listing.
Furthermore, winning the buy box is another significant motive for undertaking this. When several individuals sell a particular item, Walmart consolidates them into a single listing and exclusively grants the buy box (the button that allows adding the item to the cart) to a single company. Generally, the company that secures the buy box is the one offering the most competitive price.
Earning the buy box will enhance the probability of making a sale and increasing revenue for your business.
2. Focus on earning more reviews
Earning reviews does not have a direct impact on the positioning of your ad, but it can influence the number of clicks it receives. Reviews play a crucial role in helping people determine whether a product is worth buying. Therefore, if you aim to attract more qualified leads through your ads, it is advisable to focus on earning reviews for your product listings.
Walmart will send shoppers an automatic email requesting product reviews a few weeks after they have received it, however, there are additional measures you can implement to accumulate more reviews.
One possible way to increase the number of reviews is by inserting a card inside the packaging to prompt buyers to provide feedback on the product. This method effectively provides them with a tangible prompt to leave a review and encourages them to do so promptly after receiving the item.
By acquiring additional reviews, you can effectively steer potential customers towards clicking on your advertisements and making purchases of your products.
3. Focus on your best performing platform
After that, we have another Walmart promotional strategy, which involves prioritizing your most successful platform. When advertising your products, your ads will be displayed on desktop computers, mobile devices, and tablets.
By thinking systematically, you can revise the given passage without altering the content or omitting any details: If you analyze the performance of your ads over a few months and discover that mobile users generate the highest sales, Walmart allows you to fine-tune your approach accordingly. This involves readjusting your budget to allocate more funds towards your mobile campaigns, thereby optimizing your strategy based on device outcomes.
You can concentrate your advertising efforts on the devices that are most likely to lead to a conversion by employing this advertising strategy by Walmart.
4. Focus on secondary products
One effective advertising strategy employed by Walmart is to prioritize the promotion of secondary products. When selling on Walmart, it is advisable to concentrate on promoting products that generate the highest sales for your business. This is because when a product sells well, it is logical to promote it in order to increase the number of buyers.
In addition to promoting products that sell well, it is also beneficial to promote secondary products. These secondary products are sold on Walmart but may not have the same level of sales as the top-selling items.
Promoting these lesser-known products can effectively enhance sales and diversify your sources of revenue, serving as a valuable opportunity to boost brand awareness.
5. Create effective listings
When creating a listing, it is necessary to pay attention to five main factors.
- Product Name
- Images
- Key Features
- Description
- Attribute
Marketing on Walmart begins with creating product listings, which serve as a means to persuade customers to make a purchase from your brand. Therefore, it is crucial that all aspects of the listing are easily understandable and address any potential queries the customers might have. The name of the product, for instance, should be precise while also providing sufficient description. It is advisable to incorporate multiple images showcasing various angles, along with size charts and references whenever feasible.
To ensure better discoverability by search engines and customers, it is important to modify the text below step by step while preserving its meaning. This involves considering the search engine algorithm and incorporating appropriate keywords. Avoid introducing new information or omitting any existing information.
6. Build your reputation
For an online seller, reputation plays a vital role since gaining trust online is more challenging. This is particularly evident within Walmart, which is already a well-known entity. Walmart places significant emphasis on the credibility of its chosen sellers. As it is their platform, Walmart must ensure that the sellers meet the demands of its customers.
If you have already established a reputation outside of Walmart, it will be less difficult for you to gain entry. For instance, having a thriving store on Amazon can be used as a positive reference. However, once you join Walmart, you will need to start fresh. As a newcomer, you do not yet have a customer base. Nonetheless, with excellent products and customer service, you can gradually establish a reputable presence.
To uphold Walmart’s stringent standards, it is important to consider each step while ensuring your reputation remains intact. Maintaining a customer rating of no less than 4.5 stars is required for all sellers. Furthermore, aiming for a feedback rating of 99% is highly recommended.
To ensure compliance, it is important to be mindful of the additional seller performance standards established by Walmart. Thus, it is advised to monitor your metrics as a means of assessing your performance.
7. Focus on great customer service
While Walmart itself may not excel in customer service, strict adherence to its high standards is essential. This commitment guarantees the retention of your store in the Walmart marketplace and contributes to increased sales.
To increase the likelihood of acquiring new customers, it is important to prioritize obtaining reviews. It should be noted that not all customers provide feedback for the product, hence increasing the significance of encouraging reviews. By accumulating a greater number of reviews, the chances of attracting another customer are improved. Additionally, a substantial amount of positive feedback can enhance the listing’s ranking on search results, ultimately resulting in increased visibility on the Marketplace.
Customers rarely go through all pages to compare products, so it is crucial for your listing to appear on the first pages in order to increase the likelihood of making a sale. Additionally, it is important to maintain a professional attitude when interacting with customers, necessitating proper customer service training for either you or your manager.
We should respond to customer inquiries promptly, resolve issues fairly, and thoroughly inspect products before shipping. It is still uncertain how product reviews affect Walmart’s ranking algorithm, but it is certain that customers take these factors into consideration when making purchases.
8. Win the buy box
Walmart also has a Buy Box, similar to Amazon, but there are differences, especially regarding pricing. While your pricing is a significant factor for Amazon’s Buy Box, it is not the most crucial one. However, at Walmart, having the lowest price will enhance your chances of winning the Buy Box.
What is a Buy Box? The Buy Box is won when customers click “Add to Cart” and your product is added to their cart.
The same products are sold by multiple sellers, which results in them sharing the same listing. Within the listing, there is a single Add to Cart option available. Should customers choose to click on this button, they will purchase the product from the seller who has secured the Buy Box.
Customers tend to select the most convenient option, hence they often opt for the default choice. Consequently, individuals who were not awarded the Buy Box experience the loss of the sale on the majority of occasions.
When setting the price, it is important to consider your overall profit margin. This includes taking into account the product price and shipping costs. If you solely focus on obtaining the lowest price without considering these factors, you will incur losses even if you manage to win the Buy Box.
9. Offer something new
As mentioned previously, there is a significant amount of competition from Walmart. In order to distinguish yourself, it is necessary to think creatively, and one approach is to introduce something novel. It can be challenging to locate a product that is not already available on the platform, and moreover, such products may not align with your business. Nevertheless, if you are able to identify the perfect opportunity, you can take advantage of it for financial gain.
By analyzing which products are frequently out of stock, you can potentially identify lucrative prospects for profit. Ensuring you have an ample supply of such products enables you to capitalize on this opportunity. Regardless, possessing unique items that are not readily available elsewhere presents an advantageous opportunity to distinguish yourself. Ultimately, this will propel your listing to the forefront of search results automatically.
After completing all other tasks, the remaining thing to do is develop marketing strategies in order to inform your customers about the availability of this item. Spread awareness through social media channels or by conducting promotional activities.
