Getting suspended on Amazon was the most painful experience as an entrepreneur I have ever had. I don't wish it on anyone. Have you ever felt this type of experience?
It makes you think about your business differently. The risks you're taking. Your weak spots. After a suspension, diversification feels essential.
The number one diversification I hear and see right now is Walmart.com. Jungle Scout released a report highlighting the benefits of selling on Walmart. Helium 10, Perpetua et al are quickly releasing features supporting Walmart sellers. The all in one solutions are trying to convince you they are still all in one. Should we all diversify?
No. It's a mistake.
While those services are busy building the shiny object chased by few. They're not spending time innovating in the business that brought them success. Don't talk to me about Walmart. Tell me how you're making your tool 10x better for my Amazon business.
I sincerely doubt the data point that Jungle Scout reported that 31% of consumers start their search on Walmart.com. Have you ever heard someone tell you they've looked up a product on Walmart? I'm not a coastal elite, and I've never heard that once in middle America. I trust this data a little more.
Amazon Prime is 10x the size of Walmart+. Shoppers are more cost conscious. They return more frequently. They ask more questions with less intent to purchase. They don't spend as much a year on e-commerce.
Jumping in early can mean less competition. It's great on paper, but you have to consider that in the early days of a fulfilment network, they're still ironing out the kinks. You don't want to be a kink. My selling account on Walmart has been shut down and in spite of heavy recruiting to get me back from Walmart account executives, the seller performance team inside Walmart won't let me back up. (That's not why I'm writing this article. It's just a perk.)
I have not heard of anyone "killing it" on Walmart. At best, it's Canada level sales. Sure they're there, just nothing big.
Now don't get me wrong. Walmart might work for you. If you're a a seasoned seller and you have absolutely everything figured out. Things like offsite traffic, Google SEO for your Amazon pages, 3D Rendered images, Amazon on-site editorials, AB test for primary image, Lightning Deals, Optimized SEO every three months, post purchase experience dialed in with email nurturing sequences, Europe and North America.... Then yeah, Walmart should be worth investing in.
You don't want to get me started on why Amazon FBA is in a different league to any other fulfillment program.
80/20 rule applies here greatly. Focus on 80% of your revenue and profit centers and is likely taking 20% of your time. Cut out the noise and realize there are many many things that you can do to improve your business. Don't get jealous of others and know that you've picked a winning horse, but you have to ride it to the end.
Here's a prime example of what I'm talking about. If you sell on Walmart, do it efficiently and effectively. I'm looking into Zentail. But you won't see me doing things one by one.
You won't hear any SmartScout Walmart developments anytime soon. If we do something, call me on my strategic mistake.