{"id":1391,"date":"2021-08-06T08:00:03","date_gmt":"2021-08-06T12:00:03","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2021\/08\/06\/the-big-reason-brands-should-be-on-walmart-com-that-no-ones-talking-about\/"},"modified":"2021-08-06T08:00:03","modified_gmt":"2021-08-06T12:00:03","slug":"the-big-reason-brands-should-be-on-walmart-com-that-no-ones-talking-about","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/the-big-reason-brands-should-be-on-walmart-com-that-no-ones-talking-about\/1391\/","title":{"rendered":"The Big Reason Brands Should Be on Walmart.com That No One\u2019s Talking About"},"content":{"rendered":"<!-- shortcode [asyncjs] -->\n        <script type=\"text\/javascript\">if (!window.AdButler) {\n                (function () {\n                    var s = document.createElement(\"script\");\n                    s.async = true;\n                    s.type = \"text\/javascript\";\n                    s.src = 'https:\/\/servedbyadbutler.com\/app.js';\n                    var n = document.getElementsByTagName(\"script\")[0];\n                    n.parentNode.insertBefore(s, n);\n                }());\n            }<\/script>\n        <script type=\"text\/javascript\">\n            var AdButler = AdButler || {};\n            AdButler.ads = AdButler.ads || [];\n            var abkw = window.abkw || '';\n            var plc420988 = window.plc420988 || 0;\n            document.write('<' + 'div id=\"placement_420988_' + plc420988+ '\"><\/' + 'div>');\n            AdButler.ads.push({\n                handler: function (opt) {\n                    AdButler.register(167788,420988, [300,250], 'placement_420988_' + opt.place, opt);\n                },\n                opt: {\n                    place: plc420988++,\n                    keywords: abkw ,\n                    domain: 'servedbyadbutler.com'\n                }\n            });\n        <\/script>\n        \n\n<p class=\"wp-block-paragraph\"><strong><em>By Jennifer Brand, Senior Director, Emerging and Strategic Platforms, Netrush<\/em><\/strong><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">When making the case for brands selling on Walmart.com, most experts focus on the financial reasons: Walmart has <a href=\"https:\/\/www.businessinsider.com\/amazon-shoppers-richer-than-walmart-2020-1\" aria-label=\"favorable demographics, read on business insider\">favorable demographics<\/a>. It has surpassed eBay to become the <a href=\"https:\/\/www.marketwatch.com\/story\/walmart-surpasses-ebay-in-us-e-commerce-for-the-first-time-amazon-still-tops-emarketer-2020-06-15#:~:text=in%20share%20of%20U.S.%20e,%2B0.20%25%20with%204.5%25.\" aria-label=\"second largest market place, read on market watch\">second-largest marketplace<\/a>. And today, it accounts for <a href=\"https:\/\/www.marketwatch.com\/story\/walmart-surpasses-ebay-in-us-e-commerce-for-the-first-time-amazon-still-tops-emarketer-2020-06-15#:~:text=in%20share%20of%20U.S.%20e,%2B0.20%25%20with%204.5%25.\" aria-label=\"6 percent of all online sales, read on market watch\">6% of all online sales<\/a>.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Of course, the owner of a high-end brand would likely find these arguments unconvincing. Walmart may be a terrific channel for some brands, but it has an extremely valuable reputation that isn\u2019t a good association for others.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">While it might seem strange to advise a brand like Chanel to start hawking its products at Walmart, that ignores a significant issue and confuses the brick-and-mortar version of the company with something quite different. Walmart.com is not a value e-commerce platform, it is a marketplace for any brand.<\/p>\n\n\n\n\n<!-- shortcode [asyncjs] -->\n        <script type=\"text\/javascript\">if (!window.AdButler) {\n                (function () {\n                    var s = document.createElement(\"script\");\n                    s.async = true;\n                    s.type = \"text\/javascript\";\n                    s.src = 'https:\/\/servedbyadbutler.com\/app.js';\n                    var n = document.getElementsByTagName(\"script\")[0];\n                    n.parentNode.insertBefore(s, n);\n                }());\n            }<\/script>\n        <script type=\"text\/javascript\">\n            var AdButler = AdButler || {};\n            AdButler.ads = AdButler.ads || [];\n            var abkw = window.abkw || '';\n            var plc428354 = window.plc428354 || 0;\n            document.write('<' + 'div id=\"placement_428354_' + plc428354+ '\"><\/' + 'div>');\n            AdButler.ads.push({\n                handler: function (opt) {\n                    AdButler.register(167788,428354, [300,250], 'placement_428354_' + opt.place, opt);\n                },\n                opt: {\n                    place: plc428354++,\n                    keywords: abkw ,\n                    domain: 'servedbyadbutler.com'\n                }\n            });\n        <\/script>\n        \n\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Just about anyone can pretty much sell anything on Walmart.com (so long as it\u2019s legal). And they don\u2019t have to restrict themselves to lower-end goods. Let\u2019s take Chanel as an example. As I\u2019m writing, I can buy a bottle of its Chanel N<sup>o<\/sup>5 fragrance on Walmart.com for $116.80 with free two-day shipping. It comes courtesy not of Chanel, but of a company called Skin Perfect Cosmetics. The name is perhaps an attempt to confuse the audience with a real brand, <a href=\"https:\/\/shopskinperfect.com\/\">SkinPerfect<\/a>, which is an Ohio-based company that offers a line of aesthetic products through its own website.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">It gets worse. An outfit called Mega Shopper Worldwide is currently offering a 3.4-ounce spray bottle of Chanel N<sup>o<\/sup>5 for $202.50 and no free shipping. This would likely be a surprise to Chanel, which offers the same bottle on its own, direct-to-consumer website <a href=\"https:\/\/www.chanel.com\/us\/fragrance\/p\/125530\/n5-eau-de-parfum-spray\/\" aria-label=\"for a mere 138 dollar with complimentary fedex shipping, read on chanel\">for a mere $138 with complimentary FedEx shipping.<\/a><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">I don\u2019t mean to pick on Walmart.com. You can find this situation \u2014 experts in the field call it \u201cgray market\u201d selling \u2014 on nearly every marketplace from eBay to Amazon. What\u2019s happening is that opportunistic sellers are operating in a Wild West environment, often obtaining products in bulk and either reselling them below market value or, as in the case of Mega Shopper, trying to deceive customers into paying a substantial markup for products that are available directly from the brand for less.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Walmart.com is particularly prone to this because, in my experience, high-end brands seem to have a special level of resistance when it comes to engaging with the platform.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">They need to rethink this. Companies today have spent countless dollars trying to transform themselves to become more customer-centric. The idea is to support customers through every step of the purchasing journey and ensure that their experience with a brand is always positive. Meanwhile, on these marketplaces, those same customers are encountering sellers who are at best less expensive but at worst highly deceptive and frankly dangerous and damaging to brands.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">I wish there were a magic wand I could wave to make the situation go away. But the simple fact is that brands \u2014 no matter who they are and what their positioning is \u2014 need to look at something like Walmart.com for what it is, not what they think it is. It is not an online version of a big-box retailer. It is a robust e-commerce channel that needs to be taken seriously.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">A good first step would be to establish an organic presence for your products on the platform before others do the same. At the very least, that will drive out the price-gougers of the world. It\u2019s a bit trickier to get rid of the gray marketers who are undercutting your normal retail pricing, and one with a growing cottage industry around it. The task involves everything from shoring up your channels, reforming sales practices, tracking products to identify leakage, and even taking legal action against those who are not authorized to sell your products.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The good news is that establishing a presence on Walmart.com does not require a huge investment, and by doing so, you can help prevent the erosion of your brand\u2019s experience and preserve its value.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Today, Walmart.com has a brand association problem that is at odds with its true nature. It\u2019s critical to realize how different the online marketplace is from its bricks-and-mortar counterpart and to plan your strategy accordingly. Whether you like it or not, your brand is being sold on Walmart.com \u2014 and it\u2019s probably better for consumers to get your products from you rather than someone else.<\/p>\n\n\n\n\n<!-- shortcode [asyncjs] -->\n        <script type=\"text\/javascript\">if (!window.AdButler) {\n                (function () {\n                    var s = document.createElement(\"script\");\n                    s.async = true;\n                    s.type = \"text\/javascript\";\n                    s.src = 'https:\/\/servedbyadbutler.com\/app.js';\n                    var n = document.getElementsByTagName(\"script\")[0];\n                    n.parentNode.insertBefore(s, n);\n                }());\n            }<\/script>\n        <script type=\"text\/javascript\">\n            var AdButler = AdButler || {};\n            AdButler.ads = AdButler.ads || [];\n            var abkw = window.abkw || '';\n            var plc420989 = window.plc420989 || 0;\n            document.write('<' + 'div id=\"placement_420989_' + plc420989+ '\"><\/' + 'div>');\n            AdButler.ads.push({\n                handler: function (opt) {\n                    AdButler.register(167788,420989, [300,250], 'placement_420989_' + opt.place, opt);\n                },\n                opt: {\n                    place: plc420989++,\n                    keywords: abkw ,\n                    domain: 'servedbyadbutler.com'\n                }\n            });\n        <\/script>\n        \n","protected":false},"excerpt":{"rendered":"<p>When making the case for brands selling on Walmart.com, most experts focus on the financial reasons: Walmart has favorable demographics. It has surpassed eBay to become the second-largest marketplace.<\/p>\n","protected":false},"author":7,"featured_media":1392,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[9],"topics":[2],"class_list":["post-1391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-smb","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Big Reason Brands Should Be on Walmart.com That No One\u2019s Talking About | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advertisingweek.com\/aw360\/news\/the-big-reason-brands-should-be-on-walmart-com-that-no-ones-talking-about\/1391\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Big Reason Brands Should Be on Walmart.com That No One\u2019s Talking About\" \/>\n<meta property=\"og:description\" content=\"When making the case for brands selling on Walmart.com, most experts focus on the financial reasons: Walmart has favorable demographics. 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