1P vs 3P Sellers – Pros and Cons on the Walmart Marketplace

CLAYMONT, Del. - Sept. 2, 2021 - PRLog -- Walmart is a leading e-commerce giant globally which has come to the forefront as one of the biggest online retail platforms. According to NRF, Walmart is the largest retailer in the US, based on the sales with more than 4,700 stores across the country.
In this article, we will dive into detail on the different types of Walmart sellers with each of their advantages and disadvantages.

Walmart 1P Sellers
As a 1P seller, you are responsible for sending your products to the fulfillment center of Walmart where your product will be stored and distributed. You will be supplying the products in bulk to Walmart at wholesale prices.

Walmart 3P Sellers
You must apply for approval and meet certain business qualifications to become a Walmart Third Party seller. As a Walmart 3P seller, you will have maximum control over your Walmart product listings and inventory.

Listed below are the pros and cons of both Walmart 1P vs 3P business models.
Advantages for 1P Sellers in Walmart:
1. As a supplier, once you deliver the inventory to Walmart, you do not have to worry about setting shipping rates, meeting performance standards, or worry about your margins. The marketplace will handle all the customer-facing aspects.
2. Your items get the benefit of being listed as a Walmart product i.e., your product becomes Walmart's products which can increase credibility & trust and potentially increase purchases.

Disadvantages for 1P Sellers in Walmart:
1. You may face price-parity issues across other marketplaces you sell on which can affect your brand reputation.
2. Walmart assumes control over the messaging around your product which could lead to inconsistent branding between the sites you sell on.

Advantages for 3P Sellers in Walmart:
1. You have full control over your Walmart product listings, marketing strategies, and inventory so you can fulfill orders on various marketplaces from your stock.
2. You can activate Walmart Free 2-day shipping nationwide through your own fulfillment processes to guarantee shoppers fast shipping.

Disadvantages for 3P Sellers in Walmart:
1. 3P Sellers have to organize and handle the marketing of their products themselves including earning positive reviews and getting their listings ranked higher than the competitors.
2. You are responsible to manage the entire process from listing to post-purchase. You oversee generating optimized products, running special offers and discounts, and establishing ad campaigns.

Conclusion
With the right marketing strategies, your product line can get great exposure on Walmart as it offers a tremendous opportunity for your business. It is a great platform for anyone looking to expand their e-commerce business.

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