Are you willing to start your business on Amazon but you are wondering if you can sell Walmart products on Amazon or not?
Walmart offers products in multiple categories with competitive pricing similar to Amazon however you can find some products with cheap prices that you can sell at a higher price on Amazon this is where you can source Walmart products and sell them on Amazon.
Selling the same product already listed in a retail store is called reselling. Amazon allows sellers to resell on Amazon and this business model is called Online Arbitrage.
Can I Sell Walmart Products On Amazon?
The answer to this question is, “Yes you can sell products on Amazon that are purchased from Walmart” and this is called reselling.
You can become a reseller using Walmart, Target, eBay, or any other marketplace. The main motive is to buy at a low price and sell at a high price.
What is Online Arbitrage?
Let us discuss in detail how online arbitrage works and how good is it.
How to do Online Arbitrage on Amazon:
In this business model seller source low price products from a retail market and then resell the product at a high price on another marketplace.
In our case seller is trying to source from Walmart but you can choose other marketplaces as well wherever you can find products with low-price offers.
In Online Arbitrage, sellers need to source the product, store it and sell it after receiving the order from the customer.
Amazon allows the seller to list the product for reselling until and unless the product that you are selling does not need approval from the brand. You can also use FBA or 3PL as a fulfillment partner.
Is Online Arbitrage Worth it?
Whenever you decide to start a business, you need to understand what resources you should have before setting up a business and what returns you can forecast.
In this case, we are going to lay out all pros and cons of starting online arbitrage for you to decide whether you should start it or not.
Pros:
No Barrier to Entry
Anyone can start online arbitrage with little money and there are not many requirements to fulfill in comparison to a Private label business.
You can shut down your Online Arbitrage at no cost or even upgrade to Wholesale or private label if you like to grow.
Amazon Individual Account
You can start even with an individual account on Amazon which is free to sign up and there is no monthly cost. You just need to pay the referral fee of $1 on each sale besides other fees.
No Limit on Resell
You can sell multiple products in multiple categories until and unless there is no need for Amazon/Brand approval.
Start Small
You can start with a few units and then reinvest. New sellers can start learning with this business model.
No Advertising Cost
You need to add your offer on the already listed product page on the Amazon website therefore you do not need to advertise your offer hence no advertising cost.
Cons:
This Business Cannot Scale
You cannot make wealth out of this business and this business is not worth the effort.
Product Supply
Product supply is not in your control meaning you bought 20 units of one product previously that worked well for you but you might not be able to source the same product with a low-price offer.
Pricing of the Product
You cannot control the pricing of the product at the sourcing stage therefore you need to work again and find new product offers.
Buy box Control
There are multiple sellers on a single listing with competitive offers and Amazon’s algorithm distributes the buy box at its discretion. If your offer does not win the buy box for a whole month then your stock will be stuck in your storage.
Profit Margins are Low
As the saying goes when there is a low risk comes with a low return hence profit margins are extremely low in Online Arbitrage.
What is Online Arbitrage Sourcing?
While reselling Walmart products on Amazon, sellers can source from Walmart for online arbitrage. Below is a list of popular categories for online arbitrage which the seller can use,
- Home & Kitchen
- Toys & Games
- Books
- Beauty & Personal Care
- Grocery & Gourmet Food
- Health &Household
- Kitchen & Dining
- Baby
- Office Products
- Pet Supplies
Sourcing From Walmart
It is important to understand how to source from Walmart. We have discussed all the steps to consider before sourcing from Walmart.
- Product Research
- Pricing Analysis
- Check for Brand Approval
- Calculate ROI
- Purchase units
- Receive Stock
- List your product on Amazon
- Wait for the customer to order
Product Research
Before sourcing, we need to pick a category and then start product research. You can carry out product research manually by searching products on Amazon in a specific category or using different tools such as,
The above tools enable us to identify products that meet our preference based on Sales Price, Monthly Sales, BSR, Buy Box rotation, Number of FBA & FBM sellers & Quantity of Stock available to them.
Pricing Analysis
After product research, we try to look at sourcing price which is the major factor in gauging our net margins. To check for pricing we need to use free google chrome extensions that can fetch product prices from other marketplaces such as Walmart.
An example of price analysis via using price blink.
Check for Brand Approval:
As discussed previously, sellers buy from a marketplace and sell it in another marketplace to take advantage of the price difference therefore you need to avoid all products that need brand approval.
To check whether a product needs brand approval or not, you have to copy the product ASIN and try adding the product on Amazon.
If Amazon asks you to take brand approval before listing the product then avoid reselling that product.
Calculate ROI
This is the step where we carry out the calculation using the revenue calculator available on seller central, click here to calculate the return on investment for the product that you selected. This calculator enables us to determine Net Profit & ROI while considering all costs such as Amazon fees, charges for fulfillment & storage & other miscellaneous costs. Below I have attached a sample calculation of an Online Arbitrage product.
Place Order on Walmart and Receive Stock
After assessing the return on investment, you just need to place the order on Walmart and then receive the stock in your storage or at 3rd party logistics warehouse where the stock will be repacked according to Amazon FBA guidelines.
List your Offer and Wait for Orders
After receiving the stock, you are finally required to list your offer on Amazon in Amazon seller central. After listing your offer you just need to wait for orders to come.
Conclusion
In this blog post, we have discussed if you can sell Walmart products on Amazon. We also mentioned all of the stages of product research and sourcing. If you would have other queries relating to online arbitrage then you can comment below,
