What are the Pros and Cons of Walmart?

ayaz yasin December 31, 2021

Learn the Optimize Pros and Cons of Walmart

Like Every eCommerce giant, there are pros and cons of Walmart. Walmart has deep pockets and a massive distribution network that makes it compete with Amazon. Even so, Walmart Marketplace is not a top choice for many online sellers due to various reasons, including Walmart’s reputation and the seller’s contractual obligations with brands to the many challenges in multichannel selling.

This blog post will discuss Walmart’s significant pros and cons and how it impacts sellers, suppliers, and their customer service managers in their day-to-day activities if you wish to become a Walmart employee in any of the fields mentioned.

Walmart Then & Walmart Marketplace Now

The Walmart Marketplace entered beta in 2009 and started with just a few third-party brands. In the months before Walmart acquired Jet.com in August 2016, Walmart’s online sales declined. After Marc Lore had taken the helm of Walmart’s e-commerce operations, Walmart had made significant investments, acquired e-commerce companies, and experienced increased online sales.

pros and cons of walmartPros and Cons of Walmart Selling

In addition to importing one million items per month, Walmart Marketplace plans to hire new third-party sellers. Walmart enforces a strict pre-approval process, preventing counterfeiting and scams associated with eBay and Amazon.

There are several pros and cons of selling at Walmart. Walmart Marketplace sellers can expect the following benefits:

  • Extreme exposure. After Amazon.com, the second most popular e-commerce site after Amazon.com is Walmart.com, which receives more than 110 million unique visits per month. Increasing your digital footprint and reaching new customers is possible using Walmart.
  • Credibility & Authority. As a retailer, Walmart is recognized for its appeal to grandparents and their families. You can sell electronics, home appliances, sporting goods, and other products in Walmart’s top categories to the company’s unique customer base.
  • Pay only when a sale is made. As opposed to Amazon, Walmart currently does not charge listing fees monthly or annual basis. A referral fee is instead charged by Walmart per sale, which varies based on your product category. Referral fees are similar to those set by Amazon and eBay.
  • Fees for brand gates are not charged. Brand restrictions and fees for brand gating are currently not in place.
  • Seamless transactions. As Walmart continues to invest heavily into the online shopping experience, it has redesigned its website, sped up checkouts, and added easy payment options such as Walmart Pay.
  • Flexible return policy. Sellers are free to accept returns at their discretion.
  • Occupational safety. The company provides operational security measures to keep buyers and sellers safe and has sold products online since 2000.

Current Disadvantages of Walmart Marketplace

Walmart’s new website and investments in technology have not been enough to shake off its long-held budget image, discouraging some sellers from even considering Walmart.

Premium brands are also hesitant to allow authorized resellers access to their products since their “cheap” image could harm their branding. You need to apply for Walmart’s quality program, which maintains strict standards. When choosing vendors, reputation, unique product offerings, competitive price points, and fast and reliable fulfilment are all considered. In other words, you must already have experience selling high volumes on Amazon or eBay, and you must own the warehouse as well.

Shopping on Walmart.com can be a bit of a novelty since many shoppers expect to shop at Walmart itself. Sellers who exclusively use FBA’s platform are not qualified, but drop-shippers are allowed. Although Walmart does not have a brand restriction, they do not allow personalized products like Etsy. Shipment issues, such as taking too long to ship or not providing free returns, were the most common complaints against Walmart Marketplace sellers. When customers buy from third-party sellers, they are frustrated that their items cannot be returned to Walmart stores.

These are the main pros and cons of Walmart selling.

Pros and Cons of being a Walmart supplier

Generally, Walmart contracts third-party suppliers to supply their goods, but this has responsibilities. Walmart requires its suppliers to demonstrate financial responsibility before entering into a relationship with its retail platforms. Walmart requires certain types of insurance from all its approved product suppliers as part of this requirement. Among the liabilities covered by this insurance are legal costs and other liabilities resulting from product claims or lawsuits.

Here, we will examine the pros and cons of Walmart suppliers.

Pros

  • Expanded Reach

Walmart’s reach is its most significant advantage as a drop-shipping supplier. Due to its size, it has a vast customer pool, allowing suppliers to showcase their products to a variety of buyers. By spreading the product across more markets, more customers are exposed to the product, which leads to higher sales.

  • Varieties of products

Several drop-shipping companies specialize in particular product categories, such as Cocos Fashion and Home Depot. There is no end to the list of products that can be drop-shipped, including electronics, music, games, furniture, and even products such as toys, beauty products, garden supplies, and more. Nevertheless, it is an integrated platform in which a wide variety of products are displayed. As a result, Walmart has a place for you, regardless of what niche you work in or what business sector you are in.

  • Maintain inventory control

As sellers are allowed to keep inventory in their warehouses under the DSV program, they are in total control of inventory levels, enabling them to make informed decisions regarding production. As traders, vendors can determine with reasonable accuracy how much stock they require to maintain and how much they would like to order economically.

Cons

Like everything, there are pros and cons of Walmart suppliers. 

Focused on the customer

Walmart is a customer-centric platform that aims to save customers as much money as possible. This has helped it build brand awareness and a loyal following of buyers, but it also causes lower profit margins for third-party sellers since products must be offered at bargain prices.

Pricing that is fixed

The pricing policy at Walmart is also rigid; it is required that sellers offer their products at the lowest possible price. When a seller uncovers that they are offering the same product elsewhere at a lower price, the product will be delisted, and sellers must avoid this situation.

Issues with listing

Walmart has also caused listing problems for sellers. The product listed first at the top of the list shows up when two or more sellers are offering the same item at the same price.

You won’t get a priority listing even if you have an excellent product. This makes starting at Walmart earlier very advantageous.

Pros and Cons of Walmart to move into a small community

Walmart affects the economy both positively and negatively. Aside from offering low-cost products, the retail giant is known for providing a wide variety of products to American consumers. Here are some pros and cons of Walmart to move into a small community will:

Pros

Walmart represents an anchor store that makes a retail space attractive to other companies looking to pick a location for their business. Customers from nearby communities frequent the store because of its low prices, and when they visit the business, they are more likely to spend money in nearby establishments.

Rural areas could benefit from Walmart since they might otherwise have trouble finding food and household items. With the ability to purchase a wide range of goods in one convenient location, customers don’t need to travel far to purchase what they need, as they can order online and wait for delivery.

Cons

Lower wages in Walmart’s local markets are one of Walmart’s most detrimental effects; lower wages in Walmart’s local markets are one of Walmart’s biggest causes of loss. Using research findings from Walmart, researchers estimated that Walmart pays its hourly associates lower wages than similar businesses in the local area, with the wage difference being at least $3 per hour. The researchers estimate the redistribution of sales to be $25 million per year. This equates to about $660,000 in lost wages per year.

Local businesses in areas where Walmart’s sales are already high may suffer when the retail giant opens up stores. Due to Walmart’s size, it can sustain lower profit margins than small local businesses.

Pros and Cons of being a CSM Walmart

Customer Service Managers are responsible for ensuring that customers’ needs are met. Aiding customers and managing employees throughout the day are their responsibilities. Responds to customer complaints and provides technical support for equipment and cash registers. The Customer Service Manager is in charge of the store’s front end. We’ll discuss some Pros and Cons of working as a Walmart CSM.

Pros

  • Possibilities for advancement

Even though customer service jobs tend to be entry-level positions, they offer flexibility, job security, and transferrable customer service skills. These minimum wage jobs may lead to more advanced management positions at Walmart. The customer service representative must be knowledgeable about various aspects of the organization to assist the client adequately.

Customer service workers with a variety of skills can become a valuable asset to their companies, improving their chances of promotion. The experience they gain from working with customers also provides them with skills they can apply to management and training roles.

  • Earnings from commissions and bonuses

The opportunity to make additional income over and above the base salary can benefit from working in customer service. The upselling process can be taught to companies’ representatives to sell additional products or services to customers when they contact them with concerns or questions. Companies can reward upsell with commissions or bonuses to motivate their representatives to assist customers in a friendly and courteous manner.

Cons

  • The effects of stress and burnout

In contrast, working at Walmart as a customer service representative can be highly stressful. When dealing with demanding or verbally abusive clients, representatives must maintain a friendly and professional demeanour. Personal issues should be left at home so that representatives can focus on serving their customers.

  • Regular changes.

It’s sometimes difficult for customer service representatives, who are on the front line, to keep up with the continual changes in products, services, policies, and procedures to provide the most accurate information to customers. Due to high turnover in these jobs, they may also experience constant changes in coworkers and supervisors.

Pros and Cons of quitting Walmart Job

Indeed, Walmart offers its employees a wide range of benefits, such as healthcare and insurance coverage, retirement savings, and family time with the right kind of leave. However, Walmart does also have a few downsides.

Here are some pros and cons of Walmart job quitting.

Pros

  • Stress Reduction

Walmart’s impact, if you aren’t enjoying your time there, or you tolerate it, will almost certainly spill over into your other facets of life off-the-clock. Changing jobs and finding a more fulfilling career can make a huge difference in your happiness. Inflation is increasing around the world, making managing your finances more difficult. Walmart jobs can be pretty hectic and time-consuming, and with little pay, managing your finances can become difficult.

Furthermore, reducing stress can help you be more creative and productive. Therefore, getting away from the stressful Walmart job could allow you to become a more effective and creative worker, potentially advancing your career more quickly.

  • Opportunities for advancement

You may want to consider moving from Walmart if you don’t see many opportunities to advance there. In career advancement and income, shifting to a new position can open up many new opportunities. With experience working for a retailer giant like Walmart, you’re more likely to be able to negotiate a starting salary when you interview with a new company. After receiving performance- and cost-of-living raises, higher starting salaries typically translate to higher income.

  • Better work

We have all felt stuck in a rut; the solution isn’t always as simple as snapping out of it. Living life to the fullest may involve regularly seeking new challenges and changing routines. If you don’t like your job at Walmart and can’t bear the workload affecting your personal life, then it is time to move on and find work that is more suited to your requirements and doesn’t affect your personal life.

Cons

  • An income loss

Without already having another job lined up, you can quit the Walmart job when you want to. Just make sure you have enough money in your savings account to cover a few months if your search for a new position takes longer than you anticipated.

As well as that, it would help if you considered that you might not be able to get a job that pays as well as Walmart does. Even so, money shouldn’t be the only consideration when it comes to career evaluation, but you may want to set a budget for that and decide if you’re ready to take a step back if the situation demands it.

  • An uncertain situation

There is no guarantee that the job you get after quitting Walmart will be better than your job at Walmart. Whether it’s a conflict with your bosses, not getting along with coworkers, or getting stuck in a rut in your new position, you may face issues similar to those that forced you out of your previous work. Make sure you carefully consider the uncertainty before quitting your job, even if it is worth it.

Pros and cons of inventory in Walmart stores

Managing your inventory supply and demand is a vital part of any successful eCommerce business. The stock management system at Walmart Inc. has been proven to be one of the most important components of its success. The inventory management aspect of Walmart’s operation utilizes cutting-edge technology. The company’s inventory management methods and strategies have been perfected through innovation.

Here, we’ll look at how Walmart’s marketplace affects your business operations and the pros and cons of Walmart inventory.

Pros

  • There are fewer production errors.

When inventory orders are more minor and frequent, possible defects can be identified much more easily before too much stock is manufactured and purchased. Returns and refunds will be less likely to be issued, reducing the number of returns you will need to process.

The convenience of JIT lies in its ability to work with a wide range of scales. Walmart’s JIT system has many advantages for small or new store owners, especially since it gives them the flexibility to react to changes in the market. Starting a store using Walmart’s JIT system will drastically reduce startup costs.

Cons

  • Coordination is often tricky.

Try resolving communication issues before switching to a radically different system if your company has them. Communication amongst departments and third parties is required for a JIT system to function correctly.

  • Deliveries that are delayed

To make JIT successful, the deliveries themselves must be delivered promptly. It may be challenging to maintain a smooth supply chain if a component is disrupted, resulting in stock-outs and delayed deliveries to your customers and increasing the cost of customer service. Communication is crucial between your company and your suppliers to avoid this.

Pros and Cons of the Even app from Walmart

In partnership with Even, Walmart lets its customers prepare for upcoming bills and manage their money without using their smartphones. You can even schedule automatic payments, track your pay, and determine what you can spend. There are benefits and consequences for every app, so let’s discuss whether the Even app might be helpful to Walmart employees.

Following are the pros and cons of the Walmart Even app:

Pros of even app

  • It compares favourably with not including financial features like budgeting, planning, and automated savings.
  • Retention is improved. Employees stay longer when they take advantage of Even’s on-demand pay capabilities, along with budgeting and saving tools.
  • Provides employees with financial control
  • Guides how to avoid predatory payday loans
  • Reduces the likelihood of late fees and overdrafts
  • Savings for emergencies

Cons of even app

  • There is a monthly membership fee. The $8 Even Plus membership fee is the only fee you’ll pay to access Inscape or Even Plus. There is no interest charged on this payment method.
  • Employers are not listed. Are you curious if your company uses Even? Unfortunately, the website does not publish a list of employers. Details can be obtained by contacting Even customer support or asking your payroll manager.
  • You should only borrow 50% of what you have already earned. Keeping your finances in balance is essential, so the Even app only permits you to access up to 50% of your existing earnings.

Conclusion

While Walmart’s e-commerce business is growing, it is important to consider a variety of factors before signing up to become a selling partner or joining as a CSM manager. This article provides helpful info on critical topics and the pros and cons of Walmart. After reading this article, we hope you have a clear idea of having Walmart as your primary source of income is financially beneficial for you or not, whether you should invest in Walmart as a seller or spend precious hours at their stores promoting their products.

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