What is the Walmart E-Commerce Business Strategy

Introduction

Walmart is the world’s largest company by revenue – over US$500 billion according to the Fortune Global 500 list in 2018 – as well as the largest private employer in the world with 2.3 million employees. It is a publicly-traded family-owned business, as the company is controlled by the Walton family.

As of January 31, 2018, Walmart has 11,718 stores and clubs in 28 countries, operating under 59 different names.

The company operates under the name Walmart in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, as Asda in the United Kingdom, as the Seiyu Group in Japan, and as Best Price in India. It has wholly-owned operations in Argentina, Chile, Brazil, and Canada.

Walmart was the largest U.S. grocery retailer in 2016, and 62.3 percent of Walmart’s US$478.614 billion sales came from U.S. operations

The company was listed on the New York Stock Exchange in 1972. By 1988, Walmart was the most profitable retailer in the U.S. and by October 1989, it had become the largest in terms of revenue.

E-commerce Business Strategy

Walmart has been offering e-commerce business strategy to its customers for some time now, but it’s only relatively recently they have been taking things seriously and looking at avenues to really innovate the ways in which their products are accessed online.

Recent highly publicized acquisitions of Jet.com, Hayneedle.com, Shoes.com, Moosejaw, and Modcloth.com, have also demonstrated Walmart’s commitment to becoming a key e-commerce player.

However, Walmart has realized it holds a key advantage over Amazon which it can leverage to offer services the online kingpin simply cannot – its nationwide network of physical store locations. Amazon may have its sights set on brick-and-mortar stores, but Walmart is already there, at the top of the game.

Walmart is, therefore, looking for opportunities to bring the in-store and online E-Commerce sellers using the online tactics to optimize their products, to offer customers unique ways to access its products and services.

Strategy – Endless Isles

Being tested in select stores, the endless aisle system is one of the ways in which Walmart is seamlessly integrating its in-store and online shopping experiences.

A kiosk placed at the end of a physical aisle allows customers to access the entire online Walmart inventory. If a customer has come to a location looking for a specific product, only to find the store doesn’t carry it, they need simply access the terminal and place an order.

They can then arrange to either collect the item from the store or have it delivered to their home. The endless aisle concept also reduces the chance of a customer visiting a competitor’s store after an unsuccessful trip – meaning fewer lost business opportunities for Walmart.

Strategy – Walmart Prime

One of Amazon’s most notable products is its Prime membership service. With Prime, Amazon customers pay $99 per year to gain access to streaming services such as Amazon Video and Amazon Music, as well as unlimited next day delivery on items – at no extra cost. With Prime Air, drones are set to take to the skies to offer delivery in thirty minutes or less – also at no extra cost to subscribers – making Amazon’s competitors are understandably nervous.

Walmart already attempted to compete with Amazon Prime with its ShippingPass service. ShippingPass offered unlimited delivery for $49, but a lack of engagement by Walmart customers resulted in the service being pulled, and subscribers refunded.

From April 2017 however, Walmart began offering its online customers discounts on thousands of products if they selected the option to collect their items in-store. The amount of discount varied between products, with low-cost but heavy goods seeing the most significant reductions.

By effectively paying customers to collect their packages in-store, Walmart once again demonstrates it understands the value of omnichannel marketing strategies. Instead of viewing e-commerce business strategy and in-store retail as two competing revenue streams, Walmart views them as complementary.

How to Sell on Walmart

The Walmart Marketplace is a platform that allows third-party sellers to list their items on Walmart.com, just like you would on Amazon or eBay. Selling to Walmart’s online marketplace is an easy way to get your products in front of a massive audience. Marketplace items appear in search results on Walmart.com alongside other items.

Here’s how you can start selling on Walmart Marketplace in a few easy steps:

E-Commerce Business Strategy

Graphic Source:  Walmart Official Marketplace Website

Step 1: Apply to be a Marketplace Seller
Step 2: Complete Your Registration
Step 3: Complete Partner Profile
Step 4: Verify Bank Deposit
Step 5: Complete Item Setup
Step 6: Test Items and Orders
Step 7: Launch Your Account

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Omer Riaz June 20, 2019 0 Comments

How to Use Social Media for Ecommerce Marketing

Overview

Being an online business owner or e-commerce seller means one needs to give more detailed thought into how the business is going to be managed on a day to day basis. This will invariably depend on individual circumstances, resources, time constraints, overall objectives, preferences as well as service and production needs.

Marketing is a powerful business tool. The internet age has provided a whirlwind of opportunities for every hardworking dreamer that wants to fly without wings. The world of eCommerce and internet has proven to be a lucrative arena for those who want to benefit from the promises it beholds.

Regardless of the parameters, one thing is certain: online business owners crucially ‘need’ to plan and manage resources effectively, to ensure continued profits, growth and consistent success. And one of the most vital of these resources is the art of Marketing!

Another important question is do you think that you are doing great as an online marketer?

Here are 5 ways online businesses and e-commerce entrepreneurs can successfully market and grow their businesses while increasing profits:

Social Media Branding

Make sure your company’s vision and products are effectively communicated online via powerful branding.

Make the branding of your company, products, and services on social media visually appealing!

Human beings are creatures of visual stimulation. We thrive on it. And we act on it.

Think about ads on television about fast food; the way they trigger your visual senses with close-ups of juicy burgers on a bun, splash of ketchup and mayo, steamy golden fries and cool soothing soft drink! It’s all visual; making your mouth water!

Thus, make your visual branding inviting to look at – since if the ad didn’t invite and entice the eye, no one would read it!

Post daily across major platforms like Pinterest, Facebook, Instagram, Twitter and others for maximum audience engagement and brand positioning.

Knowing Your Audience

Knowledge is power! Being aware of the “market landscape” and knowing who your competitors are and what they are offering, is a powerful weapon!

Whether it’s running FB ads, sending Emails to your list, writing Landing or Sales Pages or simply promoting a Blog post, the art of persuasive social media marketing and attention-grabbing content depends on understanding your audience!

Do your research on what are your audience’s pain points, their needs, wants, desires, struggles, preferences.

A successful e-commerce social media marketing strategy should understand people, have a strong insight into their needs and wants and be empathetic towards providing a solution to their problems.

In essence, great social media for e-commerce business and the associated marketing is simply a direct conversation between you and the consumer.

Remember, writing something doesn’t mean that you’ve “communicated” it.

For example: if you’re selling a mattress, then communicate the benefits of the mattress to the audience (relieving back pain, uninterrupted good night’s sleep, etc).

Customers don’t buy products, they buy the experience, the vision and the benefit THEY believe they can get out of them. And it’s your marketing efforts’ job to MAKE them believe of it!

Keep Track of Costs for SMM

SMM (Social Media Marketing) is your backbone for global audience engagement, lead generation, brand recognition, product visibility and other integral factors that determine your success as an eCommerce business.

So, keeping track of your SMM costs is crucial. You don’t want your costs to negatively impact your SMM.

To make your SMM tactics and campaigns more effective, you need to:

  • Layout a clear plan for your goals and objectives with all your social media presence
  • Dedicate a strong team to manage your social media channels and platforms
  • Assign a realistic cost range to each social media outlet for advertising and promotions
  • Use measuring tools to keep an eye out on progress and social media effectiveness
  • Utilize Google Analytics and other resources to keep you in the right direction

How to Create Catchy Social Media Posts

As human beings, we are creatures of emotion. Love, hate, jealousy, fear, pity – all are forms of emotion that make us beings of empathy and intellect. We use that intellect to make decisions via ‘Free Will’. Human behavior can be controlled if the free will can be controlled.

How do you control free-will? Through the power of sheer persuasion! And words have the ability to fuel persuasion via creating beliefs, images, stories, and narratives that captivate the heart and consume the mind.

So for your social media marketing, if you’re writing to persuade, you have to hit the gut before you get anywhere near the brain. The part that decides “I want that” is emotional and often subconscious. If your premise doesn’t work emotionally, logic will never get a chance to weigh in.

If you flip that emotional switch, the sale (or other action) is yours to lose. Because our logical minds do eventually step in (usually in a way that makes us think we’re driven by logic in the first place). If your premise is not credible (as in it’s too good to be true), you fail.

Create catchy posts by:

  • Using powerful and interesting images, captions, headlines
  • Use audience psychology and pain points address their concerns and problems
  • Offer solutions and features/benefits, by differentiating yourself from competitors
  • Use easy to read the language, no technical jargon or complicated words

Use Paid Promotions

Paid promotions are powerful for generating warm traffic that is already looking for what you’re offering online. Platforms like Google, Bing, Facebook, Instagram, Pinterest, and AdWords are critical when it comes to harnessing successful results from paid promotions.

Paid promotions give you:

  • Large audience outreach, connecting you to millions of people
  • Brand positioning by enhancing the visibility of your product to the masses
  • Opportunity to build credibility and trust
  • Earn higher profits through solid lead generation and sales

If you don’t have paid promotions already in your Social Media Marketing strategy for E-commerce, you need to do so as soon as possible. It will be game-changing and will pay dividends down the road.

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Omer Riaz June 14, 2019 0 Comments