(Image source: Figureworm Creative)
The wealth-making dividend of wal-mart platform has been tasted by sellers first.
Recently, Wal-Mart outdoor products supplier Art art technology announced its first-quarter performance, the performance is quite eye-catching: the company achieved operating income of 65.27 million yuan, net profit attributable to shareholders of listed companies reached 19.63 million yuan, net profit margin of up to 30.1%.
Founded in 2005 and headquartered in Wuyi County, Jinhua City, Zhejiang Province, the listed company is mainly engaged in outdoor leisure furniture products such as braziers and gas stoves. And these furniture for heating and ornamentation, the main object of consumption is coming from the US market on the other side of the ocean, Wal-Mart is its main sales platform.
From the past financial reports, it can be seen that as early as 2020, Wal-Mart is the largest source of revenue channel for Art Art Technology, and the revenue on the platform reached 123 million yuan, accounting for 38.40% of the company's total revenue; From January to June 2021, the revenue from Walmart has reached 57.66 million yuan, accounting for 25.06% of the company's total revenue. Compared with other platform sellers who are still struggling to survive in open source, Agni has soared by nearly 200% since 2019, with a three-month net profit of nearly 20 million.
A person in the cross-border e-commerce industry told Hugo that in the past two years, almost all Amazon sellers have been "tortured" by the platform, from 2021 wave after wave of cleaning, and then logistics freight, raw materials soared, platform traffic weakened, resulting in Chinese sellers deeply in crisis, vowing never to put "eggs" into the same basket. It is not difficult to find that the current big sales on the Wal-Mart platform, such as Tongtuo, Zehui and Artigyi Technology, are doing very well, and there are more and more Chinese sellers stationed in Wal-Mart.
95% of sellers report profitability, how fragrant is Walmart?
On May 17, according to the latest research released by MarketplacePulse, since March 2021, Walmart announced the opening of the registration of chinese company entity sellers, and the number of Chinese sellers entering the Walmart platform has been growing. It is understood that as of March last year, there were only about 5%-6% of Chinese sellers on Walmart's platform; In April, the percentage of new sellers was as high as 40 percent, an eightfold increase in a year. On May 11 this year, among the latest addition of 1,000 new Walmart sellers, Chinese sellers accounted for 51%, surpassing new U.S. sellers for the first time.
In the impression of many people, Wal-Mart may still be only an offline physical retailer giant, but in fact, in North America, Wal-Mart has quietly sat on the second throne of e-commerce, and the future development momentum is very strong. According to U.S. Walmart fiscal year 2022 data, Walmart's e-commerce net sales reached $47.8 billion, an increase of 11% year-on-year, almost doubling compared with fiscal 2020. By the end of this year, Walmart's platform is expected to post more than 200 million online items.
On this emerging platform that promises to become a "front-runner" in the e-commerce space, there are plenty of opportunities for sellers of all sizes. According to the recent "2022 Walmart Seller Status Report" released by JungleScout, 95% of Wal-Mart e-commerce sellers are currently profitable, and 33% of small and medium-sized brand sellers have a profit margin of about 20%; 54% of small and medium-sized brand sellers have an income of more than $100,000, and 31% of small and medium-sized brands have annual sales of more than one million US dollars.
For enterprise-level sellers, 57 percent earn between $2 million and $10 million a year, and 19 percent earn more than $50 million a year. Of these sellers, 29 percent are vendor sellers (1Pseller), 79 percent are third-party sellers (3Pseller), and 8 percent are part of a hybrid of 1P and 3P sellers.
In the context of the industry where sellers shout "rotten", why can Wal-Mart become a safe haven for sellers?
First of all, Walmart currently has little competitive pressure. According to the "2022 Wal-Mart Seller Status Report", Wal-Mart monthly traffic of 457 million, the current number of sellers is about 150,000, is expected to add another 40,000 in 2022, an average of 1 store can obtain 1918 customers, compared to other platforms, sellers are easier to obtain more traffic.
Second, Walmart's own hard power. With a strong supply chain system, Walmart's WFS two-day logistics has greatly simplified the fulfillment process. It is reported that 90% of Americans live within 10 miles of Walmart's physical store, and the convenient pick-up, return and exchange service is unmatched by other e-commerce platforms. In addition, the e-commerce sector is its strategic focus, Wal-Mart uses applications to enhance the shopping experience, develop new product lines and brands, follow up on social e-commerce and live streaming with goods and other areas to continue to exert efforts.
Again, high stickiness customers, 0 platform monthly rent. According to JungleScout survey data, 31% of buyers first search at Walmart when shopping, and they have a large loyal user base with inexpensive, rich products and convenience. At present, the platform does not charge monthly fees, only charges a commission for the sale of products, and the commission ratio ranges from 8% to 15%, which is a lower cost for Chinese sellers.
Finally, Walmart invests in lower advertising costs. According to the data, more than 70% of sellers spend less than $5,000 a month on advertising; Wal-Mart CPC quotation is basically low, and the early push of new automatic advertising ACOS can remain at about 15%-30%. Sellers are worth noting that to open a store at Walmart, they need to optimize their listings and do a good job of keyword and product research. Hugo mushrooms learned that 4KMILES's Wal-Mart SKU optimization master is specially built for Chinese Wal-Mart sellers, and the platform is more suitable for the operating habits of Chinese sellers, which can help sellers automatically analyze and quickly monitor the keyword ranking of products and formulate reasonable operation plans.
(Image source: 4KMILES)
In the era of refinement, how can sellers achieve overtaking in curves?
Nowadays, more and more sellers are opening stores at Walmart, but if you want to open up this new continent and achieve the goal of rapid growth, you can't do without the refined operation of content.
According to a study conducted by Salsify last year, nearly a third of the top 10% of products sold on Walmart's platform used Walmart RichMedia to make compareisoncharts (comparative charts), 360-degreeimagespins (360-degree image rotation), video (video), imagegalleries (gallery), Graphics and the like attract consumer interest, thereby leveraging greater traffic and converting more accurate customers.
However, sellers have difficulties in actual operations. For example: laborious optimization of keywords, the traffic is lower; RichMediaContent content creation has no way to start, and the number of SKUs is bottomless; The quality of product content is getting worse and worse, and the conversion is getting less and less...
(Image source: 4KMILES)
In view of the various problems encountered by sellers in operation, 4KMILES officially launched wal-Mart SKU optimization master, taking content as the starting point to promote overall traffic improvement. For sellers, whether it is Rich Media Content, keyword analysis, product content quality analysis, etc. can be completed in this system, and high-quality content can help sellers get higher weight and search ranking, and promote store conversion rate. In terms of Rich Media Content, on the basis of fixed templates, sellers can fill in the content according to their own needs, and through the 360-degree view, let buyers better understand the product and get more organic traffic. And for Amazon sellers who have registered a 4KMILES account, they can also use the Wal-Mart SKU Optimization Master System background for unified management, which is very convenient.
(Image source: 4KMILES)
According to Hugo Bacteria, 4KMILES belongs to the Aisheng Group, which relies on its own big data and intelligent technology and the group's global e-commerce channel capabilities, and is committed to providing brands with a comprehensive store operation system and marketing data analysis board, effectively providing cross-border intelligent operation, efficient decision-making, and full-link digital solutions, empowering Chinese brands to grow rapidly in the global network.
At present, Wal-Mart cross-border e-commerce is developing at an alarming speed, which is worth a try for domestic sellers! Of course, at the moment of the Nuggets, 4KMLES is also a good choice for you to reduce costs and improve efficiency.