Eric Martindale’s Post

Part 2: Rebuilding trust. “Did I make the right call?” We’ve all been there, and had to ask ourselves that question when looking back on a big decision. In my last post I shared a story about managing a leather care brand, and discovering that one of our wholesale partners was selling our products on Walmart in violation of our wholesale agreement. It made me reflect: Should we have managed our Walmart presence in-house, or was relying on the wholesaler the better move? Here’s how I’ve been thinking about it lately: Back in 2017: Walmart’s marketplace was notoriously difficult with intricate processes, and steep learning curves. At the time, letting the wholesaler handle it made sense. It allowed us to focus on our primary revenue channels without adding distractions. But today: Walmart’s platform has evolved significantly. Processes are smoother, support is stronger, and the opportunity is hard to ignore. Revising this decision in today’s landscape might lead to a very different approach. This was one of my major takeaways after attending the second annual Walmart Marketplace Seller Summit earlier this year. So, was it the right decision back then? I still think so. By leveraging the wholesaler, we maintained momentum and avoided stretching our resources. Ending the partnership at the time could have disrupted wholesale orders and hurt overall sales. But hindsight also reveals areas for improvement. Managing Walmart in-house could have ensured stricter adherence to policies, greater brand control, and more scalable growth opportunities. Moral of the story: What wasn’t feasible before might now be a golden opportunity. As a brand, you have to stay open to reassessing past decisions as things change. Don’t settle for comfort when there’s potential for growth. #Ecommerce #Walmart #BrandStrategy

Hahaha this is awesome and so true! Marketplace selling is not for the risk averse. Although Amazon provides a nice living for many sellers who can operate the business from almost anywhere in the world, there is still inherent risks that you cant control. fees increasing, Ip complaints from brands, related account, incorrect suspensions, competitor sabbotage you name it. But with that being said even risky people need to hedge. Some of you already are and some of you should look into it asap. To signup for a new Walmart account is easy and if you use our referral link I think there are a ton of incentives before end of year. Pretty sure it’s 50% off referral and wfs fees. https://lnkd.in/drEjFBn6 If you’re already selling on Walmart and looking for an awesome multichannel #repricer that doesn’t take Walmarts word for the data 📊 checkout flashpricer.com Don’t put all your eggs in 1 basket, but if you already have it’s time to diversify before those 🐓 are fried!

𝐖𝐚𝐥𝐦𝐚𝐫𝐭 𝐒𝐞𝐫𝐢𝐞𝐬 🛒📈 Today, we'll cover the minimum investment needed for Walmart, the expected ROI, and the timeframe for achieving it. 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐝 Initially, we recommend that our clients invest $5,000 monthly when starting the project from scratch. Beginning with this lower capital allows us to launch the venture efficiently. We can consider increasing our investment as our Walmart sales history develops and establishes a steady cycle. The $5,000 can be utilized within two weeks or up to 30 days, depending on the number of units we are sourcing and purchasing. This initial investment is crucial for building inventory and kick-starting sales operations. 𝐑𝐎𝐈 𝐂𝐨𝐯𝐞𝐫𝐚𝐠𝐞 𝐏𝐞𝐫𝐢𝐨𝐝 The length of the ROI coverage period is influenced by the pace at which the inventory sells. Typically, a $5,000 inventory sells within a few weeks. However, Walmart's reserve policy for new accounts can extend the ROI coverage period to at least a month. Walmart holds payments in reserve to ensure that sellers adhere to marketplace fairness, provide excellent customer service, and offer quality products. This reserve period is an important consideration for new sellers as it affects cash flow and the timing of returns on investment. 𝐑𝐎𝐈 𝐏𝐞𝐫𝐜𝐞𝐧𝐭𝐚𝐠𝐞 The expected ROI typically ranges from 15% to 30%, with the potential to exceed this threshold. This return reflects the profitability of the investment, based on the effective management of inventory and sales strategy. Achieving higher ROI percentages is possible with strategic sourcing and optimal pricing. 𝐏𝐫𝐨𝐟𝐢𝐭 𝐌𝐚𝐫𝐠𝐢𝐧 It's important to distinguish ROI from profit margin. The per-order or per-unit profit margin can range from 15% to 60%, and sometimes even higher. Occasionally, we secure deals from brands that enable us to sell products at exceptionally favorable profit margins. This distinction is vital as profit margin directly impacts the overall profitability and financial health of the business. A higher profit margin indicates a greater difference between the cost of goods sold and the sales price, contributing significantly to the bottom line. 𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 Understanding these financial metrics is essential for making informed decisions and optimizing investment in the Walmart marketplace. Starting with a modest capital investment, anticipating the ROI coverage period, and aiming for high ROI and profit margins will position the business for sustainable growth and success. #Walmart #WalmartSellerCentral #Investment #WalmartWholesale #Ecommerce #ShopinEcom #FinancialPlanning #ROI #ProfitMargin

💡 "There are two types of retailers: the merchandise-driven and the operations-driven. The ones that are truly merchandise-driven can always work on improving operations. But the operations-driven ones tend to level off and begin to deteriorate." I read that yesterday in Sam Walton's book where he talks about the story of building Walmart. Walmart was built on discounts, which was a trend Sam observed early on in the 60s. They would find the right merchandise and price them below market to win by selling in quantity. The ability to perceive trends is still very alive in Walmart and the company shares hit a record high this week after analysts raised the stock price target to $89 from $76. Two recent changes are driving this optimism: 🛒 Their new focus on convenience by implementing home delivery, buy-online-pick-up-in-store, and subscription services. 🛒 Adding high-margin revenue streams like advertising and Walmart Marketplace for third-party sellers to help subsidize retail operations. The largest retailer in the world continues to be merchandise-driven and very adaptive to market changes and opportunities. Always great to observe cases like that. Well done 👏 #retailinnovation #walmart #retailtrends #retail

5 new retail stores are hitting the street. What’s with all the bad news? True Value Company recently filed for Chapter 11 Bankruptcy. CVS announced the closure of hundreds of stores. Walgreens is closing 1200 stores by 2027. And don’t forget Big Lots and Dirt Cheap and Express. Is this the retail apocalypse? Or just a bad news that gets more clicks? But there’s new life on the horizon. Here are 5 hot new pilot stores hitting the streets: 1. Ahora Mucho. -> Hispanic discount grocery format. -> Collaboration between Save A Lot and Leevers Supermarkets, Inc. 2. Amazon Grocery. -> Small format grocery/convenience. -> A mass market complement to Whole Foods Market. 3. ReCharge. -> Premium c-store format. -> An Gelson's Markets banner store. 4. Perigold. -> Modern Home format. -> A Wayfair banner. (Follows AllModern & Joss & Main.) 5. Brothers Marketplace. -> Neighborhood Farmers Market format. -> Launched by Roche Brothers, Inc. Bonus: Spirit of Christmas. -> Pop-up Retailer format. -> A new banner by SPENCER'S GIFTS. -> (Spirit Halloween is a $1B+ retailer.) In fact, here’s the news you may not be hearing: Openings are outpacing closures by 20%. (Link in comments.) There are some great opportunities for emerging brands. Maybe keep an eye out for new banners. They’re rolling out quickly. ——— 🔹 We drive velocity in Sprouts, Whole Foods, Walmart, Target, Walgreens, CVS, Kroger, Sam's, COSTCO, and lots of other retailers. 🔹 We grow brands on Amazon. #cpg #cpggrowth #retailgrowth #retailvelocity #omnichannel #retail #amazonagency #retailmedia #shoppermarketing #instacart #retailtech

Walmart eyes wealthier shoppers Walmart has been trying to attract wealthier customers for some time but has yet to be successful. However, the retailer is not giving up and is now renovating or building more than 800 stores in the US to feature more attractive displays and higher-end products such as blazers and duck breast. According to an executive, the early signs are promising - sales at the renewed locations are rising faster than at other #Walmart stores. With high inflation, higher-income shoppers are increasingly turning to Walmart. The challenge now is to keep them coming back. Surprisingly, the biggest group of Walmart customers are households making $50,000 to $75,000 a year, accounting for approximately 18% of visits. #retail #AI #tech

Don't put all of your eggs in one basket. With Walmart Marketplace continuing to take marketshare, it's a great time to start focusing on building your Walmart business and diversifying your sales. Need an awesome Walmart repricer? Winner, winner chicken dinner right here! 🐣🚀 #walmart #walmartmarketplace #walmartsellertips #buybox #ecommmercebusiness

NOSTALGIC RETAIL SERIES: #5 - A&P The Great Atlantic & Pacific Tea Company, better known as A&P, started as a mail order business around 1859. By 1920, there were 4,500 stores; by 1930, 15,000. In 1936, in Braddock, Pa., A&P opened a “supermarket.” By the 1950s, A&P was, briefly, what Walmart is now, the nation’s largest retailer, with a 75 percent share of America’s grocery business (sounds like a grocery monopoly to me!!). The chain filed for bankruptcy in 2010 and 2015, with the last store closing in 2016. A&P became stale and never adjusted to consumer’s moving to the suburbs and their changing shopping habits. Remember, when you are #1, there is nowhere to go but down! Its legacy: The chain created Woman’s Day magazine in the '30s to showcase recipes and ingredients available in-store. (source: Good Housekeeping) R.I.P A&P (lots of letters…right?) Missed any in the series? Click here: https://lnkd.in/eDHZaDDw #nostalgicretail #retail #shopping #brands #retailrealestate

If you operate a store anywhere near one of the dots on this map, or sell your product there, you are in direct competition with WalMart’s 4700+ stores. This also means you are competing for market share against the collective buying power and logistics efficiency of each one of those stores. Over time, you will lose share on like items as market forces drive consumers to lower-prices that only the dominant market leader can sustain. As more grocery shopping shifts online, customers will be making fewer in-person trips, and many of them will only shop in one B+M grocery chain. To succeed, we need to differentiate the customer experience from what they can find at WalMart. This starts with speed to shelf, and putting innovative, exclusive product onto the planogrms before they do. That 12-24 month “head start” will be the lifeblood of the industry over the next decade. Pod Foods #innovation #grocery

Walmart, the nation’s largest retailer, is first in grocery dominance, but ranks last in two other metrics, according to a new study. https://ow.ly/kASQ50UgbvY #retail #grocery