After a long summer of waiting, Walmart+ is officially launched! We let you know some early teasers in our previous post, but we give a quick recap of that post and dive deeper into all of the launch details here.
Have you started your free 15-day trial yet? We would encourage you to sign up, use the service, and let us know about your experience on our LinkedIn page. You can sign up for a Walmart+ trial by visiting https://www.walmart.com/plus.
In many ways, it’s both an exciting and challenging time for Walmart to be entering the quick fulfillment subscription space. Walmart.com is the second largest marketplace in the U.S. after Amazon—it sees $21.9 billion in yearly sales as well as 308 million monthly visitors—and it’s one of the fastest growing ecommerce sites in the country.
Indeed, MarketplacePulse recently reported that Walmart’s Marketplace outperformed both ecommerce giants Amazon and eBay, with traffic increasing 55% back in April compared to February, and the Walmart app being the top download shopping app on the iPhone App Store in May. Plus, partly due to Walmart’s new partnership with Shopify, Marketplace sellers have doubled since July 2019, and more come to the marketplace each month.
Thirty-five percent of Amazon sellers are also selling on Walmart, so Walmart+ is, in many ways, the next sensible step for Walmart to compete.
In addition to that, Walmart merged its Walmart grocery and Walmart.com sites together earlier this year, allowing customers to load their online carts with products from across the store. Walmart’s grocery site has become the leading grocery platform in the country, and with that merger comes a surge in traffic to the entire Walmart Marketplace that could rise much higher with the launch of Walmart+.
That said, the new service has significant ground to make up. Amazon Prime is well established in the ecommerce subscription space with over 112 million US subscribers and over 150 million subscribers worldwide and currently has much more product to offer customers.
Walmart is also entering this space at a time when COVID-19 has led to widespread financial challenges for consumers and distribution challenges for sites like Amazon.
When Amazon was just starting, when the platform first allowed third-party sellers, some brands were reluctant to get onboard. Amazon had already established itself as a bookseller, and higher-priced goods weren’t trusted there.
Now Amazon sells luxury goods across the globe, and sellers who didn’t get on early have had lots of making up to do. I believe Walmart+ could prove to have a similar trajectory. These are basically the early days of Amazon. If you want to control how things end up, I would encourage brands to get on earlier rather than later.
Walmart Marketplace is more exclusionary in the vendors it chooses than Amazon. This is great for brands who want to diversify channels, because they can compete more easily within Walmart Marketplace. Fifty seven percent of Amazon shoppers say they also shop on Walmart Marketplace, so there’s also a dynamic demographic of shoppers brands can reach in this space. With the addition of competitive pricing and services offered through Walmart+, it could be a homerun.
Another thing that’s interesting about the Walmart Marketplace is that it allows luxury brands that wouldn’t otherwise sell their product in-store to sell it on Walmart’s online platform. The company is shifting into a provider of not only low-priced items but high-quality products.
I think Walmart is just going to totally transform their position in the industry, and not by taking the leader’s spot, but being in a place where they have a foundation to launch off of.
Walmart Marketplace is still a developing marketplace, and it doesn’t have the same level of support Amazon does. The addition of a developing subscription service could add more challenges at first, but it’ll be an exciting platform to watch over the next few months.
Walmart's press release on Walmart+ touts these benefits to consumers:
*Screenshot from https://www.walmart.com/plus *
While I love the fact that Walmart+ is allowing cancellations up to 48 hours after the free trial ends, some of the other benefits will seem a little more cumbersome:
Screenshot from https://www.walmart.com/plus/fuel-discounts
Screenshot from https://www.walmart.com/plus/fuel-discounts
There is a minimum order requirement of $35
Mobile Scan & Go will still require scanning of a QR code at self checkout.
Screenshot from https://www.walmart.com/plus/
I expect Walmart to roll out new features for Walmart+ and would not be surprised to see some holiday exclusive deals or discounts to drive new users and add excitement. But for now, Amazon Prime benefits seem to be the better value. Please let us know what you think of Walmart+ and reach out with any ecommerce related questions. If you're interested in selling on the Walmart marketplace, reach out to us and request a demo today.
Find relevant content to accelerate your ecommerce business. Stay on top of industry trends and best practices.
Peak season is almost upon us and with all signs pointing to it starting earlier than ever, with Christmas gifting searches now ramping up in August and September, it’s time to start preparing for peak. In this article, we’re sharing our top five tips for planning and preparing for peak season with Google Ads and the strategies required to get your Paid Search ready so you can drive success over this crucial period.
In 2021, gifting search terms started increasing in popularity in August. The general trend is that people are looking, researching and weighing their options early, so it’s best to start your Paid activity early to ensure that you’re capturing that early research traffic. This will help drive revenue alongside aiding those consumers who are in their research phase.
From 2020 to 2021, spend during Cyber Week actually only rose 2% but in the weeks leading up to it, it increased by 16%. However, Cyber Week is still the biggest period during the latter half of the year, accounting for 23% of all online spend by consumers over peak. Being prepared and starting early will help you to maximise your time during this period.
According to Google, 48% of global consumers have stopped buying or using a service due to privacy concerns. Privacy is front of mind when consumers are shopping online and we know that Google is phasing out 3rd party cookies in 2023. This is going to make it much harder to track users online and it’s something that brands need to think about this now – waiting isn’t an option.
From a Google Ads point of view, you want to ensure you have set up the Google Ads tag across your site and have enabled ‘Enhanced Conversions’, which ensures all conversions are tracked and allows you to monitor other actions such as ‘Add to Cart.’ This is relatively easy to set up, especially if you use ‘Google Tag Manager’.
It’s also vitally important that you build up your first-party data during this time as this is data you own and it can be used when targeting consumers that have provided your brand with their email address. Pattern’s own experience shows that by segmenting and using first-party data, you can see a 10% improvement in revenue and ROI.
A full-funnel approach is now more important than ever as consumers become more discerning and have more choices than ever of where to shop.
Pattern has seen success with Google Ads’ ‘Discovery Campaigns’ (image-based ads that appear on Google platforms such as Gmail and the Google app), which have driven success both from a traffic and revenue perspective.
The performance of these campaigns is significantly enhanced by adopting a segmented and nuanced approach to first-party data and incorporating these into your campaigns. Other options for a full-funnel approach include YouTube and testing bidding on keywords that are more representative of the research phase. (e.g. ‘best baby clothes’ for a baby clothes brand)
Earlier this year, Google announced that they were moving away from Smart Shopping and launched Performance Max. This is a new campaign type that incorporates features and placements from Smart Shopping but expands them onto other platforms such as Gmail but also alternative creative options, such as images and videos.
Since Google has already started automatically upgrading Smart Shopping campaigns to Performance Max, expect to see some fluctuations in the first 2 weeks following the switch over but results generally seem positive. We recommend upgrading sooner rather than later to limit any potential impact to peak period.
Peak period will be even more competitive than in 2021 and you’ll need your budgets to support this period, we recommend boosting budgets in October to start capturing that early peak traffic. As we enter November and the Cyber Period, start early and make sure you are capturing those consumers looking for early bargains, ensuring you are being nimble in your optimisations and reacting to the data that you are seeing.
Overall, peak period is vital to help drive your sales and by preparing early, you will see strong results and drive success for your brand. If you want to discuss how your brand can navigate this next peak period, contact us to discuss your options with our performance team now.
Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces.
Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.
So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.
Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products.
An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.
An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.
Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.
At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services.
It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.
It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.
The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.
Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces.
With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.
Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.