If you’re an eCommerce vendor, you probably know that setting up an online store on Walmart is no easy feat. There are many processes to go through, not to mention the technical jargon and detailed documentation you must provide.
However, you can save yourself the hassle by enlisting the services of a Walmart done-for-you company. The companies help you set up an online store on Walmart. We’ve reviewed three of these services to help you make an informed decision when hiring them.
However, before you keep reading about these Walmart courses, I need to say that I don’t recommend starting your business using an eCommerce model. Why? Because clients come and go, and you will have to be on a continual hustle to find more buyers for your products. This video teaches a business model using google maps where you setup your OWN websites and rent them out to clients instead. If a client decides to leave, you can simply find another client and point the leads to them instead. I highly recommend this business model instead of the Walmart eCommerce model.
Here’s a video of my daughter’s business using this :
The course my daughter used above is much better than the Walmart done-for-you programs. But since you are here to learn about these programs, lets get back to that:
Ascend is one of the most popular companies offering Walmart’s done-for-you services. With more than 500c clients, Ascend Ecom capitalizes on excellence, honesty, and openness to grow its clientele.
What sets Ascend apart from similar companies is how it executes the automation strategy. It automates your store in three phases with clear timelines:
Phase 1 (1-3 months)
The company completes the onboarding process within three months, so you’re confident you’ll start making sales. Also, they’ll help you set up a capital strategy.
Phase 2 (3-6 months)
At this stage, your store is making sales. Thus, you’ll likely begin to make tangible profits, and with the help of Ascend’s experts, you can boost your sales to higher margins.
Phase 3 (6-onwards)
At this point Ascend will help you scale your business by introducing your products to new platforms. They may also use strategies like private labels to increase your products’ visibility.
In addition to automating your Walmart store, Ascend can help you in manage the store’s day-to-day operations, including:
- Inventory management
- Order processing
- Website creation
- Product development
- Backend setup of the store on Walmart
Doneforyouwalmart is another service that can help you set up a Walmart store. With over five years of experience in the eCommerce industry, the company understands the ins and outs of setting up online stores on Walmart, Amazon, and other such merchants.
Doneforyouwalmart helps you:
- Establish a credit line
- Get your store approved
- Manage the store
- Add products every month to help expand reach
- List winning products on your store through their warehousing partners
You only need to raise the initial capital because Walmart uses the sales to pay down your dropshipping creditline. Doneforyouwalmart promises to help you set up a Walmart store in 2-4 weeks, including getting it approved.
However, since the onboarding process and the establishment of an LLC take two weeks, and Walmart takes 14-25 days to approve a store, your business can only be fully active in 2-3 months.
Walmart Automation is another service that can help you set up a store at Walmart. The company promises to help you earn 15-30% in monthly profits and manage and scale your business.
You only need to provide the startup capital to purchase the products and have $10,000- $50,000 in credit to help scale the business. The client also needs to provide a DUNS Number and obtain the LLC to set up the store.
What are the Risks of Using Walmart Done-for-you Store Services?
As with any investment, it’s essential to consider the risks of enlisting Walmart’s done-for-you services. They include:
Raise $10,000 for Stock
The biggest downside to hiring Walmart automation services is that you need $10,000 upfront to get the store going. The service providers often use this amount to purchase inventory; and, not everyone has this kind of money.
Need to Keep up with Trends
The eCommerce space is constantly changing hence the need to keep up with the trends. This means you must continuously look for new opportunities with regard to marketplaces, products, and audiences to make good sales.
Walmart Takes a Huge Chunk of the Profit
Although Walmart doesn’t charge a monthly fee for selling your products on its platform, it requires a referral fee which can eat into your profit margin.
The referral fee varies by product category, usually within a range of 6%-20% in addition to the cost of setting up the store. This can drive your business into making losses in the first few months
You Don’t Have Full Control
You won’t have full ownership of the store as a third-party seller, albeit with the lengthy and costly setup process. This leaves your store susceptible to closure with little or no recourse. You can only control the prices and the profit margins through aggressive advertising on Walmart.
Should You Hire Walmart Done-for-you Service? My Verdict
Although Walmart’s done-for-you services can save you the trouble of setting up an online store on Walmart, I wouldn’t recommend enlisting their services. You spend lots of money setting it up and don’t have control over your store which could lead to losses. What’s more, Walmart can ban your store, confiscate your products, or more, at any time. Also, the fact that Walmart takes up to 20% of your profits can lead to losses for first-time sellers. Better luck with another money-making endeavor.