- We just sold our very first item
on Walmart for $26 and 98 cents.
Now, after the $18 we paid for the product,
the $4 in Walmart fees and the $3 in shipping,
we only netted $2 profit on that product,
which is an 11.1% ROI.
Now, why am I so pumped about this?
People always say to me,
"Chris, it used to be so easy selling on Amazon or online,
"and it's too saturated now,
"or there are too many hoops to jump through."
Now, although I highly disagree with this statement,
I think Walmart has the potential to be
what Amazon was in 2014 or 2015.
And with Walmart having their Fulfilled By Walmart program
to compete with Amazon's Fulfilled By Amazon program,
I think there is a huge upside potential here.
So today, let's dive into this Walmart experiment,
if you will, and I want to share with you
the questions I've asked
and the tens of hours I've put in,
that way you don't have to,
and you can get that quick sale much quicker.
Let's get into it.
(upbeat music)
Hey, guys.
Before we get too far into this,
I had to film this after the whole video has been processed,
but we almost did $3,000 on Walmart last Sunday.
And there's this one skewer selling on Amazon
and it's selling for $140 more on walmart.com.
So, I cannot stress enough the power of Walmart,
check it out.
I'm so excited about Walmart and its potential.
Enjoy the video, guys.
So, currently here is where our business is at.
We're on pace to do $3 million this year in revenue,
and hopefully get closer to four by the end of the year.
Now, as I said,
I think Walmart has some huge upside potential here.
However, there are some huge barriers
that we need to address that
we're currently trying to overcome.
And if you do like making money online
and you do find any value in this video,
my only ask is that you consider liking and subscribing
for more content like this. (bell ringing)
It really does help the algorithm.
All right, so, listing.
That's where we all start, right?
Now, we're taking all of our inventory
that we already store inside the Amazon warehouses
via Amazon FBA, and we're wanting to see if
any of that sells first.
One thing I've learned with selling online
in the last decade is that
different marketplaces have different price points
and different sales velocities in which items sell.
So, the easiest place for us to start is
to see if any of our current inventory is one,
selling profitably, and number two,
is selling at the speed in which we need it to sell
in order for it to be worth our time.
Now, here's where we come across our first problem.
As I said, we're selling our products
that are already in the Amazon warehouses.
And so, there are two things that we need to do.
One, we have to make sure our inventory syncs up properly
from our Amazon warehouses to our Walmart listings.
And then number two is
because we don't have these products on hand,
we have to make sure that our customers get them in time.
So, our first problem we tackle
by using the software called CoMerchant.
CoMerchant will quickly sync up your Amazon inventory
to Walmart or whatever platform you want to sell on.
I recommend if you want to look more into them,
I did an interview with them on my channel about a year ago.
So, definitely look that up and check that out.
Now we figured out how to list our products on walmart.com.
We figured out how to sync up inventory,
but now how do we make sure that the products
that we want are selling on Walmart fast enough?
How do we measure that product sales velocity?
Well, after a bunch of research,
I found this company called Algopix.
And what Algopix does is it will measure
the sales velocity of walmart.com products.
I did an interview with them, it's not out yet,
but I highly recommend checking that out.
It goes into detail more about their software
if you do want to know more about that.
Now, something really cool about this software is because
we do have to pay shipping to the customer,
it takes that into account.
And it's definitely a bit clunkier
than some of these other Amazon software tools
that you're used to,
but this market is so immature right now.
So, any software developers out there,
I highly recommend you come along and take a look
because I feel like this market is wide open.
Now, this leads us into another problem.
And for any Amazon sellers out there,
you know that this is extremely important,
not only understanding what price point
that an item sells at, but the history of that price point.
So, for example, if we run a list
and it says that a product is profitable at $35,
that doesn't necessarily mean it's been selling at $35.
How long has that product been selling at that price point?
What if it's been selling at $25 for a year
and then just today started selling at 35 bucks?
Well, that's not a very long price consistency on that item
and I wouldn't want to buy that.
So, my question is, how do we track that for walmart.com?
Well, currently we do not have the ability to do that.
So, Algopix does have a feature in their software
that allows you to do that,
but you have to have an API developer to hook up to that
and it will cost 1.20 cents per product.
So, that's fine, but the thing is,
and for anyone who sells online,
you realize you have to go through a bunch of garbage
to get good products.
So for example, if we run a list of a thousand products,
we get from a supplier to see if it's profitable,
out of those thousand products,
maybe a hundred are profitable.
And out of those hundred, maybe we only end up buying 10.
So, we would have to pay the entire thousand,
the whole thousand items would get charged the 1.20 cents
causing us to get charged $12.
And we run hundreds of lists a month.
We would be paying thousands of dollars
for potentially hundreds of dollars of profit.
So as of right now, we have no way to gauge that.
So we are going into this very, very conservatively.
Now, as you guys can see,
that market when it comes to selling on Walmart is
just not the same as Amazon.
However, before I get into the next two issues,
I want to say that this is what makes things profitable.
The more tools that come out and the less risk there is,
and the less problems like this there are to figure out,
the more profits people can make.
If you're one of the few people
who can figure out how to do this,
you will make more money than people
who enter in down the line.
It's just how markets work.
And so, that leads me into our repricer.
So if you're not familiar with selling on Amazon,
or eBay, for that matter,
you have to have repricers for competitive markets.
That way your pricing can stay competitive
and you can actually sell your stuff
so people aren't under cutting you.
It's just part of the game.
Well, Walmart has a repricer,
I found one that does, it's about 50 bucks a month.
It's called MonsterSeller.
And MonsterSeller, they don't do any demos
so I think that's a big thing I want to say is
a lot of repricers, they'll do demos with you,
they'll hop on a call, all free of charge,
help you get things set up.
And I always advocate for finding one like that.
But however, the Walmart market is just
very immature right now and that just does not exist.
So, we were left to figure things out on our own.
Now, I want to say that this is not live based repricer.
Meaning, if you're just relying on your repricer,
you're not going to be competitive in pricing for a while.
So, you're gonna have to manually go in and change that,
which is a huge pain and I think it's going to
definitely present its problems with scaling.
However, it's just part of the game right now.
Once again, if you're a software developer,
highly recommend walmart.com market,
I feel like there's a huge market here.
And that leads me into my last problem that I'm seeing is,
the ability to quickly calculate profits
over your walmart.com store.
I've done a lot of research and if someone knows one
that I don't, please let me know.
There are softwares out there
that will hook up to your Amazon store,
you can see profitability on the products you're selling,
on your overall store, all the stats and
knowing the stats on your e-commerce store is so important
because statistics tell a story
and that story will help you either double down on things
that are working or eliminate things that aren't.
And that's really what's going to help you scale.
So, right now, we do not have one.
So it's all being done manually via Google Sheets.
However, that's definitely something
I want to look into going into the future.
And that's where we're at, that's the Walmart experiment.
Will we make millions or will this go down
in the book of things that we've tried
that have amounted to nothing?
Which there are plenty of those.
Either way, I'm extremely excited about this opportunity
and let me know what you guys think.
I'll see you in the next video.
Take care.