Will the Chinese market become Walmart's mainstream in the future? Walmart's latest investment standards announced

Entering 2023, Walmart has also started a new round of investment promotion. As we all know, Walmart’s previous entry standards were very high. Third-party sellers who wanted to enter Walmart needed to pass Walmart’s seller review. Even the button to start the application was named "Request to Sell ".

Since last year, Walmart has provided a variety of solutions to provide more opportunities for more international sellers, and to help sellers of different sizes achieve cross-border start-ups, store growth, and business expansion. Walmart has gradually relaxed its investment threshold.

In recent days, Walmart has just released its new investment portrait for 2023.

In 2023, Walmart will open three sites in the United States, Canada, and Mexico to international sellers.

Entry criteria: Chinese (including mainland China and Hong Kong, China) enterprises that operate legally and in compliance with regulations; have experience in operating cross-border e-commerce platforms; and have fast and reliable order fulfillment capabilities.

In fact, this threshold is already very low. Compared with the previous entry standards, in addition to the above-mentioned requirements, there is another one: the sales volume of the cross-border e-commerce platform account is greater than 300,000 US dollars in the past year. The vision is very high, only big sellers are wanted.

The requirement of sales of more than 300,000 US dollars alone has already discouraged most sellers. After all, sellers with sales of more than 300,000 US dollars are not the majority, but only a small minority. Now that Walmart has cancelled this standard, it means that a large number of sellers will quickly flock to Walmart.

Of course, for sellers, the top priority is the cost of entry. In order to attract merchants to settle in, Walmart has also released very attractive entry preferential policies.

The store opening fee is 0. After applying for a Walmart store, the entire process does not require any fees. 0 monthly rent . After the store application is approved, Walmart allows merchants to pay no monthly rent in order to save the operating costs of merchants. The commission rate is also reduced to 5% , which maximizes the benefits for merchants. Not only that, Walmart will also provide merchants with official logistics fees (WFS) and in-site advertising , without any hidden fees , which really saves sellers costs to the greatest extent. This wave is really full of sincerity!!!

Many people would like to ask when they see this: Why does Walmart continue to lower its entry standards and start to attract investment crazily?

I speculate that it may be related to the financial report for the fourth quarter of fiscal year 2023 released by Walmart some time ago.

In the fourth quarter, the performance of the Chinese market was really impressive. I speculate that the reason for relaxing the entry restrictions this time is definitely because they saw the vastness of the Chinese market in the fourth quarter. When Walmart opened the Chinese market in 2021, only 6% of the sellers who entered were Chinese sellers, but at the end of the same year, the proportion of Chinese sellers soared to 20%, and in 2022 it reached 40%!

I think the Chinese market will definitely be Walmart's mainstream target in the future, because Chinese sellers are backed by the country's strong manufacturing industry. With this strong background and population base, there must be a stable supply chain and diversified categories, which have very obvious advantages in the entire global e-commerce industry. On the other hand, the e-commerce operation capabilities of Chinese sellers should not be underestimated.

Now, the Chinese market has a high status in Walmart, so I think we can give it a try. After all, such good conditions may not always be available. Of course, it also depends on ourselves. After all, this industry changes very quickly, so we need to consider it from all aspects.