Ready to turn Walmart into your strongest growth channel? We break down exactly how to choose between 1P, DSV, and 3P, why WFS unlocks conversion and rank, and how to use marketplace proof to win store distribution with less risk and more leverage. Instead of pitching hypotheticals, we show how to arrive at hard data, conversion rates, search share, and regional heat maps that give buyers confidence and help you scale smart.
We start with the selling frameworks: store‑shared assortments that power true pickup and delivery, .com‑only assortments for controlled inventory and pricing, and the 3P paths that maximize flexibility. Then we get tactical. Map your product to the right category and product type, align titles with real shopper keywords, and secure fast two‑day coverage. Build a lead SKU for volume and flankers for digital shelf presence, so your brand shows up broadly across the queries that matter. If you’re launching a new mod, use 3P to solve the cold start problem: seed reviews, buy early visibility with efficient Walmart Connect, and flip that momentum into 1P with a compelling strike‑through that lifts conversion.
We also dig into the bigger picture. Walmart’s partner‑first approach is changing the seller experience, from easier onboarding to tougher action on counterfeits and unauthorized resellers. Their EDLP focus keeps search honest and pushes brands to deliver real value. And the AI wave is here: from supplier tools to shopping assistants and a growing OpenAI referral channel, discovery is shifting fast. Brands that keep inventory healthy, content clear, and delivery fast will ride these surfaces as they expand.
If you’re serious about owning your retail, protecting margins, and building an omnichannel flywheel, this playbook will get you moving. Subscribe, share with a teammate who needs a Walmart strategy refresh, and leave a review with your biggest Walmart growth question so we can tackle it next.
More About this Episode
Mastering Walmart's Omnichannel Advantage: How Sellers and Suppliers Can Win on Walmart.com and In-Store
As the eCommerce landscape continues to evolve, one thing has become increasingly clear: Walmart is no longer just a retail giant confined to brick-and-mortar. It’s positioning itself as a formidable omnichannel powerhouse—one that’s uniquely positioned to rival, and in some ways surpass, Amazon.
For brands, suppliers, and sellers, this transformation presents massive opportunities—if you know how to take advantage of them. Whether you’re a current 1P supplier, an emerging 3P marketplace seller, or somewhere in between, understanding how Walmart's omnichannel ecosystem works is essential to building a long-term, scalable business. Let's dive into the key strategies, structures, and mindsets needed to grow on Walmart.com—and eventually, in-store.
Understanding the Walmart Ecosystem: 1P vs. 3P
Before diving into strategy, it's crucial to understand the basic architecture of Walmart’s selling ecosystem. There are two primary models:
1P (First-Party)
In this model, Walmart acts as the retailer. They purchase your products and resell them directly to customers. There are a few variations:
- Store Shared Inventory: Products available in-store and online, often with pickup, delivery, and/or shipping options.
- 1P .com (Owned Fulfillment): Walmart buys your product and stores it in their fulfillment centers.
- DSV (Dropship Vendor): You retain inventory and ship products when an order is placed, but Walmart still owns the retail relationship.
3P (Third-Party Marketplace)
With 3P, you’re the retailer selling directly to consumers through Walmart’s platform. You control pricing, branding, and fulfillment. There are two core 3P models:
- WFS (Walmart Fulfillment Services): You send your inventory to Walmart’s fulfillment centers, and they handle shipping.
- Seller-Fulfilled: You handle order fulfillment from your own warehouse or logistics partners.
Walmart has steadily been transitioning away from the legacy DSV model and pushing more sellers toward the 3P marketplace and WFS. Why? It’s more scalable, flexible, and seller-friendly—offering more control to brands and less inventory risk to Walmart.
Why Sellers Are Doubling Down on Walmart.com
The Walmart Marketplace isn’t just a place to move more units. It’s a strategic tool to accomplish multiple business objectives:
1. Control Your Pricing and Protect Channel Integrity
For brands with established Amazon businesses or tight MAP (Minimum Advertised Price) policies, owning your pricing is critical. Selling 3P on Walmart gives you full pricing control, reducing risks like buy box suppression on Amazon or undercutting your own margins.
2. Expand Assortment Without Diluting In-Store Focus
If you’re a current 1P Walmart supplier with a few SKUs in-store, Marketplace lets you expand your digital assortment without overcomplicating the buyer relationship. Whether it’s offering multipacks, new flavors, limited editions, or accessory items, 3P gives you the flexibility to test, learn, and scale online.
3. Prove Demand to Get In-Store
Walmart is a data-driven company. They’ll ask: Why should we take a bet on your product? With 3P, you can launch SKUs, gather performance data, and create a compelling case for in-store expansion. Walmart even uses WFS fulfillment data to understand geographic demand patterns, helping inform localized store rollouts.
4. Claim More Digital Shelf Space
Even if you only have one item in-store, dominating the digital shelf requires more than that. Having a broader catalog on .com allows you to capture more search queries, showcase brand authority, and maximize category share. Even lower-volume SKUs help build brand presence and increase your likelihood of conversion.
Avoiding the Cold Start Problem with 3P
Launching a new SKU directly into mod (modular/in-store placement) without a digital foundation can be risky. The “cold start” issue is real: no reviews, no traffic, no history.
A smarter move is to first launch that SKU via 3P, build up its digital footprint, run some ads, and establish sales momentum. Then, when you flip it to 1P or pitch it to a buyer, you’ve already created a proven sales story backed by data.
You might even get a strike-through pricing advantage once it's converted to 1P (since the original 3P price was higher), which boosts click-through and conversion rates.
Walmart’s Omnichannel Strategy: A Game-Changer
While Amazon is dominant in eCommerce, Walmart is playing a different game. Their omnichannel strategy is perhaps the most underutilized weapon in retail today.
Here’s why Walmart’s approach is unique:
- Every store SKU is online with pickup and delivery options, turning 4,600+ stores into micro-fulfillment centers.
- Buy Online, Pickup In-Store (BOPIS) continues to grow in popularity, offering convenience without last-mile shipping costs.
- WFS enables nationwide 2-day delivery, allowing 3P sellers to compete with Amazon Prime shipping speeds.
And most importantly, Walmart’s physical footprint gives them a visibility and distribution edge that no other eCommerce platform can replicate.
Walmart and AI: A Strategic Leap Forward
Walmart is already investing heavily in artificial intelligence. From launching “Sparky,” its AI-powered shopping assistant, to incorporating AI tools for suppliers within Supplier One, the retailer is clearly preparing for the next generation of eCommerce.
One of the boldest moves was its strategic partnership with OpenAI, integrating Walmart products directly into ChatGPT’s shopping capabilities. This initiative alone has made ChatGPT responsible for over 1.5% of all Walmart.com sales—within just a few months.
This partnership indicates that Walmart isn’t just reacting to innovation. It’s leading it. With the appointment of a Chief AI Officer and ongoing AI product integrations across inventory management, advertising, and consumer experience, Walmart is setting the stage for a future-forward retail experience.
Tactics to Get Started and Win on Walmart.com
If you're just starting or want to optimize your current presence, here's where to focus:
1. Perfect Your Product Listings
- Optimize Titles and Descriptions: Include high-volume keywords, but keep it readable.
- Use High-Quality Images: Multiple angles, lifestyle shots, and infographics matter.
- Bullet Points: Make them clear, benefit-driven, and scannable.
2. Nail Your Categorization
- Correct Product Type: Ensures visibility in the right category.
- Accurate Category Path: Align with top competitors in your space.
- Back-end Attributes: These fuel Walmart’s filters and search algorithm.
3. Leverage WFS
If you're not already using WFS, you're likely at a disadvantage. Listings with WFS enjoy:
- Higher search rankings
- Better shipping times
- Higher conversion rates
Being early to WFS means you get these advantages now—before it becomes table stakes.
4. Monitor and Adjust Pricing
Walmart prioritizes EDLP (Everyday Low Prices). Make sure your pricing is competitive but sustainable. Strike-through pricing can help drive urgency and improve conversion.
5. Invest in Walmart Connect Ads
Drive traffic to new listings or support evergreen SKUs. Walmart Connect’s ad platform continues to improve, and smart campaigns can generate strong ROAS—especially when paired with optimized listings.
Walmart vs. Amazon: A Seller-Friendly Alternative?
Many sellers feel squeezed by Amazon. Rising fees, lack of support, arbitrary suspensions—it’s a common story. In contrast, Walmart is investing in seller relationships. They provide onboarding support, platform updates, and even proactive outreach to help you succeed.
In 2023 alone, Walmart removed over $100 million in GMV tied to counterfeit or unauthorized sellers, signaling a strong commitment to maintaining a clean, brand-friendly marketplace.
Final Thoughts: Why Walmart.com Deserves Your Attention Now
If you’ve been sleeping on Walmart Marketplace, it’s time to wake up. The channel is growing fast, competition is still manageable, and the opportunity to scale both online and in-store is unmatched.
Walmart offers a rare combination of:
- Control (via 3P)
- Scale (via WFS + physical stores)
- Credibility (trusted brand, everyday low prices)
- Innovation (AI partnerships, rapid platform improvements)
Whether you're an emerging brand looking for traction or a legacy supplier aiming to diversify your channel strategy, Walmart.com is the lever that can move both your online and retail business forward.
And the best part? The window to get in early is still wide open. But it won't stay that way forever.
Now's the time to plant the seeds—for a future that spans shelf to screen, warehouse to doorstep.
