In July of 2018, I attended a CPG supplier conference where an exuberant presenter shared the secret of their company’s success in selling products to Walmart. Their strategy is based on their observation that Walmart buyers are much more hesitant to try “new” products than smaller chains due to the dollars involved. As a result, they are much more likely to buy merchandise that has performed well in ecommerce.
Ironically, this dynamic has created a symbiotic relationship between Walmart & Amazon… Amazon benefits by being first-to-market with new items and Walmart benefits by minimizing its buy-in risk that may otherwise lead to excessive markdowns.
The presenter said, “Going into a Walmart buyer meeting, armed with Amazon sales data, greatly improves the odds of making a sale.”
During Q&A session, the presenter was asked if they also tested new products on Walmart.com. Their immediate response was, “No, setting up new items at Amazon is so easy that there’s really no need to take them anywhere else. It’s the “kiss rule” for suppliers and the key to selling to Walmart
That response may not have been nearly as surprising, had the event been held anywhere other than Bentonville Arkansas.
This post was originally published July 25, 2018 on LinkedIn, by Larry Robertson (edited)