Data empowers sellers to stay ahead of their future competitors.
Walmart sellers face a relatively small amount of competition — the marketplace hosts thousands of sellers today, while Amazon hosts over 2 million sellers — and using data is critical to their success. Sellers who use metrics now can establish themselves as strong merchants before the marketplace gets big. By building a large customer base early on, they’ll have a major competitive advantage over the majority of sellers once the marketplace becomes larger.
To help Walmart sellers get started, we’ve created a guide to tracking and applying data on the marketplace for better growth. Walmart sellers who monitor their metrics and apply their insights to improve their performance will be set up to grow their business.
Merchants who use data to encourage returning and new customers to make purchases will have a competitive advantage — not only in the short-term, but also in the future when Walmart’s marketplace has expanded.
How data impacts growth on Walmart
When customers visit Walmart’s online store, the likelihood of them buying your product depends on your:
- product ranking: the point at which the product appears in search results
- Buy Box placement: whether the seller’s product made the Buy Box or not
- product reviews and seller ratings: how many product reviews and seller ratings the merchant has and how positive or negative this feedback is.
These factors are heavily shaped by seller account metrics. We cover where to find these metrics in more detail down below.
By understanding how data affects each factor, sellers can attract the attention of more customers and build relationships with repeat customers.
Product ranking
A buyer is much more likely to buy your product if it is listed as one of the first few search results on Walmart.
When you search for an item on Walmart, the marketplace automatically shows the “Best Match” results.
Walmart has not disclosed which metrics determine the “Best Match” search rankings. The marketplace only states that using SEO can affect how your listing appears in Walmart search results.
However, the other search filters buyers can choose are impacted by seller metrics. For example, the “Best Seller” filter depends, of course, on the merchant’s number of sales, or total unit sales.
Sellers who want to rank high on the Best Seller filter should also check their conversion rate, which indicates the percentage of traffic that resulted in sales. Knowing whether visitors are purchasing an item helps sellers understand whether and how their total unit sales rate should be increased. Likewise, merchants should check their traffic, or item page views rate. Products that receive high amounts of traffic are more likely to be purchased if pricing and other factors are also set appropriately.
Another product search filter that depends on metrics is the “Highest Rating” filter.
The “Highest Rating” filter depends on the average rating of your product as well as the average product ratings of your competitors.
Need a quick review? Here are the metrics we covered in this section:
- Total unit sales
- Conversion rate
- Item page views
- Average product rating
Buy Box placement
When Walmart sellers share a listing with merchants offering the same product, winning the sale is all about securing the Buy Box.
The Buy Box is the first available price option on a shared Walmart listing.
Winning the Buy Box is critical for making sales. It is the first, most prominent price option, so buyers are most likely to purchase the product from the Buy Box.
Winning the Buy Box depends on two factors: price (item price and shipping price combined) and availability. Sellers can check their price competitiveness by checking the Buy Box item price and Buy Box shipping price of the winning item. Sellers who aren’t the Buy Box winner should lower their item and shipping price to match the Buy Box winner’s rates.
To check availability, sellers can check the Inventory count of their item.
Need a quick review? Here are the metrics we covered in this section:
- Buy Box item price
- Buy Box shipping price
- Inventory count
Product reviews and seller ranking
Walmart customers can’t interact with sellers in-person. Like other online shoppers, these buyers rely on product reviews and seller ratings to make purchase decisions. Merchants who are able to collect a lot of positive feedback on their products and seller profile will have the advantage of a strong, established reputation once Walmart’s marketplace has grown with more competition.
Feedback encourages purchases when it is positive and when it is plentiful. One hundred positive reviews on a product is much more convincing than a single five-star rating.
The amount of positive customer feedback a seller collects depends on the number of orders they have. Merchants have a higher chance of collecting positive feedback if they have more buyers to leave a rating or review.
Sellers should check their conversion rate, total unit sales, and item page views to understand how they can win more sales and in turn, collect more feedback. By assessing their conversion rate, merchants can determine whether they need more traffic or simply need more sales to boost orders.
Merchants who want to feel confident about receiving positive feedback from buyers should also check their seller performance metrics: order defect rate, on-time shipment rate, and valid tracking. These metrics reflect the seller’s customer service and indicate whether buyers are likely to leave positive or negative feedback.
Sellers should also monitor their reviews count, average product ratings, and seller rating to assess how buyers are currently perceiving their performance and determine where there’s room for improvement.
Need a quick review? Here are the metrics we covered in this section:
- conversion rate
- total unit sales
- item page views
- reviews count
- average product rating
- seller rating
- performance metrics
- order defect rate
- on-time shipment rate
- valid tracking
Let’s start tracking data.
Tracking data and adhering to benchmarks
Merchants who want to use data to improve their customer retention and acquisition efforts need to know where to find these metrics in Walmart’s seller features.
This data can be found in several types of Walmart reporting:
- Key Performers and Conversion Funnel reports
- total unit sales
- item page views
- conversion rate
- Buy Box report
- Buy Box item price
- Buy Box shipping price
- Item report
- Average rating of product
- reviews count
- Inventory count
- Buy Box item price
- Buy Box shipping price
- Seller Scorecard report
- performance metrics:
- order defect rate
- on-time shipment rate
- valid tracking
- Seller rating
- performance metrics:
We’ll explain where to find these reports and metrics, and identify healthy benchmarks for this data to help sellers win new customers and keep repeat buyers loyal.
Key performers and conversion funnel reports
The Key Performers and Conversion Funnel reporting provides sellers with key data insights on their orders. Merchants can access these reports by logging in to Seller Center, and clicking Summary Reports under the Insights and Analytics section in the left navigation pane. Merchants can change reports by using the tabs at the top of the Summary Reports page.
There are two types of Key Performers reporting:
- the Top Selling Items report
- the Lowest Converting Items report
Top Selling covers metrics for the top 500 selling items and Lowest Converting covers metrics for the lowest 500 converting items.
Sellers can view an item’s conversion rate, units sold amount, and item page views amount from both reports. Merchants can also view these metrics for all top selling items or all lowest converting items.
Sellers can also use the Conversion Funnel report to view these metrics for entire product categories.
Healthy benchmarks for conversion rates, units sold amounts, and item page views are difficult to pinpoint since each metric is relative. The main guideline is having conversion, sales, and traffic rates that ensure you’re making a profit, but these amounts are going to be different for every seller depending on their type of business.
A good starting point is figuring out a profitable conversion rate. Determine how much you earn per conversion, and then use that amount to calculate how many conversions you need to make a profit. Sellers can also use their average conversion rate in product categories or overall as a benchmark for individual item conversion rates.
Once merchants have determined whether their conversion rate needs to be improved, they should check their unit sales rate and item page views. By using the conversion rate formula, sellers can determine how much each factor needs to be increased to achieve their profitable conversion rate.
All three metrics should be viewed over long periods of time to determine whether each value has decreased and can be improved upon.
Need a quick review? Here are the benchmarks we covered in this section:
- Total unit sales: no benchmark; relative to the product and seller circumstances
- Item page views: no benchmark; relative to the product and seller circumstances
- Conversion rate: sellers should determine benchmark by figuring out their profitable conversion rate or by using their average conversion rate as a benchmark
Buy Box report
Sellers can use the Buy Box report to understand which merchants won and see the pricing of competing sellers. The Buy Box report can be downloaded by logging in to the Seller Center and clicking the Manage Items page. From there, sellers can click the Download icon and select Download Buy Box Report.
Once Merchants have downloaded the Buy Box report, they can view which seller (possibly themselves) won the Buy Box, in addition to the item price and shipping price of each competing seller.
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If a seller isn’t the Buy Box winner, they should use the item and shipping price of the winner as a benchmark. Let’s say the seller and the Buy Box winner have the same item price, but the Buy Box winner has a lower shipping price. The other seller then knows that they will need to decrease their shipping price in order to win.
Need a quick review? Here are the benchmarks we covered in this section:
- Item price: should be equal to or lower than the Buy Box winner’s item price
- Shipping price: should be equal to or lower than the Buy Box winner’s shipping price
Item reports
The item reports contain a variety of useful metrics, such as tracking inventory and feedback, for sellers’ individual products. This report can be accessed by logging in to the Seller Center, visiting the Manage Items page, clicking the Download icon, and selecting Download Catalog.
The report may take a while to download depending on the number of items you have. Once it has finished downloading, a .zip file will be saved to your computer. Its file name will start with “ItemReport.” Here is an example of an Item Report below:
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The Item report indicates each product’s average rating, reviews count, and inventory count. It also indicates the item price and shipping price of the product that won the Buy Box for sellers who don’t want to download the Buy Box report.
Walmart does not list a formal benchmark for product ratings and review amounts, but generally it’s good practice to maintain 4 stars or above on each item. In terms of reviews count, aim to have 50 or more reviews for each item. 50 or more reviews per product can result in a 4.6% increase in its conversion rate, according to stats from Reevoo.
Each item’s inventory count should never fall to zero as being out-of-stock delays orders and prevents sellers from winning the Buy Box. Pick an inventory count number higher than zero that signals when you should restock your inventory of that item. You should pick an amount that gives you enough time replenish your inventory before it drops to zero.
The Buy Box item and shipping prices should be used as benchmarks for the seller if they are not the Buy Box winner. They should match or lower their own item’s price and shipping price to beat the current Buy Box winner and secure it in the future.
Need a quick review? Here are the benchmarks we covered in this section:
- Average product rating: four stars or more
- Reviews count: 50 or more product reviews
- Inventory count: should stay well above zero; pick an inventory count higher than zero to signal when you need to restock your item
- Buy Box item price: should be matched or make your item price lower than the winner’s price
- Buy Box shipping price: should be matched or make your shipping price lower than the winner’s price
Seller Scorecard report
The Seller Scorecard report indicates key performance metrics as well as a merchant’s average seller rating. This report can be accessed by logging in to Seller Central, clicking Seller Scorecard under the Insights and Analytics section, and scrolling through the page to find each metrics section.
The Order Defect Rate is displayed first in both chart and graph formats.
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The ODR reporting is followed by the other two performance metrics: the on-time shipment rate and valid tracking rate.
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After these two rates, the average seller rating and each review are posted.
Walmart provides recommended benchmarks for the three performance metrics:
- 90-day order defect rate = 0-2%
- On-time shipment rate > 99%
- Valid tracking rate > 95% (excluding items shipped via the “Freight” method)
The marketplace does not provide a benchmark for your average seller rating, but merchants are advised to keep their average rating at 4 stars or above to convey a positive image of their business.
Need a quick review? Here are the benchmarks we covered in this section:
- 90-day order defect rate: 0-2%
- On-time shipment rate: > 99%
- Valid tracking rate: >95%
- Average seller rating: four or more stars
Say you’re not meeting these benchmarks…
If you’re not meeting the benchmarks for these metrics, there are steps you can take to improve your stats for greater customer engagement and acquisition.
Low conversion rate
When your conversion rate is low, it often means your sales are too low. Here are a few tips to boost your number of orders.
- Evaluate your pricing. You may need to lower your price in order to win the Buy Box more frequently and increase your sales. Review your competitors’ rates to see how your prices compare and whether they need to be decreased.
- Consider offering free shipping. Offering free shipping makes you more likely to win the Buy Box since it reduces your overall item cost. Buyers are also more attracted to free shipping and will be more likely to buy your product if you offer it.
A low conversion rate could also mean your traffic isn’t high enough. Your number of orders is more likely to drop with the fewer visitors you have. Here are a few tips to increase your listing traffic:
- Use SEO keywords. Including highly-searched terms and phrases in your listing titles and descriptions will drive traffic to your item pages. Walmart recommends these SEO practices for creating listings.
- Use clear, high-quality product images. When buyers scroll through product search results, they won’t click on your item if your product photo is blurry and unattractive. Use clear, high-quality images to encourage customers to click and purchase your product.
- Use advertising. Promote your Walmart listing with Google AdWords or Facebook ads for increased traffic to your item page.
Boosting your conversion rate to a profitable level, whether it’s through increasing sales or traffic, is a critical way of growing your Walmart business.
Weak Buy Box item and ship pricing
If you can’t afford to match or beat the Buy Box winner’s item and shipping prices, you need to reevaluate your budget. Here are a few tips for bringing your item and ship pricing down to competitive Buy Box levels.
- Determine how much your costs would need to be lowered to make a profit at the Buy Box winner’s item and shipping prices.
- Figure out where you can cut costs in your budget to afford winning the Buy Box. Can you switch to a less pricey supplier? Can you start using drop-shipping to reduce storage costs? Figure out which business practices aren’t necessary and cut costs to make winning the Buy Box affordable.
Both returning and new buyers are drawn to the Buy Box, so it’s worth reconfiguring your budget to win the spot and increase your sales.
Low product and seller ratings
If your average product and seller ratings are below four stars, buyers will be less likely to trust your business and purchase your items. Here are a few tips for raising your product and seller ratings.
- Address concerns that buyers mention in low-rated reviews. Customers may consider buying from you again if you’re able to resolve the issue that they had with your item.
- Plan to avoid these buyer-related issues in the future. Take note of the problems customers had with your products. Consider how you can change your seller practices to avoid these issues in the future so that you receive less negative feedback and keep your customers happy.
- Consider if a low review is eligible for removal. In some cases, negative product reviews and seller ratings are eligible for removal. Review Walmart’s guidelines on removal to see if any negative feedback you received could be taken off your listing or seller page.
Keeping your product and seller ratings high gives you peace-of-mind in knowing that you’re keeping customers happy and encouraging them to continue engaging with your business.
Low product review count
Without a high amount of reviews (>50), customers might feel uneasy about your business and won’t be motivated to purchase your product. Here are a few tips for collecting more product reviews:
- Get more sales. Review the low conversion rate tips above for strategies on increasing sales.
- Don’t ask customers for reviews or send them sample products to incentivize reviews. Walmart prohibits both of these practices, so sellers can only rely on Walmart’s messages to buyers that prompt them to leave reviews.
By increasing their number of sales and respecting Walmart’s feedback practices, sellers can gain a higher amount of product reviews that encourages new and old buyers to purchase their items.
Poor performance metrics
Poor performance metrics are a pretty clear sign of unhappy customers — which means they also signal oncoming negative product and seller reviews. Avoid these damaging ratings by keeping your performance metrics healthy with these tips:
Lower a high order defect rate by:
- Describing the product accurately. Indicate whether the product is damaged, used, or any other defining qualities that will matter to customers. Otherwise, the order could result in a return or cancellation that increases your order defect rate.
- Ensure on-time deliveries. Have an inventory management plan that ensures products are in-stock, ready to ship, and will be delivered on-time. Items that are delivered after the expected delivery date can increase your order defect rate.
Decrease a high on-time shipment rate and valid tracking rate by:
- Ensure on-time deliveries by having items in-stock and ready to ship. Merchants should consider using tools, like Sellbrite, if they are unsure about their inventory management planning. Sellers should also ensure that they are proving valid tracking info by following these guidelines from Walmart.
Sellers who use these strategies for maintaining healthy performance metric levels will feel confident in their excellent customer service that should encourage positive buyer feedback.
Low inventory count
If your items’ inventory count is constantly hitting zero before you’ve restocked, you need to improve your inventory management plan. When items aren’t available, they’re not going to win the Buy Box and they cause order delays for customers.
Inventory management is the responsibility of the seller, not Walmart. Sellers who are unsure of their inventory management abilities should consider using a tool like Sellbrite.
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Our program helps sellers avoid inventory management issues, such as overselling, with our channel syncing feature and allows sellers to customize their inventory rules by channel.
Metrics and benchmarks wrap-up
Can’t remember each metric and benchmark? Here’s a wrap-up to help you out.
Using numbers to grow your Walmart business
Walmart merchants deal with a relatively small amount of competition as the marketplace is still growing. While Walmart is emerging, it’s critical that sellers take advantage of data for improving their customer engagement and acquisition efforts.
Merchants who track and act on metrics are able to encourage both old and new customers to make purchases. Securing and growing this business, these sellers will have strong, well-established businesses on the marketplace once it has grown and there is more competition. Walmart merchants who continuously monitor their data and iterate on their engagement and acquisition efforts as the marketplace changes will stay successful on the marketplace.
