Third-party (3P) commerce is a major opportunity for brands and retailers. However, managing multiple e-commerce systems can be complex and costly. That’s why it’s important to effectively manage marketplaces to optimize profitability. Rithum recently hosted a webinar (available on demand here) featuring Walmart Marketplace and Forrester. Here are key takeaways from three industry experts.
Three key benefits for brands selling on marketplaces
Guest speaker Emily Pfeiffer, principal analyst at Forrester, noted the importance of data integration, and transparency and compliance, for sellers when selling through marketplaces. Pfeiffer also highlighted three key benefits for brands.
- Expanded sales channels: Selling through marketplaces provides sellers with increased brand exposure and more sales channels to reach new customers.
- Inventory liquidation: Marketplaces create opportunities for brands to liquidate excess or slow-moving inventory in a more profitable way compared to bulk liquidation.
- Assortment testing: The endless digital shelf space of marketplaces allows brands to more easily test different product assortments and combinations to see what resonates with customers.
During her presentation, Pfeiffer also emphasized the importance of data-driven decision-making. This is achieved by using data from marketplaces to make informed decisions about inventory and customer preferences.
Rithum Managed Marketplaces helps ensure sellers comply with legal requirements for marketplace transactions. Rithum’s platform also provides robust data analytics tools, allowing brands to make data-driven decisions and optimize their product offerings.
The webinar also went in-depth about Rithum’s commissioned “The Total Economic Impact™ of Rithum Managed Marketplaces” study by Forrester Consulting, published in February 2024. According to guest speaker Veronica Iles, senior consultant at Forrester, the study found that by using Rithum Managed Marketplaces, four brands were able to expand to new marketplaces faster. Brands were able to reduce the time and effort required to onboard each new marketplace.
Sellers also increased GMV in a profitable way. Rithum helped sellers be where their customers are, optimized their listings and pricing, leveraged data insights, and controlled their margins. The study also found that sellers using Rithum Managed Marketplaces improved operational efficiency. By automating manual tasks such as data integrations and resolving marketplace issues, sellers were able to free up employees to focus on more strategic initiatives.
How to be successful on Walmart Marketplace?
Walmart Marketplace global e-commerce sales reached more than $100 billion in 2024. It continues to experience significant growth, with a 45% jump in Walmart U.S. Marketplace revenue in 2024, and a 17% increase in Q4 U.S. e-commerce sales. Walmart Marketplace offers end-to-end solutions and deep retail expertise to help sellers succeed on their marketplace, said Drew Lichvar, manager – channel partnerships, at Walmart Marketplace. Sellers selling through Walmart Marketplace can use Walmart’s fulfillment logistics network and easy in-store returns. The mass merchant has more than 4,600 U.S. stores combined with digital channels.
How Rithum partners with Walmart Marketplace
Rithum helps sellers navigate Walmart Marketplace’s unique requirements and provides them with the necessary tools and resources to optimize their performance and profitability, Lichvar said. Sellers can accelerate their expansion on the Walmart Marketplace and better manage their operations.
“I’m really excited because Rithum just launched a full suite of new tools such as assortment growth, repricer – all while staying profitable,” Lichvar said. “Rithum has those capabilities with us.”
Lichvar added that Walmart Marketplace is also launching new technology as an omnichannel retailer. This includes virtual try-on tools so customers can try before they buy and view items in their home virtually.
Rithum’s global commerce network includes more than 40,000 brands, suppliers and retailers representing $50 billion in annual sales. Through a single e-commerce platform, Rithum connects hundreds of channels and more than 400 marketplaces and retail sites.
Walmart Marketplace and Rithum meet weekly to understand sellers’ needs, Lichvar said. And while technology can make selling on Walmart Marketplace more efficient, customers can still reach a person when they need to, Lichvar added. “We are a tech company that is people-led. We’re using technology to take us to the next level as a marketplace,” he said.
Learn how Rithum can help here.