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Walmart Sponsored Products: The Complete Guide

Walmart Sponsored Products offer businesses like yours a cost-effective way to sell products. These paid ads, which appear in search results, product pages, and category pages on Walmart Marketplace (or Walmart.com), help your company reach — and convert — shoppers interested in your products.

Looking to learn more about Walmart Sponsored Products? Get answers with this guide, which answers questions including:

If you’re looking for some professional help with joining, selling, and advertising on the Walmart Marketplace, WebFX can help. With our decades of experience, as well as our dedicated team of over 200 marketing specialists, you can count on us to help you make the most of Walmart Marketplace.

Contact us online or give us a ring at 888-601-5359 to learn more today!

What are Walmart Sponsored Products?

Walmart Sponsored Products, also called Performance Ads, are cost-per-click (CPC) ads that appear on the Walmart Marketplace, better known as Walmart.com. They can appear within search results, category pages, and product pages on Walmart’s app, mobile site, and desktop site.

Walmart Sponsored Products example

All Sponsored Products display with a “Sponsored” tag.

Where do Sponsored Products on Walmart appear?

Sponsored Products on Walmart appear in three locations:

Walmart Sponsored Products locations

  1. Search results (in position 3, 5, 6, or 12)
  2. Category pages
  3. Product or item pages

Your Sponsored Products ads can display on Walmart’s mobile and desktop site, as well as app.

How do Walmart Marketplace’s Sponsored Products work?

Walmart Marketplace’s Sponsored Products operate on a cost-per-click model.

That means, you only pay when someone clicks on your ad, versus when someone sees your ad. This payment model, which ad networks like Google Ads and Amazon Advertising also use, is usually cost-effective for businesses.

When it comes to explaining how Sponsored Products work, there are a few key components to review:

Your campaign is the foundation of your Sponsored Products. You’ll choose between an automatic or manual campaign type. Automatic campaigns let Walmart choose your keywords while manual campaigns give you the power to pick your keywords.

Your ad group features a “group” of related or similar products. For example, cat food is one ad group and dog food is another ad group. You should add 10 to 20 SKUs per ad group for the best results, especially if using automatic campaigns.

Keywords are the words or phrases that “trigger” your Sponsored Products ad to appear, like “dog food” or “cat food.” You do not choose keywords with automatic campaigns. With manual campaigns, you do pick keywords, and Walmart will even suggest some.

Your bid is how much you’re willing to pay for someone to click on your ad. Should someone click on your ad, you will pay that amount. Automatic campaigns require a minimum bid of $0.20, while manual campaigns require $0.30.

Your budget is your monthly or daily ad spend — you will never exceed your overall budget. For Sponsored Products, Walmart requires a monthly budget of at least $1000 and a daily budget of at least $100. Your investment will depend on your business, goals, and keyword targeting.

Now that you know the basics, here is an overview of how Sponsored Products work:

  • Determine your ad budget
  • Create your ad campaign, either automatic or manual
  • Build your ad groups of relevant products, aiming for 10-20 SKUs for each ad group
  • Choose your keywords to target (for manual campaigns only)
  • Place your bids
  • Launch your ad campaign

For your ads to appear, though, they must meet these requirements:

It doesn’t make sense to promote a product that isn’t in stock, which is why Walmart only promotes in-stock products. If you want to get the most value from advertising, keep your products in-stock and look for ways to improve your supply chain.

Walmart sellers example

Products must also win the buy box to appear as Sponsored Products. When a product “wins” the buy box, it’s the default choice when someone adds the product to their cart. Keep your product in-stock, offer competitive prices, and provide fast shipping to claim the buy box.

If you want your Sponsored Products to appear, you’ll also need to:

  • Rank within the first 128 results: If your promoted product doesn’t appear within the first 128 organic search results, its ad won’t appear in search results, though it can appear in category or product pages. Improve your rankings by optimizing your product listing for relevant keywords.
  • Match the search query category: Your promoted product will also need to occupy the same category as the search query. If someone searches within the “Wireless & Bluetooth Headphones” category, for example, and you offer wired headphones, your ad will not appear.
  • Share the product type of a non-sponsored product: For the best advertising and user experience, your promoted products must match the product type, like “headphones,” of at least one non-sponsored product.

Besides the above requirements, Walmart also considers a few additional factors to determine which Sponsored Products will appear and where they will appear. Even though you’re advertising on Walmart Marketplace, you aren’t guaranteed your ads will display.

These additional factors that Walmart uses include:

A relevant ad matches a user’s search intent. Your ad won’t appear if it isn’t relevant, like due to poor keyword targeting. As a result, most companies use automatic campaigns before moving to manual campaigns because automatic campaigns provide keyword data.

Ads that meet the above requirements, as well as offer the most relevance, will win the ad auction if they have the highest bid. That’s why it’s critical to optimize your ads and place competitive bids for Sponsored Products.

Product reviews on Walmart

Walmart also looks at a product’s reviews. Specifically, Walmart checks your number of reviews and the overall score of your reviews. It doesn’t want to advertise a product that people don’t like or recommend.

If you offer two-day shipping, you can increase the chances of your Sponsored Products appearing. You can also improve your organic rankings. Companies can start offering two-day shipping with a service like Deliverr.

Walmart return policy example

Like product reviews, Walmart doesn’t want to recommend a product or seller that customers wouldn’t use again. That’s why the company assesses each advertiser’s customer support policies as a part of its ad auction.

With all these factors, Walmart determines which Sponsored Products ads appear.

This process or auction happens every time someone searches on Walmart.com, so if you want to maximize your visibility, you need to optimize every part of your business, from your product listing to your order fulfillment to your customer support.

How much do Walmart Sponsored Products cost?

How much you invest in Walmart Sponsored Products depends on your business and its goals.

Walmart, however, does require a minimum daily budget of $100 and minimum monthly ad spend of $1000 for Sponsored Products. Depending on your campaign type, automatic or manual, you will need to place a minimum bid of $0.20 (for automatic campaigns) or $0.30 (for manual campaigns).

While you can use these pricing requirements as a baseline for your budget, it’s vital to do some research so you can establish a realistic ad spend for your business and product line. That way, you’ll get the best return on investment (ROI).

A Partner Businesses Trust

Their focus on ROI and their innate ability to communicate this information in a way that I understand has been the missing link with other digital marketing firms that I have used in the past.

Leah Pickard. ABWE

See the Case Study

For example, maybe you begin with a $1500 monthly ad spend.

With that ad spend, you can set up a few ads, target a few keywords, and see what happens. Then, you can watch your campaign’s performance, make tweaks, and use that data to inform next month’s investment.

Who can use Walmart Sponsored Products ads?

Walmart Suppliers and Marketplace Sellers can use Walmart Sponsored Products ads.

The general standards or eligibility requirements for Sponsored Products include:

  • Verified account
  • In-stock product
  • Competitive prices
  • High shipping standards
  • Positive reviews

Both Walmart Suppliers and Marketplace Sellers will need to apply by submitting a request to [email protected] Requests should include your company name, tax ID, and admin email for your Walmart account.

Marketplace Sellers that use Deliverr will get pre-approved to use Sponsored Products.

Walmart two-day delivery badge

Deliverr is a service that helps your business fulfill online orders faster. Use it for Walmart Marketplace, and your product listings receive a two-day delivery badge. This badge can help you rank higher in Walmart search results and earn the Walmart buy box, which is essential for Sponsored Products ads.

Why should I use Walmart Sponsored Products?

Deciding to use Walmart Sponsored Products can help your company:

Increase product sales

Most businesses decide to use Sponsored Products because they can use these advertisements to increase product sales. Whether you’re looking to generate sales for a brand-new, top-selling, or seasonal item, you can use Sponsored Products ads to make it happen.

Access tremendous audience

Walmart is the number one retailer in the United States. It provides your company with a competitive platform for selling your products online. With Walmart, you can reach a broader part of your target audience, which can lead to more sales and growth for your business.

Improve product visibility

Sponsored Products can also lead to better visibility. With more than 18,000 businesses selling on Walmart, you need to have a strategy for standing out, especially if you’re looking to grow your brand — which is a common reason companies sell on Walmart.

When you use Sponsored Products, your product can appear as one of the first 15 products, which gives you immense visibility. If you offer additional bonuses, like free two-day shipping, that can quickly lead to a new sale.

Grow share-of-wallet (and market share)

Walmart’s advertising options also provide your business with an answer to increasing its share-of-wallet and market share. Whether you’re an established brand or new to the market, you can take Sponsored Products ads and use them to make people aware of your business and products.

3 tips for getting better results from Sponsored Products on Walmart

Getting all the benefits of Sponsored Products on Walmart requires launching a smart ad campaign. If you don’t invest the time reviewing your campaign data and optimizing your strategy, you won’t get the results you want — and no one likes sharing bad news.

These three tips, though, can help you achieve your goals for Sponsored Products ads:

1. Optimize for search

The performance (and placement) of your Sponsored Products depends on your search engine optimization (SEO). For example, if you want your ads to appear in Walmart search results, your product needs to rank organically within the first three pages — or first 128 listings.

You can optimize your product pages by:

  • Setting competitive prices
  • Earning positive reviews
  • Providing fast shipping times
  • Delivering excellent customer service

These optimizations will contribute to a better user experience, as well as increase your chances for ranking higher in relevant search results. Rank higher, and you can help your Sponsored Products appear at the top of search results.

2. Start with automatic campaigns

Automatic campaigns are a useful starting point for Sponsored Products.

That’s because Walmart takes care of your keyword targeting — finding the most relevant keywords based on your product page. You can then use that keyword data later to set up more refined ad campaigns and ad groups.

While you can research keywords beforehand and start with a manual campaign, you won’t have the keyword data that shows which keywords delivered the best results for your business. For example, which keywords lead to purchases versus just clicks?

3. Practice patience

While online advertising can provide immediate results, it often takes time for digital ads to reach peak performance. When you launch an automatic campaign, for instance, you don’t know what will happen. It isn’t until you have the data that you can compile takeaways and steps for improvement.

That’s why advertisers recommend waiting a month before drawing conclusions about your Sponsored Products. During these four weeks, your campaign can gather data that you can use to investigate your strategy.

Remember, however, to optimize your campaign for as much success as possible before starting it. Don’t skip making improvements to your product listing, for instance, or double-checking a product’s inventory status.

Set your Sponsored Products up for success, not failure.

Ship more orders with Walmart Sponsored Products

Walmart Sponsored Products offer businesses like yours several benefits, including the ability to move more products and generate more revenue. That’s why it’s worthwhile to apply to use Sponsored Products.

If you’re looking for help getting started, though, WebFX is here.

With our award-winning team of more than 200 U.S.-based digital marketing professionals, you can get your business set up on Walmart Marketplace and started with Sponsored Products ads. Plus, you can count on us to develop and manage revenue-driving campaigns.

After all, we’ve helped our clients manage more than 11 million transactions in just the past five years.

Learn how you can start driving more online orders (and revenue) for your company with Sponsored Products and our Walmart Marketplace services by contacting us online or giving us a ring at 888-601-5359 today!

Sours: https://www.webfx.com/marketplaces/learn/walmart-sponsored-products/

Why does my Walmart Payout not match the A2X invoice?

If you are using Walmart Fulfillment services (WFS) and Walmart Performance Ads (WPA) your payout will not match with the A2X invoice. This is because Walmart does not currently include these fees in their settlement API that is sent to A2X. Instead, Walmart takes these fees directly out of the payout that you receive without accounting for it in the settlement.

An example Settlement:

Explanation

August 8 Settlement - The A2X invoice that is posted to your accounting will total $16,000 but the payout that you receive from Walmart will be $15,700 which is Net Sales minus the WPA and or WFS fees. The $300 will need to be accounted for in your accounting system.

July 25 Settlement - In this situation there are no WPA or WFS fees therefore the A2X settlement will match to the Walmart Payout.

You will need to account for your Walmart fees in Xero and Quickbooks.

To set up a repeating bill in Xero

We recommend setting up a repeating bill entry in Xero. This way you will end up with an open invoice from A2X (that includes the sales information) and an open bill each month (which can be updated to reflect the WFS and WPA fees). You can then match both of these up against the deposit that comes through from Walmart to reconcile.

To set up a repeating bill, in Xero: select Business then Bills to Pay.

Click on the drop-down arrow next to New Bill and select, New Repeating Bill.

Set up the bill to repeat every two weeks against the account you would usually apply your WFS and WPA fees to.

For more information on Xero’s repeating bills, read the article in Xero Central here.

When reconciling the Walmart deposit, you will select both the invoice from A2X and the bill entry for the fees. Make sure you Tick the checkbox "Show Spent Items" in the match screen so that both invoices and bills will appear and can be selected for reconciling.

For an overview on negative invoices, read this support article.

Quickbooks online

For QuickBooks online users the best method to automate this process is by the use of a clearing account. In A2X, you will map your deposit bank account to a ‘Walmart Clearing’ current asset account (Settings->Connections). We only recommend using this option if you know you have WPA and WFS fees.

As your deposits come through from Walmart, you will allocate them to the same clearing account to offset the balance allocated by A2X. This is the reconciliation process. For any settlements that WFS fees have been deducted from, you can easily account for the fees by way of a split allocation in QBO.

The deposit we have received in the bank is $15,700, A2X has allocated the full $16,000 to the clearing account so to reconcile the deposit and allocate the fees you can split the allocation as follows.

The full $16,000 gets allocated against the clearing account to clear the A2X balance.

The $300 is added in as a negative amount allocated against your Walmart WFS/WPA fees expense account:

As a further example, this is an entry in A2X:

And this is the corresponding Walmart settlement for the period:

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Sours: https://support.a2xaccounting.com/en/articles/4365976-why-does-my-walmart-payout-not-match-the-a2x-invoice
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Walmart may have 100 million monthly shoppers, but as with all e-commerce marketplaces, sellers should be prepared to face competition. In this guest post from SellerActive integration partner Deliverr, you'll learn how Walmart Performance Ads can help you boost visibility and accelerate sales.

Walmart's popularity is growing rapidly, and with increasing investment in programs like Free 2-Day Shipping, Walmart has shown they’re prepared to aggressively market their marketplace and sellers. Most Walmart sellers are already feeling the heat of competition on the site, and looking for ways to stay ahead. 

There are many ways to get ahead on your Walmart sales, but today we’ll be going over Walmart Performance Ads (WPA), also known as Walmart sponsored ads, or sponsored products.

What are Walmart Performance Ads?

WPA is a pay-per-click advertising program wherein you can display your listings in special places across the marketplace. When someone types in a relevant search term, they’ll see your items under a sponsored product banner.

Walmart Performance Ads

How to get Walmart Performance Ads

Right now, this program is only open to select sellers, but SellerActive users can get access to the program by fulfilling with Deliverr through our integration. Deliverr sellers can run unlimited campaigns with a max of 300 SKUs.

If you don’t use SellerActive’s integration to fulfill with Deliverr, you can try to request access. You’ll need approval from the Walmart Media Group based on meeting strict performance criteria.

Walmart Performance Ad Insights

In summary, you must either 1) meet strict criteria and request access, or 2) fulfill with Deliverr and get pre-approved access to the platform.

3 ways to leverage Walmart Performance Ads

1) Reduce your marketing spend

One Deliverr seller noticed they were appearing for keyword bids in Walmart at around ⅓ the cost they had to spend for similar campaigns on Amazon. Since Walmart has less competition than Amazon, it becomes more affordable to advertise on their platform. This is a great opportunity for sellers to rank for their keywords without having to spend too much.

2) Boost conversions

Walmart Performance Ads help you boost conversions by showing your listings to people who are ready to buy.

Your performance ads can appear on:

  • Item pages

  • Search result pages

  • Category pages

These ads are shown on desktop, mobile, and app, and shorten shoppers’ path to purchase. We recommend using an evergreen ad strategy, where you drive traffic to your popular items while highlighting your new or seasonal products.

Don’t forget to test and measure each campaign! You’ll have access to a reports section where you can see how your ads are performing.

3) Launch new products

Finally, Walmart Performance Ads are key for launching new products. One of the best ways to keep your business sustainable, defensible, and optimize for growth is to continuously add and test new SKUs. Walmart Performance Ads allows you to add a new listing and get it in front of potential buyers immediately, to see whether or not your listing generates interest and returns.

Home goods retailer Equinox International said, "Activating sponsored products not only increased sales, but helped us launch new products on Walmart immediately…We saw sales for new products the same day we launched with sponsored product ads.”

Bonus tip: Add free 2-day shipping to your listings

Walmart Performance Ads are a great investment, but if you want to boost your listings even further, don’t forget to offer Free 2-Day Shipping on your items.

If you look at the example shared above, all of the listings around the sponsored product offer free 2-day shipping, and appear high in search results organically (even when shoppers don’t filter for fast shipping).

Walmart 2-Day Shipping Tags

Want to learn more? Sign up for a webinar with SellerActive, Walmart and Deliverr to find out how SellerActive sellers can get on Walmart Free 2-Day Shipping.

Register for Walmart webinar

Walmart Performance Ads gives you access to their millions of shoppers. This program will help you boost your conversions, test out new products, and make your Walmart store a success.



This is a guest post from Michael Krakaris. Michael is one of Forbes’ 30 Under 30 and the co-founder of Deliverr. Deliverr provides fast and affordable fulfillment for your eBay, Walmart and Shopify stores, helping to boost sales through programs like Walmart Free 2-Day Shipping and eBay Guaranteed Delivery. Deliverr’s FBA-like multi-channel fulfillment comes with clear pricing, easy on-boarding and a hassle free experience so you can focus on growing your eCommerce business.

Sours: https://www.selleractive.com/e-commerce-blog/how-to-use-walmart-performance-ads
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