Chances are, you’ve heard about Amazon’s Big Deal Days, that magical event that makes our wallets lighter. But do you know about Walmart’s Holiday Kickoff sale? Planned from October 9th to 12th, this event will overlap with Amazon’s own sale on October 10th and 11th. Walmart has big plans to increase its ecommerce presence and also said it generated over $80 billion from ecommerce in 2022, which is a 9% growth. That is better than Amazon’s overall ecommerce revenue growth of less than 6%.
Walmart had already competed with Prime Days earlier this year through their Walmart+ week. This time, they’ve sweetened the deal by opening their event to non-Walmart+ members.
Now, the real question is: What do these holiday sales mean for third-party sellers on these marketplaces? Obviously, sellers should anticipate a massive surge in traffic on both platforms and an opportunity for increased sales. Millions of shoppers hunting for deals will be ready, which is a great opportunity to kickstart new products or clear out old inventory.
On the flip side, as customers are expecting great deals, sellers will aggressively offer discount and start price wars, making it difficult for companies to maintain their profit margins. Also, the cost of paid advertising on both platforms tends to sharply increase during these events, as sellers aim for maximum product visibility.
Should all companies participate in these events? While these offer massive potential, they also come with their share of challenges, and each seller will need a well-crafted strategy. Beyond understanding the dynamics of these important days, preparation is the key to success. Sellers must come up with their game plan for these events and ensure their supply chain is ready. Managing inventory can be especially difficult, with potential disruptions at fulfillment centers. Not enough inventory can mean missing out on sales, while overstocking may cause higher storage fees when these events are over. Order fulfilment can also become difficult if there is a huge surge in orders.
This year, it will be exciting to see what will happen on Walmart.com during their Holiday Kickoff sale, and see what strategy different sellers will go with. I’d be especially interested to hear feedback from people in my network. What’s your take on this high-stakes ecommerce showdown?