Hey how's it going youtube this is eman los angeles and in 2020 i actually started selling on walmart's marketplace because i wanted to see how it actually compares to amazon so in today's video we're going to go over the last 30 days of 2020 which is going to be the december month and see if it's actually comparable to amazon fba if it's actually going ahead and making me profitable and is it worth it to scale from amazon onto walmart itself and there's a huge mistake that ended up costing me hundreds of dollars and it was such an easy fix and i'll go over in this video and we're also gonna go over the entire breakdown from the revenue what are my all my expenses and the actual true profit that i went ahead and made on walmart and finally the decision am i gonna go all in on walmart for 2021 so again if you guys appreciate this transparency and the information that i'm gonna go over to in today's video itself please don't forget to hit that subscribe button hit that like button but let's go ahead and dive deep into actually selling on walmart and there are some great reasons why every amazon fba seller should sell on walmart itself and the number one reason is because it's a different avenue of customers right we all know that e-commerce is dominated by amazon but walmart is second place if you go ahead and compare the entire e-commerce world right so having a different website and different customers being able to go ahead and shop for your product itself is a great benefit for any amazon seller and number two is that if you sell on amazon
They charge you a forty dollar seller professional fee regardless if you sell anything or not with walmart themselves they don't charge you that monthly fee whatsoever and number three it's very similar to amazon itself when it comes to selling they do charge you a 50 whenever you go ahead and make a sale but you can also go ahead and ship the items yourself to the customers you can hire a third-party company to go ahead and ship that for you or you can use walmart fulfillment service that works just like amazon fba and in january 2021 walmart actually accepted me onto their walmart fulfillment service platform where i'm able to go ahead and send all my inventory into a walmart fulfillment center and they are in charge of shipping it out to the customers and handling returns and that's a big difference because in 2020 i use a fulfillment service that had a partnership with walmart themselves called deliver and that partnership is very important because it allowed you to go ahead and have a two-day delivery badge under your listing on walmart and that's very important because we all know that on amazon if you are not prime there's a likelihood that a customer will choose a prime item over yourself right so that's the reason why i wanted to go ahead and try out this partnership with deliver so let's actually go ahead and compare my december 2020 sales on amazon and compare that to my december sales on walmart.
So let's go ahead and dive into my amazon sales themselves and if you guys can go ahead and see here in this in december from the first to the 31st of december i sold a total of right around 2 900 940 units total which accounted to just under 80 000 worth of revenue we all know that revenue does not equal profit and the previous video i went ahead and explained my true profit was selling on amazon so i'll go ahead and link it right above here so if you guys are interested in taking a look at that but let's now compare it to walmart and because there's not a lot of tools for walmart sellers list like a helium 10 that extracts all the information from amazon and goes ahead and gives you a breakdown as far as revenue and all the expenses i had to do a lot of back and forth from the walmart seller website to you know my pioneer payment plan to my deliver of fulfillment fees and whatnot so i did it all here so i kind of broke it down from units sold all the way to revenues cost of goods sold so on and so forth but you will notice that i did no ppc or any form of advertising on walmart so bear that in mind when i go over these numbers but for the month of december i sold a whopping 36 units on the walmart marketplace and again i didn't know ppc whatsoever and it didn't compare at all to what i sold on amazon but if the profit margin makes sense why not go ahead and start selling more on walmart and sending in more inventory and start exploring ppc so we'll get to the profit margin itself in a little bit but those 36 units accounted for 1227 dollars worth of revenue and we all know that revenue does not equal profit and the first expense is going to be the cost of goods sold which is how much it costs to manufacture my product and to get it into the united states this still does not include what the fee is to actually ship my items into the delivery fulfillment center so keep that in mind as well so for cost of goods sold it was right around an expense of 279 and then walmart fees and the walmart fees include that 15 fee whenever an item sells again walmart does not charge a monthly fee just to have a seller account active so i was charged 184.19 and then now the shipping and warehouse and this is the big mistake i mentioned in the beginning of this video what deliver allows you to do is either one or two options either go ahead and send it to one fulfillment center and they'll be in charge of going ahead and basically sending it out to their entire fulfillment team from different states they do not charge for this but the only downside is that it takes a very long time to get checked in and because these are december sales i sent inventory late so what i decided to do was instead of just shipping it out to just one fulfillment center i went ahead and shipped it into all the different fulfillment centers they told me to go ahead and send them to so because of that i spent a lot of money on shipping and warehouse right and this includes me going ahead and shipping my items into deliver and then deliver going ahead and shipping out these products to customers whenever an item got sold so i spent a total of 500 on this which really took a hit to my revenue itself so my profit was actually only 186 dollars right let's round out to 187 but the thing is that if i were to went ahead and just shipped it over to that one fulfillment center i would have saved a hundred and forty dollars so this is something that i could have prevented if i would have just shipped my actual inventory in earlier instead of being stressed out and having to pay more money to get them checked in very fast right so if i would have just went ahead and sent it to one fulfillment center.
My profit would have been 320 instead of the 187 dollars so if you go ahead and do the math for the month of december i only had a 15.2 profit margin which is terrible right i started going ahead and crunching the numbers and i basically thought why am i even selling on walmart and that's why i had to go ahead and take a a deeper look into this right because if i would have just went ahead and saved on that shipping cost i would have actually had a 26.6 profit margin which is similar to my 27 profit margin on amazon fba right but as i mentioned before i went over these numbers i don't do any ppc on walmart itself right so even despite all of that with me not even doing any type of advertising on walmart i would have still only had a 26 profit margin which is less than the 27 profit margin i have with amazon that includes ppc so the to answer the question am i going to go all in on walmart for 2021 the answer is no right i know i didn't do a lot of work to get these sales because basically it was just a set it and forget it type of thing like amazon fba is but there are more customers on amazon itself and i'm actually going ahead and utilizing ppc and getting more organic ranking as well right there's some things that i still want to go ahead and change and experiment with walmart including that walmart fulfillment service that i gotta approve for but i feel like it's more worth it to just go all in on amazon and to work on a shopify store for your branding itself because on shopify you won't have to pay that 15 commission to a walmart or an amazon but again that's why i do the videos that's why i crunch the numbers it's all for you guys so again if you guys appreciate the level of transparency don't forget to like this video don't forget to subscribe to his youtube channel but until next time guys peace
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