How to Start a Local Business with Walmart

Starting a local business can be rewarding and full of potential, but getting your products into major retail channels like Walmart can significantly enhance your business’s visibility and drive sales. Walmart, as the largest retailer in the USA, offers local businesses an opportunity to reach a wider customer base. However, becoming a Walmart vendor involves more than just having a great product; you need to understand the registration process, gather the right documents, and learn how to manage orders using Walmart’s electronic data interchange (EDI) system. This guide will walk you through everything you need to know to successfully start a local business with Walmart.

Why Partner with Walmart?

Walmart’s vast network of stores and online platforms provides local businesses with a unique opportunity to scale rapidly. By becoming a Walmart vendor, your products can gain nationwide exposure, increasing both brand recognition and sales. Additionally, Walmart’s commitment to supporting local businesses ensures that there is a streamlined process in place to help you get started.

Steps to Register as a Walmart Vendor

1. Research and Preparation

Before you begin the registration process, it’s crucial to understand Walmart’s requirements and ensure your business is ready to meet them. Start by researching the types of products Walmart typically sells and identify where your product fits into their inventory. Consider the following:

Differentiation: How does your product stand out from existing Walmart offerings?
Product Line: Walmart prefers vendors with a diverse product line, as this increases the chances of success even if one product doesn’t perform as expected.
Sales History: Having a proven sales history can significantly improve your chances of getting approved.

2. Gather Required Documents

To apply as a Walmart vendor, you’ll need to have several documents prepared. These include:

Tax ID: Your business’s federal tax identification number.
Company Information: Details about your company, including contact persons and locations.
Banking Information: Your bank account details for payment processing.
DUNS Number: A Data Universal Numbering System (DUNS) number, which uniquely identifies your business.
Product Liability Insurance: This insurance protects your business from claims related to product defects that cause injury or damage.
UPC Codes: Universal Product Codes (UPCs) for all products you intend to sell. These barcodes are essential for tracking and inventory management.

3. Register on Walmart’s Retail Link

To begin the vendor application process, visit Walmart’s Retail Link portal and create an account. This platform is the hub for all vendor-related activities, including product setup, order management, and communication with Walmart buyers.

Once your account is created, complete your supplier profile by entering all the necessary company and product information. This profile is critical as it is the first point of reference for Walmart buyers evaluating your application.

The Vendor Approval Process

Once you’ve registered and set up your profile, you must wait for an invitation from Walmart to proceed with the approval process. Depending on the scale of your business, you may either:

Pitch to Local Stores: If you’re targeting local Walmart stores, you can approach store managers directly to pitch your products. If they’re interested, they will escalate your product to higher levels for approval.
National Pitch: For national distribution, you may be invited to Walmart’s headquarters to present your products. Be prepared with product samples, sales data, and a compelling elevator pitch.

After a successful pitch, Walmart will issue a supplier agreement, officially making you a Walmart vendor. This agreement also grants you access to Walmart’s Global Supplier Management system within Retail Link, where you can manage orders and track sales.

Managing Orders with EDI

Once you’re an approved vendor, managing orders efficiently is crucial. Walmart uses an Electronic Data Interchange (EDI) system to streamline order processing and communication between vendors and Walmart’s systems. Here’s how it works:

EDI Integration: You’ll receive purchase orders via EDI, which can be managed manually through Retail Link or automatically through an EDI service provider like EDI Generator. Manual processing is suitable for low order volumes, but as your business grows, automating EDI transactions will save time and reduce errors.
Order Fulfillment: Upon receiving an order, you’ll need to process it, generate an invoice, and update Walmart’s systems with shipping information. EDI ensures that this information flows seamlessly between your business and Walmart.
Continual Compliance: Staying compliant with Walmart’s EDI requirements is essential. Non-compliance can result in penalties or even termination of your vendor agreement.

Tips for Success as a Walmart Vendor

Maintain High Standards: Walmart expects its vendors to adhere to strict quality and service standards. Consistently delivering high-quality products on time will strengthen your relationship with Walmart.
Stay Competitive: Keep an eye on market trends and competitor products to ensure your offerings remain relevant and competitively priced.
Leverage Walmart’s Resources: Take advantage of the tools and resources available through Retail Link to monitor sales performance, identify growth opportunities, and optimize your product listings.

Conclusion

Starting a local business with Walmart can be a huge opportunity for your company. By following the steps in this guide, from registering as a vendor to managing orders through EDI, you can set your business up for success in one of the world’s biggest retail markets. With thoughtful planning, attention to detail, and a focus on quality, your products could soon be on Walmart’s shelves, reaching millions of potential customers.