Walmart’s New Seller Tool: Here’s a Gold Rush, Bring Your Own Shovel
Walmart has introduced a fascinating new service for marketplace sellers: it will tell them what products they should sell. Which is incredibly useful because Walmart knows what customers are searching for, what they’re buying and where its marketplace has gaps.
So Walmart can essentially walk up to a seller and say: “Psst. Pool noodles. Trust me.” And that seller thinks: "Holy shit. Walmart itself has chosen me. I am the Pool Noodle Guy."
Except Walmart may also be saying “pool noodles” to Gary. And Susan. And Shenzhen Happy Swimming Products LLC.
And a man named Trevor whose entire business model is apparently discovering your product three weeks after you do and selling it for $1.07 less.
That’s the problem with Walmart telling sellers where the opportunity is. It’s Walmart.
This is not your uncle whispering a horse tip behind a Chili’s. This is one of the largest retailers on Earth looking at an ocean of customer data, identifying where money might be hiding and potentially pointing a crowd at it.
Imagine Walmart discovers customers desperately want a 14-inch ceramic goose. Fantastic. You source the goose. You photograph the goose. You optimize the goose. You write 900 words explaining that the goose is “ideal for home, office, bedroom, kitchen, wedding, birthday, Thanksgiving and goose lovers.” You have become a goose entrepreneur. Then you log in three months later and there are 700 geese. There’s a Premium Goose. An Organic Goose. A Tactical Goose. Some psychopath is selling a six-pack of geese for $11.99. And one listing just says: GOOSE 2026 NEW UPGRADED VERSION. Upgraded HOW? Does it have Bluetooth?
But that is what makes this so interesting. Walmart can identify a genuine gap in the market, tell sellers about it and by telling enough sellers potentially beat that gap to death with supply. It’s like finding a quiet fishing spot and posting the coordinates in a Facebook group called 200,000 MEN WHO OWN BOATS.
Technically you have helped everyone. Practically the lake is now 60% propeller.
And who benefits from this? Customers certainly can. More sellers means more selection and lower prices. Walmart certainly can. More assortment makes its marketplace stronger.
But the sellers? They may discover that Walmart didn’t hand them a treasure map. It handed them all the same treasure map. Now they’re standing in a field with 300 other people, staring at the same X, slowly realizing Walmart also owns the shovel store.
Because once everyone sells the same thing, you need to stand out. Maybe you lower your price. Then someone lowers theirs. Then you lower yours again. Eventually you are selling a 40-pound patio heater for $3.85 and personally driving it to Nebraska. Or you buy ads. Which is where this gets especially beautiful.
Walmart can potentially say: “Here’s a product you should sell.” Then: “Oh no! Lots of people are selling it.” Then: “Would you like to pay us to appear above them?”
That is not a sales funnel. That is introducing 50 raccoons to one garbage can and then renting them knives. And the funniest part is that nobody has to be doing anything wrong. Walmart wants more selection. Customers want cheaper products. Sellers want opportunities. Every individual incentive makes perfect sense. Put them together and you get a machine that can transform secret demand into public information, public information into seller stampedes, seller stampedes into price competition, and price competition into twelve nearly identical garlic presses called things like ZÜKORP.
So perhaps the real opportunity isn’t whatever Walmart recommends. Perhaps the real opportunity is the thing Walmart hasn’t recommended yet.
Because once the world’s largest megaphone whispers you a secret, there is one extremely important follow-up question: “Exactly how many people did you whisper this to?” |