How to Sell Your Products in Wal-Mart Stores

In 1970, Wal-Mart opened its home office and first distribution center in Bentonville, Arkansas. In the decades that followed, Wal-Mart became a retail behemoth, with a chain of discount department stores all over the world. The retailer is the world’s largest private employer, fourth largest utility employer and the largest grocery retailer in the United States. About 100 million customers visit Wal-Mart stores each week. And the retailer strives to constantly expand its customer base and diversify its in store offerings. Anyone who has visited their local Wal-Mart will be familiar with the vast variety of products that are available in their stores. To become a Wal-Mart supplier and see your product sitting in one of those coveted spots on Wal-Mart shelves, there are many challenges. But the reward is a partnership with the biggest retailer in the world.

Instructions

Difficulty: Challenging

1. Find out as much as you can about Wal-Mart, the company’s core values and the product offerings. You definitely should size up your competition. Learn as much as you can about similar products. Are they offered elsewhere and if so, what is the quality and how much is the product sold for? Visit your local Wal-Mart and learn as much as you can about their customers as well as the target customer for your product. Are they a match?
2. Evaluate your company’s ability to be a Wal-Mart vendor. Supplying to such a big retailer will require that your company have the production capability, financial stability and stamina to make it through this challenging relationship. Take an honest look at your financials to see if your company has what it takes.
3. Request a Supplier Evaluation Report from Dun & Bradstreet (D & D). This can be obtained by calling D & B’s Customer Resource Center at [phone] or though D & B’s website at http://www.dnb.com. The report provides detailed financial information on a supplier’s business, including a risk summary and payment trends.
4. Apply for a Universal Product Code (UPC). Those are the barcodes you see on everything that you buy. It allows your product to be scanned in order to be priced. You’ll need to submit a letter from the Uniform Code Council at http://www.uc-council.org/detailing your bar code information.
5. Go to Wal-Mart stores online at http://walmartstores.com and complete an Online Product Submission. This application includes all of the information about your product and company.
6. Complete the Proposal Application and Supplier Questionnaire. These can be found online on Wal-Mart’s website, but must be printed and mailed in to the company. You’ll also want to make sure you have a copy of your product liability certificate of insurance to send in to the company when requested.
7. Put your proposal packet together. You’ll need a sample of your product as well as a copy of the UPC Code Letter. Your buyer contact will provide you with the proper mailing address.
8. Wait and see. The company receives more than 2,000 inquiries per week. The New Supplier Development Division reviews each proposal and invites in the vendors that pass the test. The last step is to pitch your product in front of a buyer at Wal-Mart’s headquarters in Bentonvile, Arkansas. The odds are stacked against a first time supplier. Wal-Mart already utilizes more than 21,000. But don’t be discouraged. Go into your presentation confidently. You will go into a “pitch room” and present your product to a buyer for usually no more than 45 minutes to an hour. If they like your product, the buyer will negotiate the price and set up a vendor agreement. If they don’t decide there and then, they will usually get back to you within a week to let you know.