Getting Your Product Sold at Wal-Mart

Impressing the retail giant means doing your homework

By Jackie Larson

Once you've got your product on the shelves at Wal-Mart, selling it to millions of new clients is easy. It's getting in the door to become one of the retail behemoth's 61,000 suppliers that's challenging. After all, just one in every 50 applicants successfully gets past the application stage to become an official Wal-Mart vendor. It pays, then, to be better informed than the other 49. Improve your odds by:

Doing your homework; you won't dazzle Wal-Mart's buyers without first knowing what they're looking for.
Becoming market savvy; know what sells and why.
Preparing a quality product at an affordable price — quickly and in mass quantities.
Building a strong reputation; because Wal-Mart is so prone to scrutiny, it will be more likely to work with suppliers who preach — and practice — responsible business.

Go shopping

Before you can properly sell to Wal-Mart, you must shop there. Visit a store to find out not only what it sells and for what price, but also who shops there and for what reasons. Your product must fit in with the store's existing merchandise while also standing out as different than what they already sell.
Try: Locate your local store with Wal-Mart's Store Locator, or get a feel for product selection online at Walmart.com.

Pursue worthwhile credentials

Thanks to its Minority & Women-Owned Business Development Program, Wal-Mart is especially able and willing to work with minority suppliers. Businesses are also helped when they pursue technology and business policies that are similar to those embraced by Wal-Mart.
Try: Certification from either the National Minority Development Council or the Women's Business Enterprise National Council could help you get some traction with Wal-Mart buyers. So could being RFID-ready, courtesy of vendors such as Digi-Key, AbeTech and Cellotape, as Wal-Mart requires its top 100 suppliers to be RFID-compliant.

Complete an 'Online Product Submission' application

Any supplier who wants to pursue a relationship with Wal-Mart must first complete an Online Product Submission application. When filled out correctly, this document allows your information to proceed to the appropriate corporate buyer, who is charged with reviewing it and either guiding you to the next step, or giving you a constructive rejection.
Try: To complete Wal-Mart's Online Product Submission, you'll need an image of your product, a Uniform Code Council (UCC) membership number and a federal tax ID.

Prepare your financials

Prospective suppliers must provide detailed financial information — including income statements, profit and loss reports and a statement of cash flow — to prove their stability and their capacity for mass production.
Try: Suppliers must detail their financial standing via a Supplier Evaluation Report (SER) using current information as filed with Dun & Bradstreet.

Purchase liability insurance

Should a Wal-Mart buyer accept your application, you'll need to provide a copy of your Certificate of Liability Insurance; insurance should cover commercial liability, including workers' compensation and employers' liability.
Try: Get quotes from multiple insurance companies at InsuranceFinder.com; wait for a Wal-Mart buyer's go-ahead and instructions before changing your current coverage or purchasing a new policy.

Obtain a UPC

All Wal-Mart suppliers need a universal product code (UPC) for scanning and accounting purposes.
Try: Get a UPC directly from the UCC when you join it.

Send samples

If a buyer requests samples of your product, follow Wal-Mart procedure for submitting them, which mandates that suppliers send just one sample — less than 25 pounds and fewer than 3 square feet — along with detailed product information that describes any style differences or variations. In place of large products, send information and photographs.
Try: Review Wal-Mart's policy for sending samples to buyers when you read "What To Do," Wal-Mart's guide to initiating supplier relationships.

Go local

If you don't make the cut for national distribution, approach the store manager at your local store, who may be interested in helping you gain local distribution.
Try: Obtain a Local Supplier Questionnaire from your local Wal-Mart store manager after reviewing Wal-Mart's requirements for local suppliers.

Understanding its corporate culture is key in selling to Wal-Mart; study up on the company's brand, language and philosophy in order to strengthen your product pitch.
If Wal-Mart proper isn't the right place for your particular product, consider selling to Sam's Club or Wal-Mart Supercenters, instead, which may prove to be a better fit within the Wal-Mart family of brands.
Key to Wal-Mart's brand are speed and value; make sure your pitch focuses on fast production and low costs.