June 3, 2008
Wal-Mart Debuts New Free Classified Service Online
Walmart.com has launched a beta test of a free online classified ad service in conjunction with Oodle.com that offers the promise of exposing the retailer to a group of consumers who might not otherwise visit the company’s website.
WalMart.com Classifieds, which made its debut last week, is said to have up to 30 million items for sale including cars, pets, foreclosed homes and a variety of other items. The new service seeks to reinforce the retailer’s low price image with a message on its homepage that tells visitors that the service is “just another way to save money and live better.”
Craig Donato, chief executive of Oodle.com, told Dow Jones, “This is good for Wal-Mart because it provides a different experience for consumers, and it benefits Oodle because it expends the reach of our network.”
Wal-Mart is looking to reach five million consumers a month with the new classified service through a variety of sites including lycos.com and military.com.
The new service, which is free to both buyers and sellers, will compete with the likes of Craigslist and eBay’s Kijiji for face time with consumers.
Discussion Questions: What will free classifieds do for Walmart.com? Is there any risk for Wal-Mart associated with the free classified service?
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It’s a brave new world, to boldly go where no retailer has gone before…very interesting. This is an interesting move on behalf of Wal-Mart. It will definitely give their site exposure and depending how creative they are in their marketing and promotion, may lead to additional sales.
We live in a transparent world. Wal-Mart is going where the world will be.
In an interesting twist, Wal-Mart’s entry creates instant credibility and new positioning for Craigslist.
Every retailer’s goal is to drive more traffic to their website as well as site stickiness. Although it strays from their core business model, it does offer a reason for shoppers that likely are right in their sweet spot of target customers to come to the site and browse.
The beauty of the internet is it’s very high level of measurability. Not only will they know the degree to which it is driving additional traffic but perhaps more importantly, the degree to which it promotes cross shopping of Wal-Mart’s core merchandise offerings. Who are we to question whether Wal-Mart can drive additional volume?
One of Wal-Mart’s weakest aspects is its presence online. This is just one more situation where they should be partnering with online partners who have strengths that can balance their weaknesses. This is one area that Wal-Mart should focus more on, using partners to strengthen their weaknesses. This foray will increase Wal-Mart’s accessibility which they truly need to do more of….
I just placed an ad on walmart.oodle (Woodle?). Much easier than Craigslist. We’ll see what sort of response is delivered. Anyone want to buy a large set of perfectly-seasoned cast iron cookware?
My visits to WM supercenters always leave me with one overriding impression–that shoppers are participating in a social event. They’re a community of strollers: Babies in strollers, kids and adults out for a stroll, and older folks using walkers but strolling in their hearts. It’s a combination of the Sears “wishbook” and people-watching. So, why not connect to another community-oriented marketplace? WM classifieds match the appeal of their stores like fringed leather jackets match vintage Harleys.
When you’re bigger than a sales-hungry giant gorilla you keep doing all kinds of things to find more food to keep the gorilla growing. While I have low expectations that this will do anything more than be an incremental sales booster for Wal-Mart, I think it is worth a try.
If I say nothing else about Wal-Mart, they are relentless in looking for new ways to capture the attention of the consumer. I see no downside in this new move to capture another method to drive people to their website and provide a service to their customers.
Just as they have made a difference by offering $4.00 drugs, this move will get them a lot of publicity at a very low cost.
Let’s assume they mirror Craigslist; what will that do to job boards and newspapers?
While I can understand WM’s desire to reach consumers in places that they do not expect to see WM, I have to question the wisdom of this tactic. Why would WM put their brand image on products of unknown condition being sold by people that are also unknown to the store?
Craigslist means classified ads. WM means EDLP. One regularly hears of people not being satisfied with their purchases on Craigslist, with nowhere to turn for satisfaction. Is WM going to guarantee each classified transaction? And what about consumers who sell the same goods as WM, but for less money? Or consumers who sell items that WM would rather not be associated with (for example, there is a listing for a Passion Party on the current home page of oodle.com).
It just does not fit the WM brand. I can see the benefit to oodle.com, but question the benefit to WM.
Best thing about Wal-Mart classified ads online: it might drive extra traffic at a very low cost to Wal-Mart. Craiglist is a socializing site, not just a place to sell used lawn mowers. Too bad Wal-Mart is still afraid of social networking. They never brought back the singles night shopping experiment, one of the most powerful low cost marketing tools imaginable.
This will likely be a great addition to walmart.com. And to address a few other comments…
– Offering used items for sale (as Amazon does as well) directly fits with Wal-Mart’s core mission of offering the greatest value to it customers. They now offer that service for those customers willing to take the chance on used merchandise.
– Hosting classified ads creates a more social atmosphere for walmart.com and drives new traffic and return traffic through an interesting treasure hunt element as items offered by sellers will change frequently.
– Walmart.com offers sellers a much greater audience for their ads. Some percentage of those sellers may choose to spend the proceeds of their sales on new items at Wal-Mart or walmart.com.
– Classifieds on walmart.com will have no more negative impact on the Wal-Mart brand than classified ads have on a newspaper’s brand image.
Wal-Mart is simply never satisfied to sit still. They, like Amazon, continue to try new and different ways to capitalize on their brand and serve their customers.
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It’s a brave new world, to boldly go where no retailer has gone before…very interesting. This is an interesting move on behalf of Wal-Mart. It will definitely give their site exposure and depending how creative they are in their marketing and promotion, may lead to additional sales.
We live in a transparent world. Wal-Mart is going where the world will be.
In an interesting twist, Wal-Mart’s entry creates instant credibility and new positioning for Craigslist.
Every retailer’s goal is to drive more traffic to their website as well as site stickiness. Although it strays from their core business model, it does offer a reason for shoppers that likely are right in their sweet spot of target customers to come to the site and browse.
The beauty of the internet is it’s very high level of measurability. Not only will they know the degree to which it is driving additional traffic but perhaps more importantly, the degree to which it promotes cross shopping of Wal-Mart’s core merchandise offerings. Who are we to question whether Wal-Mart can drive additional volume?
One of Wal-Mart’s weakest aspects is its presence online. This is just one more situation where they should be partnering with online partners who have strengths that can balance their weaknesses. This is one area that Wal-Mart should focus more on, using partners to strengthen their weaknesses. This foray will increase Wal-Mart’s accessibility which they truly need to do more of….
I just placed an ad on walmart.oodle (Woodle?). Much easier than Craigslist. We’ll see what sort of response is delivered. Anyone want to buy a large set of perfectly-seasoned cast iron cookware?
My visits to WM supercenters always leave me with one overriding impression–that shoppers are participating in a social event. They’re a community of strollers: Babies in strollers, kids and adults out for a stroll, and older folks using walkers but strolling in their hearts. It’s a combination of the Sears “wishbook” and people-watching. So, why not connect to another community-oriented marketplace? WM classifieds match the appeal of their stores like fringed leather jackets match vintage Harleys.
When you’re bigger than a sales-hungry giant gorilla you keep doing all kinds of things to find more food to keep the gorilla growing. While I have low expectations that this will do anything more than be an incremental sales booster for Wal-Mart, I think it is worth a try.
If I say nothing else about Wal-Mart, they are relentless in looking for new ways to capture the attention of the consumer. I see no downside in this new move to capture another method to drive people to their website and provide a service to their customers.
Just as they have made a difference by offering $4.00 drugs, this move will get them a lot of publicity at a very low cost.
Let’s assume they mirror Craigslist; what will that do to job boards and newspapers?
While I can understand WM’s desire to reach consumers in places that they do not expect to see WM, I have to question the wisdom of this tactic. Why would WM put their brand image on products of unknown condition being sold by people that are also unknown to the store?
Craigslist means classified ads. WM means EDLP. One regularly hears of people not being satisfied with their purchases on Craigslist, with nowhere to turn for satisfaction. Is WM going to guarantee each classified transaction? And what about consumers who sell the same goods as WM, but for less money? Or consumers who sell items that WM would rather not be associated with (for example, there is a listing for a Passion Party on the current home page of oodle.com).
It just does not fit the WM brand. I can see the benefit to oodle.com, but question the benefit to WM.
Best thing about Wal-Mart classified ads online: it might drive extra traffic at a very low cost to Wal-Mart. Craiglist is a socializing site, not just a place to sell used lawn mowers. Too bad Wal-Mart is still afraid of social networking. They never brought back the singles night shopping experiment, one of the most powerful low cost marketing tools imaginable.
This will likely be a great addition to walmart.com. And to address a few other comments…
– Offering used items for sale (as Amazon does as well) directly fits with Wal-Mart’s core mission of offering the greatest value to it customers. They now offer that service for those customers willing to take the chance on used merchandise.
– Hosting classified ads creates a more social atmosphere for walmart.com and drives new traffic and return traffic through an interesting treasure hunt element as items offered by sellers will change frequently.
– Walmart.com offers sellers a much greater audience for their ads. Some percentage of those sellers may choose to spend the proceeds of their sales on new items at Wal-Mart or walmart.com.
– Classifieds on walmart.com will have no more negative impact on the Wal-Mart brand than classified ads have on a newspaper’s brand image.
Wal-Mart is simply never satisfied to sit still. They, like Amazon, continue to try new and different ways to capitalize on their brand and serve their customers.