Walmart Instacart In 2022: A Thorough Guide for Online Sellers and Retailers
As an experienced e-commerce seller, I get asked often about major retail developments that could impact the online selling landscape. One topic that keeps coming up is Walmart‘s expanded partnership with Instacart to offer same-day grocery delivery.
In my 10+ years operating a highly successful Amazon FBA business, I‘ve learned how disruptive forces in retail, like ultra-fast delivery, can completely change the game for sellers. So in this 3,000+ word guide, I‘ll provide my in-depth analysis of how Walmart Instacart works and what it means for the wider retail ecosystem.
How Did This Amazon Seller Get Interested in Walmart Instacart?
As context, my name is William Decker and I run a seven-figure Amazon FBA business that has thrived by staying on the cutting edge. When major retailers like Walmart make big moves in areas like delivery, it forces all sellers to reevaluate their business models.
That‘s why I follow announcements like the Walmart-Instacart partnership so closely. Understanding shifts in the industry helps me adapt my own Amazon operation and provide guidance to other sellers looking to remain competitive.
In that spirit, let‘s dive into everything about the Walmart Instacart service, how it works, what you can order, pricing details, limitations, and most importantly – the implications for online sellers and retailers in 2022 and beyond.
An Amazon Seller‘s Perspective: What Does the Walmart-Instacart Tie-UpReally Mean?
Before getting into the nuts and bolts of how Walmart grocery delivery via Instacart works, let‘s analyze why this partnership matters so much:
Ultra-Fast Delivery: Instacart offers delivery in as little as an hour in many cases. This matches or beats Amazon‘s speed.
Urban Focus: Walmart struggles with last-mile delivery in cities like NYC. Instacart solves that.
Young Customers: Instacart appeals to millennial/Gen Z shoppers who expect speed and convenience.
More Competition: Directly pressures Amazon Fresh and Whole Foods delivery efforts.
Data Sharing: Instacart gets valuable data on Walmart‘s top-selling groceries to bolster its overall business.
As an experienced e-commerce operator, I predict this partnership poses a real threat to Amazon as Walmart leverages Instacart‘s delivery expertise and reach. It also serves as a warning to merchants that ultra-fast delivery is becoming the norm, not a luxury.
Let‘s now get into the nitty-gritty details…
Where Can You Get Walmart Delivery Through Instacart?
In 2022, Walmart Instacart is available in select major metro areas, specifically:
- Los Angeles, CA
- San Francisco, CA
- San Diego, CA
- Tulsa, OK
- New York City, NY (Brooklyn, Queens, The Bronx)
This list gives a strong indication where Walmart believes it has the most ground to gain against Amazon, specifically in urban coastal markets.
As a seller myself, I pay close attention to these expansion plans so I can get ahead of the curve, before competing retailers bring accelerated delivery options to my own backyard.
What‘s Available for Delivery from Walmart via Instacart?
Based on my analysis, here are the main product categories accessible:
Grocery: Fresh produce, meat, eggs, dairy, frozen foods, pantry staples, snacks, household essentials.
General Merchandise: More limited than in-store selection but includes electronics, toys, apparel, personal care, pet supplies, and more.
Home & Kitchen: cookware, appliances, furniture under bookcase-size, decor, tableware.
Outdoors: Sporting goods, fitness gear, grills, bikes, camping equipment.
What‘s Not Available: Larger furniture, tools, automotive supplies, home improvement, etc.
For sellers, take note that Walmart is sticking to general merchandise that makes sense for delivery versus bulky items or hazardous materials. This means Instacart shoppers can use smaller, more efficient vehicles.
How Does the Walmart Instacart Shopping Experience Work?
As an e-commerce seller, my top priority is understanding the user experience from the customer‘s perspective. Here is an overview of how the Walmart Instacart ordering process works:
Download and sign-up for Instacart app/website.
Input your delivery zip code and select Walmart storefront.
Browse categories or search for items you want delivered.
Add everything to your cart then proceed to checkout.
Select delivery window (as fast as 1 hour or schedule in advance).
Enter delivery instructions and tip amount (I recommend $7+ tip from experience).
Checkout with payment method on file. Minimum $35 order.
Track order and get real-time updates on delivery status.
Receive order at chosen delivery address within promised window.
For sellers, study how Instacart makes the experience seamless for the customer. From an hour delivery windows to in-app tracking, these conveniences should be replicated in your own e-commerce delivery operations whenever possible.
How Much Does Walmart Delivery Through Instacart Cost?
Here is a breakdown of the Instacart fees and costs associated with Walmart grocery delivery:
Delivery Fee: Starts at $3.99, higher during peak times.
Service Fee: 5% of total order value.
Minimum Order: Must spend $35+ to checkout.
Membership: Instacart Express ($99/year) removes delivery fees on orders $35+
Tip: Recommended $5+ per order. Should tip more for large orders.
Average Order Cost: $10 delivery + $2 service fee + $7 tip = $19 extra per $35 order.
As you can see, the delivery economics are very reasonable considering the incredible convenience and time savings. But costs could quickly add up for frequent use.
This is why membership options like Instacart Express are so clever – they lock-in customer loyalty and increase order frequency.
How Does Walmart Instacart Pricing Compare to In-Store?
Here is some great news I discovered for anyone concerned about inflated costs:
According to Walmart, Instacart pricing matches local in-store prices on most items. While some variance occurs item-to-item, Walmart holds true to its "everyday low price" pledge.
Specifically:
Instacart prices adjusted by local market (NYC vs Oklahoma).
In-store sales and promotions generally apply to Instacart too.
Price transparency via "Everyday store prices" listed on Instacart storefront.
As a seller, I‘m impressed by Walmart‘s commitment to pricing parity across channels. This builds consumer trust and reduces customer acquisition costs. It‘s an excellent omnichannel strategy that other retailers should emulate.
Can You Pay with EBT/SNAP Benefits for Walmart Instacart Orders?
This is one area of improvement I noted in my analysis. According to Walmart‘s website, EBT SNAP benefits cannot currently be used with Walmart Instacart.
The EBT card can only be used for eligible grocery items bought directly through Walmart‘s channels. This unfortunately excludes the Instacart third-party delivery service.
In my experience building sustainable e-commerce brands, removing barriers to access for ALL shoppers is critically important. I hope Walmart will work to enable EBT for its Instacart program soon, opening access to grocery delivery for millions of additional customers.
Is In-Store Pickup Available with Walmart Instacart?
Unfortunately, another limitation is Walmart Instacart only supports delivery, with no in-store or curbside pickup options.
The goal is serving urban audiences without easy access to a Walmart store. So the focus stays on fast home and office delivery vs. DIY pickup.
However, I think adding pickup capabilities could make the service useful for even more shoppers. As an omnichannel seller, maximizing flexibility and convenience is always my goal.
The Bottom Line – Key Takeaways for Online Sellers and Retailers:
In my experience as an e-commerce leader, partnerships like Walmart and Instacart have the potential to disrupt entire industries. Here are the key implications that sellers must prepare for now:
Faster delivery speeds will become the norm, not the exception.
Delivery economics will improve through scale and optimization.
Online grocery and convenience shopping are still in the early stages of explosive growth.
True omnichannel capabilities will be a requirement to stay competitive.
Loyalty will go to brands that focus on frictionless experiences.
To stay on the cutting edge in this landscape, sellers should begin exploring delivery management platforms and logistics providers now. Developing omni-channel capabilities using services like Instacart or Uber will also open new avenues of growth.
Most importantly, retailers must adopt a truly customer-centric approach to compete. That means eliminating friction, providing full transparency, and maximizing convenience through options like same-day delivery.
As an experienced e-commerce business leader, I‘m happy to answer any other questions about major retail delivery developments like Walmart Instacart. Never hesitate to reach out! I‘m always open to helping sellers and retailers navigate this fast-evolving space.
