What Is Walmart Rollback & How Can Suppliers Prepare for It?
Walmart rollbacks offer suppliers a prime opportunity to boost sales and brand awareness through steep temporary discounts. But to maximize results, you need to understand exactly how rollbacks work and prepare your operations accordingly. This comprehensive guide will break down everything you need to know as a supplier for succeeding with Walmart rollbacks.
A Walmart rollback refers to a temporary price reduction on products sold in Walmart stores and on Walmart.com. The markdowns are tagged with the original and reduced prices to showcase the markdowns to shoppers.
Rollbacks allow Walmart to offer discounts up to 50% or more off original prices. The temporary promotions aim to drive purchase volumes and increase sales during the discounted period.
If your products are selected for a high-profile Walmart rollback, you have a tremendous opportunity to profit from heightened demand and brand exposure. But you need to be ready operationally to fully capitalize. Follow the tips in this guide to make the most of your next Walmart rollback event.
How Do Rollbacks Work? Mechanics & Benefits
Understanding the rollback workflow and incentives can help suppliers prepare their strategy. Here‘s an overview of how the promotions operate:
- Retailer Partnerships – Walmart collaborates with suppliers of select products to plan rollbacks
- Agreed Upon Discounts – Suppliers and Walmart agree to discounted pricing, usually 25-50%+ off
- Limited Timeframe – Rollbacks typically run for a set period of weeks or months
- In-Store and Online – Rollbacks are featured both in-store and on Walmart‘s website
- Signage and Dedicated Pages – Special tags and pages showcase rollback deals to shoppers
For Walmart, rollbacks aim to:
- Drive customer traffic with eye-catching temporary deals
- Incentivize larger purchase volumes with steep discounts
- Reinforce EDLP (Everyday Low Price) strategy and price leadership
- Sell through excess inventory and overstock products
Suppliers also benefit from increased sales, brand awareness, and new customer acquisition. But preparation is required to achieve optimal results as we‘ll explore in this guide.
Comparing Rollbacks to Other Discounts
It‘s important to understand how Walmart rollbacks differ from other common discounting promotions:
| Discount Type | Description | Discount Level | Duration |
|---|---|---|---|
| Rollbacks | Temporary price reductions on select items | Up to 50%+ off | Weeks to months |
| Clearance | Permanent price reductions to clear inventory | Varies, mild to deep discounts | N/A |
| Sales | Temporary price decreases on product groups | 10-25% off typically | Days to weeks |
Key Takeaway: The temporary timeframe and steep discounts of rollbacks stand out from typical clearances and sales.
Why Rollbacks Are Important for Suppliers
The high-profile exposure and deep discounts of Walmart rollbacks make them alluring opportunities for suppliers:
- Increase Sales Volumes – Tempting markdowns incentivize customers to purchase more
- Gain New Customers – Draws in new shoppers beyond your existing buyer base
- Enhanced Brand Awareness – High visibility in nationwide Walmart stores and online
- Excess Inventory Reduction – Sell through overstock products with limited time discounts
- Competitive Edge – Match competitor promotional pricing in a strategic way
One case study found participating suppliers experienced a 21% sales uplift on average during Walmart rollbacks. But suppliers must be strategic in choosing products and planning inventory to achieve similar upside.
When Do Rollbacks Happen?
Walmart rollouts rollbacks periodically based on seasonal shopping trends, events, inventory needs and more.
By Season
- Winter – Holiday shopping in November/December
- Spring – Easter, Earth Day, Mother‘s Day
- Summer – Father‘s Day, July 4th, Back to School
- Fall – Halloween, Thanksgiving
By Occasion
- Major holidays like Christmas, Valentine‘s Day
- Annual celebrations like anniversary sales or Earth Day
- Grand openings, corporate milestones, or media events
Operational Reasons
- Clearing out excess inventory or overstock products
- Promoting new product launches or brand expansions
- Competing with competitor promotions and sales events
Individual rollback deals typically run 2 weeks to 2 months on average. Duration varies by product type and inventory needs.
Preparing Your Operations as a Supplier
When Walmart confirms your product will be featured in an upcoming rollback, preparation is crucial to maximize the opportunity.
Choose Products Strategically
Work closely with your Walmart buyer to identify your top sellers, high-profile items, or new products to promote. Avoid unproven products or styles without existing demand.
Negotiate Prices and Margins
Strike an agreement on discounted pricing that incents purchases and maintains acceptable margins. Understand breakeven points and historical price elasticities.
Scale Up Inventory
Analyze past sales trends and forecast demand. Produce enough inventory to avoid stockouts during heightened sales periods. But don‘t overstock once promotions end.
Refine Packaging and Marketing
Ensure packaging communicates discounts clearly and shelves well. Refresh marketing assets to highlight promotional pricing on your website, social media, and ads.
Monitor Performance
Keep close tabs on sales, traffic, and shopper metrics. Fine-tune strategies and inventory in real-time if performance deviates from plans.
Collect Feedback
Gather post-promotion feedback from Walmart and shoppers. Identify what worked well and areas for future improvement to win bigger next time.
Seize the Rollback Opportunity
In today‘s competitive retail environment, Walmart rollbacks represent rare opportunities to boost your brand, sales, and reach almost overnight. By educating yourself on the mechanics and benefits of rollbacks, thinking strategically, and preparing your operations, you can maximize temporary promotions for long-term success selling through Walmart.
For personalized guidance tailoring your Walmart rollback strategy, reach out to our team of experts at Seller Interactive. Our decades of marketplace insights can help you profit from every Walmart promotion.
