Don’t know what it takes to become a seller on Target Plus–and what it actually costs to sell on the platform?
If yeah, say no more! This article is for you, relax and read this article carefully to understand Target Plus and Target Plus seller fees.
Target Plus differs from other marketplaces in that it hand-picks the brands and sellers that it wants to collaborate with rather than allowing any seller to advertise products on Target. However, selling on Target Plus is by invitation-only.
That’s not all, though.
Read this article to understand Target Plus Seller Fees
To sell on Target Plus, you need to understand the following:
- What is Target Plus?
- Criteria for Eligibility on Target Plus
- Referral Fees on Target, Walmart, Amazon and eBay.
- Target Plus Seller Costs
- Conclusion
Here we go!
1. What is Target Plus?
To start selling on Target Plus, know what Target Plus is.
Target Plus is an invitation-only platform, it exclusively collaborates with specific sellers. You must wait for Target to contact you before selling on the platform. However, the uniqueness of the Target Plus marketplace sets it apart from other online marketplaces.
Target Plus is one of the best e-commerce sites that supports independent sellers. Target entered the e-commerce industry in February 2019, enabling third-party businesses to sell on the Target marketplace.
2. Criteria for Eligibility on Target Plus
To sell on Target Plus, know the requirements of Target Plus.
Make sure your Target partner online invitation gets an approval in order to sign up as a Target seller. Once you have a legitimate Target Seller Marketplace account, you can explore Target’s Whitelisting Rules and Approval Settings to see what kinds of products you can offer in Target product listings.
To sell on Target Marketplace, invited sellers must fulfill the following criteria:
- You must have a U.S.-based company and bank as an online partner of Target.
- Make sure the cost of the brand products on the Target product listings is comparable to other sales channels.
- Keep image minimum size at 1200 x 1200px and maximum size at 2400 x 2400px. Convert images into JPG format and RGB mode.
- Make sure that no watermarks, graphic content, or commercial wording are included in the photographs.
- Make sure the images of your products are clear and show their key features.
- Ensure that each product on the Target Lists has a Global Trade Item Number (GTIN) or a Universal Product Code (UPCs).
- Send out orders in less than 24 hours, and keep the transit time to a maximum of 5 days.
- Keep in mind that Target Plus doesn’t provide cross-border trading services. You can only offer shipping service in the US only.
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3. Referral Fees on Target, Walmart, Amazon and eBay.
To sell on Target Plus, understand the referral fees on Target and other online marketplaces.
A referral fee is what a marketplace charges a seller when a product sells. Depending on the type of goods, the cost is often a percentage of the sale price, but it is possible to combine it with a separate flat fee.
Target Referral Fees: To sell on Target Marketplace as a Target partner, you must pay a commission or referral fee of between 5-15%. This commission rate in some cases, is lower than those of other online marketplace platforms and is roughly identical to the percentages for Amazon Vendor Central.
If you sell on Target, you can check if you have special referral fee settings under the Referral Fees area of the Target eCommerce site. The subtype base referral fees are the basis for a third-party retailer’s commission rate by default.
Walmart’s Fees: Marketplace sellers on Walmart pay a referral fee for each product they sell on Walmart Marketplace. A portion of the total sales revenue from the sale of each product determines the referral fee. The product type that Walmart assigns to your items during item setup determines the appropriate Referral Fee. For instance, if you sell a book for $10, you must pay Walmart 15% of that price as the selling charge, but if you sell mobile phones, Walmart requires you to pay them 8% of the sale price. Your entire profit from the sale of Walmart goods is equal to your total sales minus the referral fees that Walmart levies.
Amazon’s Fees: Every time you sell a product, Amazon charges you a referral fee. It represents a portion of the final sales price and is typically 15%. Depending on the product category, the percentage might range from as low as 8% (for personal computers) to as high as 45%. (for Amazon Device Accessories).
eBay’s Fees: eBay sellers typically pay about 12% + $0.30 for each transaction. The two primary costs that concern eBay sellers are the payment processing fee and the final value fee. Either the PayPal fee or the managed payments fee constitutes the payment processing fee.
4. Target Plus Seller Costs
To sell on Target Plus, understand Target Plus seller costs.
Keep in mind that Target Plus don’t do order fulfillment, in this case, you are responsible for shipping products to the customers. However, that’s not all, here are some costs you need to consider as a Target Plus seller:
Shipping and Fulfillment Cost: You are in charge of shipping the products and processing returns on Target marketplace. Target doesn’t take any part in fulfilling orders to your customers.
Product Sourcing Cost: Bear in mind that you shoulder the cost of product sourcing on Target Marketplace. Don’t forget to look for products that stand out by having extra features. Your products should have characteristics that set them apart from similar goods on the market.
Promotional Cost: You should promote your brand as far as possible to increase your chances of being visible. With this, you have to incur costs on promotion.
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Conclusion
To start selling on Target Plus, understand what Target Plus is, criteria for eligibility on the platform and know the referral fees on Target and other online marketplaces. That’s not all though, keep in mind Target Plus seller costs.
