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. Target Plus is an invitation-only platform.
That’s not all, though.
Read this article to understand Target Plus Seller Fees
To sell on Target Plus:
- Familiarize Yourself With Target Plus
- Know the Criteria for Eligibility on Target Plus
- Compare Referral Fees on Target With Other Platforms (Walmart, Amazon and eBay)
- Review Target Plus Seller Costs
- Understand How to Reduce Target Plus Seller Fees
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 invite selects sellers to participate in the program based on criteria such as their products, level of customer service, pricing and other factors that enhance the shopping experience for Target customers.
2. Criteria for Eligibility on Target Plus
To sell on Target Plus, understand the criteria for eligibility on Target Plus.
Ensure you receive a Target invitation before you 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.
If you’re lucky to receive an invitation to sell on Target Plus, here is what you need to know:
- Ensure you have a U.S.-based company 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.
3. Compare Referral Fees on Target With Other Platforms (Walmart, Amazon and eBay).
To sell on Target Plus, compare referral fees on Target with Other platforms (Walmart, Amazon and eBay).
A referral fee is a charge that an online marketplace imposes on you when your product sells. Keep in mind that the cost of a referral fee can vary, with some marketplaces charging a percentage of the sale price while others may charge a 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. Understand that your commission rate as a third-party retailer relies on the subtype base referral fees by default. Your commission will be set based on the referral fees connected to the subcategory of the product you sell.
Walmart’s Fees: To sell on Walmart, you must pay a referral fee for each product you sell on Walmart marketplace. You can determine your referral fee from a portion of the total sales revenue and the product type that Walmart assign to your items during set up.
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: You pay a referral fee each time you sell a product on Amazon, the fee constitutes a portion of the final sales price and usually equals 15%. Keep in mind, the percentage varies based on the product category, with some as low as 8% (for personal computers) and others as high as 45%. (for Amazon Device Accessories).
eBay’s Fees: To sell on eBay, you must pay a referral fee for each sale you make on the platform. Expect to pay around 12% + $0.30 per transaction. Consider the payment processing fee, which includes either the PayPal fee or the managed payments fee, and the final value fee when budgeting for eBay referral fees.
4. Review Target Plus Seller Costs
To sell on Target Plus, understand Target Plus seller costs.
Keep in mind that Target Plus doesn’t handle 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.
5. Understand How to Reduce Target Plus Seller Fees
To start selling on Target Plus, understand how to reduce Target Plus seller fees.
To minimize Target Plus seller fees, follow these steps:
- Provide fast shipping and superior customer service.
- Keep track of your sales and fees regularly to know where you can reduce costs.
- Offer free shipping or promotions as an incentive.
- Ensure the accurate classification of your products to minimize referral fees.
- Offer competitive prices for your products.
Conclusion
To start selling on Target Plus, understand what Target Plus is, know the criteria for eligibility on the platform, compare the referral fees on Target and other online marketplaces. Additionally, review target plus seller costs and understand how to reduce Target Plus seller fees.
