On May 25th, Kaspien hosted a webinar (available on-demand here) about our experience selling on the Target marketplace as one of the few approved Target Plus partners. The webinar concluded with a live Q&A, and boy were there a lot of questions! In this post, we’re answering the most frequently asked questions from that webinar.
How to Start Selling on Target Plus with Kaspien
Can I Apply to Sell on Target Plus Myself?
Not yet. Target Plus is currently an invite-only program, though the. Target is being very selective about whom they approve to sell on their online marketplace. According to Marketplace Pulse, there are less than 300 sellers approved as Target Plus partners, whereas Amazon has millions. Target is focusing on bringing in large sellers who carry massive catalogs, such as Kaspien.
Can Kaspien Sell My Products on Target Plus?
Potentially! Target gets the final say on what products we are approved to sell on their online marketplace. As such, we have to review each product for eligibility on a case-by-case basis. To find out if you’re eligible to sell on Target through Kaspien, fill out our application!
How Long Does it take to Start Selling on Target?
The timeline between getting approved to sell on Target Plus and going live can vary. Typically, the process takes 45–60 days before listings are live. If you already partner with Kaspien and you have inventory at the ready, we can launch in about a month!
How Does Product Approval Work on Target?
Getting a product approved to sell on Target takes 4 steps:
- We pitch our Target+ representative on a new product, highlighting market differentiators such as: New product type not currently represented on Target.com; Key differentiators of product compared to current Target.com representation; Unique price point; Potential sales velocity
- Target+ representative approves, denies, or asks for more supporting information
- If accepted, we utilize the brand’s content, images, and videos to build a Target listing
- Once submitted, listings typically take 3–7 days to publish. Target+ has a rigorous listing review process and may request multiple edits prior to approval
Can I Start with Kaspien then Transition to Sell on My Own?
You betcha! Just like with Amazon, brands can launch on Target selling through Kaspien or another third-party seller, then transition to being their own seller at a later date.
Kaspien’s platform is built from the ground up to enable seamless transitions. We can be a retailer, an agency that manages your seller account for you, provide you ecommerce software to use on your own, or a hybrid of any of those!
Can You Sell Refurbished Products on Target?
No. At this time, Target Plus only allows new products to be sold on the platform.
What are the Requirements to Start Selling on Target?
Can Non-U.S. Businesses Sell on Target or Is it U.S. Businesses Only?
To sell on Target, sellers must have a business and bank presence in the U.S. Target also only supports shipping in the U.S. Cross Border Trade Services are not available currently. Kaspien can sell products from non-U.S. brands on Target, so long as they have valid UPCs.
What Product Types Can be Sold on Target Plus?
Kaspien is currently approved to sell products in the baby, pets, sports, and toys category on Target Plus; however, we expect additional categories to open up soon as Target continues to scale their online marketplace.
Do You Have to Sell in Target Brick & Mortar to be on Target.com?
No. Brands can seek approval to sell on Target.com separately from selling in Target stores.
Target Only Allows One Seller Per Listing?
Correct. Unlike Amazon and Walmart, Target permits only one seller in each listing, and only one listing for every product. Target aims to create a curated marketplace, carefully selecting who can sell on their platform and what products are allowed. Target wants to create a marketplace filled with unique products instead of multiple copies of the same product.
If a given product is already being sold on Target, you won’t be allowed to create a new listing to sell it as well. If you are the manufacturer and you’ve been invited to sell on Target, you can request to take ownership of the listing from the current seller. Target will review and arbitrate.
What are Content Requirements for Product Listings?
Target has strict content guidelines to deliver exceptional listings for customers.
Listing Requirements
- Barcode, Brand, Description, Import Details, Main Image, Package Dimensions, Prop 65, Tax, Title
- Other required Fields vary by Item Type/Category
Best Practices
- Title, 150 characters or less
- 5 Bullet Points
- Product Description, no HTML permitted
- Images, up to 15
- If there is text in images, this text must also be elsewhere in listing content
Once you have sent your listing into the Target+ platform, Target will perform a UPC check to confirm that the UPC is not yet listed. Target will also confirm you have been approved for the desired Item Type/Category. Then the Target team will review listing content looking for gaps in required fields or discrepancies in content. When all that is done, Target will either approve and publish your listing, or reject your listing, providing “Listing Errors” that will explain required updates.
What are the Costs of Selling on Target Plus?
Does it Cost Anything to Sell through Kaspien?
Nope! There is no fee for working with Kaspien as your Target Plus seller. As your retailer, we’d buy your product at wholesale cost, then sell it on Target Plus. You only pay if you want to fund additional services, such as advertising.
How do Target REDcards Work?
Target REDcards provide customers a 5% discount, including for products purchased on Target’s online marketplace. The discount is applied at checkout, so we don’t recommend inflating pricing to compensate for the REDcard discount.
How do Margins on Target Compare to Margins on Amazon?
Because Target does not have its own fulfillment network like Amazon, sellers face higher fulfillment costs. This, combined with REDcards, means that margins could potentially be lower on Target. However, Target’s curated marketplace protects brands against retail arbitrage, and that added security may offset the difference.
How does Fulfillment work on Target Plus?
Can I Dropship on Target Plus?
It depends on how you define dropship. If you mean retail arbitrage, then no. Target does not permit it. If you mean, “can I fulfill orders from my own warehouse?” then the answer is yes, but it has very strict requirements: Brands who fulfill orders from their own warehouses must ship the order within 24 hours of receipt AND the order must reach the customer within 5 days.
What if My Warehouse Closes for the Weekend?
Target’s requirements are black and white. Weekends or not, if you cannot ship an order within 24 hours and deliver it to the customer within 5 days, you cannot fulfill orders through your own warehouse.
What is the Best Fulfillment Option for Target Plus?
If you cannot fulfill orders through your own warehouse, you’ll most likely work through a third-party fulfillment network, such as Deliverr. Kaspien partners with Deliverr for multiple marketplaces, including Target.
Does Target Plus have Inventory Quantity Limits?
Target does not currently own fulfillment centers, so it does not enforce inventory quantity limits. If fulfilling orders from your own warehouse, your quantity limit is whatever you decide. If fulfilling orders through a third-party, your quantity limit is whatever makes the most financial sense for your business, as well as any limits the third-party sets.
How Are Product Returns Handled?
In-Store Returns: Target Store team members will fully refund customers when they process a Target Plus return. During the return transaction, the team member labels the returned product with a License Plate and places the item in the backroom to be shipped to a central Target Return Center. The Return Center sorts all returns by Partner using a labeling process, then ships the return to the Partner’s designated warehouse as a small parcel or in a pallet.
Mail-In Returns: Customers can initiate a return online through Target.com or Target’s app, which generates a shipping label to apply to their packaging. The shipping label directs the guest to send the item back to your designated returns center.
If you sell through Kaspien, we direct returns back to our warehouse. We make unique arrangements with each partner about how we get the product back to them.
How Do Sellers Receive Orders from Target?
At Kaspien, we use an API connection to receive orders and process them through our fulfillment network.
How to Control Pricing on Target Plus?
Does Target Set Prices on Target Plus?
No. The seller controls pricing, not Target. Target doesn’t run flash sales either, so pricing should never change unless you or your seller decide to update it.
Does Kaspien Abide by MAP?
We certainly do. Pricing strategy plays a key role in your marketplace success, so we’ll respect your MAP.
Does Target Plus Require Pricing Parity?
Yes it does. Pricing parity means that product prices are the same regardless of sales channel. Amazon is known for penalizing sellers if the product is priced for a lower amount off of Amazon. In this case, Amazon rolls up the Buy Box, which hides the product price, seller, and fulfillment method from shoppers. To view those details, shoppers must click several more buttons, which has the effect of reducing sales.
As such, if you sell on Amazon and Target, you should make sure that your pricing is consistent across marketplaces.
Why Does Kaspien Recommend Working with Only One Seller Across Marketplaces?
We recommend partnering with one third-party seller for all your marketplaces. The biggest benefits are:
- It simplifies everything. Updating listing content, rolling out updated packaging, adding new images across all marketplaces, coordinating promotions, managing inventory, maintaining pricing parity — all of this and more is much easier when there’s a single partner managing all of it.
- You can take advantage of holistic learning. Each marketplace has a different audience and functions differently. When a single partner manages every channel, they can seamlessly transfer learnings from one channel to another, amplifying performance across the board.
There are other benefits as well, but these two high level benefits encompass much.
How does Marketing Work on Target Plus?
Does Target have On-Marketplace Advertising?
Yes, although Target does not yet have its own marketing tools. Instead, it allows third-party marketing tools to operate on Target. Brands already using these tools for other marketplaces may be able to upgrade their existing subscriptions to add Target to the mix, if they get approved to sell on Target. Some of these tools are accessible from within Target’s platform.
Does Target Require Brands to Participate in Promos?
No. Sellers decide if/when to run marketing promotions. You won’t have to worry about Target imposing a flash sale and impacting your margins.
Can Sellers Respond to Customer Reviews on Target?
Yes. Target integrates with Bazaarvoice, allowing sellers to respond to customer feedback.
What Brand Building Tools does Target Plus Offer?
Like Amazon, Target allows brands to create brand stores on their marketplace. However, these storefronts are currently less customizable than their Amazon counterparts.
Can Kaspien Run My Marketing on Target for Me?
We sure can! Our ecommerce experts can run ad campaigns, social media marketing, and provide listing optimizations for our brands on Target.
How does Target Marketplace Compare to Amazon or Walmart?
How Big is Target Compared to Amazon and Walmart?
In 2020, Target broke into eMarketer’s list of the 10 top U.S. ecommerce companies by market share for the first time, ranking #8. eMarketer forecasts that Target will climb to the #6 spot on the list by the end of 2021. Target is estimated to generate $20 billion in sales in 2021, compared to Walmart’s $65 billion and Amazon’s $367 billion.
In Target’s Q1 2021 earnings, they reported that online sales grew 50.2% year-over-year for Q1. Additionally, 18.3% of all sales originated digitally in Q1, compared to 15.3% Q1 2020
Does Target Offer 1-Day Shipping?
Not yet. Target is launching a 2-day fulfillment service to better compete with Amazon and Walmart, but there are no talks yet of 1-day shipping. Target does, however, offer in-store pickup in some cases.
Can I sell the Same Product on Amazon and Target?
Yep! The same item can be listed on both Amazon and Target.
Can Shoppers Tell the Difference between Target Plus and Target.com?
They can! Products sold by Target Plus partners display a badge flagging them as such. Targets sold by Target do not feature the badge.
That said, consumers are unlikely to understand or particularly care about the difference since the buying experience is the same.
How do Target Sales Compare to Amazon or Walmart?
Amazon remains the dominant ecommerce marketplace. However, Target is already making waves. In Q4 2020, Kaspien’s average revenue per listing was 9x greater than what we saw on Walmart’s marketplace!
Where Can I Apply to Partner with Kaspien for Target?
Right here! Complete the application on this page, and our team will review your products for eligibility. If your products are not eligible now, we’ll keep them on record in case Target loosens its requirements in the future!
