Walmart Fulfillment Services: A Comprehensive Guide for Sellers

‍Are you an ecommerce merchant struggling with order fulfillment? Is the rising cost of fulfillment affecting your business’s profitability? If so, Walmart Fulfillment Services (WFS) might be the solution you’re looking for. In this comprehensive guide, we will explore everything you need to know about Walmart Fulfillment Services and how it can benefit your business.

1. Introduction

For many ecommerce merchants, order fulfillment can be a challenging and costly process. According to Statista, 53% of merchants reported a rise in fulfillment costs in 2020¹. This increase in costs can be attributed to various factors such as personnel, insurance, and warehouse space. To counter these challenges, many sellers turn to fulfillment service providers to streamline their operations and focus on business growth. Walmart Fulfillment Services is one such solution that allows sellers to manage their orders more efficiently and cost-effectively.

2. What is Walmart Fulfillment Services?

How Does Walmart Fulfillment Services Work?

Walmart Fulfillment Services (WFS) is an order fulfillment service offered by Walmart to its marketplace sellers. It allows sellers to outsource their inventory management and order fulfillment processes to Walmart. When a customer places an order with a seller using WFS, Walmart takes over the entire order process. This includes order fulfillment, returns management, and customer service on behalf of the seller. With Walmart’s efficient logistics capabilities, sellers can benefit from faster shipping and improved visibility in Walmart’s search results.

Benefits of Using Walmart Fulfillment Services

Using Walmart Fulfillment Services offers several benefits for sellers:

• Fast Delivery: WFS enables sellers to offer two-day shipping on their products, providing a competitive edge in the marketplace.
• Simple Pricing Structure: Unlike other fulfillment services that have hidden fees, WFS has a straightforward pricing structure based on shipping weight alone.
• Clear Reporting: Sellers can track their orders and inventory easily through user-friendly dashboards provided by WFS.
• Customer Support: WFS handles customer inquiries, refunds, and returns on behalf of sellers, providing excellent customer service.
• Increased Visibility: Sellers using WFS are automatically assigned Walmart’s TwoDay tags, which improves their rankings in search results and Buy Box prominence.

Eligibility and Requirements for WFS

To be eligible for Walmart Fulfillment Services, sellers must meet certain criteria:

• Existing Walmart Marketplace Merchant: Sellers must already be registered as Walmart Marketplace merchants.
• Product Requirements: Products must be shipped to Walmart fulfillment centers from within the United States. Perishable and regulated products are not eligible for WFS. Additionally, there are weight and size limitations for products.
• Good Standing: Sellers must have a history of on-time orders, high customer satisfaction, and overall quality service.

Cost of Walmart Fulfillment Services

Walmart offers a simple pricing structure for its Fulfillment Services. The pricing is based on a fixed monthly storage fee and a fulfillment price determined by the shipping weight of the product. However, apparel and hazmat items have different pricing structures. The cost of WFS starts at $3.45 for products weighing under 16 ounces or 1 pound. Additionally, there are storage fees based on cubic foot measurements, which vary depending on the time of the year.

Walmart Fulfillment Services vs. Amazon FBA: A Comparison

While Walmart Fulfillment Services is often compared to Amazon’s Fulfillment by Amazon (FBA), there are notable differences between the two services:

• Shipping Benefits: WFS offers free two-day shipping on orders over $35, without requiring a membership like Amazon Prime. Amazon FBA, on the other hand, provides fast shipping benefits exclusively to Prime members.
• Delivery Performance: WFS has a strong track record of maintaining two-day delivery, even during challenging times. Amazon FBA faced some delivery challenges during the COVID-19 pandemic².
• Shipping Process: Walmart sellers only need to ship their inventory to one or two Walmart fulfillment centers, whereas Amazon FBA requires sellers to ship their inventory to multiple fulfillment centers.

3. How to Set Up Walmart Fulfillment Services

Getting started with Walmart Fulfillment Services is a straightforward process for existing Walmart Marketplace sellers. Here are the steps to set up WFS:

1. Sign in to your Seller Center account.
2. Use the WFS link in the marketplace dashboard to start the application process.
3. Complete the application process by providing the necessary details, such as your U.S. Business Tax ID and product information.
4. Wait for Walmart to review your application. If accepted, you will need to convert your products to Fulfilled by Walmart listings.
5. Send your inventory to Walmart fulfillment centers, where it will be stored until a customer places an order. Walmart will handle the packaging and shipping of orders from their warehouses.

4. Pros and Cons of Walmart Fulfillment Services

Walmart Fulfillment Services offers several advantages for sellers, but it also has some drawbacks to consider. Let’s explore the pros and cons of using WFS:

Pros of Walmart Fulfillment Services

• Fast Delivery: WFS enables sellers to offer two-day shipping, which improves customer satisfaction and increases the chances of winning the Buy Box.
• Transparent Pricing: Walmart’s pricing structure for WFS is simple and straightforward, making it easier for sellers to understand and manage their costs.
• Improved Visibility: Sellers using WFS receive Walmart’s TwoDay tags, which can lead to higher rankings in search results and increased visibility.
• Streamlined Operations: By outsourcing fulfillment to Walmart, sellers can focus on other aspects of their business, such as marketing and product development.
• Excellent Customer Support: WFS handles customer inquiries, returns, and refunds, ensuring a positive customer experience.

Cons of Walmart Fulfillment Services

• Product Restrictions: Sellers cannot sell the same products through other fulfillment services like Amazon FBA, limiting their options.
• Geographical Limitations: WFS only ships within the United States, which may restrict international sellers.
• Limited Product Dimensions: Walmart has strict limitations on product dimensions, which may exclude certain sellers with larger or irregularly shaped products.

5. Tips for Success with Walmart Fulfillment Services

To make the most of Walmart Fulfillment Services and ensure success as a seller, consider the following tips:

1. Comply with Walmart’s Standards: Offer new products, competitive pricing, high-quality listings, and sufficient inventory to meet customer demand.
2. Optimize Your Walmart Listings: Use relevant keywords, compelling product descriptions, and high-quality images to improve your visibility in search results.
3. Monitor Inventory Levels: Regularly check your inventory levels and restock in a timely manner to avoid stockouts and maintain fast fulfillment.
4. Provide Excellent Customer Service: Even though Walmart handles customer inquiries, maintain open communication with your customers and address any issues promptly.
5. Stay Informed: Keep track of any updates or changes to Walmart’s policies and requirements to ensure compliance and maximize your opportunities on the platform.

6. Frequently Asked Questions about Walmart Fulfillment Services

Q1: Can I use Walmart Fulfillment Services if I’m not already a Walmart Marketplace seller?

A: No, Walmart Fulfillment Services is exclusively available to existing Walmart Marketplace sellers.

Q2: What are the storage fees for Walmart Fulfillment Services?

A: The storage fees for WFS vary based on the time of the year and the duration of storage. From January to September, the fee is $0.75 per cubic foot per month. From October to December, the fee is $2.25 per cubic foot per month for items stored for more than 30 days.

Q3: Can I sell the same products through Walmart Fulfillment Services and other fulfillment services like Amazon FBA?

A: No, Walmart has strict rules against selling the same products through multiple fulfillment services. Violating this rule can result in the suspension of your Walmart operations.

Q4: Does Walmart Fulfillment Services ship internationally?

A: No, WFS only ships within the United States, including all 50 states and some U.S. territories.

Q5: How can I track my orders and inventory with Walmart Fulfillment Services?

A: Walmart provides user-friendly dashboards that allow sellers to track their orders and inventory easily.

7. Conclusion

Walmart Fulfillment Services offers a reliable and efficient solution for ecommerce sellers looking to streamline their order fulfillment processes. By leveraging Walmart’s robust logistics capabilities, sellers can benefit from fast shipping, improved visibility, and excellent customer support. While there are some limitations and considerations to keep in mind, Walmart Fulfillment Services can significantly enhance your business’s performance on the Walmart Marketplace. Take advantage of this comprehensive guide to set up and succeed with Walmart Fulfillment Services.

Remember, choosing the right fulfillment service is crucial for the success of your ecommerce business. By partnering with Walmart and utilizing Walmart Fulfillment Services, you can focus on growing your business while Walmart takes care of your order fulfillment needs.