Walmart Fulfillment Services: A Comprehensive Guide (2024)
Congratulations! Your Walmart seller account has been approved. Now, as you’re looking for a fulfillment solution, you may be considering applying for Walmart Fulfillment Services.
This article will show you what Walmart Fulfillment Services is, its pros and cons, and how to sign up for the program. Ultimately, you’ll be able to make an informed decision about the best fulfillment solution for your Walmart store.
Table of Contents
- What Is Walmart Fulfillment Services?
- How Does Walmart Fulfillment Services Work?
- The Pros and Cons of Walmart Fulfillment Services
- Walmart Fulfillment Services Requirements and Pricing
- How to Apply for and Use Walmart Fulfillment Services
- Walmart Fulfillment Services vs Amazon FBA
- Tips to Successfully Sell With Walmart Fulfillment Services
- To Summarize
What Is Walmart Fulfillment Services?
Walmart Fulfillment Services (WFS) name is self-explanatory: sellers stock their products in one of the Walmart fulfillment centers. When a customer places an order, Walmart picks the product, packs it, and ships it to the final destination.
Additionally, the fulfillment service assists vendors in the next steps of their eCommerce journey. The program helps with fast shipping by offering Walmart two-day delivery, assisting in handling customer service on their stores’ behalf, and providing omnichannel resources.
How Does Walmart Fulfillment Services Work?
- Sellers apply for a Walmart account and add listings.
- The seller applies for WFS.
- Stores send products to Walmart fulfillment centers and convert the listings to Fulfilled by Walmart.
- The shop gets a Walmart TwoDay badge. That helps to increase both impressions and conversion.
- When a client purchases a product, Walmart packs and sends the item stored in the fulfillment center directly to the customer within two days.
- Walmart provides further customer support, including in the case of returning products.
The Pros and Cons of Walmart Fulfillment Services
Check out the advantages and disadvantages of the WFS program below. Then, you can decide if the program is a good option for your Walmart store or if you prefer to handle customer service and logistics yourself or use a third-party fulfillment service.
Pros:
- No monthly subscription.
- Walmart fulfillment centers offer subscribers the program's storage space and fulfillment capabilities. Walmart stocks your products and is ready to ship them within two days.
- Walmart manages all fulfillment steps, from picking and packing products to providing fast shipping to customers.
- WFS handles customer support on the seller’s behalf.
- Two-day shipping is available.
- WFS resources assist sellers in implementing a customer-centric strategy, seamlessly integrating all eCommerce steps from order fulfillment to customer support.
- Subscribers can access other Walmart services, like Free & Easy Returns for an omnichannel approach or Prep Services, which gives extra options for inventory outsourcing.
- Smart Tags – Automatically generated fast-delivery tags that increase the visibility of your products, boost customer conversion, and can help your shop compete for a Buy Box.
Cons:
- The program is exclusive to Walmart sellers.
- Complex document requirements for getting a Walmart Marketplace vendor account, especially for international sellers. You can learn more about the process and how to sell on Walmart on our blog.
- Maximum product dimensions are smaller than the competition’s.
- Detailed Walmart policies on formatting listings for the program are not so easy to find (you need to search for them inside the Sellers' guide.
- No international shipping.
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Walmart Fulfillment Services Requirements and Pricing
WFS is a Walmart fulfillment option exclusive to its sellers. Applicants to the service must meet the following requirements:
- Hold a Walmart Marketplace ID
- Have an active marketplace account in good standing
However, similar to applying for a Walmart seller account, getting approved at WFS requires experience in selling.
WFS looks for Walmart marketplace sellers with some volume of sales and best-selling products, as they don’t want to fill fulfillment centers with merchandise that doesn’t sell.
Walmart Fulfillment Services Fees
The program charges a monthly storage fee (fixed) and a fulfillment fee based on the dimensional weight. Additional charges apply to retail products, apparel, hazardous materials, and oversize items.
How does the WFS pricing structure work? Following are the general WFS fees. For more details, check out the WFS website.
Fulfillment and Storage Fees:
- Weight – $3.45-17.55, plus $0.40 for each extra pound.
- Storage – $0.75-7.50 (monthly) per cubic foot. Varies depending on the month.
Additional Fees:
(on top of weight and storage fees)
- Apparel and Hazmat – $0.50
- Low-price products (up to $10) – $1
- Oversize items – $3-28
- Returning Shipping Fees – $4.70-17.55, plus an additional $0.40 per extra shipping weight.
- Disposal and Removal Fees – $0.35 plus $0.20 (disposal fee) or $0.40 (removal) increments per pound.
How to Apply for and Use Walmart Fulfillment Services
Disclaimer
Walmart Fulfillment Services is developing and expanding. The following instructions were gathered on Q3 2023 and may undergo alterations without prior warning.
Once you have an approved Walmart Marketplace account, it’s possible to apply directly through the WFS link, located in the Seller Center at the bottom of the left-hand menu.
The application may take from days to months for approval. You need to provide information on your business, a return address, billing method, inventory, and brand information.
Let’s go over the specifics:
Business Information
Besides basic information on your business, WFS will ask you to provide the following details:
- Last year’s revenue.
- Approximate stock-keeping units (SKU) count and which percentage are new products. This means products you’re not selling on Walmart Marketplace yet.
- The average sales price of the SKUs to be listed with WFS.
Inventory
WFS also requires information on the products you intend to fulfill:
- Approximate total number of units to place in a Walmart fulfillment center to start.
- Information on the products’ weight. There are fields to fill in with the percentage of units weighing in different tiers; for instance, 10% of the units weigh from 6-10 pounds.
Brands
- Specify which brands you want to sell and if you’re an authorized seller/reseller.
- Walmart asks if you can allocate a dedicated person to support your store with WFS. It’s recommended to answer Yes – you may list yourself for that role.
- Specify if the products have UPC labels (required to ship to WFS), GTINs, or EANs.
Contact Info
- Business address, phone, and email.
Convert Your Listings to WFS
Finally, sellers must convert their listings to WFS listings. For this, look for Items in the Seller Center left-hand menu. Click on Update items in bulk in the upper-right menu, then choose if you want to convert a single product or bulk items to WFS.
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Walmart Fulfillment Services vs Amazon FBA
WFS was created by Walmart to compete with the Fulfillment by Amazon (FBA) program after the latter stopped using brand-neutral packaging. Walmart understandably forbade its users from shipping with FBA, as their packages were arriving with Amazon FBA platform labels.
That led Walmart sellers to fulfill orders themselves and keep products in their own storage spaces, resulting in increased shipping time, fulfillment costs, and lower reviews compared to Amazon FBA users. WFS addresses this deficiency. But how does it compare to FBA?
| WFS | FBA | |
|---|---|---|
| Subscription | Although WFS doesn’t charge a monthly subscription, the program has a detailed pricing structure. | Monthly fees start at $39.99 for a Professional Account. |
| Maximum shipment weight | 25” x 20” x 14”, up to 30 lbs | 108” longest side, 165” length (plus girth), up to 150 lbs |
| Document requirements | Requires US tax ID, W9/ W8 and an EIN verification letter. | There is no need for a US tax ID, W9/ W8, or an EIN verification letter. |
| Fulfillment service fees | from $3.45 | from $2.50 |
| Custom shipping labels | No | Yes |
| Exclusivity / Flexibility | WFS is an exclusive service, and a Walmart Marketplace seller doesn't have other fulfillment options available within Walmart. | Amazon offers FBA to third-party sellers and gives its own vendors additional options like Amazon Subscribe & Save or Amazon Small & Light. |
| Origin of products / Geography | Products must ship from inside the US to a Walmart fulfillment center. | International shipments are accepted. |
| Does it require a country of origin on packaging? | Yes | No |
| UPC / ASIN | Product packaging must show UPCs. | ASIN labels are applied when necessary. |
| Subscription | |
|---|---|
| WFS | Although WFS doesn’t charge a monthly subscription, the program has a detailed pricing structure. |
| FBA | Monthly fees start at $39.99 for a Professional Account. |
| Maximum shipment weight | |
| WFS | 25” x 20” x 14”, up to 30 lbs |
| FBA | 108” longest side, 165” length (plus girth), up to 150 lbs |
| Document requirements | |
| WFS | Requires US tax ID, W9/ W8 and an EIN verification letter |
| FBA | There is no need for a US tax ID, W9/ W8, or an EIN verification letter |
| Fulfillment service fees | |
| WFS | from $3.45 |
| FBA | from $2.50 |
| Custom shipping labels | |
| WFS | No |
| FBA | Yes |
| Exclusivity / Flexibility | |
| WFS | WFS is an exclusive service, and a Walmart Marketplace seller doesn't have other fulfillment options available within Walmart. |
| FBA | Amazon offers FBA to third-party sellers and gives its own vendors additional options like Amazon Subscribe & Save or Amazon Small & Light. |
| Origin of products / Geography | |
| WFS | Products must ship from inside the US to a Walmart fulfillment center. |
| FBA | International shipments are accepted. |
| Does it require a country of origin on packaging? | |
| WFS | Yes |
| FBA | No |
| UPC / ASIN | |
| WFS | Product packaging must show UPCs. |
| FBA | ASIN labels are applied when necessary. |
Tips to Successfully Sell With Walmart Fulfillment Services
The WFS program is a game changer for Walmart users, improving sellers’ and buyers’ experiences. Here are some tips for using this fulfillment service and improving your store profitability even more.
Adopt an Omnichannel Strategy With Free & Easy Returns
Omnichannel marketing is a marketing strategy where a brand offers customers a seamless and integrated experience through multiple channels.
WFS makes this possible with Free and Easy Returns. This resource lets eCommerce customers return items for free by conventional mail. The pickup at home is scheduled, or customers can also return the goods to a Walmart retail store.
Follow Walmart SEO Best Practices
Optimize listings to improve their visibility, searchability, and competitiveness. Apply Search Engine Optimization (SEO) and follow specific Walmart instructions to properly format product names, descriptions, and key features (read more on Walmart SEO Best Practices for Optimization).
Be Customer-Centric
There are many ways to focus on your customer. We’ve covered the need for an omnichannel approach to provide a seamless experience. Complement this by providing the best prices for your customers and promoting relationships.
Be attentive to customer demand and apply competitive pricing. Check out your competitors on Walmart, and see how you can do better by offering a lower price whenever possible.
Be responsive to customers to achieve positive reviews. Although WFS will manage most of the customer support, pay attention to anything that requires your direct intervention. Also, follow reviews of similar products to add features the customers need and want and get an edge over the competition.
To Summarize
This article has shown you what Walmart Fulfillment Services is, its pricing structure, its advantages, and how to apply for the program. Provided with this information, make an informed decision and increase the profitability of your online store.
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Written by
Andris Mucenieks
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