For many sellers, especially those new to marketplace selling, fulfillment can be one of the steepest hurdles. Storing, managing, preparing, and shipping inventory is not a small task, particularly if your resources are already at capacity or you don’t have a warehousing option in place to meet demands.
To provide competitive service for sellers and buyers, Walmart Marketplace offers its fulfillment solution, Walmart Fulfillment Services (WFS). For brands that need assistance or simply don’t want to deal with the complexities, WFS can be a great choice. However, it’s not for everyone. Before taking the plunge, read on to learn more about the pros and cons of this fulfillment option.
Key takeaways
- Marketplace sales on Walmart can be fulfilled by merchants or managed directly by Walmart via the WFS program.
- WFS participants ship inventory to Walmart’s warehouses; storing, packaging, and shipping to customers are managed by Walmart’s resources.
- While there are many advantages to utilizing WFS as a marketplace seller, like branded packaging, two-day shipping, increased chance of Buy Box wins, and customer service support, WFS won’t be the best fit for all businesses.
The impact of strong fulfillment for businesses
To a buyer, fulfillment is a big part of the decision-making process, particularly after Amazon’s market shake-up with the launch of Prime and two-day shipping. Customers are used to getting their products quickly and delivered in a timely manner. Lagging shipping speeds, unprofessional packaging, and the potential for damaged items can be hugely disruptive to buyers, particularly if other, more appealing options are available. By being able to promise a smooth experience, buyers are more likely to trust you—and to shop with you again.
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How do Walmart Fulfillment Services work?
WFS is a way to outsource fulfillment, letting Walmart handle the responsibility of packing and shipping Walmart products to buyers. However, getting started takes more coordination than is true of other platform-based fulfillment services, like Amazon. In order to take part in this program, sellers need to apply and be approved.
Once accepted, sellers can start converting items to “Walmart Fulfilled.” Once products have been appropriately designated, they can then be shipped to Walmart warehouses. Walmart will then assign SKUs to manage inventory and distribution and take care of the remaining processes needed to get your items in customers’ hands.
WFS pros
There’s a lot to like about Walmart Fulfillment Services. These are some pros to keep in mind when considering it:
Fast shipping
It’s possible to offer fast shipping on your own, but letting Walmart handle this process can cut out the expenses of one- or two-day service through couriers like FedEx—and reduce time spent dropping off packages. Walmart generally offers customers two-day delivery, like Amazon Prime, ensuring there’s never a delay.
Increase search visibility
Walmart’s algorithm prioritizes a few things when determining rankings in search results, and fulfillment speed is on the list. When you enroll in WFS, your products will get tagged with “Two Day Delivery,” which automatically improves general visibility and the likelihood of Buy Box wins.
Customer service is handled
Since your business isn’t handling fulfillment, you need to worry a bit less about handling customer service issues. If customers need replacements, returns, or refunds, the WFS customer service team will be the primary point of contact for shoppers.
More trust with customers
Walmart is a trusted brand name for millions of people, with over 4,500 stores from coast to coast. When WFS handles fulfillment, products will be delivered in Walmart packaging, providing an extra layer of legitimacy to your products. Many customers don’t know they’re ordering from marketplace sellers rather than Walmart directly, and looking the part can boost your business. This can help with getting more Walmart reviews, too.
Reporting is clear
WFS reporting tools are easy to use and make things like inventory management a breeze. Because Walmart is doing the heavy lifting, its internal dashboards can offer more resources than most sellers can accomplish individually.
Pricing is straightforward
Walmart Fulfillment Services aren’t free to use, but the pricing structure is very straightforward. Prices are based on the weight of inventory and storage space needed so sellers can determine costs up-front. There are no hidden fees or extra expenses; what you see is what you get with WFS.
Great seller support
Walmart does an excellent job supporting those who are enrolled in WFS. All questions are managed by a dedicated support team, so Walmart sellers can easily stay informed on new fulfillment developments and up-to-date with current policies.
Easy returns
Processing returns can be a surprisingly complex part of eCommerce sales. With WFS, you can remove potential headaches thanks to a straightforward returns policy. Walmart will process any returned inventory and issue refunds on your behalf.
WFS cons
While Walmart Fulfillment Services have many upsides, it won’t be the right option for all sellers. These cons may hold your business back:
Location limitations
WFS isn’t available everywhere; shipping is limited to the U.S. and its associated territories. For sellers who want to operate outside these locations, WFS can make it a challenge to branch out into new markets.
Single channel fulfillment
For sellers who prefer a multi-channel approach to sales, using WFS can be a challenge. Sellers enrolled in this program can’t sell inventory managed through any other platform—a distinct difference from Fulfillment by Amazon—which can limit opportunities for those who prefer a more diversified strategy.
Strict rules to follow
Since there’s an approval process associated with joining WFS, sellers must follow plenty of strict rules. These include what kinds of products can be accepted and adherence to single-channel fulfillment policies. Breaking these restrictions can result in an entire seller account being shut down.
Product requirements
WFS might not be possible for sellers with large or heavy products or items in certain niches. The program requires products weighing 500 pounds or less and will not fulfill perishable or highly regulated items requiring temperature control.
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Can anyone use Walmart Fulfillment Services?
Unlike Amazon’s fulfillment platform, Walmart’s structure is slightly more restrictive. WFS isn’t open to everyone; sellers must apply for the program and be accepted through an internal review process. You’ll need to be able to demonstrate the ability to take sales seriously before being allowed to enroll.
Requirements for Walmart Fulfillment Services
To be accepted into the Walmart Fulfillment Services program, sellers will need to meet some basic criteria:
- First, sellers must create a Walmart Marketplace account and complete an application to answer questions about merchandise and related services. As mentioned previously, not all products are permitted under WFS. If your inventory doesn’t qualify, your application will be rejected.
- Once an application is complete, the WFS team will review it. While specific factors aren’t outlined, some details considered include sales history on Walmart.com, a record of on-time deliveries, and excellent customer service.
Keep in mind that acceptance into the program takes time, so ensure you check your application status throughout the review period.
Is Walmart WFS good for beginners?
This program can be helpful for those starting out in the eCommerce space, especially since fulfillment is its own unique obstacle to becoming a successful seller. However, to be accepted into the program, sellers must prove their product’s quality, including their ability to fulfill orders. This means in the early days of sales, you’ll have to ensure fulfillment is managed well internally.
Walmart Fulfillment Services fees
Sellers using WFS pay for the warehouse storage space, picking and packing process, and shipping costs. However, the WFS fee model tends to be more straightforward than some competitor platforms. Fees are broken into a few general categories:
- Fulfillment Fees: These are assessed based on a product’s weight. For example, products under one pound in weight carry a fee of $3.45. Above this weight, it costs an additional $0.40 per pound. Oversized items may incur additional costs.
- Storage Fees: This is a base fee determined by the amount of warehouse space needed. However, seasonality can impact this number, with a potential surcharge for peak seasons—October to December. Storage fees start at $0.75 per cubic foot per month. In peak season, this same rate applies, but any inventory in the warehouse for longer than 30 days is subject to an additional fee of $1.50 per cubic foot.
- Additional Fees: Sellers can purchase additional services on top of these standard fees, including Walmart Prep Services, which provides bagging and item labeling for a per-item price.
Keep in mind that WFS fees are on top of Walmart’s standard referral fees, which generally range between 6% and 15%.
Walmart Fulfillment Services vs. Amazon FBA
In many ways, Walmart Fulfillment Services and Fulfillment by Amazon are similar. Under both programs, the marketplace staff handles the fulfillment process, including storage, packing, and shipping. However, there are some notable differences:
- Marketplace Reach: FBA offers services worldwide, while Walmart WFS is limited to the U.S.
- Fees: WFS has a straightforward fee structure, while FBA is a little less transparent and requires a monthly subscription cost.
- Product Categories: FBA is far less strict about eligible products.
- Warehousing Options: FBA has nearly 200 global warehouses, with over 100 in the U.S. alone, while WFS is limited to just over 30.
- Sales Channels: FBA offers an omnichannel approach to selling, while WFS only supports single-channel opportunities.
- Returns Options: FBA only permits returns via mail, while WFS allows customers to make returns in-store.
- Sales Growth Opportunities: WFS customers generally see an accelerated growth rate year over year.
In many ways, Amazon provides a more expansive array of options under FBA, which is to be expected; FBA has been in place longer than WFS. However, with more growth potential as Walmart’s marketplace is newer and less saturated, there’s much to be said for selling and advertising on Walmart via WFS.
Is WFS right for my business?
Walmart Fulfillment Services may be right for you if:
- You’re newer to eCommerce and don’t have a fulfillment infrastructure like warehousing or shipping support.
- You’d prefer to use your time on other elements of seller management.
- You’re scaling your business and want the process of accelerated sales managed for you.
- You’re an individual seller or small operation without the bandwidth to take on fulfillment.
- You’re not interested in managing things like returns and refunds.
- You’d like increased visibility on the Walmart marketplace, and a higher likelihood of Buy Box wins.
- You favor the legitimacy of Walmart-branded packaging.
- You need assistance with customer service.
- You want to ensure your customer’s fulfillment experience runs smoothly and efficiently.
Conversely, Walmart FBA might not be the ideal choice if:
- You can handle fulfillment in-house for a cheaper rate or have an infrastructure built out already.
- Your products aren’t all eligible to be accepted into the program.
- You want to sell to a broader market than the WFS U.S.-specific footprint.
- You already have effective inventory management methods compared to Walmart Connect’s reporting tools.
- You don’t have enough products listed for sale—Walmart recommends at least 50, though there’s no minimum—to make the program worthwhile.
- Selling isn’t a full-time operation, or sales volume doesn’t require third-party support.
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Final thoughts
When it comes to enrolling in Walmart Fulfillment Services, make the best choice for your business needs, including what you can afford and the level of service required. For many sellers, it makes sense to have fulfillment handled by Walmart so you can focus on the core operations of your business as you seek to get a leg up on the competition. Trellis can help you do just that by using AI and automation to improve your product listings, strengthen PPC advertising, and drive conversions. To find out more, reach out to us today.
