Walmart Marketplace has long been a trusted option among online sellers, and for good reason. This eCommerce marketplace giant offers a high level of visibility as well as built-in credibility for businesses. In June 2022, Walmart secured a 6.3% market share in the retail space within the United States, which translates to about $572 billion in total sales. While this figure may pale in comparison to Amazon’s 37.8% market share, it offers a unique advantage to sellers. With less competition, Walmart sellers have the opportunity to reach a wide audience and are less likely to be overshadowed by larger businesses.

If you’re thinking about selling on Walmart Marketplace, there are a wide range of factors to consider before filling out your application. To ensure that this platform fits into your budget, it’s important to familiarize yourself with their seller fees. Understanding the costs involved will enable you to prepare for success. In this guide, we’ll give you a complete breakdown of Walmart seller fees to help you navigate the process like a pro.

Key takeaways

• • In contrast to other leading eCommerce platforms, Walmart Marketplace offers a fair pricing model to sellers, particularly those who own small businesses. 

• • With no monthly subscription fees and a reasonable referral fee, Walmart makes it possible for business owners of all kinds to make a profit on their website. 

• • To ensure that you get paid for each sale, be sure to set up a Payoneer or Hyperwallet account ahead of time.

There are various strategies you can use to maximize visibility and sales, such as winning the Buy Box, using consistent pricing, and defining your audience. 

How much does it cost to sell on Walmart?

Many first-time sellers are concerned about the cost of selling on Walmart Marketplace. Before we delve into prices, it’s worth noting that there is no fee required to create your account. According to Walmart’s official beginner’s guide for sellers, it’s free to set up your online storefront. The eCommerce giant also promises no monthly or hidden fees for any sellers.

That said, there is a referral fee that Walmart deducts from each successful purchase. The commission rate you’ll be charged depends on the product category you’re selling in and the total price of the sale. On average, Walmart’s commission rates range from 6% to 15%. Ensure you take these figures into account when calculating the total profit you’ll make from a sale. This will help you build a more effective business model in the long run.

Walmart Seller Marketplace fees

To get a better understanding of the specific fees associated with each product category, we’ve put together a table for your reference. Keep this pricing structure in mind so that you know what to expect when launching your online seller account.

How are sellers paid on Walmart?

Walmart lets you choose between two third-party payment processing sites: Payoneer and Hyperwallet. When you set up your seller account, you’ll be prompted to select one of these platforms and register with them. Once you’ve signed up, your payments will be automatically processed through your chosen platform.

Payoneer and Hyperwallet are both linked to your brand’s bank account, so you can easily transfer funds to it at any time. This built-in convenience makes selling on Walmart easy and accessible for all types of sellers.

When does Walmart pay sellers?

Your payment schedule on Walmart is dependent on the approval of your seller account. You’ll need to wait until your account has been officially approved before you can receive payments. In most cases, payments are made every 14 days. However, certain sellers might be on a weekly payment cycle instead. You can determine which cycle you have by referring to your Walmart Marketplace Retailer Agreement or by checking the dates listed on your Payment History Reports.

The date you joined the Walmart Marketplace doesn’t impact your payment schedule. Instead, Walmart sends out payments based on its own predetermined schedule. To ensure that you’re always prepared to be paid, check Walmart’s settlement schedule on a regular basis.

Create a Payoneer or Hyperwallet account

To get paid reliably on Walmart, you’ll need to set up your Payoneer or Hyperwallet account ahead of time. Fortunately, the sign-up process is relatively straightforward for both websites. To create a Payoneer account, you’ll need to have a valid ID, email address, phone number, and bank account. Once you’ve submitted all the relevant details, you’ll need to wait for Payoneer to officially verify your account. It typically takes three business days for Payoneer to approve a new account.

The application process is very similar for Hyperwallet. It’s important to note that Payoneer requires you to have a bank account with your business name attached to it, which may be an obstacle for independent sellers. Hyperwallet, on the other hand, grants you the freedom to link an existing bank account that isn’t associated with a business name. It’s important to consider your unique selling goals to choose the right payment platform for your needs.

Walmart Marketplace sales tax

All sellers on Walmart Marketplace are responsible for factoring sales tax into their selling practices, along with monitoring Walmart reviews. As a rule of thumb, it’s best to directly incorporate sales tax into the listed price of the product. However, you can also opt to list the required tax separately from the posted price. There shouldn’t be any ambiguity among buyers as to what the full amount they have to pay is.

If you need more clarification on sales tax guidelines, Walmart’s Seller Help Knowledge Base contains a detailed tax code chart for your reference. This will help you locate the shipping sales tax codes that can be applied to your chosen shipping methods. 

Pricing tips on Walmart

To optimize your selling strategy, keep these tips in mind when selling on Walmart Marketplace to maximize your chances of success:

Win the Buy Box

The Buy Box refers to a featured section on an item page that displays the item’s name, price, seller, and purchasing options. If two sellers are selling the same product on Walmart, they will have to share the item page. The most effective way to make your product stand out from your competitors is to win the Buy Box, which secures the top spot on the item results page. If your products are featured first on the item page, it can help boost your sales significantly.

• • One of the most effective strategies for winning the Buy Box is offering competitive prices, because the price of any product sold on Walmart directly impacts its placement in search engine rankings. However, pricing is highly relative and dependent on your product category. To boost your chances of securing that coveted spot on the item page, pay close attention to how your competitors are pricing their products. This will help ensure that your products stay in line with customer expectations.

Use consistent pricing

Once you’ve settled on a reasonable price for your product, maintain a consistent pricing model throughout the lifetime of the product. Using consistent pricing builds loyalty and trust with buyers. When your customers feel that they can trust your brand, they are more likely to purchase from your business rather than turn to one of your competitors.

Maintaining consistent pricing also increases your chances of ranking higher on Walmart’s search results. Tampering with prices is often frowned upon, and doing so can severely hurt your online visibility. 

Know your audience

Attempting to please every buyer is a goal that no seller will ever achieve. Instead, it’s important to focus on defining and selling to your target audience. This will help ensure that your products find the right kind of buyer.

When identifying your audience, there are several key questions you should ask yourself. Here are some basic prompts as a starting point:

• • What demographic are you targeting?

• • What do your target customers do for a living?

• • What are your audience’s favorite hobbies?

• • What unique challenges do your customers face?

• • What are your customers’ values?

• • What do they care about most?

• • What kind of messaging would resonate best with your audience?

Once you’ve answered each of these questions with clear, thoughtful answers, you’ll be ready to narrow down your target market more effectively. The next step is to ensure that your pricing model resonates with that audience. By setting your prices accordingly, you can help maximize sales significantly.

Walmart fees vs. Amazon fees

Before you choose which marketplace to sell on, it’s important to have a clear idea of the pros and cons of each. First, ensure you understand and compare the fees associated with each platform. There are two categories to take into account: monthly subscription fees and selling fees.

1. 1. Amazon’s subscription fees differ depending on which seller plan you choose. The individual plan charges you $0.99 per sale, which can add up in the long run. The other option is the professional plan, which comes with a $39.99 monthly subscription fee.

1. 1. Walmart does not charge any subscription fees, which is a major perk for many small business owners. However, it’s important to be aware of referral fees. The specific amount you’ll have to pay depends on the product category you’re selling in. 

1. 1. The total price of the sale will also influence your commission rate. Walmart’s commission rates range from 6% to 15%. Amazon follows a similar structure, charging a 15% referral rate for most product categories.

       

      1. 1. Depending on your brand, products, and goals, it may be worthwhile to consider the use of both platforms to expand your reach, regardless of referral percentages.

If you’re just getting started as a Walmart seller, or are looking to gain a competitive edge over your current competition, Trellis can help. Our software uses AI and automation to streamline your Amazon and Walmart campaigns, stay ahead of the curve when it comes to advertising and get your listings to stand out. Reach out to us today to learn how you can take full advantage of our platform.