For many eCommerce merchants, independently handling order fulfillment is challenging. On top of operational hurdles, fulfillment can become expensive. According to Statista, 53% of merchants reported a rise in fulfillment costs in 2020.
The reasons behind rising costs include the need for personnel, insurance, and warehouse space. Working with a fulfillment service provider allows sellers to focus on other aspects of their business and scale efficiently.
Walmart Fulfillment Services (WFS) makes order management less time-consuming and more cost-effective for sellers. Those who meet Walmart’s performance standards and expectations understand that fast delivery and low shipping costs are key to their success. Merchants using WFS often see improved visibility in Walmart’s search results, faster shipping, and overall business growth.
Here’s what Walmart sellers need to know to get started with WFS.
What is Walmart Fulfillment Services?
Walmart Fulfillment Services (WFS) is an order fulfillment solution that allows sellers to outsource inventory management for a fee. It’s commonly referred to as Walmart’s answer to Fulfillment by Amazon (FBA).
When a customer orders from a seller using WFS, Walmart handles the entire process. This includes fulfilling the order, managing returns, and offering customer service on the seller’s behalf.
Walmart’s supply chain is regarded as one of the best globally, according to Gartner. WFS enables sellers to benefit from Walmart’s efficient logistics system, providing a reliable fulfillment process. As Walmart’s marketplace expands, WFS is expected to grow alongside it.
Eligibility for Walmart Fulfillment Services
To qualify for WFS, sellers need to meet certain criteria:
- Be an existing Walmart Marketplace seller.
- Products must be shipped from within the United States.
- No perishable or regulated products.
- Products must weigh less than 30 pounds.
- Product dimensions must not exceed 25″ x 20″ x 14″.
Sellers also need a good standing with Walmart, with a history of on-time deliveries, positive customer feedback, and high service quality.
Costs of Walmart Fulfillment Services
One of WFS’s key selling points is its straightforward pricing structure. As stated on Walmart’s website, the program includes a fixed monthly storage fee and fulfillment fees based on shipping weight alone. Apparel and hazmat items are exempt from this structure.
The base cost for fulfillment starts at $3.45 for items under 16 ounces (1 pound). Storage fees are $0.75 per cubic foot per month from January to September, with an additional $1.50 per cubic foot applied to items stored for more than 30 days from October to December.
Walmart Fulfillment Services vs. Amazon FBA
While WFS is often compared to Amazon FBA, the two services offer distinct advantages:
- Shipping: WFS provides free two-day shipping for orders over $35 without requiring a Walmart+ membership, whereas Amazon Prime is needed for two-day shipping.
- Fulfillment Process: FBA often requires shipping inventory to multiple fulfillment centers, while WFS simplifies this by only needing shipment to one or two Walmart centers.
- Performance: During the pandemic, Amazon struggled to maintain its two-day shipping, while WFS consistently offered reliable delivery.
Pros and Cons of Walmart Fulfillment Services
Benefits of WFS:
- Fast delivery: WFS offers two-day shipping for sellers.
- Simple pricing: WFS has a transparent pricing structure with no hidden fees.
- Customer support: WFS manages inquiries, refunds, and returns for sellers, improving overall customer experience.
- Increased search visibility: Sellers using WFS receive Walmart’s TwoDay tag, boosting visibility and ranking in Walmart’s search results.
Drawbacks of WFS:
- Strict rules: Merchants cannot sell the same products through other fulfillment services like FBA while using WFS.
- Geographic limitations: WFS only ships within the U.S.
- Product restrictions: Walmart has strict size and weight limits for products accepted in the WFS program.
Setting Up Walmart Fulfillment Services
To start with WFS, sellers must already be part of Walmart Marketplace. After joining, sellers need to complete the following steps:
- Apply: Sign in to your Seller Center account and apply through the WFS link.
- Convert Listings: If accepted, sellers must convert their products to WFS listings.
- Send Inventory: Ship your products to Walmart fulfillment centers for storage and shipment.
Walmart will then handle order fulfillment, ensuring customers receive their orders quickly and efficiently.
How SellerSkills Can Help
SellerSkills is a multi-channel listing and inventory management tool that simplifies managing your Walmart listings. With SellerSkills, sellers can easily sync their Walmart products across other platforms like Shopify and eBay, enabling seamless inventory management and multi-channel selling. SellerSkills can automate listing updates, manage stock levels, and help sellers keep track of orders and shipments from a centralized dashboard.
For sellers looking to grow their Walmart business, leveraging both WFS and SellerSkills is a smart strategy. By outsourcing fulfillment through WFS and using SellerSkills to streamline listings, sellers can improve their operations, increase sales, and expand their reach across multiple platforms.