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It is no news that the Walmart online marketplace has been working to become one of the leading marketplaces in the world. The platform continues to expand, with 53.4 billion U.S. dollars in ecommerce sales, in 2023 (an increase of about 12 percent from 2022).
Selling on Walmart comes at a relatively lower cost than online marketplaces like Amazon. This advantage allows online retailers to double up sales and increase online business revenue.
However, one aspect every seller must come face to face with while selling on Walmart is order fulfillment. From storing inventory to packing and shipping to customers.
Thankfully, working with Walmart Fulfillment Services (WFS) can help you focus on other areas and figure out effective ways to increase revenue in business.
Walmart Fulfillment Services can make the process of order fulfillment less time-consuming and costly. You can get faster shipping, improved visibility on search results, and overall business growth.
Read on to find out all you need to know to get started with Walmart Fulfillment Services.
In February 2020, Walmart established the Walmart Fulfillment Services, giving sellers access to an extensive world-class supply chain and logistics network.
Fulfillment by Walmart enables sellers to store inventory and ship their products through Walmart's ecommerce fulfillment centers. Sellers can leverage Walmart's efficient and trustworthy logistics as they sell products on Walmart.
This service includes inventory storage, order processing, shipping, returns, and even customer service, allowing you to focus on growing your business while leveraging Walmart's extensive fulfillment infrastructure.
Walmart Fulfillment Services allows you to store inventory in Walmart Fulfillment Centers. When a customer orders, Walmart takes responsibility for storing the products, picking and packing orders, and shipping them directly to customers. In addition, Walmart handles customer inquiries and returns related to these orders, providing a seamless shipping experience for both sellers and buyers.
To become eligible for Walmart Fulfillment Services, you need to become a Walmart seller. Your products must also meet the following criteria:
In addition to these product requirements, you should have a good history of fulfilling your orders on time, and great customer service in the Walmart marketplace.
The process is simple. However, to apply for WFS, you need to be live on the Walmart marketplace.
As an active Walmart seller, simply go to your Seller Center and click on the WFS icon to apply. Once your application is approved, here's what you need to do:
One thing Walmart can boast of is its world-class supply chain. In fact, Walmart appears as number 9 on The Gartner Top 25 Supply Chain in 2024
You can take advantage of its impressive supply chain and efficient logistics to increase sales, scale your business, and possibly become one of Walmart's best sellers.
Let's examine some of the pros and cons of using this fulfillment service.
Walmart Fulfillment Service comes with a straightforward pricing structure. As a Walmart seller, you will only be paying monthly storage fees and fulfillment fees that are based on the weight of your products.
Storage fees are calculated based on the volume of your product and how long the product will be stored. Products that are stored for less than 365 days will be calculated as follows:
If the unit of your product weighs less than one pound, your fulfillment fees will.be calculated based on the weight of your product. Otherwise, the unit weighs more than one pound, it will be calculated based on the dimensional weight.
Here's a breakdown of what your fulfillment fees will look like:
WFS and FBA are fulfillment services that help sellers handle everything from storage to packaging, shipping, and customer service. However, there are significant differences between both services. Let's dive into some differences between WFS and FBA:
Walmart.com is the second-largest e-commerce platform in the U.S., but its market share is significantly smaller than Amazon's. Walmart’s WFS primarily focuses on the U.S. market and caters to sellers who aim to grow their presence on Walmart's platform. You will find WFS particularly beneficial if your target audience aligns with Walmart's customer demographics. On the other hand, Amazon commands over 37% of the U.S. ecommerce market, making it an unrivaled platform for exposure. Amazon FBA offers a global reach, allowing you to tap into Amazon's vast international customer base. This makes FBA an excellent choice if you are looking to expand beyond your local market.
Both FBA and WFS provide a range of fulfillment solutions, including storage, order processing, shipping, and customer service. However, the specifics of these services and the additional features offered vary.
Amazon FBA has a robust infrastructure and an extensive network of fulfillment centers worldwide. FBA also offers programs like Amazon Prime, which can significantly enhance product visibility and appeal to customers expecting fast shipping
While not as globally extensive as Amazon, WFS benefits from Walmart's strong brand recognition in the U.S. and integrates with Walmart's online marketplace, offering advantages such as two-day delivery tags and eligibility for Walmart+ membership benefits.
Amazon FBA charges fees based on the weight and dimensions of items stored and shipped and additional fees for optional services. FBA's fee structure can be complex due to the variety of products and services offered.
On the other hand, Walmart WFS uses a simpler fee model with no setup, monthly, or hidden fees. Fees include storage, fulfillment, and a referral fee (usually 6–20%). Sellers pay for storage and fulfillment based on item weight and dimensions, plus any other services. WFS often has competitive pricing, especially for larger or heavier items, as Walmart’s fees don’t scale up as aggressively as Amazon’s.
On the other hand, Amazon FBA offers seamless integration with Amazon's marketplace, providing sellers with tools to manage inventory, track sales, and fulfill orders directly through Amazon's platform. FBA also integrates with various third-party software solutions.
Walmart’s WFS is specifically for Walmart Marketplace sellers, offering integration capabilities within Walmart's ecosystem. While WFS may not offer the same level of third-party integration as FBA, it delivers essential tools for managing inventory and orders on the Walmart marketplace.
Walmart’s platform doesn’t allow for personalized branding as extensively as Amazon does with its Brand Registry and A+ Content.
Amazon provides tools like Brand Registry, Amazon A+ Content and A++ Content, and Sponsored Ads, giving you more control over your brand.
As an ecommerce seller, you want to ensure you maintain efficiency at all times and this means creating a distributed fulfillment strategy. While Walmart Fulfillment Services offers a one to two-day delivery, it may not be the most effective logistics solution for your business. Here are a few other alternatives to Walmart Fulfillment Services:
You have the option of opening and controlling multiple fulfillment centers in the US. One benefit of opening a fulfillment center is that you get total control. However, this is also a risky option. Getting warehouse space could be expensive. It could also get expensive to hire warehouse workers. However, if you can work your way around these challenges, you can have total control of your order fulfillment and shipment.
Third-party logistics companies otherwise known as 3PLs for short can also work as a great alternative to Walmart Fulfillment Services.
Third-party companies work in small operations so you may need to work with more than one company if you hope to provide a 1-2 day delivery nationwide. To get the best companies to work with, ensure you compare the quality and costs of their operations.
Peer-to-peer fulfillment networks can be an efficient and cost-effective alternative to 3PLs. This fulfillment network is created by vetted ecommerce retailers who offer other merchants excess space in their warehouses and the resources they need for WFS. This means you get a cheaper and more flexible alternative. The best part is you still get to offer 1-2 day shipping to your customers. Each customer gets unique solutions to their complaints thanks to innovative technology and high-quality fulfillment services.
Deliverr is one of the best alternatives you can use to provide free and fast shipping. The company uses a network of 3PLs to provide logistics to Walmart sellers. If you use the company to fulfill your Walmart orders, you qualify to receive the Walmart TwoDay badge. The company will handle the heavy lifting of your orders as well as fulfillment and shipping.
However, just like 3PLs, they are also limited in their scope and mostly take on small packages. If you choose to use this service, you need to be prepared to pay more for larger products.
The Walmart marketplace is an effective online platform that can help you grow and scale your business in a short time. The Walmart Fulfillment Services is a program that helps you focus on other areas of your business while Walmart handles your order fulfillment. The service provides excellent support to help you scale your business. They also provide analytical insights to help you monitor and make the necessary changes needed to up your sales and grow revenue.
If you need insights on how to sell on Walmart and the best approach to take, you can contact ecommerce experts on ePlaybooks.
Walmart Fulfillment Services (WFS) is a fulfillment program that enables sellers to store inventory and ship their products through Walmart's ecommerce fulfillment centers. This service includes inventory storage, order processing, shipping, returns, and even customer service, allowing you to focus on growing your business.
Walmart Fulfillment Services allows you to store inventory in Walmart Fulfillment Centers. Once listings are converted, WFS takes over the storage and dispatch of products. Products are stored in Walmart's distribution centers. When a customer orders, Walmart takes responsibility for storing the products, picking and packing orders, and shipping them directly to customers. Walmart also handles customer inquiries and returns.
Products fulfilled by WFS display "Fulfilled by Walmart" and "2-day shipping" tags, increasing your product visibility.
To convert your Walmart products to Walmart Fulfillment Services (WFS):
Once done, you can create your order including the expected shipping date, return address, and all necessary shipping information.
Your products must also meet the following criteria:
You’ve probably already considered selling on Amazon but its way easier than you think.
Call Us Now