If you're an online retailer looking to expand your reach and streamline your operations, you might want to consider using Walmart Fulfillment Services (WFS). WFS offers a compelling alternative to Amazon FBA for sellers who want to offload the complexities of order fulfillment and logistics.
WFS uses Walmart's reliable logistics network, so sellers don't have to get bogged down by storage, fulfillment, or shipping and can instead focus on building their businesses. As a comprehensive guide, this article explores how WFS works, its associated costs, and the pros and cons of using the program.
We will also highlight how Informed Repricer empowers sellers to optimize pricing strategies and maximize profit margins on the Walmart marketplace.
Walmart Fulfillment Services (WFS) is a program that allows third-party sellers on Walmart's online marketplace to outsource their fulfillment operations to the platform and use Walmart's supply chain and fulfillment infrastructure. Similar to Amazon's Fulfillment by Amazon (FBA), WFS provides an end-to-end solution, from storing inventory in Walmart's fulfillment centers to shipping orders directly to customers.
While WFS offers numerous benefits, it's not available to all sellers. Walmart has specific eligibility criteria that sellers must meet to get accepted into the program. Generally, ideal candidates are sellers who:
For the most up-to-date eligibility details, sellers should refer to Walmart’s official WFS guidelines.
WFS operates on a straightforward model, streamlining the order fulfillment process for sellers. Here's a breakdown to understand how this program works:
Understanding the Walmart Fulfillment Services pricing is essential for budgeting and profitability. The fee structure generally includes:
There are multiple benefits to using WFS for sellers seeking to scale their businesses and enhance their operational efficiency:
With Walmart as their fulfillment partner, third-party sellers can redirect the resources they previously allocated for shipping, receiving, and logistics to other business functions. This means more time can be spent on product development, brand marketing, customer support, and innovative sales strategies. This shift in focus can lead to more effective growth strategies and higher sales.
While the Walmart marketplace is growing rapidly, it still has less competition than Amazon. This translates to a higher likelihood of your products being seen by potential customers, which increases your chances of making a sale. Less competition can also lead to more favorable pricing, which can positively impact your profit margins.
With services like WFS, attracting customers and turning them into loyal patrons becomes easier. WFS's reliable two-day delivery system ensures that orders arrive to customers promptly, as they should. And in an increasingly competitive market, fast shipping and reliable delivery can be the key to unlocking higher conversion for your business.
The Buy Box is a valuable spot on product pages, and winning it can significantly boost sales. Using WFS can greatly increase a seller's chances of winning the Buy Box, as Walmart often prioritizes WFS sellers due to the reliability and speed of their fulfillment process, giving them a competitive edge.
When you use Walmart as a fulfillment partner, you do not have to deal with customer inquiries concerning shipping or return requests yourselves. Instead, Walmart handles them. This saves you the burden of handling time-consuming customer service. When Walmart handles customer service, they do so professionally, which results in positive customer reviews and increased trust in your brand.
Leveraging WFS positively impacts product visibility on Walmart's search results pages. Walmart's algorithm favors products fulfilled through WFS, which can lead to higher search engine rankings and increased organic traffic. This improved visibility can also indirectly boost search engine optimization (SEO) efforts.
With WFS, sellers gain access to Walmart's massive and loyal customer base. With approximately 255 million customer visits each week, sellers can expand their reach and tap into a vast pool of potential customers. This access increases their overall market share and brand recognition, which can be especially beneficial to sellers seeking to achieve these goals.
Despite its many benefits, Walmart WFS also has some potential drawbacks that sellers should consider:
WFS has specific product requirements that sellers must meet to be eligible. Items must be shipped from within the U.S. and adhere to Walmart’s size and weight limitations—products cannot exceed 500 lbs or dimensions of 120" x 105" x 93". Additionally, restricted or prohibited items, such as perishable or hazardous goods, are not eligible for WFS.
Depending on product demand and seasonal fluctuations, storage space in Walmart's fulfillment centers can be limited. This is especially true for bulky or slow-moving items. Sellers might face restrictions on the quantity of inventory they can store, which can potentially impact their ability to meet unexpected surges in demand.
Compared to Amazon's extensive network of fulfillment centers strategically located across the globe, Walmart's fulfillment network is currently smaller and only in the U.S. This can translate to longer shipping times and higher shipping costs for customers in certain regions, especially those located further away from Walmart's fulfillment centers.
Despite the potential for increased Buy Box visibility with WFS, pricing competition remains a critical factor on Walmart.com. Sellers must constantly monitor competitor pricing and market trends to ensure their products remain competitive.
Informed Repricer helps sellers automatically adjust their prices while remaining profitable. By leveraging advanced algorithms and real-time market data, the platform ensures that your products are priced optimally to win the Buy Box and drive sales, without sacrificing your profit margins.
While Walmart handles the physical processing of customer returns for WFS orders, sellers are ultimately responsible for covering the associated costs. These costs can include return shipping fees, restocking fees, and the potential loss of revenue if the returned item cannot be resold. Products with a high return rate can greatly impact profitability.
Unlike Amazon FBA, WFS currently does not offer multi-channel fulfillment capabilities. This means that sellers cannot leverage Walmart's fulfillment network to fulfill orders originating from other sales channels, such as Shopify, eBay, or their own independent websites. This limitation can be a major drawback for sellers who operate across multiple platforms and seek a unified fulfillment solution.
While both WFS and Amazon FBA have similar core functionalities, choosing between them depends on a seller's specific needs and priorities. Here are some key differences to consider:
Amazon has a much larger marketplace with millions of active sellers and a vast customer base. This offers immense potential reach but also fierce competition.
Walmart's marketplace, while growing rapidly, is smaller and generally less saturated. This can offer sellers a greater chance of standing out and gaining visibility.
Both WFS and FBA have their own fee structures, including fulfillment fees, storage fees, and other associated costs. These fee structures vary based on factors like product size, weight, and storage duration.
It's crucial for sellers to carefully compare the specific fee structures of both platforms in relation to their product catalog and projected sales volume to determine which option is more cost-effective.
Both Amazon and Walmart leverage algorithms to determine which seller wins the Buy Box. While both algorithms consider factors like pricing, seller performance, and shipping speed, the specific weight and importance of these factors can differ. Therefore, pricing strategies that work well on Amazon might not be as effective on Walmart, and vice-versa.
Informed Repricer's automated repricing tools consider the specific nuances of each marketplace to ensure sellers' products are always competitively priced, maximizing sellers' chances of winning the Buy Box, regardless of whether they're using WFS or FBA.
Both platforms handle customer service and returns for orders fulfilled through their respective programs. However, their specific policies, processes, and service levels may differ.
Sellers should familiarize themselves with the customer service and return policies of both WFS and FBA to understand how they might impact their business.
Whether you choose WFS, FBA, or a combination of both, Informed Repricer empowers you to stay competitive, win the Buy Box, and drive consistent sales growth. Our intelligent repricing engine analyzes real-time market data, including competitor pricing, to dynamically adjust your prices to attract more customers.
Here's how Informed Repricer can help you win more sales with WFS:
By combining the streamlined fulfillment capabilities of WFS with the intelligent pricing optimization of Informed Repricer, you can unlock your full sales potential on the Walmart marketplace.
Whether WFS is worth it depends on your specific business needs and priorities. If you value reduced operational burden, access to Walmart's customer base, and higher Buy Box visibility, WFS can be a valuable option. However, carefully consider the eligibility requirements, fees, and other potential drawbacks before making a decision.
To set up WFS, you must first be an approved seller on the Walmart Marketplace. Then, you can apply for WFS through the Seller Center. The application process involves providing information about your business, products, and fulfillment needs. Once approved, you can start shipping inventory to Walmart's fulfillment centers.
Walmart's Buy Box algorithm considers many different metrics when selecting which seller to highlight in the Buy Box. In addition to pricing, these metrics can include shipping times, seller performance, and the availability of inventory.
No, Walmart Fulfillment Services does not currently offer multi-channel fulfillment. You can only use WFS to fulfill orders placed on Walmart.com.
Informed Repricer helps professional sellers on Amazon and Walmart increase their sales and profits by keeping their prices competitive 24/7.
