/Walmart Fulfillment Services (WFS): A Comprehensive Guide for Sellers

Walmart Fulfillment Services (WFS): A Comprehensive Guide for Sellers

In the rapidly evolving world of eCommerce, fast and efficient fulfillment services are essential for success. Walmart Fulfillment Services (WFS) is Walmart’s answer to Amazon FBA, providing sellers with a robust logistics and fulfillment network. The service provided by WFS assists eCommerce sellers on the Walmart Marketplace by functioning as a third-party logistics provider, managing various aspects of order fulfillment including inventory storage, returns, and customer service. Designed to help businesses streamline operations, reduce shipping hassles, and increase visibility on Walmart Marketplace, WFS is a game-changer for third-party sellers.
This guide provides an in-depth look at Walmart Fulfillment Services, covering what it is, how it works, enrollment processes, benefits, fees, shipping, and solutions to common challenges sellers face.
What Is Walmart Fulfillment Services (WFS)?
Walmart Fulfillment Services (WFS) is Walmart’s in-house fulfillment network, allowing third-party sellers on Walmart Marketplace to store inventory, pick, pack, and ship products directly from Walmart’s fulfillment centers. Selecting the right fulfillment partner, like WFS, is crucial to enhance logistics capabilities, ensure speed in delivery, and achieve successful multichannel integration. Similar to Amazon’s Fulfillment by Amazon (FBA), WFS takes care of the logistical challenges, so sellers can focus on other areas of their business.
How Does WFS Work?
Walmart Fulfillment Services follows a straightforward process. First, sellers need to ensure their products meet Walmart’s fulfillment criteria. Then, simply set up a WFS account in Walmart Seller Center with inventory details such as SKUs and product dimensions.
Then, the seller ships their products to Walmart fulfillment centers, where Walmart receives the items and makes them available to sell within two business days (it can take up to ten days in Q4 due to the busy holiday season). Walmart stores and manages the inventory in their warehouses.
When a customer places an order, Walmart picks, packs, and ships the product on the seller’s behalf. Walmart handles customer returns, reducing the burden on sellers. This efficient system allows sellers to easily fulfill customer orders by sending their products to a centralized fulfillment center, leveraging Walmart’s extensive logistics network to deliver products quickly and reliably to customers across the United States.
WFS Fulfillment Centers
Walmart Fulfillment Services (WFS) operates a network of fulfillment centers across the United States, strategically located to ensure fast and efficient order fulfillment for Walmart Marketplace sellers. These state-of-the-art facilities are equipped with advanced technology and staffed by experienced professionals who handle everything from inventory storage to order processing and shipping.
By leveraging Walmart’s vast logistics network, WFS fulfillment centers provide a seamless and cost-effective fulfillment experience. Sellers can benefit from competitive shipping rates and fast delivery times, which help to increase customer satisfaction and drive sales. With WFS, sellers can rest assured that their products are in good hands, allowing them to focus on growing their business.
Enrolling in Walmart Fulfillment Services
When sellers enroll in WFS, Walmart handles storage, shipping, returns, and customer service, ensuring a seamless experience for both sellers and buyers. Continue reading to learn the types of products that are eligible for the program, and the steps to get started with WFS.
What Products Are Eligible for WFS?
In order for a product to be eligible for WFS, sellers must be able to ship the items to Walmart fulfillment centers from within the U.S. or clear customs prior to arriving at the Walmart facility. WFS does not handle regulated or perishable items that require temperature control. WFS has two categories of fulfillment, based on weight and dimensions.
Standard Fulfillment: Products that meet these size and weight limits are considered standard fulfillment and are optimal for WFS:
- Maximum weight of 150 lbs, including packaging
- Maximum length is less than or equal to 108 inches, including packaging
- Longest side + width is less than or equal to 165 inches, including packaging
Big and Bulky Fulfillment: If your item exceeds even just one of the standard fulfillment criteria, it will be considered a “big and bulky” item. WFS will still accept and handle your product, as long as it is under 500 lbs, and can fit through a trailer door. However, it also means that the item must be shipped by freight and additional WFS fees apply.
What Products Are Prohibited?
Some categories that are permitted to sell on the Marketplace, but are restricted or ineligible for WFS. For example:
- Live plants
- Pesticides
- Hazardous items
The WFS Prohibited Products Policy includes additional items that are not eligible to enroll in WFS. Refer to the policy for the complete list. Some of the products on the prohibited list include:
- Alcoholic beverages
- Ammunition
- Bleach
- Certain medicines
- Charcoal
- Fertilizers
- Fire extinguishers
- Household paints
- Motor oil
- Paint thinners
- Temperature-controlled items
- Tires
Exceptions to the policy can be made in certain scenarios with proper approval. Some of the items in the WFS Prohibited Products policy may be allowed, if the seller works with their Walmart account manager and compliance experts to get written permission to list and sell those items.
Getting Started with WFS Program
To start using WFS, sellers need to follow these steps:
Apply for Walmart Marketplace: If you're not already a Walmart Marketplace seller, you need to complete the application and receive approval.
Check WFS Eligibility:
- Confirm if item weight and dimensions meet standard or bulky item criteria
- Non-perishable and non-hazardous
- Not a prohibited product
- Shipped within the U.S.
Add WFS Details: In the WFS settings, simply add your point of contact information for inventory updates or questions, as well as a US address to send returned WFS inventory. You also need a US bank account to cover WFS fees. (There is no need to configure shipping settings for WFS!)
Create WFS Listings: Seller creates WFS listings or converts current products to Walmart-fulfilled listings.
Ship Inventory to Walmart: Sellers prepare and send their inventory to Walmart fulfillment centers based on provided guidelines.
Start Selling: Once inventory is received, listings go live, and Walmart handles everything from fulfillment to shipping orders and returns.
WFS Order Management and Tracking
Managing Your Orders with WFS
The WFS order management system is integrated with Seller Center, making it easy for sellers to manage their orders and inventory in one place. This integration ensures that sellers have all the tools they need to efficiently manage their ecommerce business. With Seller Center, sellers can access real-time order tracking information, including order status, shipping updates, and delivery confirmation.
With WFS, sellers can focus on growing their business, while leaving the order fulfillment and management to the experts. This comprehensive approach to order management helps sellers streamline their operations and deliver a superior customer experience.
Understanding WFS Fees
Walmart Fulfillment Services operates on a fee-based model that includes a storage fee and fulfilment price. Walmart’s fees are competitive compared to other fulfillment services, plus there is no monthly subscription fee, which makes WFS a cost-effective solution for sellers. There are also no minimum or maximum inventory requirements, so you can send the inventory amount that works best for your business at the moment.
Storage Fees
Walmart charges a monthly fee based on the volume of stored inventory and the length of time at a Walmart fulfillment center. The storage fee is calculated at cost per cubic foot per month from January through September. During the peak holiday months of October to December, the fees increase for items stored more than 30 days. Additional charges apply if inventory remains in Walmart fulfillment centers beyond 12 months. Sellers can track how long products have been at fulfillment centers on the Inventory Health report in Seller Center.
Fulfillment Fees
WFS fulfillment fees cover the cost of picking, packing, and shipping based on item weight and dimensions. The standard fulfillment fee includes a base fee, plus additional fees for apparel, hazardous materials, low priced items and oversized items. Extra large or heavy products are considered big and bulky. These items are shipped by freight, and therefore carry a higher fee.
Other WFS Fees
Other fees you may incur include:
- Return Processing Fees: This fee applies any time an item is returned, and it is based on shipping weight. Additional fees apply for certain items such as apparel, hazardous and oversize items. Exceptions and adjustments to fees are made if the item was damaged or lost in the fulfillment center or in transit, and Walmart is at fault.
- Problem Inventory Chargeback Fee: This fee is for any inbound shipment that can’t be received into a fulfillment center. Walmart may return the item to you at your expense if the issue cannot be solved. Examples include incorrect labels or missing poly bags.
- Disposal and Removal Fee: Products can be disposed of or removed from inventory and shipped back to the seller for a fee.
How to Calculate WFS Fees
The WFS Cost Estimator can help you calculate your fulfillment and storage fees for a Walmart-fulfilled item.
Benefits of Using WFS
eCommerce sellers who leverage WFS enjoy numerous advantages, including:
1. Enhanced Visibility & Buy Box Advantage
Products fulfilled by Walmart often get better placement in search results, increasing visibility. WFS listings also have the "Fulfilled by Walmart" tag, which instills consumer trust and improves conversion rates.
2. Fast, Reliable and Cost-Effective Shipping
Walmart offers 2-day shipping on eligible WFS orders, ensuring competitive delivery times that match or exceed industry standards. Walmart has negotiated lower carrier shipping charges with major carriers, which can help sellers save money on shipping costs. By leveraging WFS, sellers can reduce their shipping expenses and increase their profit margins.
3. Competitive Pricing & Lower Fulfillment Costs
Unlike Amazon FBA, WFS has a simple pricing structure with no hidden fees, making it an attractive option for sellers looking to optimize costs. By storing inventory in Walmart fulfillment centers, sellers can cut costs associated with maintaining their own warehouse or using third-party logistics providers.
4. Customer Service & Returns Management
Walmart provides full transparency for all WFS orders, ensuring customers can monitor their deliveries. Efficiently fulfilling customer orders is crucial to enhance the selling experience. Walmart takes care of customer inquiries and returns, reducing the workload for sellers while ensuring an excellent buyer experience.
5. Improve Seller Ratings
By enrolling in WFS, you can delight your customers with fast delivery, easy returns, and quality customer service. The seamless experience boosts customer satisfaction and enhances seller ratings.
6. Easy Integration with Walmart Marketplace
WFS is seamlessly integrated with Walmart Marketplace, simplifying inventory and order management. Seller Center’s intuitive dashboards allow sellers to track inventory, orders, and shipments with ease.
7. Time and Labor Savings
One of the significant benefits of using Walmart Fulfillment Services (WFS) is the time and labor savings it offers to sellers. By outsourcing order fulfillment to WFS, sellers can free up valuable time and resources to focus on other aspects of their business, such as marketing, product development, and customer service.
WFS handles all aspects of order fulfillment, including inventory storage, order processing, and shipping. This means that sellers no longer need to worry about managing their own warehouses, hiring staff to handle orders, or dealing with shipping and logistics. By leveraging WFS, sellers can streamline their operations, reduce labor costs, and increase efficiency. This allows sellers to concentrate on what they do best—growing their ecommerce business.
Common Challenges & How to Overcome Them
While WFS offers many benefits, sellers may encounter challenges, including:
1. Limited Product Categories
Not all products qualify for WFS, which can be restrictive for certain sellers. To work around this, sellers should review eligibility requirements and adjust their product strategy accordingly.
2. Storage Fees for Slow-Moving Inventory
Long-term storage fees can accumulate if inventory doesn’t sell quickly. Sellers should manage inventory efficiently, monitor demand trends, and consider running promotions to boost sales.
3. Compliance & Shipping Guidelines
Walmart has strict guidelines for shipping inventory to fulfillment centers. Failure to comply can result in delays or penalties. Sellers should carefully follow Walmart’s requirements and use recommended packaging and labeling.
4. Competition on Walmart Marketplace
As Walmart Marketplace grows, so does the competition. To stand out, sellers should optimize listings with high-quality images and engaging product descriptions, and ensure they have a competitive pricing strategy in place.
5. Dependence on Walmart’s Fulfillment Network
While WFS provides efficiency, relying solely on one fulfillment provider can be risky. Sellers should consider a multi-channel fulfillment strategy for added flexibility.
“Fulfillment challenges often stem from demand fluctuations, inventory misalignment, and rising costs. The key is real-time visibility—leveraging technology to track inventory, automate order routing, and integrate with multiple carriers to optimize delivery speed and cost efficiency.” - Tom Wicky, Founder, MyFBAPrep
Conclusion
Walmart Fulfillment Services (WFS) presents a powerful opportunity for eCommerce sellers looking to scale their business with Walmart Marketplace. By leveraging Walmart’s extensive logistics network, sellers can improve delivery speeds, enhance customer trust, and streamline operations. With competitive pricing, a simplified fulfillment process, and excellent customer service, WFS is an attractive option for sellers aiming to expand their reach and maximize profits.
If you're a seller looking to take your Walmart Marketplace business to the next level, enrolling in WFS could be the key to unlocking new growth opportunities. Consider evaluating your product eligibility, understanding the cost structure, and optimizing your listings to make the most out of Walmart Fulfillment Services.