Walmart Fulfillment Fees in 2024 Comprehensive Seller Guide

July 4, 2024 How much is the walmart fulfilment storage fees 2024

Walmart Fulfillment Services (WFS) has emerged as a pivotal element in the retail giant’s ecosystem, offering third-party sellers an efficient platform to store, pick, pack, and ship their products.

As the service evolves, so do the associated fees.

This comprehensive guide covers the history of Walmart fulfillment fees, the 2024 fee structure, and the reasons behind fee changes.

We’ll also compare these fees to Amazon’s Fulfillment by Amazon (FBA) rate card, categorize WFS services, and present detailed tables of fee changes.

Quick Guide

  1. Benefits of Using Walmart Fulfillment Services
  2. Breaking Down Walmart Fulfillment Fees
    • Walmart Fulfillment Services Fees: A Brief Look
  3. Updates on Walmart Fulfillment Fees 2024
    • Standard Fulfillment Fees
    • Additional Fulfillment Fees
    • Big & Bulky Fulfillment Fees
    • Storage Fees
    • Inventory Handling Fees
    • Returns and Outbound Handling
    • Problem Inventory Management
    • Live Inventory Management
    • Additional Services
  4. Updates on Changes to Walmart Fulfilment Fees in 2024
    • Oversize Item Fees
  5. Walmart Referral Fees
  6. Walmart’s New-Seller Discounts and Incentives
  7. Walmart Storage Fees and Policies
    • Monthly Storage Fees
    • Long-Term Storage Fees
    • Additional Fees and Costs
  8. Comparison with Amazon FBA
    • Walmart Fees vs Amazon FBA Fees for Different Inventories
    • FBA Prep Costs vs. Walmart WFS
    • Return Processing Fees for Apparel and Items with a High Return Rate
  9. Conclusion

Walmart Fulfillment Services (WFS) is designed to help sellers on Walmart’s marketplace by offering them an efficient and reliable way to store, manage, and ship their products. By utilizing WFS, sellers can focus more on their core business activities while Walmart takes care of the logistical aspects.

WFS is similar to Amazon’s Fulfillment by Amazon (FBA) program. It offers sellers the ability to send their products to Walmart’s fulfillment centers, where Walmart handles the rest, including storage, picking, packing, shipping, customer service, and returns.

The primary goal of WFS is to provide a seamless and efficient fulfillment process that enhances the customer experience on Walmart’s platform.

Benefits of Using Walmart Fulfillment Services

Using Walmart Fulfillment Services offers several benefits for sellers

Faster Shipping

Walmart’s extensive logistics network allows for faster shipping times, improving the customer experience and increasing the likelihood of repeat purchases.

Increased Visibility

Products fulfilled through WFS are more likely to be featured in Walmart’s search results and eligible for Walmart’s free two-day shipping, increasing their visibility to potential customers.

Simplified Operations

By outsourcing fulfillment to Walmart, sellers can focus on other aspects of their business, such as product development and marketing, without worrying about logistics.

Enhanced Customer Service

Walmart handles customer service inquiries and returns, providing a seamless experience for customers and reducing the burden on sellers.

Challenges and Considerations

While WFS offers numerous benefits, there are also challenges and considerations for sellers to be aware of, like

Cost Management

The various fees associated with WFS can add up, so sellers need to carefully manage their inventory and monitor their costs to maintain profitability.

Inventory Control

Sellers need to ensure that their inventory is accurately tracked and managed to avoid stockouts or excess inventory, which can lead to additional fees.

Compliance Requirements

Walmart has strict guidelines for product labeling, packaging, and shipping. Sellers must comply with these requirements to avoid delays and additional fees.

Breaking Down Walmart Fulfillment Fees 

Walmart fulfillment services fees are charged per unit and are based on the weight and dimensions of the item.

These fees cover the Walmart fulfillment services cost associated with picking, packing, and shipping the items. It is extremely useful for e-commerce sellers. 

Walmart Fulfillment Services Fees- A Brief Look

Fee TypeDetails
Fulfillment FeesBased on product's shipping weight- $3.45 for < 1 lb, up to $17.55 + $0.40/lb for > 51 lb.
Storage Fees$0.75 per cubic foot/month (Jan-Sep), $0.75 first month, then $2.25/month (Oct-Dec).
Return Shipping FeesBased on weight- $4.70 for < 1 lb, up to $17.55+ for heavier items.
Disposal/Removal FeesDisposal- $0.35 for < 2 lb, + $0.20/lb for 3-150 lb; Removal- $0.35 + $0.40/lb for 3-150 lb.

Updates on Walmart Fulfillment Fees 2024

Effective January 1, 2024, Walmart has updated its fee structure to better align with market trends and operational costs.

Standard Fulfillment Fees

  • Items up to 1 lb: $3.45 per unit
  • Items between 1 and 2 lb: $4.95 per unit
  • Items between 2 and 3 lb: $5.45 per unit
  • Items between 3 and 4 lb: $5.75 per unit
  • Items from 4 to 20 lb: $5.75 plus $0.40 for each lb over 4 lb
  • Items from 21 to 30 lb: $15.55 plus $0.40 for each lb over 21 lb
  • Items from 31 to 50 lb: $14.55 plus $0.40 for each lb over 31 lb
  • Items over 50 lb: $17.55 plus $0.40 for each lb over 51 lb

Additional Fulfillment Fees

  • ApparelAdd $0.50 per unit
  • Hazardous Materials– Add $0.50 per unit
  • Retail Price Less Than $10- Add $1 per unit
  • Oversize Items- Depending on dimensions, an additional fee of $3 or $20 may apply

Big & Bulky Fulfillment Fees

  • Items up to 500 lb- $155 plus $0.80 for each lb over 90 lb

Storage Fees

  • January to September- $0.75 per cubic foot per month
  • October to December- $0.75 per cubic foot per month for the first 30 days, then $1.50 per cubic foot per month for longer storage
  • Storage Over 12 Months- Up to $7.50 per cubic foot per month

Recommended Guide for Amazon Long Storage Fees

Inventory Handling Fees

Inbound Fees

Inbound Receiving

No specific fees are charged for receiving inventory into Walmart Fulfillment Centers, but sellers must use approved carriers and follow Walmart’s routing guidelines to avoid potential penalties.

Prep Services

Fees may apply for preparation services such as labeling, poly bagging, bubble wrapping, and other necessary preparations. For example, labeling fees can range from $0.15 to $0.30 per unit, depending on the complexity​ ​.

Outbound Fees

Pick, Pack, and Ship Fees

These are included in the standard fulfillment fees listed previously.

Preferred Carrier Program

Discounts are provided for using Walmart’s preferred carriers for outbound shipments. The program offers competitive rates for FedEx small parcel shipments and less-than-truckload (LTL) deliveries​ ​.

Returns and Outbound Handling

Returns Processing

Fees for returns processing are generally included in the fulfillment fees, but additional fees may apply for specific handling requirements.

Inventory Removals

Costs for removing inventory from Walmart Fulfillment Centers can vary. Standard removal fees are typically around $0.50 per unit, but this can increase based on the size and weight of the items being removed​.

Problem Inventory Management

Unplanned Services Fees

If inventory arrives at a fulfillment center without proper preparation (e.g., incorrect labeling, improper packaging), unplanned service fees will be applied. These fees can range from $0.15 to $2.00 per unit depending on the required service​ ​​.

Disposal Fees

For inventory that needs to be disposed of, disposal fees apply. These are typically charged per unit and depend on the size and nature of the product.

Live Inventory Management

Inventory Health Monitoring

Walmart provides tools to monitor inventory health, including excess inventory and aged inventory alerts. While there’s no direct fee for this service, poorly managed inventory may incur higher storage costs or disposal fees over time​ ​.

Additional Services

Special Projects

Fees for special projects or custom services, such as repackaging or special labeling, are negotiated on a case-by-case basis and depend on the complexity and volume of the work required​​.

Updates on Changes to Walmart Fulfilment Fees in 2024

Here are some details about the fee changes, incentives, and discounts from Walmart in 2024

Oversize Item Fees

The additional fulfillment fee for standard items with oversized dimensions was reduced from $28 to $20 as of January 25, 2024. This change is aimed at encouraging sellers to use WFS for large or bulky items​​.

Referral Fees

These are fees charged depending on what category your item falls under, the referral fee will be charged as a percentage when your item sells.

Product CategoryReferral Fee
Apparel & Accessories15%
Baby8% (15% on sales above $10)
Beauty8% (15% on sales above $10)
Books15%
Camera & Photo8%
Cell Phones8%
Consumer Electronics8%
Electronics Accessories15% (8% on portion above $100)
Grocery8% (15% on sales above $10)
Health & Personal Care8% (15% on sales above $10)
Home & Garden15%
Jewelry20% (5% on portion above $250)
Kitchen15%
Luggage & Travel15%
Major Appliances8%
Music15%
Office Products15% (8% for calculators)
Personal Computers6%
Pet Supplies15%
Shoes, Handbags, & Sunglasses15%
Sporting Goods15%
Toys & Games15%
Video Games15%

Walmart’s New-Seller Discounts and Incentives

Walmart has rolled out an attractive incentive program for new third-party sellers on its Walmart Marketplace. Here’s what you can expect

Referral Fee Discount

 Enjoy up to 50% off referral fees for the first 90 days.

Sign-Up Incentive

Get a 10% discount on sign-up and going live on the platform.

Shipping Savings

Receive 15% off shipping services through Walmart Fulfillment Services (WFS), which includes comprehensive order management.

Advertising Discounts 

Save 15% on advertising with Walmart Connect, Walmart’s retail media network.

Commission Rate Reduction

Benefit from a 10% discount on commission rates with the Walmart Marketplace Repricer tool.

Additionally, Sellers can take advantage of up to 50% off various Walmart Fulfillment Services for the first 90 days, including prep services, storage fees, and fulfillment fees if your first shipment is received by July 31, 2024​

How much is the Walmart Storage Fees?

Storage fees are calculated based on the cubic feet occupied by the products in Walmart’s fulfillment centers and are billed monthly. The rates vary depending on the season.

A WFS calculator is provided for free for the sellers at Walmart’s website

Storage Fees and Policies

Walmart’s storage fees are structured to incentivize efficient inventory management and timely sales. Sellers need to be aware of the different rates and policies, especially during peak seasons.

Monthly Storage Fees

Non-Peak Season

 During the non-peak months (January to September), storage fees are lower to help sellers manage costs.

Peak Season 

During the peak months (October to December), storage fees increase significantly due to higher demand for storage space.

Long-Term Storage Fees

Long-term storage fees are charged to discourage sellers from keeping slow-moving inventory in Walmart’s fulfillment centers for extended periods. Items stored for more than 12 months are subject to these higher fees.

  • $6.90 per cubic foot per month for items stored over 12 months

Additional Fees and Costs

Besides the primary fulfillment and storage fees, sellers may incur additional costs, including

Removal Fees 

If sellers choose to remove inventory from Walmart’s fulfillment centers, they may be charged removal fees.

Disposal Fees 

Fees may apply if Walmart needs to dispose of unsellable or excess inventory.

Prep Service Fees 

Fees for additional preparation services such as bundling, polybagging, or other custom packaging services.

Labeling Fees

If products arrive at Walmart’s fulfillment centers without proper labeling, additional fees are charged to label them correctly. These fees more or less depend on the Fulfillment Centres

Example Labeling Fees

$0.30 per unit for labeling

Comparison with Amazon FBA

Now, you might have come across the question “How does Walmart FBA work” The short answer is Walmart FBA is Walmart Fulfillment Services (WFS). Walmart Fulfillment Services (WFS) and Amazon Fulfillment by Amazon (FBA) offer similar services but have distinct differences.

AspectSimilaritiesDifferences
Service OfferingEnd-to-end fulfillment including storage, picking, packing, shipping, customer service, and returns.
Fee BasisFees based on the weight, dimensions, and storage duration of products.
Marketplace ReachAmazon has a larger global reach, serving multiple international markets, while Walmart is primarily focused on the U.S. market.
Fee StructuresSpecific rates for fulfillment and storage differ between the two services.
Brand AssociationProducts fulfilled by Amazon carry the "Fulfilled by Amazon" badge, while Walmart does not have a similar badge.

Walmart Fees vs Amazon FBA Fees for Different Inventories

CategoryWalmart (WFS) Fees (2024)Amazon FBA Fees (2024)
Non-Apparel$3.50 per unit$2.50 - $5.00 per unit
Apparel$3.50 per unit$2.50 - $5.00 per unit
SIPP/SIOC$3.50 per unit$2.50 - $5.00 per unit
Dangerous Goods$3.50 per unit$2.50 - $5.00 per unit
Low Price (<$10)$3.50 per unit$2.50 - $5.00 per unit

FBA Prep Costs vs. Walmart WFS

Service CategoryWalmart Fees (2024)Amazon FBA Fees (2024)
Prep Costs$0.50 - $1.40$0.30 - $1.50

Return Processing Fees for Apparel and Items with a High Return Rate

CategoryWalmart Fees (2024)Amazon FBA Fees (2024)
Return Processing (Apparel)$2.00 per return$2.00 - $5.00 per return
High Return Rate Items$2.00 per return$2.00 - $5.00 per return

Notes

Walmart (WFS) Fees (2024)

These are the flat rates per unit that Walmart charges for each category of goods stored and delivered via WFS.

Amazon FBA Fees (2024)

The fees for Amazon FBA vary depending on the category and can range from $2.50 to $5.00 per unit.

What is Fulfillment at Walmart?

Fulfillment at Walmart refers to the process by which Walmart handles the storage, picking, packing, shipping, order fulfillment, and customer service for products sold on its marketplace. It is Amazon’s FBA, or, in other words, “Fulfilled by Walmart”

Conclusion

Walmart Fulfillment Services (WFS) offers a robust solution for sellers looking to streamline their fulfillment operations and enhance their customer experience on Walmart’s marketplace.

By understanding the fees, processes, and benefits, sellers can make informed decisions and effectively leverage WFS to grow their business. Through efficient inventory management, compliance with guidelines, and cost optimization, sellers can maximize the advantages of using WFS and achieve success in the competitive e-commerce landscape.

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