Walmart Fulfillment Services (WFS) is a global logistics company with one of the largest supplier networks in the world. As the company’s e-commerce business grows, it plans to establish its first fulfillment center in Utah to handle the demand.
This service offers end-to-end fulfillment for third-party e-Commerce vendors. There’s enough volume, quality, affordability, and efficiency to support a successful business on Walmart.com through their offerings.
In this instructive article, we’ll provide you with some accurate information on the world’s most popular Walmart fulfillment service.
WFS Logistics
Walmart had noteworthy momentum in increasing its sales, starting at 35% in January of 2019. Since WFS had lower and more transparent pricing compared to Amazon FBA, it steadily kept growing its eCommerce.
The brand slowly started outpacing Amazon FBA by over 10% in sales, and then WFS had a massive increase of 42.8% in eCommerce. Walmart has already invested over 11 billion dollars into eCommerce, technology, and the supply chain.
Along with that, in 2019, Walmart added 10 million products to their online shop, with most of them being sold by marketplace sellers. Overall, Walmart has always won over most other brands, especially Amazon, when it comes down to logistics.
How Do Walmart Fulfillment Services Work?
Sellers can store their merchandise at Walmart fulfillment centers using Walmart fulfillment services when a customer places an order on Walmart, the WFS team picks, packs, and ships the goods on behalf of the vendor.
For orders that are shipped through WFS, Walmart also handles customer service and returns. Let’s take a glance at their services;
- Sell through Walmart Marketplace before registering with WFS.
- In Seller Center, create your WFS items/products.
- Transport your merchandise to a WFS location.
- WFS can store, pick, package, and ship your orders.
- WFS will be in charge of customer service and returns (available both for the in-store and home pickup).
Source: Knowledge Base (walmart.com)
How to Apply for Walmart Fulfillment Services?
Businesses must be active on the Walmart Marketplace before they can submit an application to ship orders using WFS. Whenever sellers have been permitted to use WFS, the process of starting with WFS looks something like this:
- Complete and sign the WFS contract.
- In Seller Center, configure or convert your products, so that they may be Fulfilled by Walmart.
- Ship inventory to a Walmart fulfillment center for fulfillment.
Which Criteria Makes the Products WFS-Eligible?
WFS-eligible items must meet the following criteria:
- No spoilage or regulated goods.
- A product’s weight cannot exceed 150 pounds.
- Product lengths of up to 108′′ are permitted.
- At least 165′′ in total length and diameter.
- Ability to ship to Walmart fulfillment locations in the United States.
Products that are sent to Walmart fulfillment centers should always come from inside the United States. This means that you can’t send goods from an international manufacturer to a Walmart fulfillment center.
If Walmart Fulfillment Services sounds like a good fit for your business and you need help meeting these criteria, Lab 916 can help you get started and grow your business.
How Does Walmart Fulfillment Center Portal Work?
Walmart Fulfillment Services, also known as WFS, is Walmart’s officially owned fulfillment service center. If an order is placed on their website, the WFS team will pack it up and ship it to the buyer.
The Walmart Fulfillment Center Portal manages customer support as well, and they allow step-by-step instructions to their clients if needed.
What Key Facilities does WFS Offer to Unlock your Marketplace Success?
Walmart has one of the world’s most outstanding supply systems. WFS allows marketplace merchants to benefit from Walmart’s scale, influence, and efficiency, which it has worked hard to perfect over the years. To unlock your marketplace success, check out some of the incentives and key services that Walmart offers below:
- During the non-pic season, they offer low-cost, 2-day delivery everywhere in the contiguous United States.
- A 50% boost in sales on overage can be attributed to higher search ranks and buy box wins.
- Via their trusted carrier program, they can lower inbound shipping charges.
- WFS fulfillment centers are able to receive inventory quickly.
- Access to the WFS dashboards and APIs is granted.
- Customized recommendations to help you optimize and develop your business operations.
- They provide customer service & seller assistance that is second to none, seven days a week.
- Customers will receive free shipping.
What are the Core Benefits of Walmart Fulfillment Services?
Walmart has one of the world’s most outstanding supply systems. It ranked 8th in 2021’s Gartner Top 25 Supply Chain Companies ranking.
Source: gartner.com
In this section, we’ll discuss 4 of the greatest benefits of WFS in detail:
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Inventory and Order Management
WFS provides merchants with reporting dashboards that help to monitor orders and inventory status, including product shipment in a timely manner.
The fulfillment insights tab in Walmart Seller Central enables businesses to track key shipment data by shipping achievement, carrier effectiveness, and geographical performance.
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Straightforward Pricing
WFS has a simplified price structure that is derived from two basic costs. One is a monthly storage fee, and another one is shipping costs which are based on the product weight or dimension.
- Offering 2-day Shipping
Amazon Prime certainly set the bar for quick shipment, however, Walmart stands up to the task. Sellers may provide 2-day shipment anywhere around the contiguous United States using WFS.
2-day shipping also increases your item’s rank in search results and appears in the Buy Box, which means more people will be seeing your listings.
- Customer Service
Walmart uses WFS to handle all customer questions, refunds, and returns. For greater product exposure and conversion, featured items are labeled with “TwoDay Delivery,” “Free & Easy Returns,” and “Fulfilled by Walmart” tags.
Should I Use Walmart Fulfillment Services?
Yes, it’s highly recommended to use Walmart Fulfillment Services. Among most other alternatives, Walmart Fulfillment Services has a few of the best features.
It has much better shipping than other alternatives such as Amazon FBA, and you can return any purchase to any location with Walmart.
Overall, Walmart has a lot of flexibility and is diverse, so it’s highly recommended to use Walmart Fulfillment Services.
How Much Does It Cost to Use Walmart Fulfillment Service?
WFS levies a monthly storage cost based on product volume and a fulfillment fee depending on the quantity or weight of the item. There are no fees for joining, subscribing, or stocking.
1. Storage Fees
The cost of storage is determined by the product’s volume (length x width x height) and the amount of time it will be kept. Current rates for items that’ll be held for less than 365 days are still as follows:
- $0.75 per cubic foot every month from January to September
- October, November, and December (holiday shopping season):
– $0.75 per cubic foot each month for products or items getting stored for 30 days or less.
– $1.50 per cubic foot per month for items being stored for more than 30 days.
If your belongings are stored at Walmart for longer than 365 days (twelve months), you’ll be charged a monthly storage cost of $7.50 per cubic foot.
With this in mind, if you have things that you believe to be slow sellers,’ it could be a good idea to manage their shipment personally to avoid spending extended storage fees.
2. Fulfillment Fees
For units weighing less than one pound, the fee is calculated based on the unit weight. Only when the unit weight exceeds 1 pound, use the greater of the unit of weight or even the dimensional weight.
Here the dimensional weight would be calculated by dividing the unit volume throughout inches (length x width x height) by 139. Check out the chart below to see fee breakdown:
Alternatives to Walmart Fulfillment Services
Walmart Fulfillment Services can get you a cost-friendly delivery within 1-2 days, but it’s not always the most reliable solution. Here are 4 of the best alternatives.
- Open Multiple Fulfillment Center
Many merchants are able to make multiple US fulfillment centers and control fulfillment. Since warehouse space has been expensive and limited, and three are other marketing challenges, the benefits are offset.
It’s risky to pick this option, but if it works out it’s gonna be great. If you pick the wrong location, it’s going to fail. But as an alternative to Walmart Fulfillment Services, opening multiple fulfillment centers works fine.
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Third-party Logistics Companies
Third-Party Logistics Companies, shortly known as 3PLs can work as a great alternative to Walmart Fulfillment Services as well. Most of the 3PLs have only a few locations, so make sure to get an RFP template.
- Delivery
One of the best alternatives to Walmart Fulfillment Services as it uses a network of 3PLs giving you fast worldwide shipping. Along with that, Deliverr does the lifting of fulfillment for all their clients.
One downside to Deliverr is that it’s limited in scope, it only focuses on smaller packages. Their fulfillment can cost a lot if the product size is bigger as well, and their services get more complicated the more you use it. It’s still viable, though.
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P2P Fulfillment Network
Peer-to-Peer fulfillment network, also known as P2P is an affordable modern alternative to 3PLs. A P2P network is made with vetted eCommerce retailers offering excess warehouse space to provide high-quality WFS.
It’s affordable as well, being cheaper and more flexible than other alternatives and delivering within 1-2 days. The set of merchants is diverse, ensuring the optimal experience for clients by using innovative technology.
WFS vs FBA: What Are The Differences?
Walmart WFS and Amazon FBA have been close rivals for a long time, so let’s take a look at their differences –
- Shipping
Walmart Fulfillment Services is one of the greatest rivals to Amazon FBA, with free two-day shipping on orders over 35$ without Walmart+ needed.
On the other hand, Amazon FBA is free for the same day, but one or two-day options need Amazon Prime. They don’t have many locations to return purchases either.
- Dimensions
Walmart can only accept packages that sum up to 30 lbs or less with dimensions of 25”x20”x14”x.
Amazon wins over Walmart when it comes to shipping, accepting oversized items up to 151 lbs with dimensions of 108” on the longest side.
These two are the biggest differences between Walmart WPS and Amazon FBA. Amazon has more options for shipping, while WPS has better shipping overall.
Along with that, you can return purchases to any Walmart location, unlike Amazon.
FAQs
1. What exactly are Fulfillment Services?
A fulfillment service is indeed a 3rd warehousing that organizes and ships customer orders on your behalf. If you wouldn’t want to cope with shipping or even have outgrown your current warehouse capacity to the point that you can’t ship things manually, a fulfillment service is a terrific solution.
In Walmart, the Walmart Fulfillment Services (WFS) provides 3rd e-commerce vendors with end-to-end fulfillment services.
2. What is the number of Walmart Fulfillment Centers?
Walmart has 210 distribution centers that are important places for their business to be. Among the largest operations in the world, they serve stores, clubs, and customers who want their goods delivered right to their door.
3. What is the goal of a Walmart Fulfillment Center?
To put it another way, a warehouse’s main job is to store things. A fulfillment center, on the other hand, wants to quickly move things around and ship orders. For example, fulfillment centers handle everything from negotiating shipping rates to taking care of everything else. They also make sure the orders are shipped on time.
Final Words For Walmart Fulfillment Services
The Walmart fulfillment service will provide you with excellent support and thought leadership in setting up and scaling your WFS sales dramatically in a short period of time.
They’ll also provide you with analytical insights as well as logistical resources at Walmart’s scale, though with the flexibility of a startup.
You can even hire a professional to help you get your business on track and sell at your best. They’ll help you with further information, insights, and approaches on all things of Walmart Marketplace.
