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A Complete Guide to Walmart Fulfillment Services (WFS)

A Complete Guide to Walmart Fulfillment Services (WFS)

April 8, 2024
Posted By
Hafez Ramlan
Title asset to the "Summer Shipping" blog post from Atomix Logistics. A small green 3D truck with a small sun floating above it portrays the hot summer sun during order transport. KW: Ecommerce, 3PL, order fulfillment, fulfillment center, summer order fulfillment, new orders, new customer, temperature, protection, packaging, eco-friendly, sustainability

In the fast-paced world of e-commerce, businesses are constantly on the lookout for solutions to streamline their operations, elevate customer experiences, and drive growth. Walmart Fulfillment Services (WFS) is a significant player in the industry. They offer various services to help sellers on Walmart's marketplace. This article dives deep into WFS, spotlighting its unique features, benefits and WFS application steps.

Walmart Fulfillment Services (WFS)

Walmart Fulfillment Services (WFS) offers a comprehensive 3rd party fulfillment service, enabling sellers to effortlessly store, oversee, and dispatch their products through Walmart's distribution centers. Mirroring the functionality of Amazon's FBA, WFS guarantees swift order processing and delivery, all while offering outstanding customer service and simple pricing. Sellers utilizing WFS benefit from enhanced product visibility thanks to the “2-Day Shipping” and “Fulfilled by Walmart” badges, which can lead to higher conversion rates.

Understanding a Walmart Fulfillment Center

A Walmart Fulfillment Center is an important aspect of Walmart's e-commerce strategy, playing a pivotal role in ensuring that products reach customers efficiently and reliably from their fulfillment network. These vast warehouses have advanced technology and logistics systems that manage inventory, process orders, and facilitate fast shipping throughout the United States. Here's a brief overview of what makes these centers essential:

Centralized Operations: Each Walmart fulfillment center serves as a hub that stores products, processes orders, and organizes shipments, streamlining the entire fulfillment process.

Strategic Locations: There are currently 40 Walmart Fulfillment Centers positioned strategically across the country, these centers allow for quick and cost-effective shipping to a wide customer base.

Scalability: Designed to handle vast quantities of products, they can accommodate the needs of businesses of all sizes, offering scalability as companies grow.

Enhanced Customer Satisfaction: By ensuring timely and accurate deliveries, Walmart fulfillment centers contribute significantly to customer satisfaction, a key factor in e-commerce success.

How to Get Started with Walmart Fulfillment Services

When considering outsourcing your logistics, gaining access to Walmart Fulfillment Service provides a comprehensive solution. This section will guide you through the process of signing up, managing inventory, and leveraging the platform for optimal results.

Applying for WFS

If you're already a seller on Walmart Marketplace, starting your application for WFS is straightforward. Simply navigate to the Seller Center and locate the WFS application link at the lower section of the left-hand navigation menu. You can start by heading to this link.

Processing Your Application

The review period for your WFS application can vary widely, from a few days to several months. During this time, you'll need to provide comprehensive details about your business, including:

  • Business Information: You will need to submit not only the basic details about your business but also specific information such as:
  • Last year's total revenue.
  • The count of your stock-keeping units (SKUs) and the percentage that constitutes new products (items not currently sold on Walmart Marketplace).
  • The average sales price for the SKUs you plan to list with WFS.
  • Inventory Details: WFS will require insights into the inventory you wish to fulfill through the service, including:
  • An estimate of the total number of units you intend to stock at one of Walmart fulfillment center locations initially.
  • Detailed information on the weight of your products, with fields to specify the percentage of units within certain weight ranges, e.g., 10% of units weighing between 6-10 pounds.
  • Brand Information: Clarify which brands you intend to sell and whether you are an authorized seller or reseller. Walmart also inquires whether you can designate someone to manage your WFS account - it's advisable to have someone, potentially yourself, in this role. Additionally, you must indicate if your products are equipped with UPC labels (a requirement for WFS shipments), GTINs, or EANs.
  • Contact Information: Provide your business address, contact number, and email address.

Transitioning Your Listings to WFS

After your application is approved, the next step is to convert your existing product listings to WFS listings. This can be done through the "Items" section in the Seller Center, where you'll find the option to "Update items in bulk." From there, you can choose to convert either individual products or multiple items to WFS listings.

By following these steps and ensuring that all the required information is accurately provided, you can streamline your application process and start taking advantage of Walmart Fulfillment Services to enhance your e-commerce operations.

Features of WFS

What sets WFS apart are its tailored features designed to meet the specific needs of Walmart sellers. From hassle-free integration with Walmart's online marketplace to transparent pricing and billing, WFS simplifies the fulfillment process, allowing sellers to focus on what they do best: selling.

Enhancing Visibility and Sales on Walmart.com

A key advantage of WFS is how it boosts product visibility on Walmart.com. Products fulfilled by WFS are tagged and prioritized in search results, leading to greater exposure. This visibility is crucial in the crowded online marketplace, where being seen can make all the difference.

Is WFS Right for Your Business?

Deciding to utilize WFS involves careful consideration of various factors, from the nature of your products to your long-term business goals. It's about aligning your operational needs with the capabilities and advantages that WFS offers.

Understanding Walmart Fulfillment Services Fees

One of the critical aspects for any seller when choosing a fulfillment service is the cost. Walmart Fulfillment Services offer a transparent and competitive fee structure that makes it an attractive option for a wide range of sellers, from small businesses to larger enterprises. This section will break down the fee components, helping sellers make informed decisions based on their specific needs.

Straightforward Pricing Model

WFS prides itself on its simple and predictable pricing model, which is designed to ensure sellers can easily calculate their fulfillment costs without worrying about hidden fees. The fee structure primarily consists of two components: storage fees and fulfillment fees.

Storage Fees

Storage fees are charged based on the amount of space your inventory occupies in Walmart's fulfillment centers. These fees are typically calculated on a monthly basis and can vary depending on the size and volume of the products, as well as seasonal demand fluctuations. For example, during peak shopping seasons like the holidays, storage costs may increase from higher demand for space.

Fulfillment Fees

Fulfillment fees cover the picking, packing, and shipping of orders to customers. These fees are determined by the dimensions and weight of the products, as well as the shipping destination. WFS offers competitive rates for these services, leveraging Walmart's extensive logistics network to fulfill orders and provide efficient and cost-effective shipping solutions.

Transparency and Predictability

Walmart emphasizes transparency in its fee structure, ensuring that sellers have a clear understanding of their costs upfront. This approach allows businesses to forecast their expenses accurately and plan their pricing strategies effectively, without fear of unexpected charges.

Evaluating the Impact on Profit Margins

Understanding the fee structure is just the first step. Sellers should also consider how these fees impact their overall profit margins. It's essential to factor in the cost savings from reduced logistics burdens and the potential sales uplift from increased visibility on Walmart's marketplace when calculating the overall financial benefit of using WFS.

A Compatibility Checklist

To determine if WFS is the right fit for your business, consider the following questions:

  • Does the majority of your customer base shop on Walmart.com?
  • Are you looking for a fulfillment solution that integrates seamlessly with the Walmart marketplace?
  • Is transparent pricing important to your business model?
  • Are you prepared to meet Walmart's standards for sellers using WFS?
  • Answering these questions can help clarify whether WFS aligns with your business objectives.

Third-Party Fulfillment Options for Walmart Marketplace Sellers

Sellers who prefer not to manage Walmart fulfillment in-house have the option to delegate the entire fulfillment process to an external service. Known as third-party logistics, or 3PL, these providers specialize in overseeing inventory, as well as the picking, packing, and dispatching of orders for a seller. The following outlines the comprehensive fulfillment services offered by a 3PL provider.

Expedited Shipping

In today's market, multiple shipping options and the availability of 2-day shipping is crucial for customer satisfaction. Collaborating with a third-party logistics provider (3PL) that operates multiple fulfillment centers allows for strategic distribution of your stock, reducing the necessity to dispatch items across extensive shipping zones. This strategy not only reduces shipping costs but also shortens delivery times by favoring ground transport over air freight, making services like 2 day shipping more cost-effective.

Professional Warehousing Solutions

Utilizing a 3PL means sending your products to their fulfillment centers, getting rid of the need for you to maintain storage space, lease facilities, or employ staff for warehouse management and infrastructure development. This is particularly advantageous if you lack expertise in operations, warehousing, or fulfillment logistics, making a third-party collaboration an excellent choice.

Seamless Integration with Walmart.com

Many 3PLs facilitate e-commerce fulfillment across various sales channels. Beyond integrating with Walmart.com, they can also connect to e-commerce platforms such as BigCommerce, Shopify, Squarespace, Square, and WooCommerce. This integration streamlines shipping processes for all your online stores while bringing your inventory to a single location.

Comprehensive Inventory Management

A competent 3PL does more than just store your goods; it should offer extensive inventory management services. This includes everything from forecasting inventory needs and advising on the best times to restock for optimal inventory levels to analyzing the most effective ways to distribute your stock across the USA. They should show you where your products are stored. This way, you always know how much stock you have.

Conclusion: Embracing the WFS Advantage

Walmart Fulfillment Services is more than a logistics solution; it's a strategic partner for businesses looking to thrive in the competitive landscape of e-commerce. By offering a blend of efficiency, visibility, and scalability, WFS empowers sellers to exceed customer expectations and achieve new levels of success.

As we look to the future, the role of WFS in the e-commerce ecosystem is undeniable. For businesses ready to take their online presence to the next level, embracing the WFS advantage could be the key to unlocking unprecedented growth and opportunities.

Unsure if Walmart Fulfillment Services is the right choice for your business? Let's clear up that confusion!

Our team at Atomix Logistics specializes in helping businesses like yours make informed decisions about fulfillment options. With our expertise, we've empowered over 100+ brands to choose the best e-commerce strategies for their needs. We're here to provide you with the insights and guidance necessary to determine if WFS aligns with your business goals. Reach out to us today!

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