Walmart Marketplace Fees: A Complete Guide for Online Sellers

Every seller needs to understand Walmart and its marketplace fees which are crucial for success on the marketplace. If you’re a new seller or already selling products online, being aware of the applicable fees helps you set competitive product prices and manage profit margins effectively. Walmart marketplace fees include optional tools, shipping, fulfillment services, and referral fee’s. This guide outlines all the significant fees so that you can sell smart.

What Is the Walmart Marketplace?

Overview of the Walmart Marketplace

Walmart Marketplace is an online selling platform where third-party sellers can list their products next to Walmart’s inventory. Approved sellers can access the millions of shoppers visiting Walmart’s eCommerce store. There is robust brand trust allowing sellers to expand their eCommerce business.

Benefits of Selling on Walmart

Access to one of the largest retail audiences is a unique selling point of Walmart Marketplace. With no monthly subscription fees however great exposure for quality products. Sellers benefit from Walmart’s traffic, secure checkout system, and stunning credibility.

Walmart Marketplace Fees Explained

There’s No Monthly Subscription Fee

Walmart Marketplace does not charge a monthly subscription fee, unlike other marketplaces. This is beneficial for small businesses or new sellers looking to test the market, as it reduces initial costs.

Category-Based Referral Fees

As with other marketplaces, Walmart also charges referral fees based on categories of products. For different categories, Walmart charges different percentages ranging from 6% to 20%. For instance, jewelry and beauty items might have a higher percentage compared to electronics. This fee applies to the total order value that a customer pays that includes shipping.

Referral Fee Structure Examples With Further Details

Most Categories Average 15%

Most categories usually have an average of 15% for referral fees. Laptops and tablets are considered electronics and usually have lower fees near 8%. Clothing and health accessories tend to charge 15–20%. This presents a broad range for sellers. Knowing your category helps you plan your expenses.

Why Precise Product Listing Is Critical

Correct chargeable referral fee depends on accurate listing of products. Proper listing ensures product visibility and mitigates the risk of misclassification resulting in unnecessary costs. Such impactful factors of business expenses should be verified and double-checked before posting.

Optional Ad and Listing Expenses

Sponsored Products on Walmart

Sellers can also use Sponsored Products, a PPC advertising for Walmart. It allows sellers to choose to be featured at the top of the search results. The seller pays only if the shopper clicks the ad. It helps to get visibility for new products, or products in great demand.

When to Use Advertising

Use advertising for the best-selling items, or in the peak sampling season. Sponsored ads help improve visibility and direct purchases of high-demand items. Don’t forget to check return on ad spend while monitoring ad spend so that you do not overspend on non-performing products.

Walmart Fulfillment Services (WFS) Fees

What Is Walmart Fulfillment Services?

Walmart Fulfillment Services is the same as FBA (Fulfilled by Amazon). The seller is allowed to keep their stock in the Walmart warehouses. The seller does not have to worry about shipping, taking returns, or looking after the customers as Walmart does it.

WFS Pricing Structure

Charges for WFS are based on the weight and dimensions of the item. The fees start with $3.45 for smaller goods, and are charged more for heavier or bulkier items. There are also storage fees, especially with long-term storage after 30 days. These charges are in addition to the referral charges.

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Costs Related to Shipping and Handling

Expectations for Free Shipping

Walmart encourages sellers to offer fast and free shipping. While not required, products with free shipping tend to outperform others in ranking. If you manage shipping yourself, you pay the entire expense.

Adopting Third-Party Logistics (3PL)

Walmart Fulfillment Services (WFS) not using sellers. This is ideal for sellers looking to lower shipping costs. Matching the Walmart freight standard selection will be essential.

Profit Calculation After Fees

Calculators for Profit Margin

Several tools and spreadsheets are available to Walmart marketplace sellers to calculate profit margins. To determine net profit, deduct referral fees, shipping, advertising, fulfillment, and other relevant costs from the selling list price. For easy calculation of all walmart fees, we suggest using this simple calculator.

Listing and Pricing Strategies

Listing the products on the marketplace comes with the flexibility of implementing varied pricing styles. Each fee tied to the product’s overall margin must be thoroughly analyzed. Compounding profits needs to adjust the pricing and strategic position.

Avoiding Surprises With Fees

Stay Informed on Policy Changes

Information available through the Seller Center dashboard will enable notice of changes with the fee snapshot structure. Mark the fee changes, and strategically adjust prices to seize the opportunity to stay ahead of the competition.

Viewing Performance Metrics

Walmart examines order defect rates, late shipments, and cancellations. Weak performance may invite sanctions, or worse, suspension. These hidden costs can impact profitability so ensure strong service levels.

Recommended Operations for Controlling Walmart Marketplace Fees

Maintain Products in High-Demand Categories

Selling items in high-volume categories can offset fee costs with higher sales. Focus on trending products or seasonal items with good margins.

Optimize Listings to Decrease Ad Spend

Optimized listing titles, images, and descriptions lead to better ranking in organic search. This means lower paid advertising reliance, keeping expenses down.

Bundle Products to Raise AOV

Creating product bundles can raise your average order value (AOV). This aids in fee absorption and increases profit per sale. Make sure bundles make sense and are attractive to buyers.

Comparing Walmart Marketplace Fees to Other Platforms

Walmart vs. Amazon

Amazon has a monthly fee alongside comparable referral ones. Walmart remains unique in its lack of monthly fees, benefitting budget sellers. However, there is more fulfillment and shopper reach options on Amazon.

Walmart vs. eBay

Sellers on eBay pay for insertion fees and for final value fees for every item, while Walmart only charges referral fees. eBay permits greater seller flexibility, whereas Walmart offers greater brand visibility and trust from buyers.

Common Questions About Walmart Marketplace Fees

Are There Any Hidden Fees?

Walmart does not charge any optional monthly fees. Additional services like advertising or order fulfillment do incur fees, but these fees will be disclosed upfront.

Do I Pay Fees on Returns?

Walmart might refund the referral fee for returned items, but fulfillment and shipping costs are usually non-refundable. Review your seller account’s return policies for more details.

Can I Negotiate Fees With Walmart?

Marketplace vendors must accept Walmart’s posted terms of service, therefore, Walmart marketplace fees cannot be changed. There are no unique terms for newer or smaller sellers.

Conclusion

Payment structure on the marketplace is simple and consists mainly of identified fees, with no subscriptions, making it easier to sell in Walmart. Knowing the fees upfront allows sellers to strategically plan their profit margins and their operational scale. There are effective strategies available to help decrease costs and increase success on the platform.