As an ecommerce supplier, you already understand the importance of fast and accurate fulfillment of your customers’ orders. Optimized fulfillment is the cornerstone of healthy inventory levels, repeat customers, high ratings and reviews, and more.
Walmart wants every transaction at Walmart.com to be a positive one, which is why the company supports its Marketplace sellers with Walmart Fulfillment Services (WFS). In this article, we’ll explain WFS, pros and cons for suppliers, how fees work, and go over which products are eligible.
What Is Walmart Fulfillment Services (WFS)?
Walmart Fulfillment Services (WFS) is Walmart’s in-house 3PL program that allows Marketplace sellers to store inventory in Walmart fulfillment centers. With WFS, Walmart handles picking, packing, shipping, returns, and customer service. This allows suppliers to focus on growth, advertising, pricing, and catalog expansion instead of logistics.
Suppliers using WFS also gain:
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- Two-Day delivery eligibility
- “Fulfilled by Walmart” badges
- Better chance to win the Buy Box
- Reduced operational burden
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However, WFS is not “set it and forget it.” Fee structure, storage strategy, margin management, and listing optimization determine whether WFS becomes a growth engine or a margin drain.
How Walmart Fulfillment Services (WFS) Works
Walmart operates approximately 40 fulfillment centers across the United States, strategically positioned to optimize delivery times and reduce shipping zones.
Walmart Marketplace sellers benefit from using WFS since these fulfillment centers feature:
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- Faster nationwide delivery
- Competitive carrier rates
- Two-Day eligibility in most regions
- Scalable infrastructure for growth
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The 5-step process for Marketplace sellers to request and use WFS is as follows:
1. Application and Approval
To apply for Walmart Fulfillment Services, you must first be an approved Marketplace seller. As a Marketplace seller, you simply submit a WFS application in the Seller Center. If you meet Walmart’s performance standards, you may be approved (approval times vary from days to several weeks depending on seller history and product category).
2. Inventory Preparation and Shipment
After you receive notification that your WFS application is approved, you will create a WFS shipping plan. This includes labeling all inventory per Walmart guidelines and shipping to your assigned Walmart fulfillment center(s).
3. Receiving and Processing
Walmart typically receives and makes inventory available within two (2) business days during standard periods and up to 7 to 10 days during Q4 peak season.
4. Order Fulfillment
When a customer orders your item on Walmart.com, Walmart will pick, pack, ship (typically 2-day eligible items), and handle returns.
5. Ongoing Inventory and Performance Management
Suppliers using WFS are responsible for monitoring their sell-through rates, storage duration, return rates, Buy Box percentage, and margin impact.
WFS Product Eligibility Requirements
Walmart sets physical fulfillment limits on items going through its facilities. For eligible items, Walmart sets these guidelines on standard and bulky items:
Standard Fulfillment Limits
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- Maximum 150 lbs. (including packaging)
- Maximum length ≤ 108 inches
- Length + girth ≤ 165 inches
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Big and Bulky Fulfillment Limits
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- Must be under 500 lbs.
- Must fit through trailer doors
- Shipped via freight
- Subject to higher fees
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Products Not Eligible for WFS
WFS does not accept the following categories:
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- Perishable items
- Temperature-controlled goods
- Alcohol
- Ammunition
- Hazardous materials (without approval)
- Certain chemicals and regulated products
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Suppliers should review the current WFS Prohibited Products Policy in the Seller Center, as categories can change.
Walmart Fulfillment Services Fees
To get an estimate of what Walmart will charge you for WFS, you can enter your item specifications in the WFS Cost Estimator.
The WFS fees fall into four categories:
1. Fulfillment Fees
Based on weight and dimensions:
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- Small standard items: typically around $3 – $6 range
- Larger items increase incrementally
- Big and Bulky priced separately
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2. Storage Fees
Charged per cubic foot per month:
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- Jan.- Sept.: lower base rate
- Oct.- Dec. (peak): increased rates
- 12+ month inventory may incur long-term storage fees
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3. Return Processing Fees
Applied when a customer returns an item. May vary based on:
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- Weight
- Apparel classification
- Oversize designation
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4. Additional Charges
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- Disposal or removal fees
- Problem inventory chargebacks
- Hazmat handling (if approved)
- Relabeling or prep services
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Pros vs. Cons of Walmart Fulfillment Services
Walmart Fulfillment Services is not for every Marketplace seller. Before submitting an application, consider these pros and cons for your business:
Pros of WFS
1. Increased Buy Box Competitiveness
WFS listings receive the “Fulfilled by Walmart” tag and the Two-Day delivery badge. Both of these alerts for Walmart.com shoppers can often improve conversion rates and Buy Box share.
2. Faster Delivery Expectations
Consumers have come to expect faster delivery times. WFS meets this expectation.
3. Reduced Operational Burden
Marketplace sellers taking advantage of WFS do not have to worry about warehouse management, daily pick and pack labor, or carrier negotiation.
4. Improved Customer Experience
Walmart takes on the burden of shipping inquiries, item returns, refunds, and packaging standards.
5. Scalable Growth
WFS infrastructure allows suppliers to scale without building physical distribution capacity.
Cons of WFS
1. Slow-Moving Inventory Costs
Inventory aging past 30 days in Q4 increases storage costs. Inventory aging past 12 months triggers long-term storage fees.
2. Margin Compression
Supplier margins can quickly shrink when WFS fees add up like:
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- Referral fees (6 – 15%)
- WFS fulfillment fees
- Storage
- Advertising costs
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3. Single-Channel Limitation
WFS does not widely support omnichannel fulfillment for other platforms.
4. Inbound Compliance Issues
Incorrect labeling or packaging can trigger:
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- Chargebacks
- Inventory delays
- Return-to-sender fees
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The Team at 5G can Help!
If you’re considering using Walmart Fulfillment Services, our team can help you weigh the benefits and costs specific to your Walmart business.
Contact us for a free consultation to learn more about WFS and working with Walmart to grow those online sales!
Walmart Fulfillment Services FAQs
Q: What are Walmart Fulfillment Services (WFS)?
A: WFS is Walmart’s in-house fulfillment program that stores, ships, and manages returns for Marketplace sellers.
Q: Does WFS improve Buy Box chances?
A: Yes. Two-Day and Fulfilled by Walmart tags often increase competitiveness.
Q: How much does WFS cost?
A: Costs vary by size and weight, plus storage fees and referral fees. You can find specific costs for your products in the WFS Cost Estimator.
Q: Is there a monthly subscription?
A: No standalone WFS subscription fee.
Q: Does WFS handle customer service?
A: Yes, including returns and shipping inquiries.
Q: How long does inventory take to become active?
A: Typically 2 (two) business days, longer in Q4.
Q: Can I use WFS for oversized products?
A: Yes, under Big and Bulky guidelines.
Q: Does WFS support multichannel fulfillment?
A: Limited compared to Amazon FBA.
Q: Are referral fees separate?
A: Yes. Marketplace referral fees still apply.
Q: Can I remove inventory?
A: Yes, for a removal fee.
Q: What happens if inventory sits too long?
A: Long-term storage fees apply.
Q: Do I need a U.S. address?
A: Yes, for returns and banking.
Q: Are perishable items allowed?
A: No.
Q: Does WFS help with search ranking?
A: Fulfillment speed is a ranking factor.
Q: Is WFS good for beginners?
A: Yes, if approved and margins support fees.
Q: How are returns handled?
A: Walmart processes them and may restock or dispose.
Q: Are hazmat products allowed?
A: Only with approval.
Q: How do I calculate WFS fees?
A: Use the WFS Cost Estimator in Seller Center.
Q: Does WFS increase conversion rates?
A: Two-Day eligibility often improves conversion.
Q: Should I use WFS or 3PL?
A: It depends on channel strategy, margin structure, and growth goals.