What Is Walmart Fulfillment Services (WFS)?

Michelle Thompson

October 26, 2020

As reported in January, Walmart U.S. ecommerce sales grew 35% in 2019. Building on that momentum in early 2020, the company announced Walmart Fulfillment Services (WFS), a new fulfillment capability for Walmart.com marketplace sellers that began rolling out in late February.

Built by Walmart with sellers, for sellers, the program offers low, transparent pricing (often lower than FBA), personalized account management, inventory forecasting, and the opportunity for businesses to scale profitability and assortment. Customers benefit from a larger assortment of premium brands and products, easy returns, dedicated customer care, and perhaps most significant—no annual membership or subscription fees.

Walmart’s ecommerce growth over the last 4 years

Walmart’s ecommerce catapult began in 2016 with its $3.3 billion acquisition of Jet.com, which has now been retired. Walmart ecommerce grew 35.8% that year, outpacing Amazon’s 25.2% growth.

Then 2017 was another year of growth with the acquisitions of shoebuy.com and moosejaw.com, and a 42.8% increase in ecommerce sales.

Now, into 2020, Walmart.com has passed eBay to become the second-largest ecommerce marketplace in the U.S., and its growth continues to outpace that of its two largest competitors, Amazon and eBay. While Amazon lost 10.4% of the marketshare between 2018 and 2020, Walmart experienced an almost 50% sales share growth. Thanks to this rapid growth, Walmart’s 2020 ecommerce sales are estimated to near $30B, a $9B increase from 2019. WFS is the next step for Walmart in competing for increased marketshare and sales and could be the next step for you to grow your brand with multichannel selling.

Just this year, Walmart launched their new Walmart+ subscription service, again mirroring and competing with Amazon to grow their ecommerce capabilities and grab even more marketshare.

Walmart Fulfillment Center, WFS

Photo courtesy of Walmart.com.

Pattern and Walmart’s WFS beta program

Pattern had the unique opportunity to take part in the WFS beta release and help Walmart.com build out this new capability. Because Pattern already has products listed in Walmart’s marketplace, and with our extensive FBA experience, the beta release was an exceptional opportunity offered by Walmart.

Leveraging Walmart’s supply chain infrastructure and ecommerce network now allows us to more efficiently fulfill orders, boost sales, and grow and protect our brands on Walmart.com. We can also help brands launch advertising campaigns on Walmart, effectively track Walmart ads, set up Walmart Sponsored Products, win on Walmart’s SEO algorithm, and more.

WFS logistics

Through WFS, Walmart—the no. 1 retailer in the U.S.—handles all refunds, returns, and customer service. Walmart fulfillment centers store, pack, pick, and ship all eligible products. However, restrictions do apply, and all items must currently meet the dimensional requirements of 25” x 20” x 14” and must weigh less than 30 lbs. Sellers must ship products to Walmart fulfillment centers from somewhere in the United States, and perishable or regulated products aren’t eligible.

Fees are determined by weight and cover Walmart storage, fulfillment, and customer and seller support. Walmart WFS only ships to the 50 U.S. states, some military addresses, American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.

The advantages of WFS

Perhaps the most attractive feature of WFS for customers is the simple, quick process for deliveries and returns. As long as customers spend at least $35 on their order, they receive guaranteed free 2-day shipping—no membership or annual fees required. This guarantee offers an attractive alternative for customers who may order on marketplaces like Amazon without the shipping benefits of paid memberships.

Returns through WFS are easy, too—the U.S. is home to 20 Walmart fulfillment centers and 4,700 stores, and 90% of Americans live within 15 minutes of a Walmart store, making returns quick and convenient. Unlike stores like Whole Foods or Kohls, where Amazon customers can return purchases, Walmart holds an unparalleled prevalence in the U.S., with 95% of Americans shopping in a Walmart store or on Walmart.com in 2019.

Brands also have a lot to love about Walmart WFS. For one, it’s low-cost. After you send your items to a Walmart fulfillment center, Walmart stores it within 1-2% of Amazon storage pricing. The fulfillment service also helps preserve your brand integrity by giving brands price control of inventory and avoiding commingling inventory by default, which reduces fraud and mislabeling. Walmart’s practice of storing sellers’ products separately makes it less likely for your brand to be held accountable for another merchant’s defective or damaged products.

Compared to ecommerce giant Amazon, Walmart WFS has a better buyer to seller ratio—on Walmart’s website, brands compete with 30K other sellers instead of Amazon’s 3 million, making it easier for your brand to reach Walmart’s 116 million unique monthly visitors.

Although Amazon FBA certainly has the benefit of time and experience, Walmart has the benefit of the world’s largest supply chain infrastructure with great storage and shipping capabilities. Items in the WFS program also receive both TwoDay and Fulfilled by Walmart tags, giving them higher search rankings, conversion, and Buy Box prominence.

Which products are a good fit for WFS?

Although Walmart stores are typically associated with their “everyday low prices” and budget buys, Walmart.com is shifting its focus to a younger, urban, and more affluent demographic, according to Retail Dive.

After acquiring several high-end ecommerce platforms, Walmart.com now sells luxury items like Rolex watches, Louis Vuitton handbags, and Chanel perfume. According to Cody Parrot, a Senior Brand Manager at Pattern, “luxury brands can find great success on the re-branded platform.” If the success of WFS in 2020 is any indication, these brands can generate even more revenue through WFS.

It is worth noting, however, that Walmart’s rapid ecommerce growth isn’t due to luxury brands alone, and the corporation is expanding its assortment to all brands that are currently not on Walmart.com.

Walmart suggests brands can increase their revenue with WFS by prioritizing items and brands new to Walmart.com, selecting competitively-priced products, creating high-quality page content for each item, providing sufficient inventory, and joining the Walmart Sponsored Products Program. Conversely, Walmart does not recommend products for WFS if they already have multiple offers on Walmart.com or have poor item page content.

How the WFS Seller Center portal works

The WFS portal is located in Seller Center alongside Seller Fulfilled listings. To convert Seller Fulfilled items to WFS, Walmart.com provides a specification sheet that includes additional information required for fulfillment, including tax codes, packaged product dimensions, hazmat identification, etc.

Once this specification sheet is completed and uploaded in Walmart Seller Center, the product becomes WFS eligible and is ready to ship into Walmart fulfillment centers.

WFS Seller Center Portal

How Walmart fulfillment works

In order for a Walmart fulfillment center to receive product, the seller must submit a purchase order (PO) through Walmart’s Global Supply Chain Operations system (GSCOPE). The seller simply downloads a PO file, fills in the product information, and uploads the spreadsheet into the system.

Walmart Fulfillment Services (WFS)

Photo courtesy of Walmart.com.

GSCOPE tracks the progress of the PO in a dedicated feed; once the PO has successfully uploaded, the fulfillment center is ready to receive the product and the listing can go live. In GSCOPE, the seller can track items received and inventory numbers including on hand units, reserved units and damaged units.

In Walmart Seller Center, Walmart tracks sales, shipping performance, customer returns, and sellers can easily view metrics, edit listings, and manage price promotions and product updates.

Walmart Fulfillment Services Center (WFS)

Photo courtesy of Walmart.com.

Should I use Walmart Fulfillment Services?

Thus far, Pattern has seen great success with the new WFS program. Our sales on Walmart increased 3,000% post-launch, and Buy Box attainment jumped as well.

Moreover, given the program has significantly fewer sellers, Walmart.com sellers receive nearly 27,000 visitors per month, compared to roughly 2,100 visitors on Amazon. Less competing sales equals more product sold and increased revenue for your brand.

Pattern partner Thorne Research saw a 207% increase in Walmart.com sales from the first half of November 2019 to the last half. The difference? On Nov. 13, Thorne Research began selling through Walmart Fulfillment.

Although Thorne Research only sold on WFS for the last month and a half of 2019, the sales made in that time comprised 25% of the brand’s total Walmart.com sales for the year. Equally impressive is the 62% increase in sales between December 2018 marketplace sales and 2019 WFS sales. This success continued into 2020 with 22 more Thorne Research Products on WFS and a 771% increase in sales year over year between October 2019 and March 2020.

With WFS, Pattern has seen a 166% increase in business year over year and a 176% increase in incremental revenue from January to March 2020. So far, Walmart Fulfillment has proved to be a powerful tool for brands to increase their visibility and revenue on the Walmart marketplace.

Even if your brand isn’t currently selling on Walmart.com, you can still apply to sell on WFS. Selling on multiple marketplaces can help you build brand recognition, reach different demographics, and mitigate risk. According to Stitch Labs, retailers who sell on two marketplaces see 190% more revenue than those who sell on just one. With Walmart’s rapid ecommerce growth in recent years, there’s no better time than now to reap the benefits of diversifying your marketplace.

Are you ready to grow your business and protect your brand on Walmart.com? We can help. Contact a Pattern representative today through the form below and we’ll be in touch.

Editor’s Note: This blog, originally published February 25, 2020, has been updated and republished to reflect our most recent data on the topic.

Explore Our Ecommerce Resource Library

Find relevant content to accelerate your ecommerce business. Stay on top of industry trends and best practices.

Sept 20, 2022

Global Ecommerce Weekly News: 20th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to raise pay and add extra work benefits for delivery drivers Following the rise in fuel prices and protests by Amazon workers, the ecommerce giant is raising its delivery drivers’ pay and adding more work benefits. Amazon has mentioned that it will be investing $450 million into rate increases along with an education program and a Delivery Service Partners program. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/amazon-to-raise-delivery-drivers-pay-and-add-more-work-benefits/) Amazon announces it will give away shipping software to merchants at no cost Amazon has recently announced that it will be giving ecommerce merchants free software to manage shopper orders on and off its platform as it extends its reach. The ecommerce giant will be ending monthly costs for sellers using Veeqo, a shipping software it recently acquired and instead offer to them a new, free shipping software. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/amazon-to-give-away-shipping-software-to-merchants/) --- Other Marketplace News --- Walmart unveils new virtual fitting rooms In an effort to drive clothing sales, Walmart has launched virtual fitting rooms while competitors reduce spending amid the cost of living crisis. The virtual try-on tool can be used by Walmart customers to virtually measure the clothing items and see how the products would look on them. Shoppers will now be able to see how over 270,000 clothing items on Walmart’s ecommerce site would look on their bodies. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/walmart-launches-virtual-fitting-rooms-to-drive-clothing-sales/?utmsource=Retail+Gazette+Subscribers&utmcampaign=2da7f0f8f8-EMAILCAMPAIGN202209150742&utmmedium=email&utmterm=0d23e2768b6-2da7f0f8f8-61040615) THG slashes sales and profit expectations The Hut Group has slashed its forecasts for 2022 as rising interest rates, inflation and energy costs take a toll on consumers. Previously, THG estimated its sales growth to be between 22-25% but after a recent evaluation, has lowered this prediction to between 10-15%. Initial predictions did not take into account the negative effects of ceasing sales in Russia and Ukraine along with the impact that the cost-of-living has had on consumer spending. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/thg-slashes-forecast-as-cost-of-living-crisis-hits-consumers-wallets/) --- Other Ecommerce News --- DHL and Post Office team up to provide click and collect services Through a partnership between delivery company, DHL and Post Office, a new click and collect service is to be tested at Post Offices before rolling out to over 1000 branches across the UK. Online shoppers will now have the option of choosing their local Post Office as a collection point, and DHL will fulfil the delivery aspect, opening up networks for both parties. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/post-office-partners-with-dhl-express-to-provide-click-and-collect-services/) US consumer watchdog plans to further regulate the BNPL sector The US Consumer Financial Protection Bureau (CFPB) has raised concerns regarding the collection of consumer data and the fast-growing nature of the BNPL sector, which includes companies such as Affirm and Klarna. The CFPB is worried that these companies could be negatively impacting consumers’ financial health and aims to put better regulations in place to ensure consumers are safe and empowered. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/us-consumer-watchdog-to-start-regulating-bnpl-sector/) Japanese ecommerce market estimated to grow by 6.9% in 2022 The ecommerce market in Japan, largely dominated by domestic online retailers including Reakuten and Mercari, is set to reach $194.3 billion USD in 2022, after seeing an annual compound growth rate of 5.2% between 2018 and 2021. This makes Japan the fourth leading ecommerce market globally, following China, the US, and the UK. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/13/japan-ecommerce-market-to-grow-by-6-9-in-2022/) Ecommerce brands are spending more on TikTok ads TikTok may soon be surpassing Facebook and Google as the most lucrative advertising channel, with ecommerce brands spending 60% more on TikTok ads in Q2. Facebook is still ahead as the top choice for ecommerce advertisers but only grew by 5.6% from Q1, while Google grew 20.5% in Q2, and Snap declined 10.8% in Q2. [Read more on SearchEngineLand](https://searchengineland.com/ecommerce-brands-spent-60-more-on-tiktok-ads-in-q2-387876)
Sept 13, 2022

Global Ecommerce Weekly News: 13th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon scales back on US warehouse facilities Amazon is shutting down two facilities with 300 employees, discarding plans for 42 facilities, and delaying plans to open a further 21 buildings across the US. The ecommerce giant is scaling back on hiring as well as the expansion of its vast delivery network, as it was left with an excess of space following its rapid expansion during the pandemic. [Read more on Business Insider](https://www.businessinsider.com/amazon-closes-2-facilities-scraps-plans-42-new-buildings-report-2022-9?r=US&IR=T) --- Other Marketplace News --- JD.com is ‘betting’ on ecommerce grocery market Amidst a slowing economy and a decline in ecommerce, Chinese ecommerce giant JD.com has increased its urgency to seek new growth engines. The company is looking to boost its online grocery business through offline partnerships and expansion into lower-tier cities, where it may be able to unleash more consumption power. [Read more on The Star](https://www.thestar.com.my/tech/tech-news/2022/09/08/chinese-ecommerce-giant-jdcom-bets-big-on-online-grocery-lower-tier-markets-amid-slowing-economy) Shopee shuts operations in Argentina, Chile, Colombia, and Mexico Sea’s ecommerce arm, Shopee, has shut local operations in some LATAM countries but will continue to maintain cross-border operations in a few markets. Latin America is Sea’s most important region following South-east Asia, accounting for close to 19% of its revenue in 2021. The move away from these countries is largely due to increased levels of macro uncertainty and rising interest and inflation rates, and rather putting a focus on its core operations. [Read more on Straits Times](https://www.straitstimes.com/business/companies-markets/seas-shopee-shuts-operations-in-argentina-chile-colombia-mexico-sources) --- Other Ecommerce News --- Instagram scales back in-stream shopping elements Instagram is re-examining its approach as it hasn’t been able to make ‘fetch’ happen. ‘Fetch’ in this context being the online shopping trends which have become all-consuming in China, and what Western social platforms have been hoping to add into their apps to make them more addictive and revenue-generating. Consumers have not been swayed by the latest shopping tools on TikTok and Instagram, leading to Instagram scaling back its in-stream shopping program. [Read more on SocialMediaToday](https://www.socialmediatoday.com/news/instagram-scales-back-in-stream-shopping-elements-as-it-re-examines-its-app/631276/) FedEx Express supporting the growth of cross border ecommerce FedEx express has expanded its international commerce shipping service to four more markets across the Asia Pacific, Middle East and Africa (AMEA) region in an effort to support the strong development of ecommerce in this region. Three of the fastest growing markets, the Philippines, Indonesia and Vietnam are leading Southeast Asia’s ecommerce sales, which is set to reach $100 billion by 2023. [Read more on Post & Parcel](https://postandparcel.info/149889/news/e-commerce/fedex-express-supports-the-growth-of-cross-border-e-commerce-within-the-amea-region/) India ramps up hiring as companies prepare for shoppers Ecommerce companies are getting ready for the festive season by rapidly expanding their temporary workforce. As ecommerce in India grows, the country is predicted to have 372 million online shoppers by the end of 2022. The festive season this year, running from October to December, is expected to see a two-fold increase in logistics and delivery alone. During this period, companies are predicted to add 20% more to their existing workforce base, with a 8-10% higher pay scale compared to last year. [Read more on Business Insider India](https://www.businessinsider.in/business/ecommerce/news/the-great-indian-festival-of-hiring-e-commerce-companies-gear-up-for-indias-shoppers/articleshow/94000346.cms)
Sept 6, 2022

Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)