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.

Global Ecommerce: Weekly News (6th September 2022)
Blog

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/)

Global Ecommerce: Weekly News (30th August 2022)
Blog

Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)

Global Ecommerce: Weekly News (23rd August 2022)
Blog

Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)