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.

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Sept 27, 2022

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters](https://www.reuters.com/business/sustainable-business/amazon-drives-renewable-energy-push-with-71-new-projects-2022-09-21/) Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/26/prime-early-access-sale/) --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News](https://ecommercenews.eu/shopify-launches-new-localisation-tool/) Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News](https://uk.news.yahoo.com/etsy-600-million-on-marketing-ceo-154054219.html) --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/22/meta-to-slash-costs-by-10-over-coming-months/) DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/21/dhl-partners-with-quadient-to-offer-smart-locker-delivery/) The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](https://ecommercenews.eu/online-fashion-market-worth-e175-billion-in-2025/)
Sept 22, 2022

How an Amazon SEO Agency Should Be Serving Your Brand

If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.

Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.

At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise  are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead. 

What is an Amazon SEO Agency?

An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.

A great Amazon SEO Agency partner will:

Prioritize Your Success

Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance

Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS. 

To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.

Provide Detailed Competitive Insight

A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.

It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.

Reduce Your Ad Spend Over Time

Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins. 

Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.

Amazon SEO Optimization and More

As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.

Contact us to learn more about our SEO optimization services.

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)