Walmart’s SEO guidelines, tips to win the buy box, and
Choosing to sell on Walmart’s online marketplace is more like boarding on a newfangled frontier.
This makes it particularly appealing and exciting, as you have an opportunity to target new customers.
Now, this raises a common question about the Walmart fees for sellers.
Let’s understand its charges in detail.
Additional Read: 10 Incredible Ways To Get Reviews On Walmart
For beginners, Walmart is far from saturated. In fact, some product categories are specifically sparse. It also provides access to a unique set of
However, Walmart sellers should handle shipping, customer services, exchanges, and returns on their own.
Therefore, only the bestsellers are capable of acquiring the platform’s access.
With the right planning, execution, and strategy, sellers will have a positive impact on the results and help expand their business to Walmart.com.
While most online marketplaces impose a specific charge every month or more commonly known as the annual seller fee, Walmart doesn’t have any such costs.
Unlike Amazon, your product listings aren’t charged on Walmart. It is absolutely free.
This is usually a referral fee (in %) depending on the product category your item is listed in.
Besides this, you get detailed access to your audience, as Walmart gives enhanced options on the performance reports of all third-party sellers, which usually include:
There is no account fee at Walmart. However, on Amazon, as a seller, you have to pay $39.99 every month. Walmart charges only a referral fee (based on the product category) and doesn’t impose any charges for maintaining the seller account.
In short, there are no set-up fees, subscription fees, listing fees, monthly fees, and category limitations. Once approved, a seller has access to limitless features.
According to Walmart, there are separate referral fees charged for different categories. But make a note that these categories are the ones that are listed in the Walmart Online Marketplace Retailer Agreement. They don’t match with the categories that you use for Product/Item Setup.
If you feel that you are charged with an incorrect referral fee for any item, create it with a proper product category that you believe fits the closest.
|No.||Product Category||Referral Fee (in Percentage)|
|1||Automotive & Powersports||12%|
|2||Apparels & Accessories||15%|
|4||Baby care products||15%|
|6||Photo & Camera||8%|
|8||Cell phones / Mobile phones||8%|
|10||Décor & Furniture||15%|
|13||Home & Garden||15%|
|14||Personal & Health care products||15%|
|16||Kitchen items and tools||15%|
|17||Travel accessories and baggage||15%|
|21||Outdoor equipment and items||15%|
|23||Pet care supplies||15%|
|25||Sunglasses, Shoes, and Handbags||15%|
|27||Video games & Software||15%|
|28||Wheels & Tires||10%|
|29||Home Improvement & Tools||15%|
|30||Games & Toys||15%|
|31||DVD & Video||15%|
|33||Video game consoles||8%|
The Walmart fee structure is simple. From the table above, you can understand that it is commission-based.
Walmart has partnered with www.payoneer.com to process all its payments on Marketplace. Hence, every seller should register with Payoneer to receive the payments.
However, before registering, make a note of these:
There are 3 other important things to be aware of, as it is related to payments in Walmart Marketplace:
Once customers place their orders, Walmart passes an authorization for the order and holds them until the sellers confirm that the products have been shipped. Only when this is done, Walmart debits the customer accounts. So, this means that the sales are reported on the date they are shipped and not on the date they are created.
On the Walmart marketplace, a buyer places his or her order and Walmart pays its sellers only after the product is shipped. But make a note that Walmart does not offer any internal fulfillment program like Amazon.
Therefore, every seller should handle his or her fulfillment on their own. Unfortunately, you might lose money while handling shipping and fulfillment if you do not have scalability and efficient systems. At such times, it is good to experiment. If you feel that you cannot handle it, go for an all-in-one fulfillment solution service that can provide complete warehousing, packaging, transportation, and free shipping for a small charge. This, in turn, will not eat up your profit margins and will save you from unwanted shipping hassles.
Once you become a certified or registered seller on Walmart Marketplace, you are entirely responsible for the sales tax. Walmart’s items are subject to sales tax in all the U.S. states and territories that charge a sales tax.
Walmart’s website states that its Marketplace sellers may not accumulate and remit on each sale. The moment you join Walmart’s Marketplace, you should incorporate sales tax in the price and further, ship to the places wherever there is a nexus.
This involves two key aspects:
From your Walmart account, you can view the details of the seller associated with an item. If this is someone other than “Walmart.com,” know that you have bought the product from a Marketplace Seller.
In such cases, every Marketplace Seller is responsible to collect and remit the respective sales tax for every item that he or she sells. The seller can either choose to add the tax amount with the product’s price or display the tax amount separately. Marketplace Sellers might not charge a tax amount in all the territories and 50 states in the United States.
Therefore, customers might or might not see tax charges while adding items to their carts. For Walmart tax policies, contact information, and seller details, you can visit Marketplace Retailer Information Page anytime.
Keep in mind that tax is imposed only for orders that are shipped to US states, territories, and protectorates where a sales tax is applicable. Orders that are shipped to an FPO/APO military address don’t have any tax charge. The tax amount that is being charged depends on the present norms.
In addition, shipping charges and gift wrap might be subject to taxes in certain states. In the case of returns, the tax will also be refunded. However, Walmart Gift Cards that are bought from Walmart store or its official website isn’t taxable.
Note: The local and state tax charges can change at any time.
You might think that you have complete flexibility on how you set up the prices for your items online. But when it comes to pricing on Walmart, there are many dos & don’ts you need to be aware of.
Since Walmart’s slogan says “Lowest Prices Every Day,” it is important to set the prices right before going live. The way you set the prices directly plays a key role in winning its Buy Box.
On the other hand, you can sabotage your sales and conversion rates if you fail to pay attention to Walmart’s pricing policies. There are clear guidelines that state how sellers should operate on its platform.
Let’s get into the details.
1. Check for every possible cost factor that can affect the results while pricing the items. Every online seller has unique approaches to price an item. These are usually determined by the following aspects:
Apart from the above, Walmart has nuanced pricing guidelines that direct how a third-party seller has to operate to maintain its marketplace eligibility criteria. This only means that every seller has to think in every direction before setting the price for a product.
To set the price for an item, two factors are to be considered:
2. Aim for the lowest price possible to win the buy box. There aren’t clear statistics on the number of sales derived from Walmart Buy Box. However, experts claim that the Walmart Buy Box algorithm has two simple and yet important rules:
The above two aspects ensure that there are higher conversions.
Charge low prices on other websites for the same items that you sell on Walmart. This mistake is something most sellers tend to do to make more money. If you play this game, you are going to do big harm.
This is because Walmart’s algorithms constantly and automatically check other websites and verify if the items sold on its marketplace have the lowest prices.
According to Walmart’s Seller Center,
“Sellers at Walmart Marketplace are completely responsible to set and maintain their prices. Walmart is committed to helping people save money so that they can live better.”
To deliver this promise, they have enacted some automated rules to identify and eliminate products with high uncompetitive prices.”
Its pricing rules can be broken down into two categories:
If Walmart’s automatic price monitoring system finds any discrepancy in pricing, it considers it as a policy violation. In such cases, your product listing will be automatically unpublished from the marketplace.
When this happens, you will be notified through the section “Manage Items Report” in Seller Center. However, you can take appropriate actions to fix this issue.
But they say, it is better to prevent it than to suffer from it. So, make sure to set the lowest price possible and pay attention to other marketplaces where you sell the same product.
Undeniably, Walmart’s online marketplace is gaining more popularity, growing fast, and attracting more shoppers every day. Walmart understands the importance of third-party sellers and the kind of business they bring to Walmart.
They bring a variety of products to the lot and actively seek new participants. However, not all can get through their stringent approval process and start selling on Walmart.
When it comes to a third-party seller, Walmart checks for the following key criteria:
With the parameters mentioned above, there are higher chances that Walmart will approve you as its marketplace seller. Moreover, their setup process and product listing requirements aren’t onerous, as you will already have good experience working with other e-commerce platforms. Once approved, you can start selling and enjoy a good amount without any hidden cost.
10 Walmart Selling Strategies That Can Help Drive More Sales
Get Approved To Sell On Walmart Marketplace
3 Comments on “A Guide on Walmart Marketplace Fees for Sellers in 2023”
NevamApril 8, 2019
Thanks, it’s very informative
DavidHatAugust 2, 2021
It’s turning out to be a tough affair to handle the shipping and fulfillment together. Is there any solution?
Arishekar NAugust 12, 2021
If you feel that you cannot handle it, you can go for an all-in-one fulfillment solution service that can provide complete warehousing, packaging, transportation, and free shipping for a small charge. This, in turn, will not eat up your profit margins and will save you from unwanted shipping hassles.