Are you ready to grow your Walmart Marketplace sales and stand out from the competition? With Walmart Fulfillment Services (WFS), you can offer faster shipping, earn that "Fulfilled by Walmart" badge, and potentially boost sales by up to 50%. In this article, you'll learn about essential WFS costs, how to manage them, and ways to leverage WFS to drive sales and keep your margins intact.
A Quick Look at Essential WFS Costs
Why WFS Matters for Growth
A recent analysis found that only 38% of Walmart sellers use Walmart Fulfillment Services. By opting in, you stand out from most competitors through reliable two-day shipping and Walmart's fulfillment badge. Understanding the fees upfront lets you decide if WFS is worth the added visibility and customer trust.
WFS Cost Breakdown
WFS fees typically include:
Referral Fees
• Range from 6% to 15% depending on the product category
• Automatically deducted from each sale
• Often offset by increased conversions when shoppers see two-day shipping
Fulfillment Fees
• Based on product weight (covering picking, packing, and shipping)
• Heavier items trigger higher costs
• Saves you time by offloading logistics to Walmart
Storage Fees
• Charged monthly based on product volume and duration in the warehouse
• Unsold or slow-moving items can rack up extra costs
• Plan inventory levels carefully to avoid surprise fees
Promos for New WFS Sellers
Walmart sometimes offers significant incentives—like 50% off referral fees, 10% off fulfillment fees, or even free storage for the first 90 days—to encourage new WFS enrollments. Keep an eye out for these promotions to cut costs when you're just starting.
Breaking Down Fulfillment and Referral Fees
Understanding Referral Fees
Referral fees (6%–15%) may seem small, but they become significant as sales grow. With WFS, these fees are automatically deducted, making it easier to keep track of every sale's true profit. The key is to factor them into your overall pricing and marketing strategy right from the start.
Calculating Fulfillment Costs
Fulfillment fees hinge on weight. Lighter packaging can mean better margins because Walmart's per-item fulfillment rate is lower for items that are easy to ship. Once your product arrives at the fulfillment center, Walmart picks, packs, and ships—plus handles returns—under this fee structure.
Combining Fees for Better Profitability
Paying both a referral fee and fulfillment fee can feel daunting. However, many sellers find the sales boost outweighs costs once they're enrolled in WFS. Walmart has noted up to a 50% sales bump for items featuring the WFS badge, so consider whether a higher volume of sales could offset those extra charges.
Choosing Lighter, Higher-Margin Products
Not everything belongs in WFS. It's smart to focus on products that:
This two-pronged approach helps keep your operation lean and avoids hefty storage fees on bulky items.
Action Steps for Sellers
• Evaluate each product's size, weight, and profit margin
• Adjust pricing and listings to accommodate WFS fees
• Weigh the potential visibility boost against your overall costs
Balancing Storage Costs and Seasonal Demand
Keep Inventory Volume in Check
Walmart charges for storage based on volume and time in the warehouse. To minimize fees, forecast demand using past sales data and send smaller, more frequent shipments. By steering clear of idle stock, you avoid paying extra for items that linger on the shelves.
Prepare for Seasonal Fluctuations
Holidays or special promos can spike demand, leading you to order extra stock. Going too big, however, risks higher storage fees if leftover inventory piles up. Plus, returns may bounce back into your warehouse after the season. Reviewing last year's data and creating a flexible restock plan helps keep you from overspending on storage.
Connecting WFS Costs with Your Walmart PPC Strategy
Streamlining Fulfillment to Fuel PPC Performance
Controlling your WFS expenses can free up resources to invest in Walmart PPC campaigns. Many sellers find that skipping extra fulfillment headaches and fees allows them to focus on profitable ad strategies instead. Referral fees average 6%–15%, and storage costs are volume-based, making it simpler to budget for monthly expenses and dedicate a portion to paid ads.
Using PPC to Improve Sales of Slow-Moving Inventory
PPC campaigns can be strategically used to improve the sales of slow-moving inventory. By targeting specific keywords that align with your sluggish products, you can boost their visibility on the Walmart Marketplace. This increased exposure often translates into higher sales volumes, helping you clear out inventory that might otherwise incur additional storage fees. For instance, running a time-limited PPC campaign during high-traffic periods can drive attention to these products, turning them into fast-sellers.
Controlling Bids and Budget for Better Inventory Management
Effective PPC management involves setting precise bids and budgets. By doing so, you can control how much you spend on advertising while ensuring your products reach the right audience. Lowering bids on slow-moving items might reduce costs, but strategically increasing them during peak shopping times can accelerate sales. Balancing these elements allows you to manage inventory levels efficiently, avoiding overstock situations and reducing storage costs.
Tracking Ad Impact with Specialized eCommerce Software
Tools like Sellegr8 offer invaluable assistance in this process. They provide real-time analytics on ad spend and highlight PPC inefficiencies, enabling you to optimize campaigns quickly. With features like ads campaign optimization and keyword ranking tracking, Sellegr8 helps you make informed decisions about where to allocate your ad budget for maximum impact. This not only improves sales of slow-moving items but also enhances overall inventory management by ensuring that every dollar spent on PPC contributes to your business goals.By maintaining stable fulfillment fees, you can maximize PPC performance and bid more aggressively on the best keywords. When unexpected costs are minimized, pushing products into top search positions becomes easier, boosting conversions and overall profitability.
Turning Savings into Visibility
Keep fulfillment fees stable so you can maximize PPC performance and bid more aggressively on the best keywords. When you don't have to juggle unexpected costs, it's easier to push products into top search positions, boosting conversions and overall profitability.
Taking the Next Step Toward WFS Success
Start Your WFS Enrollment
Approved Walmart Marketplace sellers can apply for WFS by adding products to the WFS dashboard, following packaging requirements, and shipping inventory to Walmart's fulfillment centers. This process ensures your listings meet Walmart's two-day shipping standards.
Use Promotional Perks to Your Advantage
Only 38% of sellers currently use WFS, adopting it can set your brand apart. Check for discounted fulfillment fees or free storage offers to reduce your overhead. Once enrolled, you'll tap into Walmart's two-day shipping tag, which signals faster delivery and boosts customer trust.
Monitor Data and Keep Costs in Check
WFS is powerful, but fees vary by product dimensions and demand. Track them regularly, especially if you notice shifting sales trends or heavier items affecting margins. Adjust your product offerings, order volume, or pricing to stay profitable.
Perfect Your PPC Strategy with the Right Tools
Pair WFS with targeted PPC campaigns for an even bigger impact. Platforms like Sellegr8 automate campaign adjustments, free up your time, and help you focus on growth. With data-driven optimizations, you'll reach shoppers who are ready to buy—fueling new revenue and boosting your bottom line.Focus on lighter, high-margin products, watch for promotional opportunities, and stay on top of your fee structure. By mastering WFS, you'll confidently scale your Walmart business and deliver a better shopping experience to your customers.
Integrating Walmart Fulfillment Services with your PPC strategy creates a powerful synergy that can significantly enhance your marketplace presence. By leveraging WFS, you streamline logistics and ensure faster delivery, earning customer trust with the "Fulfilled by Walmart" badge. This reliability makes your PPC campaigns more effective, as customers are more likely to click on ads for products they know will arrive quickly and as promised. The cost savings from efficient fulfillment can be redirected into your PPC budget, allowing for more aggressive bidding on high-performing keywords. This dual approach not only boosts visibility and conversions but also strengthens your brand's reputation on Walmart Marketplace. Embrace this strategy to drive growth and achieve a competitive edge.