Walmart has spent 72% of its strategic capital investment — more than 11 billion dollars — over the last several years establishing a supply chain logistics infrastructure fit for high-volume eCommerce.
Walmart Fulfillment Services (WFS), a 3PL logistics programme and a direct competitor to Amazon FBA, was introduced in 2020.
What is Walmart Fulfillment Services?
Walmart Fulfillment Services, often known as WFS, is a fulfilment service offered by Walmart that handles inventory storage, order fulfilment, refunds, and even customer service for Walmart sellers.
WFS, which is similar to Fulfillment by Amazon for Amazon sellers, allows Walmart Marketplace vendors to focus on other elements of their business while Walmart’s enormous fulfilment network handles order selection, packing, and shipping.
What Is the Process of Walmart Fulfillment Services?
Walmart’s plan for 3PL is not novel, but it is a tried and true technique. In fact, with a few noteworthy changes discussed in our Amazon FBA vs. WFS essay, it’s nearly identical to Amazon’s strategy.
eCommerce vendors must prepare and ship their inventory to a Walmart Fulfillment Center. Walmart stores things there until a customer orders them through Walmart.com or the mobile app.
When an order comes, the WFS logistics staff chooses, packs, and sends the items on behalf of the seller. If all of this is new to you, we recommend reading our primer on third-party logistics here.
Furthermore, on all WFS orders, Walmart allows returns, refunds, and customer service concerns.
When a vendor signs up with WFS, they will be met by Walmart’s Sales Central interface. They’ll be asked to fill out a specification document with all of the pertinent information for the products they want to outsource.
Walmart has discovered that a smooth and user-friendly approach is one of the keys to winning over busy eCommerce business owners. As a result, it stands to reason that the onboarding process is so streamlined. The vendor will then download, complete, and submit a purchase order (PO) spreadsheet to Walmart’s Global Supply Chain Operations System (GSCOPE).
Once approved, the seller can ship things to WFS and start selling on Walmart.com.
Pros of Walmart Fulfillment Services
- Two-day free shipping: Your WFS items will be included in the Walmart+ subscription programme, which delivers products to customers in the contiguous United States in just two days (not guaranteed during peak season, which is September to January.)
- Deliver your merchandise to Walmart’s fulfilment centres: Simply create a shipment in Walmart’s Seller Center and ship your products to one of the company’s many fulfilment centres. Within two days of receipt, your products are usually stocked and ready to ship.
- Walmart fulfils all of your orders: Allow WFS to handle the selection, packing, and shipping of goods to your consumers, allowing you to focus on other elements of your Walmart business
- Increased product visibility and conversion: When you use WFS, your products will be featured with TwoDay Delivery and Fulfilled by Walmart tags, which will increase sales by 50% on average, according to the WFS support page.
- Consumers have faith in Walmart: Walmart is a household name, and many people live within 10 miles of a Walmart retail store. Aside from Amazon, Walmart.com is the consumer’s second-largest online shopping site. When WFS sends your order, it will arrive in Walmart-branded packaging.
- Outstanding seller support: According to Walmart, WFS Associates are committed to assisting you in growing your business. Will it outperform Amazon seller support? Let’s hope that’s the case!
Cons of Walmart Fulfillment Services
- There will be no multi-channel fulfilment: Walmart will only fulfil orders placed on Walmart.com. You cannot use your WFS inventory to ship orders to other marketplaces or websites, like you can with FBA.
- No international shipping: Walmart US only ships to addresses in the United States and its territories.
- Simple client returns: Returns are an unavoidable part of the ecommerce experience. Customers who use WFS have the choice of returning the purchased item to the fulfilment centre or returning it in-store.
We hope this post has helped you better understand WFS, how it works, and whether it is ideal for your company.
If you haven’t already signed up to be a Walmart WFS vendor, now is the time! During your first 90 days as a seller, Walmart is presently offering new sellers 50% off commission rates, 10% off fulfilment fees, and free storage.