Walmart Marketplace has quickly become one of the most attractive platforms for ecommerce sellers looking to scale beyond Amazon. With millions of daily shoppers, strong brand trust, and lower competition compared to other marketplaces, Walmart offers a massive opportunity for third-party sellers. However, while the upside is clear, the path to success is not always straightforward.
Many sellers enter the platform expecting smooth operations, only to encounter unexpected roadblocks. From strict approval requirements and complex listing rules to intense Buy Box competition and account performance pressures, Walmart Marketplace seller challenges can quickly overwhelm both new and experienced sellers. Unlike other marketplaces, Walmart enforces rigorous standards and offers limited margin for error—making even small mistakes costly.
In this guide, we’ll break down the most common Walmart Marketplace seller challenges in 2026 and explain practical ways to overcome them. This article will help you make informed decisions and avoid expensive pitfalls.
Stay ahead of important selling dates in 2026 with our guide on Walmart Seller Key Event Dates
Walmart Marketplace Seller Challenges (+ Solutions)
Challenge #1: Getting Approved as a Walmart Marketplace Seller
One of the very first—and often most frustrating—Walmart Marketplace seller challenges is getting approved to sell on the platform. Unlike Amazon, where almost anyone can create a seller account, Walmart operates a highly selective approval process. This gatekeeping is intentional: Walmart wants to protect its brand reputation by partnering only with reliable, established sellers.
For many aspiring sellers, this approval stage becomes a major roadblock and can delay or completely block their entry into the marketplace.
Why Walmart’s Approval Process Is So Strict
Walmart takes a highly selective approach when approving sellers for its marketplace, carefully screening applicants to ensure quality and reliability. While this process helps protect marketplace standards, it can present a notable hurdle for new sellers.
Preference is given to established businesses with a proven sales history. Applicants must have a U.S.-based business, a valid Employer Identification Number (EIN), compliant and well-documented product listings, and dependable fulfillment operations. Walmart also reviews overall business credibility and may perform background checks on prior selling activity.
The review process generally takes between two and four weeks, though it can extend longer if information is missing or products require further evaluation. Because Walmart does not consistently provide application status updates, sellers should routinely monitor their Seller Center dashboard for progress.
How to Overcome the Walmart Seller Approval Challenge
While the process is strict, it is absolutely manageable with the right preparation. Here’s how sellers can significantly improve their chances of approval:
Build a Strong Ecommerce Track Record
If you don’t already sell on major platforms, consider gaining experience on Amazon, Shopify, or eBay first. Walmart favors sellers who can demonstrate consistent sales, good reviews, and reliable order fulfillment.
Prepare Professional Business Documentation
Ensure your business details are accurate and consistent across all platforms. This includes your legal business name, tax information, business address, and contact details. Verify that all of your products comply with Walmart’s prohibited items policy, and confirm that every UPC or GTIN code is valid, accurate, and properly standardized.
Strengthen Your Brand Presence
Having a professional website, clear branding, and a strong value proposition signals credibility. Walmart prefers sellers that look like long-term partners—not short-term resellers.
Demonstrate Reliable Fulfillment
Clearly outline how you will handle shipping, returns, and customer service. Sellers using Walmart Fulfillment Services (WFS) or proven third-party logistics partners often have an advantage.
Consider Walmart Automation Services
For sellers who lack experience or time, working with an automation agency or opting for walmart automation services can dramatically increase approval odds. These services typically handle the application process, ensure compliance, and present your business in a way that aligns with Walmart’s expectations.
Challenge #2: Fee Structure and Profitability
Walmart does not charge a monthly subscription fee; instead, it applies a referral fee to each sale. These fees vary by product category and can have a substantial impact on profit margins if they aren’t factored into pricing strategies.
Referral fees typically range from 5% to 15%, depending on the category and item price. For instance, apparel carries a 5% fee for products priced under $15, increasing to 15% for items over $20. Electronics accessories are charged 15% on products priced up to $100, while items above that threshold incur an 8% fee.
These fees are calculated on the total transaction value, including the product price, shipping, handling, and any gift-wrap charges. Unlike Amazon, Walmart automatically collects and remits sales tax in certain states, reducing the administrative workload for sellers.
That said, referral fees can significantly cut into profits—especially on lower-priced items. Additional expenses such as return processing, potential storage fees when using Walmart Fulfillment Services (WFS), and incorrect product categorization can further affect profitability. International sellers should also account for currency conversion costs.
Solution: Use a pricing formula that accounts for all fees
To safeguard your margins, apply the following pricing formula:
Recommended Selling Price = (Item Cost + Handling + Shipping + WFS Fees + Fixed Expenses) ÷ (1 – Referral Fee % – Target Profit Margin)
For example, if an item costs $10 with $3 in shipping and handling, carries a 15% referral fee, and you’re targeting a 20% profit margin, the calculation would be:
$13 ÷ (1 – 0.15 – 0.20) = $13 ÷ 0.65 = $20.00
To keep track of Walmart fees and profitability in real time, walmart seller tools can be especially helpful. They allow you to monitor performance across your entire catalog, quickly spot margin issues, and—if you also sell on Amazon—compare results across both platforms to make more informed strategic decisions.
Challenge #3: Visibility in Walmart Search
Achieving visibility on Walmart’s marketplace requires an understanding of its distinct search algorithm, which operates very differently from Amazon’s. Rather than prioritizing content relevance alone, Walmart places heavy emphasis on offer competitiveness.
Key ranking factors include pricing, shipping speed, and inventory availability. Performance metrics such as Order Defect Rate and customer response time also play a direct role in search visibility. Recently, Walmart introduced AI-driven search capabilities that interpret contextual intent—such as searches for “football watch party”—and surface products based on use cases instead of simple keyword matches.
As a result, poorly structured product titles, descriptions, or attribute data can limit search indexing and filter placement. Items listed in incorrect categories may fail to appear in relevant searches altogether. Low-quality images or missing rich media reduce conversion rates, which can further suppress rankings. Additionally, sellers that offer slower shipping or do not participate in Walmart’s TwoDay or ThreeDay delivery programs often experience reduced organic exposure.
Solution: Walmart-specific SEO strategies
Optimize product titles using Walmart’s recommended structure: Brand + Style + Feature + Material + Size + Pack Count. Write detailed product descriptions of at least 150 words and include 3–10 bullet points that clearly highlight key features while naturally incorporating relevant keywords.
Accurate categorization is essential, as misclassified products won’t surface in search filters. Complete all applicable product attributes to maximize visibility in sidebar filters, and analyze top-performing listings within your category for optimization benchmarks.
Use a minimum of four high-resolution images (at least 1000 × 1000 pixels) on a clean white background (RGB 255,255,255). Whenever possible, add videos or 360-degree views to increase engagement and conversions. Finally, remember that competitive pricing, sufficient inventory, and fast shipping are just as critical as optimized content when it comes to earning and maintaining strong search placement on Walmart.
Discover how influencers can partner with Walmart to promote products and earn through the Walmart Creator Program.
Challenge #4: Strict Performance Metrics & Account Suspensions
One of the most significant Walmart Marketplace seller challenges is the platform’s strict performance requirements. Walmart expects sellers to consistently meet high standards for order fulfillment, delivery, customer service, and overall seller reliability. Unlike some marketplaces where occasional imperfections go unnoticed, Walmart monitors performance closely—and failure to meet standards can lead to suppressed listings, account suspension, or even termination.
Why Walmart’s Performance Standards Matter
Walmart’s mission is to maintain a seamless experience for shoppers, regardless of who fulfills the order. To uphold this promise, the company evaluates each seller using key performance metrics that reflect reliability and customer satisfaction. If any of these metrics fall below Walmart’s thresholds, sellers may receive warnings or face serious consequences.
Walmart reviews seller performance on a rolling 30-day window, measuring success across five key metrics. According to Walmart’s Seller Performance Standards, the main metrics that matter include:
Cancellation Rate (percentage of orders canceled after confirmation): Must remain below 2% for orders canceled after confirmation
On-Time Delivery: Must exceed 90% of all fulfilled orders
Valid Tracking Rate: Accurate tracking information must be provided for more than 99% of orders
Refund Rate: Seller-caused refunds should stay under 6%
Seller Response Rate: At least 95% of customer inquiries must be answered within 48 hours
- Negative Feedback Rate (new in 2026) — Percentage of orders with poor ratings.
Note: These performance metrics apply only to seller-fulfilled orders. Orders handled through Walmart Fulfillment Services (WFS) are exempt from these requirements.
What Happens When You Don’t Meet Standards
Failing to meet Walmart’s performance expectations triggers a series of enforcement actions that can escalate if issues aren’t resolved quickly:
Performance Alerts and Notifications
Before serious action occurs, Walmart often sends performance warnings via email or Seller Center notifications. Sellers are encouraged to act quickly to address low metrics.
Listing Suppression
If performance issues continue, Walmart may suppress your seller-fulfilled listings, meaning those products will no longer appear on Walmart.com, significantly reducing visibility and sales.
Account Suspension
Persistent or severe performance problems can lead to suspension, where both seller-fulfilled and Walmart-fulfilled listings are removed from the marketplace. Walmart notifies you with a suspension reason and may offer an appeal process.
Account Termination
In extreme cases of noncompliance, Walmart can permanently terminate your Marketplace privileges, closing your access to Seller Center entirely.
How to Overcome Performance Challenges
Staying compliant and competitive on Walmart Marketplace requires proactive management and operational discipline. Here’s how sellers can reduce performance risks:
Monitor Metrics Daily
Track your key performance indicators (KPIs) through Walmart Seller Center and set internal alerts when metrics start heading in the wrong direction. Timely action prevents cascading issues.
Automate Order Processing & Tracking
Manual processes often result in delays or errors that hurt performance scores. Automation tools can sync orders, shipments, and tracking updates instantly, reducing cancellation risks and improving VTR.
Choose Reliable Fulfillment Options
Consider using Walmart Fulfillment Services (WFS) or a trusted 3PL partner to ensure faster delivery times and fewer delivery exceptions. This helps satisfy Walmart’s delivery and tracking metrics.
Streamline Customer Service
Deploy automated support tools like AI chat assistants and preformatted responses to ensure timely handling of buyer inquiries and issues. Faster replies improve your Seller Response Rate.
Not sure what to list? Discover this year’s hottest Walmart best sellers and learn how to choose high-demand, profitable products for your store.
Challenge #5: Limited Advertising Options
Walmart’s advertising ecosystem, Walmart Connect, offers fewer ad formats compared to platforms like Amazon or eBay. Because of this, advertisers must be more deliberate with budget allocation to generate strong returns.
Walmart Connect supports several core ad formats:
Sponsored Search Ads appear within search results when shoppers enter relevant keywords.
Onsite Display Ads run as banner placements across Walmart.com and the Walmart app throughout the shopping journey.
Brand Shop and Shelf experiences allow eligible brands to create customized storefronts at no additional cost.
Search Engine Marketing (SEM) enables Walmart to manage Google Shopping campaigns through its Self-Serve Marketing portal.
Solution: How to maximize performance with limited ad options
Focus primarily on Sponsored Search Ads, as they typically deliver the highest return on investment. Test keyword targeting carefully and adjust bids based on performance insights. Enrolling in Walmart Connect Academy can also help you gain certification and learn platform-specific optimization best practices.
If eligible, build SEO-optimized Brand Shop pages to capture long-tail branded searches. Additionally, consider participating in Walmart’s SEM program if your product catalog has strong search intent, allowing Walmart to bid efficiently on your behalf through Google Shopping.
Finally, monitor campaign performance closely using ROAS dashboards and pause underperforming ads quickly—especially during the initial learning phase when Walmart’s algorithm is still optimizing. This disciplined, data-driven approach helps ensure your advertising budget delivers maximum impact despite the platform’s limited ad inventory.
Challenge #6: Listing Optimization & Content Restrictions
One of the most common Walmart Marketplace seller challenges is creating product listings that both comply with Walmart’s strict content policies and are optimized for visibility and conversions. Unlike marketplaces with looser guidelines, Walmart enforces detailed rules around what content is allowed—and how it should be presented. Non-compliant listings may be suppressed, blocked, or even removed entirely from the marketplace, significantly impacting sales and search visibility.
Why Listing Quality Matters on Walmart
Walmart uses a Listing Quality Score to evaluate the effectiveness of your product content and determine how likely items are to convert. This score considers factors such as completeness of attributes, accuracy of descriptions, use of relevant keywords, image quality, and overall content structure. A strong Listing Quality Score can increase organic visibility, improve click-through rates, and boost conversions, while poor content can bury your products in search results or trigger listing suppression.
To maintain listing quality, Walmart also implements clear content standards and restrictions that all sellers must follow. If a seller fails to comply with these standards, Walmart can unpublish or block listings until corrections are made.
Common Listing Content Restrictions
Walmart restricts certain types of content in product listings to ensure consistency, accuracy, and fairness across the marketplace. These rules apply to key fields such as titles, bullet points, and feature descriptions:
Product Title Restrictions
No personal or company information
No promotional phrases like “best-selling” or “top rated”
No information about shipping, pricing, or guarantees
No references to other marketplaces (e.g., “Available on Amazon”)
Key Features and Bullet Points
Must focus on product attributes, benefits, and specifications
Should not include sales or promotional language
Avoid special characters or symbols unrelated to product details
These restrictions ensure clarity, reduce misleading content, and keep the marketplace uniform for all sellers. But they also require sellers to think carefully about how they write titles, descriptions, and feature lists.
Best Practices to Overcome Listing Optimization Challenges
Optimizing your Walmart Marketplace listings requires both compliance and strategic content design. Here’s what high-performing sellers do:
Use Relevant Keywords Naturally
Research customer search behavior and include relevant keywords in titles and descriptions—without stuffing. Keywords should inform shoppers and improve discoverability while staying within policy.
Write Clear, Complete Product Titles
A good product title on Walmart typically includes:
Brand name
Product type
Size or quantity (where applicable)
Key descriptors such as color or material
Avoid promotional or prohibited language.
Optimize Bullet Points and Descriptions
Use bullet points to highlight key features like materials, benefits, dimensions, and usage. Use the longer description to provide enhanced storytelling and detail, formatted for readability.
Provide High-Quality Images
Visuals matter. Use sharp, high-resolution images that accurately reflect your product, show different angles, and demonstrate usage. Avoid overlays, watermarks, or promotional badges not allowed by Walmart.
Monitor and Improve Using Walmart’s Tools
Walmart’s Listing Quality dashboard helps sellers identify weaknesses and provides recommendations to improve content, attributes, and discoverability. Regularly using this tool can uplift scores and prevent compliance issues.
Understand the key differences between Walmart 1P and 3P selling to choose the best model for your business.
Challenge #7: Customer Service Requirements
Walmart enforces strict customer service standards that directly influence your account health and ability to continue selling on the platform.
Sellers who handle their own fulfillment are fully responsible for the entire customer experience. This includes responding to product questions, providing delivery updates, managing returns and refunds, and resolving post-purchase issues. Walmart expects all customer communication to remain professional, courteous, and solution-oriented—even in situations where the customer may be at fault. In some cases, Walmart’s customer care team may escalate issues to sellers and require prompt action.
Sellers must provide transparent return and refund policies, accurate tracking updates, support for post-delivery concerns, assistance with in-store returns when enabled, and accountability for lost or delayed shipments. All customer messages must be answered within 48 hours, including weekends and holidays.
Failure to meet these expectations negatively affects your Seller Response Rate, which must remain above 95%. Customer inquiries are delivered through the Seller Center Inbox or, if configured, via direct customer care email. Automated replies alone do not qualify as valid responses unless they are followed by a personalized message that addresses the customer’s concern.
Solution: Customer support automation strategies
Walmart offers built-in tools to help sellers manage communication efficiently. You can create reusable message templates in Seller Center (Account Settings > Message Templates) for common scenarios, using dynamic fields such as Order ID and Customer Name to personalize responses.
Additionally, link your customer support email accounts directly to Seller Center so all incoming messages appear in one centralized inbox. Enable email and SMS notifications to ensure you never miss time-sensitive customer inquiries.
Interested in launching your own brand? Our guide to Walmart’s Private Label program explains the process and benefits of building a unique product line.
How Walmart Automation Services Solve These Challenges
Running a Walmart Marketplace store can be overwhelming, especially when dealing with the challenges we discussed—approval hurdles, strict performance metrics, inventory management, listing optimization, and fulfillment issues. This is where Stores Automation’s walmart automation services comes in, we simplify operations and help sellers overcome major challenges.
Store Setup & Approval: We Handle the application process and ensures compliance, helping sellers get approved faster.
Listing Optimization: Creates SEO-friendly, Walmart-compliant listings with proper titles, descriptions, images, and keywords.
Inventory & Pricing Automation: Tracks stock, prevents overselling, and dynamically adjusts prices to stay competitive.
Fulfillment & Shipping: Automates order processing, generates shipping labels, and updates tracking to meet Walmart’s strict metrics.
Performance Monitoring: Tracks cancellations, late shipments, and feedback to prevent account suspensions.
Profit-Focused Model: We Work on a profit split with a one-time onboarding fee, ensuring sellers earn more without extra upfront costs.
Why Stores Automation Is a Go-To Walmart Automation Agency
By offering end-to-end automation—from setup and listing optimization to inventory, pricing, fulfillment, and performance monitoring—Stores Automation helps sellers overcome virtually all major Walmart Marketplace seller challenges. This allows business owners to focus on strategy, product sourcing, and growth while leaving the daily operations to experts.
In short: Automation services transform a complex, time-consuming Walmart operation into a streamlined, profitable, and scalable business.
