Walmart Marketplace has emerged as a powerhouse for eCommerce sellers, offering access to millions of shoppers and a trusted platform to grow your business. However, to succeed on Walmart, it’s essential to understand the fees associated with selling on the platform. From referral fees to fulfillment costs, this guide will walk you through everything you need to know about Walmart Marketplace fees and how to optimize your profitability.
Whether you’re a new seller or an experienced eCommerce professional, this guide will provide you with actionable insights to navigate Walmart’s fee structure and maximize your earnings.
1. How Much Does It Cost to Sell on Walmart Marketplace?
One of the most appealing aspects of Walmart Marketplace is that it’s free to join. Unlike Amazon, Walmart does not charge a monthly subscription fee. Instead, sellers pay a referral fee on each sale, which varies depending on the product category. This makes Walmart an attractive option for businesses of all sizes.
Key Costs to Consider:
Referral Fees: A percentage of the sale price, ranging from 5% to 20% depending on the category.
Fulfillment Fees: If you use Walmart Fulfillment Services (WFS), you’ll pay for storage, packing, and shipping.
Storage Fees: Monthly charges for inventory stored in Walmart’s fulfillment centers.
Return Processing Fees: Fees for handling customer returns.
Why Fee Transparency Matters
Understanding these costs is crucial for setting competitive prices and maintaining healthy profit margins. For example, if you sell an item for $100 with a $15 fulfillment fee, your total cost would be $15, leaving you with $85 before accounting for other expenses.
2. Walmart Referral Fees: What Sellers Need to Know
Referral fees are the backbone of Walmart’s revenue model for third-party sellers. These fees are calculated as a percentage of the product’s sale price and vary by category.
Contract category | Referral Fee percentage |
|---|---|
Apparel & Accessories | 5% for items with a total sales price of $15 or less 10% for items with a total sales price between $15 – $20 15% for items with a total sales price greater than $20 15% for backpacks |
Automotive & Powersports | 12% |
Automotive Electronics | 8% |
Baby | 8% for items with a total sales price of $10 or less; 15% for items with a total sales price greater than $10 |
Beauty | 8% for items with a total sales price of $10 or less; 15% for items with a total sales price greater than $10 |
Books | 15% |
Camera & Photo | 8% |
Cell Phones | 8% |
Collectibles (for approved sellers) | 8% for the portion of the total sales price up to $2,500; 2.35% for the portion of the total sales price greater than $2,500 |
Compact Appliances | 12% for the first $300; 8% for the portion above $300 |
Consumer Electronics | 8% |
Electronics Accessories | 15% for the portion of the total sales price up to $100; 8% for the portion of the total sales price greater than $100 |
Indoor & Outdoor Furniture | 15% on the first $200; 10% on amounts over $200 |
Decor | 15% |
Gourmet Food | 15% |
Grocery | 8% for items with a total sales price of $15 or less; 15% for items with a total sales price greater than $15 |
Health & Personal Care | 8% for items with a total sales price of $10 or less; 15% for items with a total sales price greater than $10 |
Home & Garden | 15% |
Industrial & Scientific | 12% |
Jewelry | 20% for the portion of the total sales price up to $250; 5% for the portion of the total sales price greater than $250 |
Kitchen | 15% |
Luggage & Travel Accessories | 15% |
Major Appliances | 8% |
Music | 15% |
Musical Instruments | 12% |
Office Products | 15% except 8% for calculators and 12% for printer cartridges |
Outdoors | 15% except 8% for hunting trail monitors, binoculars, telescopes, spotting scopes, night vision goggles |
Outdoor Power Tools | 15% for items with a total sales price of ≤ $500; 8% for items with a total sales price > $500 |
Personal Computers | 6% |
Pet Supplies | 15% |
Plumbing Heating Cooling & Ventilation | 10% |
Shoes, Handbags & Sunglasses | 15% |
Software & Computer Video Games | 15% |
Sporting Goods | 15% |
Tires & Wheels | 10% |
Tools & Home Improvement | 15%Â except 12% for base power tools |
Toys & Games | 15% |
Video & DVD | 15% |
Video Game Consoles | 8% |
Video Games | 15% |
Watches | 15% for the portion of the total sales price up to $1,500; 3% for the portion of the total sales price greater than $1,500 |
Everything Else | 15% |
3. Walmart Fulfillment Services (WFS) Fees
Walmart Fulfillment Services (WFS) is a game-changer for sellers who want to streamline their operations. By outsourcing storage, packing, and shipping to Walmart, you can focus on growing your business. However, WFS comes with its own fee structure.
Standard Fulfillment Fees
Fulfillment fees are based on the item’s weight and dimensions. For example:
Small items (under 1 lb): $3.45
Medium items (1-2 lbs): $4.95
Large items (over 2 lbs):Â 5.45 plus 0.40 per additional pound.
Additional Fees
Apparel: $0.50 per item.
Hazardous Materials: $0.50 per item.
Oversize Items: $3 for items with a longest side over 48 inches.
Big & Bulky Items
For items weighing between 150 lbs and 500 lbs, fulfillment fees start at $155, plus $0.80 per pound for every pound over 90 lbs.
4. Storage Fees and Return Processing Fees
Storage Fees
Walmart charges monthly storage fees based on the volume of your inventory:
January-September: $0.75 per cubic foot per month.
October-December (Peak Season): $1.50 per cubic foot per month for items stored over 30 days.
Return Processing Fees
Return fees are based on the item’s weight (Chart By GoTrellis):
| Shipping Weight | Standard Return Fee Per Unit |
| ≤ 1 lb. | $4.70 |
| 2 lb. | $6.20 |
| 3 lb. | $6.70 |
| 4-20 lb. | $7.00 + $0.40 for each lb. > 4 lb. |
| 21-30 lb. | $15.55 + $0.40 for each lb. > 21 lb. |
| 31-50 lb. | $14.55 + $0.40 for each lb. > 31 lb. |
| ≥ 51 lb. | $17.55 + $0.40 for each lb. > 51 lb. |
| Shipping Weight | Big & Bulky Return Fee Per Unit |
| Up to 500 lb. | $155 + $0.80 per lb. > 90 lb. |
5. How and When Does Walmart Pays Its Sellers
In the U.S., Walmart sellers can choose between Payoneer and Hyperwallet for payment processing, while Canadian sellers have the option to use PingPong. Sellers in other countries, such as China, India, and Vietnam, can access additional payment processors. During account setup, you’ll select a provider and link it to your bank account for seamless fund transfers.
Walmart typically pays sellers every 14 days, but the exact schedule depends on your Marketplace Retailer Agreement. New sellers may face a payment hold of 14 days (U.S.) or 21 days (international) for each shipped item. Payments are released once two conditions are met: 90 days have passed since your first shipment, and you’ve received $7,500 in total payments. Settlement cycles occur biweekly, so it may take up to a month or more to receive payments after an order ships.
6. Walmart Marketplace Sales Tax
Walmart automatically calculates, collects, and remits sales tax for orders shipped to states where they are required to do so. However, sellers are responsible for ensuring compliance with state tax laws.
Sales Tax Collection
Walmart handles sales tax collection for most states.
Sellers must provide accurate product tax codes to ensure proper tax calculation.
7. Winning the Walmart Buy Box
The Buy Box is the default purchase option on a product page, and winning it can significantly boost your sales.
Strategies to Win the Buy Box
Competitive Pricing: Offer the best price for your product.
Fast Shipping: Use Walmart Fulfillment Services to ensure quick delivery.
High Seller Performance: Maintain excellent customer service and low defect rates.
8. Tips to Boost Your Profitability on Walmart Marketplace
To maximize your profits on Walmart Marketplace:
Optimize Listings: Optimize listings by using high-quality images and detailed product descriptions.
Leverage WFS: Take advantage of Walmart’s fulfillment services to improve delivery times.
Monitor Fees: Regularly review your fee structure to identify cost-saving opportunities.
Frequently Asked Questions (FAQs)
Is Walmart free for sellers?
Yes, there are no setup or monthly fees, but sellers pay referral and fulfillment fees.What percentage does Walmart take from sellers?
Referral fees range from 5% to 20%, depending on the product category.What are Walmart’s fulfillment fees?
Fulfillment fees start at $3.45 for small items and increase based on weight and size.How does Walmart pay sellers?
Walmart pays sellers every 14 days via direct deposit.Are there storage fees on Walmart Marketplace?
Yes, storage fees range from 0.75 1.50 per cubic foot per month.What are Walmart’s return processing fees?
Return fees start at $4.70 for standard items and increase based on weight.How do I set up payment information on Walmart?
You can set up payment information in your Walmart Seller Center account.Does Walmart charge sales tax?
Walmart collects sales tax on behalf of sellers in most states.How can I win the Walmart Buy Box?
Focus on competitive pricing, fast shipping, and high seller performance.How do Walmart fees compare to Amazon fees?
Walmart’s fees are generally lower, especially for referral fees and fulfillment services.
Conclusion
Understanding Walmart Marketplace fees is essential for any seller looking to succeed on this platform. By carefully managing your costs and optimizing your operations, you can maximize your profits and grow your business on Walmart Marketplace. Whether you’re just starting out or looking to expand, this guide provides the tools and insights you need to thrive in the competitive world of eCommerce.
Ready to take your business to the next level? Start selling on Walmart Marketplace today!
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