Everything You Need to Know About Walmart Marketplace Fees
Walmart Marketplace is a platform that allows businesses to sell their products on Walmart's website. It offers businesses access to Walmart's vast customer base and provides a range of services, including product listings, order fulfillment, and customer service. However, using Walmart Marketplace comes with fees that businesses should be aware of. In this blog post, we'll outline the different types of fees that Walmart charges through its Marketplace platform.
Walmart Referral Fee also known as Walmart Commission Rate: Walmart charges a referral fee for each item sold on its platform. The referral fee varies based on the category of the product being sold and typically ranges from 6% to 20%. For example, if a business sells a product for $100 in a category with a referral fee of 15%, Walmart will charge a referral fee of $15 on that sale.
Walmart Fulfilment Services (WFS) Fulfillment Fees: If a business uses Walmart's fulfillment services, the following fees will be charged:
Storage Fees: Walmart charges monthly storage fees for products stored in its warehouses. The storage fee varies based on the size and time of year. Generally, Walmart charges a storage fee of $0.75 to $1.35 per cubic foot per month.
Fulfillment Fees: When a customer places an order, Walmart picks, packs, and ships the product to the customer. Walmart charges a fulfillment fee for this service, which includes the cost of shipping and handling the product. The fulfillment fee varies based on the size and weight of the product and ranges from a few cents to several dollars per item.
Refund Administration Fee: If a customer requests a refund or return, Walmart charges a refund administration fee. The fee varies based on the category of the product being sold and ranges from $0 to $6 per item.
Multi-Channel Fulfillment Fees: If a business uses Walmart's multi-channel fulfillment service to fulfill orders from other marketplaces, it will be charged a fee. The fee varies based on the size and weight of the product and the marketplace. Generally, Walmart charges a fee of $5.25 to $10.75 per item.
Long-Term Storage Fees: If a product remains in Walmart's warehouses for more than 365 days, a long-term storage fee is charged. The long-term storage fee is based on the volume of inventory and ranges from $11.25 to $0.15 per cubic foot per month.
Removal Fees: If a business decides to remove its products from Walmart's warehouses, it will be charged a removal fee. The removal fee varies based on the size and weight of the product and the time of year. Generally, Walmart charges a removal fee of $0.15 to $0.50 per item.
Refund Administration Fee: If a customer requests a refund or return, Walmart charges a refund administration fee. The fee varies based on the category of the product being sold and ranges from $0 to $3 per item.
Subscription Fee: Walmart does not charge a subscription fee for businesses to use its Marketplace platform. However, businesses must meet certain requirements, such as maintaining good customer metrics and meeting sales targets, to remain eligible to sell on Walmart Marketplace.
Payment Processing Fee: Walmart charges a payment processing fee for each transaction. The fee varies based on the payment method and ranges from 2.6% to 2.9% plus $0.30 per transaction.
Referral Fee Credit: Walmart offers a referral fee credit for businesses that offer free shipping on their products. The credit is equivalent to the standard referral fee charged by Walmart.
Marketing Fees: Walmart offers various advertising options to help businesses promote their products on its platform. The advertising fees vary based on the type of ad and the marketplace. For example, Walmart charges a cost-per-click fee for Sponsored Products ads, which typically ranges from $0.10 to $2.00 per click.
In conclusion, using Walmart Marketplace comes with fees that businesses should be aware of. These fees can impact the profitability of a business and should be factored into the pricing of products sold on Walmart. By understanding the different types of fees charged by Walmart, businesses can make informed decisions about whether to use Walmart Marketplace and how to price their products to remain competitive while still being profitable. Good luck using Walmart Marketplace!
Thank you,
Commerce Canal Team
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