What Is Walmart Marketplace? A Complete Guide

WALMART MARKETPLACE

Get a comprehensive introduction to Walmart Marketplace. how it works, who can sell, and what sets it apart.

Written & peer reviewed by
4 Darkroom team members

Walmart Marketplace is part of Walmart's e-commerce platform that allows third-party sellers to list and sell their products on Walmart.com. It is separate from the inventory Walmart sells directly and gives other businesses a way to make their products available to Walmart's online shoppers.

This guide explains what Walmart Marketplace is, how it works, and what makes it different from traditional retail models. It also outlines the steps to become a seller, what can be sold, and how logistics like shipping and returns are handled.

The goal of this article is to provide a clear explanation of Walmart Marketplace for people encountering the term for the first time.

What Is Walmart Marketplace

Walmart Marketplace is an online platform where third-party sellers list their products on Walmart.com. These sellers are independent businesses that manage their own inventory, pricing, and fulfillment processes.

The marketplace was launched in 2009 as part of Walmart's broader e-commerce strategy. It allows customers to browse both Walmart's own products and those offered by approved external sellers in one place.

Each seller on the platform must be approved by Walmart before listing products. Once approved, sellers can upload product listings that appear alongside Walmart's own items in search results and product categories.

Walmart doesn't own the products sold by marketplace sellers. Instead, it earns revenue by charging a referral fee for each sale, which varies by product category (typically between 6-20%).

Key features of Walmart Marketplace include:

  • Third-party platform: Independent businesses sell through Walmart.com

  • Integrated shopping: Products appear alongside Walmart's regular inventory

  • Seller management: Businesses handle their own inventory and pricing

  • Revenue model: Walmart collects fees on sales rather than charging listing fees

Why Sell on Walmart Online Marketplace

Selling on Walmart's online marketplace offers several advantages compared to other e-commerce platforms. Walmart.com receives over 100 million unique monthly visitors, providing sellers with access to a large customer base without building their own website traffic.

Unlike some marketplaces, Walmart doesn't charge monthly subscription fees. Instead, it uses a referral fee model where sellers pay a percentage of each sale based on the product category.

The approval process is more selective than other platforms. This creates both a barrier to entry and an advantage for approved sellers who face less competition than on more open marketplaces.

Here's how Walmart Marketplace compares to other major platforms:

Feature

Walmart Marketplace

Amazon Marketplace

eBay

Monthly Fees

None

$39.99/month

None

Referral Fees

6-20%

8-20%

10-12%

Approval Process

Strict

Moderate

Easy

Competition

Lower

High

Moderate

Customer Focus

Value-oriented

Convenience

Variety

Walmart's customer base typically focuses on value and competitive pricing. This aligns with Walmart's overall brand positioning and influences how products are listed and priced by marketplace sellers.

Products on the marketplace appear on Walmart.com alongside Walmart's own inventory. The site interface doesn't heavily distinguish between first-party and third-party products, though listings do specify the seller.

How to Become a Marketplace Seller on Walmart

Becoming a seller on Walmart Marketplace involves an application and onboarding process. Walmart evaluates businesses before allowing them to sell on its platform.

1. Application Requirements

To apply, you'll need:

  • A registered business with a Tax ID (EIN for U.S. businesses)

  • Completed tax forms (W-9 for U.S. entities, W-8 for non-U.S. entities)

  • Information about your product catalog

  • Integration capabilities (ability to connect with Walmart's systems)

  • Customer service plans (how you'll handle questions and returns)

Walmart reviews these details to determine if your business meets their standards for marketplace sellers.

2. Approval and Partner Profile

After submitting your application, Walmart typically reviews it within 2-4 weeks. If approved, you'll get access to Walmart's Seller Center.

The next step is completing your Partner Profile. This includes your company information, shipping policies, and return procedures. This profile helps customers understand who they're buying from when they purchase your products.

3. Product Listing Setup

Once your profile is complete, you can list products using one of three methods:

  • Direct API integration (connecting your systems to Walmart's)

  • Bulk file upload (spreadsheets with product information)

  • Third-party integration platforms (services that connect to Walmart)

Each listing needs accurate product identifiers like UPC or GTIN codes. Walmart has specific guidelines for product content, including image requirements, title structure, and product descriptions.

Key Steps to Sell on Walmart Com Marketplace

After being approved as a seller, there are several important steps to establish your presence on Walmart.com marketplace.

1. Decide Your Fulfillment Approach

Walmart Marketplace offers two main fulfillment options:

Self-fulfillment: You store products in your own warehouse and handle shipping directly to customers. This gives you more control but requires managing all logistics yourself.

Walmart Fulfillment Services (WFS): You send inventory to Walmart's fulfillment centers, and they handle storage, packing, shipping, and returns. This option includes fees based on product size and storage time but can improve delivery speed and customer satisfaction.

Many sellers start with self-fulfillment and later consider WFS as they grow and understand their sales patterns.

2. Set Up Competitive Pricing

Walmart's platform emphasizes competitive pricing. The marketplace uses automated systems to compare prices with other major retailers. If your prices are significantly higher than competitors, your listings might be less visible in search results.

To maintain competitive pricing:

  • Research competitors: Check prices for similar products on Walmart and other major sites

  • Account for fees: Calculate your costs including Walmart's referral fees

  • Consider repricing tools: Some sellers use software that automatically adjusts prices based on competitor activity

Setting prices too low can hurt profitability, while pricing too high can reduce visibility and sales volume.

3. Optimize Your Listings for Search

When customers search on Walmart.com, the search algorithm determines which products appear and in what order. Optimizing your listings helps them appear higher in relevant searches.

Effective listing optimization includes:

  • Using relevant keywords in titles and descriptions

  • Providing complete and accurate product specifications

  • Uploading high-quality images that meet Walmart's requirements

  • Categorizing products correctly within Walmart's taxonomy

Listings that provide clear, detailed information tend to perform better both in search results and conversion rates.

Best Items to Sell on Walmart Marketplace

Some product categories perform particularly well on Walmart Marketplace due to customer demand and competition levels.

Popular categories include:

  • Home & Kitchen: Cookware, small appliances, bedding, and storage solutions

  • Health & Personal Care: Vitamins, personal hygiene products, and over-the-counter health items

  • Electronics: Phone accessories, headphones, and computer peripherals

  • Baby & Kids: Toys, children's clothing, and baby supplies

  • Outdoor & Garden: Tools, planters, and lawn care equipment

These categories align with Walmart's typical customer interests and shopping patterns. They also tend to have good margins after accounting for marketplace fees.

Products that perform best usually have:

  • Clear utility and purpose

  • Competitive pricing

  • Good profit margins after fees

  • Reasonable shipping costs relative to product value

  • Established brands or compelling alternatives to name brands

Seasonal items also do well during relevant times of year, such as school supplies in late summer or holiday decorations in fall and winter.

Handling Shipping and Returns on Walmart's Marketplace

Shipping and returns significantly impact customer satisfaction and seller ratings on Walmart Marketplace.

1. Walmart Fulfillment Services vs In-House Fulfillment

The table below compares the two fulfillment approaches:

Feature

Walmart Fulfillment Services (WFS)

In-House Fulfillment

Storage Fees

Yes

No

Shipping Speed

2-day delivery

Varies

Returns Handling

Managed by Walmart

Managed by seller

Customer Service

Walmart handles

Seller handles

Control

Less

More

WFS offers the advantage of Walmart's established logistics network but comes with additional costs. In-house fulfillment gives more control but requires managing all shipping operations yourself.

2. Managing Customer Returns

Walmart Marketplace has a standard return policy that sellers must follow. Most items can be returned within 30 days of purchase.

A key feature of Walmart's return system is in-store returns. Customers can return marketplace items to physical Walmart stores, which many find convenient. After the store accepts the return, the seller is notified and processes the refund.

For items that can't be returned to stores, sellers provide return shipping methods. Processing refunds promptly after receiving returns helps maintain good seller metrics and customer satisfaction.

Tips for Successful Walmart Selling

Success on Walmart Marketplace depends on managing several key aspects of your seller account.

1. Leverage Advertising Tools

Walmart offers advertising options to increase product visibility. Sponsored Products are ads that appear in search results and product pages, operating on a cost-per-click model.

These ads can help:

  • Boost visibility: Get your products seen by more potential customers

  • Improve ranking: Ads can appear above organic search results

  • Target specific searches: Show your products for relevant search terms

New sellers often start with small advertising budgets to test performance before scaling up successful campaigns.

2. Monitor Customer Feedback

Customer ratings and reviews directly impact your success on Walmart Marketplace. The platform tracks metrics like:

  • Average star rating

  • Number of reviews

  • Response time to customer messages

  • Order defect rate (problems with orders)

  • On-time delivery percentage

Responding to customer questions promptly and addressing issues with orders helps maintain positive feedback. Sellers with consistently good metrics may qualify for Walmart's Pro Seller badge, which can increase buyer confidence.

3. Expand When Ready

After establishing a solid foundation on Walmart's U.S. marketplace, sellers can consider expansion opportunities:

  • Adding more product categories

  • Using Walmart Fulfillment Services

  • Exploring Walmart's international marketplaces in Canada, Mexico, and other countries

International selling requires additional considerations like cross-border shipping, currency conversion, and compliance with local regulations.

Frequently Asked Questions about Walmart Marketplace

How much does it cost to sell on Walmart Marketplace?

Walmart doesn't charge monthly fees to list products. Instead, it collects a referral fee on each sale ranging from 6% to 20% depending on the product category.

Is Walmart Marketplace different from Walmart.com?

Walmart Marketplace is a component of Walmart.com where third-party sellers list products alongside Walmart's own inventory. These sellers manage their own listings and fulfillment.

How long does the Walmart Marketplace approval process take?

The approval process typically takes 2-4 weeks, depending on application completeness and business verification.

What are Walmart's requirements for marketplace sellers?

Sellers must have a registered business, provide tax information, maintain product data accuracy, ensure reliable shipping, and offer responsive customer service.

Can international sellers join Walmart Marketplace?

Yes, sellers from select countries can join if they comply with U.S. tax regulations and provide consistent cross-border fulfillment.

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