Selling on Walmart Marketplace: Setup, optimization, and growth

Product categories allowed and restricted

Walmart allows most retail-ready categories, including:

• Apparel
• Electronics
• Home & Garden
• Health & Beauty
• Automotive
• Toys & Games
• Grocery (non-perishable)

However, restricted or prohibited categories include:

• Alcohol
• Tobacco and vaping products
• Firearms and ammunition
• Prescription medications
• Live animals

For the most up-to-date list, consult Walmart’s Prohibited Products Policy.

Walmart Marketplace listing optimization best practices

Walmart rewards optimized listings with higher visibility and better Buy Box performance. Here are the key best practices:

• Titles: Keep them under 50–75 characters. Start with the brand, then include key features (e.g., “Feedo Wireless Noise-Canceling Headphones, Black”).
• Descriptions: Use bullet points to highlight benefits and specs. Focus on usability and value. Add a description paragraph—a minimum of 150 words is a general guidance; the word count requirement varies by product category.
• Keywords: Use relevant, high-volume search terms in product names and descriptions.
• Categories: The more you define your product, the easier it is to search for. Choose the right, accurate category that provides you with the right set of attributes for the item.
• Attributes: These are used to organize products in site navigation and help make listings more visible when customers conduct searches. Specify all relevant attributes to ensure your products show when customers search and browse products using filters.
• Images: Should be high-res (minimum 1000×1000 pixels), on a white background, and show the product from multiple angles. Lifestyle images are allowed as secondary photos.
• Rich media: An optional feature that lets you add product videos, 360-degree images, and other content to show more of your product and boost conversion.

Example: A cookware brand listing a 12-piece nonstick set should include clear images of all items, use any applicable keywords like “PFOA-free,” “oven-safe,” and “dishwasher safe,” and call out benefits like “ideal for induction cooktops” in the description.

Listing pricing rules

Walmart’s brand promise centers around affordability and reliability—and that carries over to its marketplace. The platform monitors product pricing and may suppress listings that are significantly higher than prices currently or recently offered for the same item on Walmart.com, a competing website, or priced at a level that could potentially be viewed as price gouging, or other unfair or abusive pricing practices.

To remain compliant:

• Keep pricing competitive across all channels.
• Avoid large markups to offset shipping or ad costs.
• Monitor competitors and automate repricing where possible.

Sellers are also expected to offer consistent service levels across the board. If you’re offering next-day delivery on your DTC site, Walmart shoppers will expect the same.

You can use Feedonomics to keep your prices and inventory synchronized across your channels.

How to win the Walmart Buy Box

The Buy Box appears on the product detail page and determines which seller gets the sale when multiple sellers offer the same item. Winning the Buy Box depends on:

• Price: Competitive total price (item + shipping) is critical.
• Shipping speed: Fast, trackable shipping improves chances. Charging for standard shipping can lose you the Buy Box.
• Fulfillment method: WFS gives sellers an edge.
• Seller performance: Low cancellation rates, fast response times, and good reviews matter.

Use Buy Box Reports in Seller Center to monitor your performance and identify opportunities.

Fulfillment

Fulfillment is one of the most important factors in determining your success on Walmart Marketplace. Fast, reliable shipping directly impacts your Buy Box eligibility, customer satisfaction, and long-term growth potential. Walmart allows sellers to fulfill orders themselves or opt into WFS, a program designed to compete head-to-head with Fulfilled by Amazon (FBA).

Difference between seller-fulfilled vs. WFS

Seller-fulfilled means you handle storage, packing, and shipping in-house or through a third-party logistics (3PL) provider. You’re fully responsible for meeting Walmart’s shipping standards, managing returns, and providing customer support.

WFS allows sellers to send inventory to Walmart’s fulfillment centers, where Walmart stores, picks, packs, and ships orders on your behalf. It’s a hands-off solution that’s deeply integrated with Seller Center and optimized for speed and trust.

Benefits of using WFS

Using WFS provides multiple advantages beyond logistics:

• 2-day delivery tags increase visibility and conversions.
• Better Buy Box win rate due to fast shipping and Walmart trust.
• Hands-off returns: Walmart manages customer returns and inquiries.
• Customer trust: WFS items often carry the same delivery expectations as Walmart’s first-party items.

According to Walmart, items fulfilled by WFS see up to a 50% increase in sales on average compared to seller-fulfilled listings.

Shipping standards and expectations

Whether you use WFS or fulfill orders yourself, Walmart expects sellers to meet strict shipping and fulfillment requirements to maintain a consistent and reliable customer experience:

• Support at least one shipping method: Value (6–7 days), Standard (3–5 days), TwoDay (2 days), or OneDay (1 day).
• Deliver by the Expected Delivery Date (EDD); Walmart may adjust this based on performance.
• Ship by the Expected Ship Date (ESD) to avoid auto-cancellations and lost reimbursements.
• Use valid tracking only after handing the package to the carrier.
• Maintain a 0–1 day fulfillment lag time, unless Walmart approves an exemption.
• Operate at least five days/week, supporting shipments until 11:00 AM local time.
• Meet performance standards: 99% Valid Tracking Rate and 95% On-Time Delivery Rate.
• Use reliable, approved carriers—violations like false tracking or competitor packaging can result in suspension.

Orders and returns

Efficient order and return management is essential for maintaining strong performance metrics and building trust with Walmart customers. Walmart has strict requirements that emphasize customer convenience—which means sellers need to be prepared to manage post-purchase workflows with care and speed.

How to manage orders and cancellations

Orders placed through Walmart Marketplace appear in Seller Center, your central hub for managing the entire order lifecycle. You can fulfill and track orders manually or automate the process using integrations or order management systems.

Key order management practices:

• Acknowledge orders quickly
• Ship on time: Walmart expects orders to ship by the promised handling time.
• Provide tracking: Every order must have a valid tracking number uploaded before the promised ship date.

Order cancellations should be avoided whenever possible. High cancellation rates can result in Buy Box loss, reduced visibility, and even suspension. If a cancellation is necessary (e.g., item out of stock), it should be initiated promptly through Seller Center with a clear reason provided.

Walmart’s return policies and how they impact sellers

Walmart maintains a 30-day return window for most Marketplace items, though some categories (like electronics or apparel) may differ. Sellers are expected to match these policies unless an exception is approved.

If you use WFS, Walmart handles returns for you—customers ship items back to Walmart, and the refund is processed automatically. If you’re self-fulfilling, you’re responsible for providing a return label and completing the refund quickly.

Return expectations include:

• Valid U.S. return center address is required (no P.O. boxes or locations in Hawaii, Alaska, or U.S. territories).
• Return shipping must be free for customers—no restocking fees unless for approved exemptions (e.g. hazmat or custom items).
• In-store returns are supported if your settings allow it, but restricted for oversized, hazmat, or exempted items.
• Refunds are typically issued when the return is scanned by the carrier; Walmart may refund customers directly in some cases.
• You can enable Keep It Rules for low-cost or unsellable items you don’t want back.
• Violations (e.g., incomplete return info or charging return fees) may lead to penalties or Walmart intervening on the buyer’s behalf.

How refunds and disputes are handled

When a return is processed, sellers must issue a refund promptly. If a customer files a dispute—such as claiming an item was not as described—Walmart will review the case based on the listing, tracking, and communication history.

To protect your seller reputation:

• Use clear, accurate product descriptions.
• Document all tracking and delivery confirmations.
• Respond to disputes professionally and quickly via Seller Center.

Walmart may issue refunds on your behalf in certain customer claims. Repeated disputes or failure to resolve issues can impact your performance score and Buy Box eligibility.

Walmart Marketplace performance standards

Walmart Marketplace holds sellers to a high bar when it comes to operational excellence. These standards aren’t arbitrary—they’re designed to maintain customer trust and protect the integrity of the Walmart brand. Meeting (or exceeding) Walmart’s seller performance metrics unlocks long-term growth, Buy Box wins, and eligibility for programs like WFS and advertising tools.

Seller performance: What metrics Walmart tracks

Walmart provides sellers with a Performance dashboard in Seller Center, updated regularly. The scorecard tracks several key metrics:

• Cancellation rate: Maintain < 2%
• On-time delivery rate: Maintain > 95%
• Valid tracking rate: Maintain > 99%
• Refund rate: Maintain < 6%
• Seller response rate: Maintain > 95%

These metrics are calculated over a 30-day window. Walmart enforces its policies strictly. If your performance consistently falls below expectations, consequences may include:

• Listing suppression: Poor-performing SKUs may be delisted automatically.
• Buy Box loss: Even competitive pricing can’t save a listing with slow fulfillment or frequent cancellations.
• Account suspension or termination: Walmart may pause or terminate your account if you fail to address recurring issues.

Sellers receive warnings via Seller Center and email. If suspended, reinstatement typically requires submitting a detailed plan of action showing how you’ll address the problems.

Marketing and advertising on Walmart Marketplace

To gain visibility and boost conversions, you can leverage Walmart’s native advertising tools, promotional programs, and seasonal events. Sellers who actively promote their listings tend to see stronger performance and more stable growth.

Walmart Connect provides robust advertising solutions to help sellers stand out and scale their business across Walmart.com and beyond. With access to exclusive ad placements, first-party data, and omnichannel reach, sellers can build awareness, drive traffic, and increase conversions throughout the entire customer journey.

Sponsored Search: Drive high-intent traffic with CPC ads

Sponsored Search ads help you reach shoppers actively browsing and searching Walmart.com and the Walmart app. These ads are cost-per-click (CPC), meaning you only pay when someone clicks your listing.

There are three types of Sponsored Search ads:

• Sponsored Products: Appear in search results, item pages, and browse pages. To be eligible, products must be in stock, published, and winning the Buy Box.
• Sponsored Brands: Premium placements that showcase your brand logo and a curated product set at the top of relevant search results. Available only to brand owners registered with the Walmart Brand Portal.
• Sponsored Videos: Eye-catching, high-quality video ads that help products stand out in search results and educate customers through motion and sound.

Each ad type runs on an auction model. Walmart selects ads based on a combination of relevance and bid amount, helping ensure that the most relevant listings with the most competitive bids secure premium placement.

Onsite Display: Inspire discovery with personalized display ads

Walmart Onsite Display allows brand owners to serve dynamic, visually rich ads to targeted audiences across Walmart.com and the Walmart app. These impressions are sold on a cost-per-thousand (eCPM) basis via first-price auction.

Campaigns are fully self-serve and customizable through the Walmart Connect Ad Center. Sellers can manage budgets, creative, and bid strategies in real time. Targeting options include:

• Contextual: Based on department, category, or subcategory.
• Behavioral: Based on in-store and online shopping behavior, including brand and category affinities.
• Keyword: Serve display ads on relevant search results.
• Run-of-site: Broad visibility across Walmart.com and app, excluding homepage.

A minimum spend is not required, but Walmart recommends at least $4,500/month for optimal results.

Brand Shop and Shelf: Build a branded destination on Walmart.com

Registered brand owners can create a Brand Shop—a customizable storefront within Walmart.com and the Walmart app. This virtual destination helps consolidate your product assortment and serves as a landing page for Sponsored Brands and Onsite Display campaigns.

• Brand Shops have a custom URL, can include multiple Shelves (digital aisles), and are discoverable through item pages and the Brand Shop directory.
• Sellers can create product collections for different use cases, like seasonal drops or bestsellers.

All brand shop assets and storefronts are built using Walmart’s Shop Builder, which includes reporting on sales, traffic, and unit-level performance.

Search Engine Marketing (SEM): Extend reach with Google Shopping Ads

Walmart’s Search Engine Marketing (SEM) program lets sellers run Google Shopping Ads for their Walmart listings using Walmart’s proprietary bidding algorithms. These ads appear in Google search results and direct traffic back to your Walmart item page.

Campaigns run through Walmart’s Self-Serve Marketing portal inside Seller Center and go through two optimization phases:

• Learning Phase: Gathers data on impressions, clicks, and conversions.
• Optimizing Phase: Adjusts bids based on performance to maximize return on ad spend (ROAS).

This is ideal for brands that want to drive offsite traffic without managing their own Google Ads accounts—especially helpful for sellers without a DTC website or with underperforming organic reach.

Sales Rewards and Attribution: Monetize off-platform promotions

The Sales Rewards and Attribution program enables sellers to build unique tracking URLs that connect their off-Walmart campaigns (social ads, email, influencers, etc.) back to Walmart item pages. When a customer clicks and converts through these URLs, sellers earn commission attribution and track ROI within Walmart’s reporting tools.

Example: A skincare brand running TikTok influencer campaigns can direct traffic to Walmart.com and still track the impact of those campaigns on marketplace sales.

Promotional pricing

Walmart Marketplace sellers can offer temporary price reductions using promotional pricing, a tool designed to help increase visibility and conversions for discounted products. Promotions can run for up to 180 days and are displayed on Walmart.com with clear strikethrough pricing—if they meet certain criteria.

To trigger a strikethrough price, your promotional price must be at least 10% lower than the item’s Was Price or List Price. Sellers can manage promotions in two ways:

• Promotions dashboard: Create, schedule, and monitor active or upcoming deals directly in Seller Center.
• Price and promotion template: Upload and edit promotions in bulk from the Catalog section.

Optional settings allow you to add a Promo Type, such as Reduced Price (for temporary deals) or Clearance (for end-of-life items).

Customer experience

Customer satisfaction is central to Walmart Marketplace’s value proposition. As a seller, you’re expected to uphold the same level of service that Walmart offers in its stores and through first-party online sales. This means fast fulfillment, clear communication, responsive support, and hassle-free returns.

Expectations for customer support and messaging

Walmart requires all Marketplace sellers to respond to customer inquiries within 48 hours of receipt—this is your “Seller Response Rate,” which we discussed earlier. Delayed or unhelpful responses can lead to Walmart canceling orders that haven’t been shipped, refunding shipped orders to satisfy a customer, imposing seller category restrictions, or suspending accounts for failure to adequately and timely respond to customers or Walmart Customer Care.

Make sure to follow Walmart’s Customer Care Policy to keep your account in good standing.

You are responsible for all customer communication, even if the order was fulfilled by WFS. However, WFS does handle returns and shipping-related inquiries directly, reducing the burden on sellers.

Handling negative reviews and customer complaints

Walmart allows customers to leave reviews on both the product and seller performance. While you can’t remove negative reviews without cause, you can flag inappropriate ones that violate Walmart’s Review Guidelines.

Proactive strategies to reduce negative reviews:

• Ensure product listings are accurate and set clear expectations.
• Use high-quality images that reflect the product exactly.
• Ship on time and provide valid tracking.
• Respond to complaints quickly and offer resolution options.

If a product receives repeated negative reviews due to listing inaccuracies or quality issues, Walmart may suppress the item or block future listings for similar SKUs.

Using Feedonomics for Walmart Marketplace

Managing Walmart Marketplace listings at scale can be challenging—especially if you’re already selling across multiple channels like Amazon, Google, Meta, and Target. That’s where Feedonomics comes in. As a leading product feed optimization and syndication platform, Feedonomics helps enterprise brands and retailers streamline operations, improve data quality, and stay competitive on Walmart Marketplace.

One of the most critical aspects of succeeding on Walmart Marketplace is the quality and consistency of your product data. Feedonomics connects your ecommerce platform (like Shopify, BigCommerce, or Magento) to Walmart, enabling you to:

• Automate product listings with rule-based logic to ensure accuracy and completeness.
• Standardize and enrich product data for compliance with Walmart’s feed specifications.
• Map product attributes across marketplaces.
• Schedule regular updates to sync price, inventory, and product data.
• Error detection and alerts to monitor your data, flag potential issues, and notify the right people to address them.
• Dedicated feed specialists to help troubleshoot, scale, and optimize listings.

Feedonomics helps unify your entire ecommerce strategy by centralizing product data and pushing optimized feeds to Walmart, Google Shopping, Meta Advantage+, Amazon, and hundreds of other channels.

Schedule a free demo today

Conclusion

Walmart Marketplace has evolved into a powerful channel for brands that want scale, reach, and profitability. But it’s not plug-and-play—success requires operational excellence, optimized listings, fast fulfillment, and smart marketing. With the right setup and the right partners, like Feedonomics, sellers can build a strong foundation for long-term growth on Walmart Marketplace.

Selling on Walmart Marketplace FAQs