Walmart Case Study | What is Walmart Fulfillment Services? - Project W: Episode 9

Summary

In this episode of Project W, Carrie Miller and Tim Jordan explore the importance of fulfillment in e-commerce, specifically for Walmart.com. They discuss various fulfillment options available to sellers, including merchant-fulfilled, 3PLs, Deliverr, and Walmart Fulfillment Services (WFS). The episode highlights the benefits of leveraging Walmart's infrastructure for faster shipping and better customer satisfaction, as well as the challenges and considerations sellers face when choosing their fulfillment strategy.

Takeaways

• 🚀 Project W is a series aimed at helping businesses expand their sales and growth through Walmart.com by leveraging the same methods used for Amazon products.
• 📦 Fulfillment is a critical aspect of marketplaces' advantage over other e-commerce platforms, and it significantly impacts both buyers' and sellers' expectations.
• 🏬 Amazon's Prime program set the standard for two-day shipping, which has influenced the entire industry's expectations for delivery times.
• 🛒 Walmart has its own set of fulfillment expectations for sellers, which includes options like Merchant Fulfilled, where sellers handle the entire shipping process themselves or through a 3PL.
• 📦 Merchant Fulfilled Network (MFN) is a baseline requirement for Walmart sellers, but it can be challenging due to the need for high shipping volumes and fast delivery times.
• Walmart offers alternatives to MFN, such as Deliverr, which acts as an interim solution for sellers to offer two-day shipping by using Deliverr's existing fulfillment network.
• 🔄 Walmart Fulfillment Services (WFS) is Walmart's own fulfillment system, which is still growing and not immediately available to all sellers, requiring an application and acceptance process.
• 🏆 Using WFS can help sellers gain the Walmart Plus badge, which is beneficial for product ranking and meeting the fast fulfillment promise to customers.
• 🔄 Sellers are advised to apply for WFS once their account is set up and they have some sales, but they should not rely solely on WFS due to potential inventory and acceptance limitations.
• 📈 The script provides an overview of fulfillment options, not specific instructions on how to manage shipments or set up fulfillment, focusing on the impact on scaling and ranking capabilities.
• 📅 Future episodes of Project W will cover setting up PPC campaigns, reading seller center reports, and other advanced topics to further assist sellers in maximizing their presence on Walmart.com.

Q & A

What is the main topic of discussion in episode 9 of Project W?

The main topic of discussion in episode 9 is the fulfillment options available for sellers on Walmart.com and how they can impact sales, growth, and ranking capabilities.

How did Amazon's Prime program change the industry's expectations for fulfillment?

Amazon's Prime program, by creating warehouses all over the country and offering two-day shipping, set high expectations for fast delivery, which influenced both buyers and sellers in the industry.

What are the challenges faced by sellers when they choose merchant fulfillment?

Merchant fulfillment challenges include managing the volume for two-day shipping, negotiating terms with shipping carriers like FedEx or UPS, ensuring timely delivery, and handling manual order tracking and software integration.

What is the significance of having a robust distribution center in the context of merchant fulfillment?

A robust distribution center allows sellers to have multiple 3PLs or third-party logistics centers spread out in different regions, enabling them to ship orders from the closest center to the customer, reducing shipping time and cost.

Why is Walmart's fulfillment service (WFS) considered an advantage for sellers?

WFS is an advantage because it leverages Walmart's volume to decrease shipping rates and provides the infrastructure and capabilities that individual sellers may not have, allowing for faster and more cost-effective shipping.

What is the Deliver service, and how does it relate to Walmart fulfillment?

Deliver is a third-party logistics service with warehouses across the country that can distribute products to offer two-day shipping. It acts as an interim solution for Walmart sellers before they can fully utilize Walmart Fulfillment Services (WFS).

What is the process for sellers to start using Walmart Fulfillment Services (WFS)?

Sellers need to apply for WFS, and once accepted, they can start shipping their products to WFS for distribution. It's recommended to apply as soon as the account is set up and start selling.

How does the availability of Walmart's physical stores contribute to its fulfillment capabilities?

Walmart's extensive network of physical stores allows for store pickups, providing customers with the option to buy online and pick up in-store, which can be especially useful for last-minute purchases or items not available for home delivery.

What is the importance of not relying solely on Walmart Fulfillment Services (WFS) for all inventory?

It's important not to rely solely on WFS because during the inbound process of accepting and distributing products, sellers might temporarily run out of inventory to sell. Keeping some inventory in merchant fulfillment or Deliver ensures continuous sales.

What additional topics will be covered in the upcoming episodes of Project W?

Upcoming episodes will cover setting up PPC campaigns, reading seller center reports, performance updates, restock suggestions, and improving listing quality scores.