Walmart Fulfillment FAQ
OTIF, WFS, chargebacks, and compliance — everything Walmart sellers and suppliers need to know.
Walmart Fulfillment FAQ
What is Walmart Fulfillment Services (WFS)?
WFS is Walmart's fulfillment program where third-party sellers send inventory to Walmart's fulfillment centers. Walmart handles storage, picking, packing, shipping, returns, and customer service — similar to Amazon FBA but for Walmart's marketplace.
What is OTIF (On-Time In-Full)?
OTIF is Walmart's key supplier performance metric. It measures whether shipments arrive on time (by the Must Arrive By Date) and in full quantity (100% of ordered units). Walmart's target is 98% OTIF. Failures result in financial penalties.
What are Walmart's OTIF penalties?
Walmart charges a 3% fine on the cost of goods for OTIF failures. This applies separately to on-time failures and in-full failures. For large suppliers, OTIF penalties can amount to millions of dollars annually.
What is MABD (Must Arrive By Date)?
MABD is the deadline by which a shipment must arrive at Walmart's distribution center. It's calculated based on lead time, PO creation date, and delivery location. Missing MABD triggers OTIF penalties.
How does Indray help with Walmart OTIF compliance?
Indray's team monitors every Walmart PO's MABD, schedules delivery appointments proactively, manages carrier selection for on-time performance, and provides real-time tracking. We help suppliers maintain 98%+ OTIF scores.
What is a Walmart Collect shipment?
Collect shipments are where Walmart arranges and pays for the transportation using their routing guide carriers. The supplier is responsible for having the order ready for pickup on time. Indray handles both collect and prepaid Walmart shipments.
What is a Walmart Prepaid shipment?
Prepaid shipments are where the supplier arranges and pays for transportation to Walmart's DC. Suppliers must use carriers compliant with Walmart's routing guide and meet all delivery requirements.
What is Walmart's ASN (Advanced Shipment Notice)?
ASN is an electronic notification sent to Walmart before a shipment arrives. It contains PO numbers, item details, quantities, carrier info, and estimated arrival. ASN must be transmitted via EDI (856 transaction) before the shipment arrives.
What happens if I don't send an ASN to Walmart?
Missing or late ASN causes receiving delays, potential refusal at the DC, and compliance deductions. Walmart's system matches the ASN to the physical shipment — discrepancies trigger chargebacks.
What are Walmart's packaging requirements?
Walmart requires: GMA standard pallets (40" × 48"), max pallet height 60" (excluding pallet), stretch-wrapped, no pallet overhang, GS1-128 labels on all cases, and Ti-Hi configuration matching the item setup.
What is Ti-Hi for Walmart?
Ti-Hi is the pallet configuration — Ti is the number of cases per layer, Hi is the number of layers. For example, Ti-8 Hi-5 means 8 cases per layer, 5 layers high = 40 cases per pallet. This must match your Walmart item setup.
What are Walmart's delivery appointment requirements?
Appointments are booked through Walmart's NOVA system. Carriers must arrive within a 30-minute window of the appointment time. Early or late arrivals may be refused or rescheduled.
What is Walmart's NOVA system?
NOVA is Walmart's transportation management system used for scheduling delivery appointments at Walmart distribution centers. Carriers use NOVA to book, modify, and confirm delivery appointments.
What are Walmart's receiving hours?
Walmart DCs typically receive Monday through Friday, with some locations accepting Saturday deliveries. Hours vary by DC but are generally 6 AM – 2 PM local time. Verify specific hours through NOVA.
What is Walmart's SQEP (Supplier Quality Excellence Program)?
SQEP is Walmart's supplier quality program that audits suppliers on product quality, packaging compliance, labeling accuracy, and safety standards. Non-compliance results in chargebacks and potential delisting.
How do I become a Walmart WFS seller?
Apply through Walmart Marketplace, get approved as a seller, then apply for WFS. Requirements include professional selling history, positive reviews, and products that meet Walmart's eligibility criteria (size, weight, category restrictions).
What are WFS storage fees?
WFS charges monthly storage fees based on cubic feet used. Standard storage is approximately $0.75/cubic foot per month. Peak season surcharges may apply October–December. Fees are competitive with Amazon FBA.
What are WFS fulfillment fees?
WFS fulfillment fees are based on item weight and dimensions. They're generally 10–15% lower than comparable Amazon FBA fees. Walmart uses a simplified fee structure without the complex tier system of FBA.
Can I use WFS for non-Walmart orders?
Currently, WFS primarily fulfills Walmart.com orders. Walmart has been expanding multi-channel capabilities, but it's not as developed as Amazon's MCF. Check Walmart's latest announcements for updates.
What is Walmart's routing guide?
The routing guide specifies approved carriers, shipping methods, and compliance requirements for inbound shipments to Walmart. Suppliers must follow the routing guide or face compliance deductions.
What are Walmart compliance deductions?
Walmart issues compliance deductions (chargebacks) for violations including: incorrect labeling, wrong Ti-Hi, missing ASN, late delivery, incorrect quantities, damaged goods, and routing guide violations. Deductions range from $500 to percentage-based fines.
How do I dispute a Walmart chargeback?
File a dispute through Walmart's APDP (Accounts Payable Dispute Portal) within 60 days of the deduction. Provide supporting documentation including BOL, ASN confirmation, delivery receipts, and photos. Indray helps compile documentation for disputes.
What is Walmart's GS1-128 label requirement?
Every case shipped to Walmart must have a GS1-128 barcode label containing: GTIN (item identifier), quantity, lot number (if applicable), and serial shipping container code (SSCC). Labels must be scannable and properly positioned.
Can Indray deliver to Walmart distribution centers?
Yes, Indray regularly delivers to Walmart DCs, FCs, and regional distribution centers across the US. Our team is familiar with each location's specific requirements, appointment systems, and unloading procedures.
What is Walmart's Drop Ship Vendor (DSV) program?
DSV allows suppliers to ship directly to customers from their own warehouse using Walmart branding. Indray can handle DSV parcel and freight shipments with Walmart-compliant packaging and labeling.
How do I handle Walmart PO changes?
Walmart may modify PO quantities or cancel lines before shipment. Monitor your PO portal regularly and adjust shipments accordingly. Shipping incorrect quantities triggers OTIF in-full failures.
What is Walmart's Lead Time requirement?
Lead time is the number of days between PO creation and expected delivery. Walmart sets lead times during item setup. Meeting lead time is critical for OTIF compliance. Indray helps optimize your lead time performance.
How does Walmart WFS compare to Amazon FBA?
WFS offers lower fulfillment fees, less competition per listing, growing marketplace traffic, and Walmart's brand trust. Amazon FBA has larger volume, Prime membership base, and more mature logistics. Many sellers use both platforms.
What is Walmart's Return Policy for WFS?
Walmart handles all returns for WFS items. Returned items are inspected — sellable items return to inventory, unsellable items can be returned to seller or disposed. Return processing is generally faster than Amazon FBA.
Can I send temperature-sensitive products through WFS?
WFS currently does not support temperature-controlled storage. For perishable or temp-sensitive products, you'll need to fulfill from your own facility or use a third-party cold storage provider with Walmart DSV.
What is Walmart Connect?
Walmart Connect is Walmart's advertising platform for marketplace sellers. Running ads helps drive traffic to your WFS listings. Combined with fast WFS shipping, ads can significantly boost sales velocity.
How do I optimize my Walmart supply chain?
Key strategies: maintain 98%+ OTIF, use compliant carriers like Indray, send ASN on time, match Ti-Hi exactly, consolidate POs for efficient shipping, and monitor compliance reports weekly.
Deliver to Walmart With Confidence
Indray ensures OTIF compliance, on-time appointments, and chargeback-free deliveries to Walmart DCs. Call +1 908 864 2064.