2019 General Rate Increase (GRI) for USPS, FedEx and UPS
In this article
2 minutes
USPS
USPS announced its GRI will take effect January 27, 2019.
The Details:
– Priority Mail Express will increase 3.9%
– Priority Mail will increase 5.9%.
– Mailing Services product prices will increase 2.5%
– First-Class Package Service will move to zone-based pricing
– First-Class Mail Forever stamps will increase from $.50 to $.55
USPS’ dimensional weight (DIM) pricing is also increasing substantially. Currently, the Postal Service only uses DIM pricing for Zones 5-9 Priority Mail. In Q2 2019, expect USPS to implement DIM pricing for all Priority Mail, Priority Mail Express and Parcel Select packages that are larger than one cubic foot. Furthermore, the DIM will be reduced from 194 to 166—a small change that can have a big impact on parcel shipping costs. https://about.usps.com/news/national-releases/2018/pr18_086.htm
FedEx
FedEx announced its GRI will take effect January 7, 2019.
The Details:
– FedEx Express and FedEx Ground will increase by an average of 4.9%
– FedEx Freight will increase by an average of 5.9%.
– Look out for changes to FedEx surcharges and minimums
– FedEx Express and Ground minimum increases will range from 3.5% to 5.4%.
Remember, increases will not be implemented across the board. While FedEx Express and Ground report that “on average” rates are going up 4.9%, some categories will experience hikes as high as 8.2%. For example, Surcharges and Fees will be increasing in most cases upwards of 5%, and the Print return labels pricing is doubling. Be aware of how you send packages and take action if necessary to soften the blow of the increases. https://www.fedex.com/en-us/shipping/current-rates.html
UPS
Most of UPS’ GRIs take effect December 26, 2018.
The Details:
– The rates for UPS Ground, Air and International services will increase an average 4.9%.
– Fuel surcharges will apply to Additional Handling, Over Maximum Limits, Signature Required and Adult Signature Required accessorials.
– A $2.00 processing fee per package will be charged when Package Level Detail (PLD) is not provided to UPS prior to delivery.
– The rates for certain value-added services and other charges will increase. https://www.ups.com/us/en/shipping/rates-update.page?WT.mc_id=VAN701700

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Cahoot Partners with Walmart Marketplace to Enable Online Retailers to Offer Nationwide 1-Day and 2-Day Delivery
Marketplace Sellers Leverage Peer-to-Peer Fulfillment to Grow Sales with Affordable Nationwide Fast Shipping.
BRIDGEPORT, CT (August 30, 2021) – Cahoot, the world’s first peer-to-peer eCommerce fulfillment network, announced its partnership and integration with Walmart (NYSE: WMT). Cahoot is now a certified shipping and fulfillment solution for Walmart’s marketplace sellers.
Cahoot’s revolutionary peer-to-peer fulfillment model enables brands and online retailers to affordably provide one-day and two-day delivery nationwide. With its rapidly growing network of eCommerce order fulfillment centers coast-to-coast, Cahoot is quickly becoming the fulfillment provider of choice for high-volume sellers on marketplaces such as Walmart, Amazon, and eBay and eCommerce platforms such as Shopify, BigCommerce, and Magento.
“We’re excited to integrate with Walmart ahead of the record-breaking holiday season just around the corner,” said Cahoot Founder and CEO Manish Chowdhary. “The industry’s rapid growth has fulfillment capacity bursting at the seams. Our novel peer-to-peer model solves this problem by unlocking thousands of eCommerce merchants’ excess warehouse space and fulfillment capacity. Collectively, the Cahoot network is doing for eCommerce fulfillment what Airbnb did for lodging.”
Make Returns Profitable, Yes!
Cut shipping and processing costs by 70% with our patented peer-to-peer returns solution. 4x faster than traditional returns.
See How It WorksA Reliable Solution for Walmart’s Free 2-Day Delivery Program
Cahoot’s Walmart Marketplace Integration enables approved sellers to participate in Walmart’s 2-Day delivery program and display the Free 2-day shipping badge on their marketplace listings. Walmart has observed that sellers with this badge enjoy an up to 50% increase in conversion, making it one of the most powerful ways sellers can grow their sales. To help merchants delight their customers with exceptional delivery experience, Cahoot provides affordable same-day fulfillment 6 to 7 days a week and maintains a strict service level agreement of 99.95% on-time fulfillment and 99.9% order accuracy.
Flexible Across Channels & Works Seamlessly with In-House Operations
The patented Cahoot eCommerce order fulfillment platform provides eCommerce merchants with unsurpassed ease of use and complete visibility into inventory, orders, fulfillment performance, and package tracking – across all sales channels. Unlike traditional 3PL networks, the Cahoot network can seamlessly integrate with existing merchant fulfillment, which upgrades their strategy without introducing more complexity. With Cahoot, orders automatically flow to the optimal shipping point, whether it’s a Cahoot fulfillment center or the merchant’s own warehouse.
Cahoot has really helped us grow our multi-channel sales. We use Cahoot to fulfill our Walmart 2-Day orders and our Amazon standard and SFP orders. In addition to saving us money, we really like that their software and their fulfillment network work seamlessly with our own in-house fulfillment operations. Our old 3PL couldn’t do that.

Kris Koesema
Battery Jack
The Power of Many
Like the Airbnb marketplace of homeowners and travelers, the patented Cahoot order fulfillment network brings together the collective power of SMBs and their warehouses to fulfill orders, thus reducing fulfillment costs and expediting delivery.
Cahoot is available for merchants looking to expand their reach for one- and two-day delivery services across all selling channels, including Amazon, Walmart, eBay, Shopify, BigCommerce, and more. Merchants can reach a Cahoot fulfillment expert at www.Cahoot.ai.
ABOUT CAHOOT
Cahoot is the world’s first peer-to-peer eCommerce fulfillment network. It helps online businesses offer nationwide 1-day and 2-day deliveries. In addition, Cahoot’s model is the lowest cost by design because it enables merchants to store and ship merchandise for each other. This novel business model also allows merchants to make extra money using their existing warehouse space and personnel.

Turn Returns Into New Revenue

Cahoot Named to Fast Company’s Prestigious List of the World’s Most Innovative Companies for 2021
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BRIDGEPORT, CT (April 14, 2021) – Cahoot, the world’s first peer-to-peer eCommerce fulfillment network, announced that it has been named on the Fast Company’s Prestigious List of the World’s Most Innovative Companies for 2021. Cahoot enables brands and online retailers to affordably provide one-day and two-day delivery nationwide by storing and fulfilling goods for each other.
Fast Company’s Most Innovative Companies (MIC) list honors the businesses that have not only found a way to be resilient in the past year but also turned those challenges into impact-making processes. These companies did more than just survive; they thrived—making an impact on their industries and culture as a whole. This year’s list features 463 businesses from 29 countries.
“We are honored to be named one of the World’s Most Innovative Companies and recognized for our work. We are enabling businesses of any size to affordably offer their customers the same superfast delivery experience as Amazon” said Manish Chowdhary, Founder and CEO of Cahoot.
Like the Airbnb marketplace of homeowners and travelers, the patented Cahoot fulfillment network brings together the collective power of many SMBs and their warehouses to fulfill orders, thus reducing fulfillment costs and expediting delivery. Cahoot’s optimization algorithm further analyzes all combinations of warehouses, carriers, and shipping services to find the most affordable and efficient way to deliver orders fast.
Make Returns Profitable, Yes!
Cut shipping and processing costs by 70% with our patented peer-to-peer returns solution. 4x faster than traditional returns.
See How It WorksWith consumers flocking to online shopping in 2020 due to COVID, eCommerce grew an unprecedented 44% year-over-year, nearly three times the historical annual growth. At the height of the pandemic, even Amazon’s fulfillment services faltered. Customer orders took almost a month to arrive as warehouses struggled to fulfill orders. Amazon stopped accepting non-essential goods in its warehouses and prioritized its direct sales over those of its marketplace sellers, leaving hundreds of thousands of sellers that rely on its popular fulfillment service (FBA) scrambling for alternatives. Such incidents have caused merchants to always be prepared with a backup provider when they need it.
This eCommerce explosion has led to a shortage in warehouse space, well-priced and available labor, and carrier capacity. Warehouse vacancies reached an all-time low in Q3 2020 while rents were at an all-time high. LinkedIn also reported a surge of 73% job openings for fulfillment workers, the highest among all categories, and wages began creeping up. Moreover, all major carriers, including USPS, increased rates and added surcharges to handle the unprecedented increase in demand. All of this has resulted in much higher operational costs for retailers. And, at a time when most consumers are struggling financially, raising prices is not an option for merchants.
“Traditional solutions do not meet the needs of SMBs – unlike large corporations that have the power to negotiate aggressively with landlords and carriers to stay competitive. With Amazon pushing its popular prime membership program to transition from 2-day free delivery to now 1-day, even the largest retailers are facing logistical challenges. But Cahoot changes all that by intelligently aggregating the power of many,” said Chowdhary.
By unlocking previously unavailable warehouse capacity from tens of thousands of merchants across the U.S., Cahoot is transforming eCommerce fulfillment into a new collaborative model that’s more efficient. Cahoot’s fulfillment model is also environmentally friendly besides scaling up to meet the rising consumer expectations of free and fast delivery. And for the first time, online merchants can monetize their existing warehouse space and labor in a way previously not imagined or possible. “Before Cahoot, we didn’t really know how to leverage our extra space and fulfillment capacity. Becoming a Cahoot Fulfillment Partner has been a great way to make extra money without the hassle of becoming a full 3PL. Onboarding was fast and easy; Cahoot software is so efficient that we pick Cahoot orders before our own!” said Robert Hill, CEO of Seismic Audio Speakers.
With Cahoot, merchants can expand to regions previously too far for fast ground shipping and too expensive for expedited air shipping. “My customers now expect free 1-day and 2-day delivery, which is very expensive and difficult to provide. But with Cahoot, I can now offer 1-day delivery in both the East and the West with ground shipping, in addition to my home state of Kentucky,” said Darren Somerville of Impact Battery.
By providing fulfillment as a utility-like service as opposed to a competitive advantage previously available only to the largest and highly capitalized corporations, Cahoot aims to fuel even greater innovation – sure to benefit consumers around the world.
“Before Cahoot, we were selling only on Amazon. The inventory restrictions imposed by Amazon FBA were difficult for my business,” said Eli Miller, owner of Twinkle Toy. “Cahoot helped us grow by serving customers nationwide across multiple selling channels, including our own website. It’s a whole new opportunity that I would never have had without Cahoot.”
Convert Returns Into New Sales and Profits
Our peer-to-peer returns system instantly resells returned items—no warehouse processing, and get paid before you refund.
I'm Interested in Peer-to-Peer ReturnsCahoot’s shipping volume increased five-fold year-over-year in 2020. Many merchants have found success through Cahoot:
- A chocolatier in Brooklyn, NY, added 34% more sales just by outsourcing fulfillment to 2 additional locations.
- A prominent battery merchant in the Midwest maintained their Amazon Seller Fulfilled Prime eligibility by expanding 1-day ground coverage to 45%+ of U.S. consumers.
- Another merchant selling big, bulky products saved 88% on two-day delivery costs and tripled sales in just three weeks.
Fast Company’s editors and writers sought out the most groundbreaking businesses across the globe and industries. The World’s Most Innovative Companies is Fast Company’s signature franchise and one of its most highly anticipated editorial efforts of the year. It provides both a snapshot and a road map for the future of innovation across the most dynamic sectors of the economy.
Cahoot is available for merchants looking to expand their reach for one- and two-day delivery services across all popular selling channels, including Amazon, Walmart, eBay, Shopify, BigCommerce, and more. Merchants can reach a Cahoot fulfillment expert at www.Cahoot.ai
ABOUT CAHOOT
Cahoot is the world’s first peer-to-peer eCommerce fulfillment network that helps online businesses offer nationwide 1-day and 2-day deliveries. Cahoot offers drastically lower fulfillment fees because it enables merchants to store and ship the merchandise for each other. This novel business model also enables merchants to make extra money using their existing warehouse space and personnel.
ABOUT FAST COMPANY
Fast Company is the only media brand fully dedicated to the vital intersection of business, innovation, and design, engaging the most influential leaders, companies, and thinkers on the future of business. Fast Company’s Most Innovative Companies issue (March/April 2021) is now available online here, on iTunes, and on newsstands beginning March 16, 2021
Amazon and Apple Get Co-Opetitive
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More Apple products are getting the stamp of approval from Amazon, which will officially enable the sale of a range of new devices on-site from the tech brand.
Amazon is approving the sale of the latest iPad Pro, iPhone and Apple Watch models by authorized resellers rather than just through the third-party marketplace, according to TechCrunch. Independent sellers will, in fact, have their listings removed. Amazon already allows the official sale of some products, such as laptops and Beats headphones.
The change in the trade partner relationship raises questions about the extent to which Amazon considers Apple to be a competitor and what Amazon’s long-term plan might be for the device market. The two companies have been involved in an ongoing push/pull over their competitive devices, with Amazon sometimes removing Apple products from its site or Apple refusing to play ball with Amazon in some other manner.
Amazon Officially Calls Out UPS and FedEx as Competitors
In this article
Amazon has long downplayed its delivery ambitions, claiming its own shipping and delivery services are only intended to “supplement” existing partners such as UPS and FedEx, saying it just wanted to address capacity shortfalls. Until now, that is.
Amazon has long downplayed its delivery ambitions, claiming its own shipping and delivery services are only intended to “supplement” existing partners such as UPS and FedEx, saying it just wanted to address capacity shortfalls. Until now, that is.
In its 2018 10K filing, Amazon for the first time listed “transportation and logistics services” as a competitive sector in the boilerplate “risk factors” section, along with the existing list of categories including “physical, ecommerce, and omnichannel retail, ecommerce services, digital content and electronic devices, web and infrastructure computing services.”
Amazon clearly needs to get a handle on the growth of its shipping spend, which hit $27.7 billion in 2018, up 31% from $21.1 billion in 2017 and up a whopping 72% from $16.2 billion in 2016. For 2018, fulfillment represented 14.6% of Amazon’s net sales. Analysts see the company’s many and growing logistics initiatives as a way to offset some of that cost.
Shipsurance Partners with Cahoot to Offer Discounted Shipping Insurance to eCommerce Merchants
In this article
WOODLAND HILLS, CA (June 9, 2021) –
The Cahoot eCommerce fulfillment network has announced a partnership with the Shipsurance by Assurant (NYSE: AIZ) to offer discounted all-risk shipping insurance to merchants who use the Cahoot platform. With Shipsurance, Cahoot merchant partners have full, integrated access to insure their parcels for loss and damage while in transit.
Cahoot is the world’s first peer-to-peer eCommerce order fulfillment network. It enables online retailers and brands to affordably provide one- and two-day delivery nationwide by storing and shipping merchandise for each other. With its rapidly growing network of over one hundred eCommerce merchants coast-to-coast, Cahoot is quickly becoming the fulfillment choice of high-volume sellers on ecommerce platforms such as Shopify, Magento, and BigCommerce and marketplaces such as Amazon, Walmart, and eBay.
Shipsurance provides small to medium-sized businesses and enterprise eCommerce shippers alike with low-cost shipping insurance for packages shipped with major US and International carriers such as FedEx, USPS, DHL, and UPS. Shipsurance provides all-risk insurance with fast and easy claims processing, making it an affordable and convenient alternative to the declared value coverage offered by carriers.
Merchants who work with Cahoot now have access to worldwide shipping insurance powered by Shipsurance. Offering package protection to all Cahoot merchants adds another layer of protection to the fulfillment process. It can also save shippers thousands of dollars in shipping fees when compared to the carriers’ offerings. The shipping carriers offer declared value protection that is often costly, and the coverage is contingent on proving they are at fault if a package is lost or damaged. The insurance product offered through Cahoot provides coverage for packages in transit, often at a fraction of what the carriers charge. Shipping claims are typically paid within a week with multiple payment options, in sharp contrast to declared value claims with carriers that can take months.
Make Returns Profitable, Yes!
Cut shipping and processing costs by 70% with our patented peer-to-peer returns solution. 4x faster than traditional returns.
See How It WorksSome of the benefits of using Cahoot’s insurance offering are:
- Low-Cost Coverage – Save up to 90% over the carrier declared value costs
- Broader Coverage – Coverage is all-risk with easy-to-read and understand coverage rules with clear and concise coverage terms
- Actual Insurance – This is not declared value coverage and does not require proof of negligence
- Paperless Claims – The claims process usually takes less than one week. A personal claims agent is available to you that is courteous and helpful throughout the process
“Our novel business model and patented software enable Cahoot to offer the highest fulfillment standards in the industry at drastically lower pricing. Partnering with Shipsurance to reduce the cost of insuring packages during transit helps make our service even better and more affordable,” said Cahoot Founder and CEO Manish Chowdhary.
Shipsurance’s all-risk coverage is broader and more robust than declared value coverage. For example, Shipsurance covers a lost package even if the carrier generated a delivery scan if it was mis-delivered. The declared value coverage provided by carriers does not. Shipsurance covers a situation where a package was delivered to the incorrect address.
“Fast and free shipping is essential to delivering a great customer experience. However, most importantly, the buyer must receive their items in good order. Shipsurance’s coverage, rapid-claims processing, and dedicated claims agent bridge this gap – making it a great addition to Cahoot’s fulfillment services,” states Ariel Shmorak, Vice President of Operations for Shipsurance.
Shipsurance is available for all merchants using the Cahoot platform. It’s an excellent combination for merchants looking to expand their reach for one- and two-day delivery services and lower shipping insurance costs. Merchants that signup for Shipsurance via Cahoot by September 15th, 2021, can enjoy an additional 10% discount over the already low rates. Merchants can reach a Cahoot fulfillment expert at www.Cahoot.ai
ABOUT CAHOOT
Cahoot is the world’s first peer-to-peer eCommerce fulfillment network that helps online businesses offer nationwide 1-day and 2-day deliveries. Cahoot offers drastically lower fulfillment fees because it enables merchants to store and ship the merchandise for each other. This novel business model also enables merchants to make extra money using their existing warehouse space and personnel.
ABOUT SHIPSURANCE BY ASSURANT
Shipsurance Insurance Services, Inc., an Assurant, Inc. company (NYSE: AIZ), is a shipping insurance provider that offers all-risk shipping coverage for shipments sent via the major shipping carriers at rates often more than 90% less than the carrier rates. Shipsurance provides rapid, online claims processing, with most claims paid within a week. Shipsurance has been insuring eCommerce businesses for over eighteen years, and coverage is underwritten by an ‘A’-rated insurance company.

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The North Face Closes 113 Stores on Earth Day
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The North Face closed it’s global headquarters and 113 stores in the U.S. and Canada on Earth Day, April 22. The action is part of a campaign to make Earth Day an officially recognized holiday.
The North Face closed it’s global headquarters and 113 stores in the U.S. and Canada on Earth Day, April 22. The action is part of a campaign to make Earth Day an officially recognized holiday.
As part of the campaign, the North Face also launched “Explore Mode” in major cities in the week leading up to Earth Day. Throughout the week, The North Face partnered with musicians, artists and culinary influencers to host a series of experiences that encourage people to disconnect digitally and engage with their surroundings.
Per Total Retail, The North Face joins a growing list of outdoor brands, including REI and Patagonia, that are becoming increasingly vocal about social causes such as environmental protection. For these companies, closing stores — costing short-term profits — has become a powerful tool to make a statement about serious global issues.

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Is Amazon Responsible for the Sales by Third-Party Sellers?
Technology platforms govern consumer experience in a huge way. Users simply come to the platform, search for what they want, and start using it. Behind this consumer behavior, is the implicit trust in the platform that its users will act in the best interest of other customers. Apple’s App Store, Amazon’s Marketplace and Mastercard’s payment services are some examples.
Technology platforms govern consumer experience in a huge way. Users simply come to the platform, search for what they want, and start using it. Behind this consumer behavior, is the implicit trust in the platform that its users will act in the best interest of other customers. Apple’s App Store, Amazon’s Marketplace and Mastercard’s payment services are some examples.
Apple vs. Amazon on governing its customers
Apple has been very careful about who it allows to operate on its platform and regularly weeds out apps which might exploit its users, such as the recent case of a few dating apps. They were removed from Apple’s App Store because they allowed children as young as 12 to access them.
On the other end of the spectrum is Amazon. Amazon has aggressively expanded its third-party seller base. Now it accounts for about half the revenue generated by the e-commerce division of Amazon.
But in the process, they have been accused of being lax about the quality of merchants they have allowed on the platform. This has enabled counterfeits and sometimes, dangerous items to be sold on the biggest online marketplace in the US.
Slash Your Fulfillment Costs by Up to 30%
Cut shipping expenses by 30% and boost profit with Cahoot's AI-optimized fulfillment services and modern tech —no overheads and no humans required!
I'm Interested in Saving Time and Money3rd party seller avoiding responsibility for defective goods
Recently, a federal court has ruled that Amazon can be held liable for defective goods sold on its site by third-party sellers. This has come after a long battle where earlier a lower court had ruled in Amazon’s favor.
CNBC reported, “The decision on Wednesday related to a case in which a Pennsylvania customer, Heather Oberdorf, purchased a retractable dog leash on Amazon.com from a third-party vendor, The Furry Gang. While walking her dog in 2015, Bernardo was blinded after the leash suddenly recoiled. Neither Oberdorf nor Amazon have been able to contact The Furry Gang.”
How will Amazon deal with the backlash?
So why is Amazon being held responsible? The central point is the customer’s trust in Amazon. Amazon only allows customers to contact the seller through Amazon. This means that the merchants can conceal themselves from the customer, putting the onus squarely on Amazon in case of malfeasance.
There are a couple of paths Amazon can take from here. One, it can increase the scrutiny for the quality of merchants, making it harder to sell on Amazon. On the other hand, it can allow direct access for customers to merchants, losing control of customer experience. Given Amazon’s obsession with customers, we can only expect an innovative solution just around the corner.

Turn Returns Into New Revenue

Related Blog Posts
Amazon Expands Free Shipping for ALL Orders to Non-Prime Members
In this article
Starting Monday and for an unspecified limited time, all Amazon customers — and not just Prime members — will get free shipping with no minimum purchase, which the e-commerce giant in a press release said will apply to “hundreds of millions of items.”
The news comes as rivals have also boosted their free delivery. Target last month, for example, announced free two-day shipping between Nov. 1 through Dec. 22 with no minimum purchase or membership required. And Walmart has expanded free two-day shipping (with a $35 minimum) to “millions of additional items” sold by third-party sellers on its online marketplace, and customers can return marketplace items to any Walmart store.
Related Blog Posts
Fulfilled By Walmart Meaning: Understanding Walmart Fulfillment Services (WFS) – Pros & Cons | Cahoot
In this article
11 minutes
- Overview of Walmart Fulfillment Services
- How does Walmart Fulfillment Services work?
- Eligibility and Requirements for WFS
- Costs and Fees for Using WFS
- Benefits of Walmart Fulfillment Services
- Drawbacks of Walmart Fulfillment Services
- Alternatives to Walmart Fulfillment Services
- Frequently Asked Questions
Walmart doesn’t just want to be the biggest brick-and-mortar seller in the world – they know that eCommerce is the way of the future. According to Webretailer.com, Walmart.com is a relatively distant 3rd in online US visitors behind Amazon and eBay, but it’s closing the gap with a huge growth rate. In their efforts to catch up, Walmart is launching programs aimed at ensuring that their delivery experience can match the vaunted standard set by Amazon Prime. Last year, they launched Walmart Fulfillment Services, a new program that enables sellers to store inventory in a Walmart fulfillment center where it is processed and shipped.
In this article, we’ll cover how WFS works, its strengths and weaknesses, and alternative solutions for sellers who want to deliver fast and free on Walmart.com.
Overview of Walmart Fulfillment Services
Walmart Fulfillment Services (WFS) is a program designed to help ecommerce sellers streamline their order fulfillment process. By leveraging Walmart’s extensive network of fulfillment centers, sellers can offer fast and free shipping to their customers, increasing customer satisfaction and loyalty. WFS is a cost-effective solution for ecommerce sellers looking to outsource their fulfillment operations and focus on growing their business.
With WFS, sellers can store their inventory in Walmart’s fulfillment centers, where Walmart takes care of picking, packing, and shipping orders. This not only ensures timely delivery but also enhances the overall customer experience. Additionally, Walmart handles returns and customer service, allowing sellers to concentrate on other aspects of their business. By using WFS, sellers can benefit from Walmart’s logistics expertise and robust infrastructure, making it easier to scale their operations and reach a broader audience.
How does Walmart Fulfillment Services work?
At its core, Walmart Fulfillment Services is a competitive answer to Amazon Prime. The single most important element of competing with Amazon is earning parity on fast and free shipping. Without fast and free shipping, Walmart knows that customers will continue to turn to Amazon. The faster Walmart can grow WFS and get its sellers to use the network, the better its 2-day shipping coverage will be.

Sellers that use Walmart Fulfillment Services for their Walmart listings go through a relatively simple and hands-off process. Once a seller has an account and listings and the seller is approved for Walmart Fulfillment Services, then they send inventory to Walmart fulfillment centers and convert their products to Fulfilled by Walmart listings.
If they don’t have it already, they will then get the Walmart TwoDay badge, boosting impressions and conversion rates. Then, when a customer places an order, Walmart will pick, pack, and ship customer orders – no intervention is needed from the seller. Moreover, Walmart also manages the returns process and provides customer service.
Walmart Fulfillment Centers
Walmart’s fulfillment centers are strategically located across the United States, allowing for fast and efficient shipping to customers. These centers are equipped with state-of-the-art technology and staffed by experienced professionals who handle everything from inventory storage to order packing and shipping. By using Walmart’s fulfillment centers, sellers can take advantage of the company’s expertise in logistics and supply chain management.
Each fulfillment center is designed to optimize the fulfillment process, ensuring that orders are processed quickly and accurately. The advanced technology used in these centers includes automated systems for sorting and packing, which helps to minimize errors and speed up the shipping process. This level of efficiency is crucial for meeting the high expectations of today’s ecommerce customers, who demand fast and reliable delivery.
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Get My Free 3PL RFPMultiple Fulfillment Centers
One of the key benefits of WFS is the ability to use multiple fulfillment centers. This allows sellers to store their inventory in different locations, reducing shipping times and costs. This strategic placement of inventory not only enhances the customer experience but also helps sellers save on shipping costs.
With multiple fulfillment centers, sellers can also increase their product visibility and reach a wider audience. Walmart’s network of fulfillment centers is constantly expanding, providing sellers with even more opportunities to grow their business. As Walmart continues to expand its network of fulfillment centers, sellers can take advantage of new locations to further optimize their fulfillment strategy and improve their market reach.
Eligibility and Requirements for WFS
To be eligible for WFS, sellers must meet certain requirements. These include:
- Being a registered seller on Walmart Marketplace
- Having a valid business tax ID and EIN Verification Letter from the IRS
- Meeting Walmart’s quality and safety standards for products
- Agreeing to Walmart’s terms and conditions for WFS
- Meeting the product size, ship-from location, and category requirements set by Walmart
Sellers must also ensure that their products are compliant with Walmart’s policies and guidelines, including providing accurate and up-to-date product information. By adhering to these requirements, sellers can maintain a high level of trust and reliability with their customers, which is essential for long-term success on the Walmart Marketplace.
Costs and Fees for Using WFS
The costs and fees associated with using WFS vary depending on the seller’s specific needs and requirements. These costs include:
- A monthly storage fee based on the volume of the product and the length of time it is stored
- A fulfillment fee based on the item’s weight and product category
- Additional fees for hazmat items and storage during peak season (October 1 – December 31)
- Return shipping fees
- Removal/disposal fees
- Inventory handling fees for inbound shipments and prep services
- Additional fees for special projects
Sellers can estimate their storage and fulfillment fees using Walmart’s online calculator. It’s essential to note that fees are subject to change, and sellers should regularly review Walmart’s website for updates on fees and pricing.
By understanding the costs and fees associated with WFS, sellers can make informed decisions about their fulfillment operations and optimize their business for success. Properly managing these expenses is crucial for maintaining profitability while taking advantage of the benefits that WFS offers.
Slash Your Fulfillment Costs by Up to 30%
Cut shipping expenses by 30% and boost profit with Cahoot's AI-optimized fulfillment services and modern tech —no overheads and no humans required!
I'm Interested in Saving Time and MoneyBenefits of Walmart Fulfillment Services
A Straightforward Solution For Walmart Orders
Simply put, sellers that use Walmart Fulfillment Services for their Walmart orders have a low-complexity solution. There aren’t complicated integrations to worry about, and management tools are available through the seller’s account with Walmart.
Enables Fast Shipping
Since Amazon introduced its Prime program, 2-day shipping has quickly evolved from a “nice benefit” to a “must have.” In fact, a 2024 Statista report indicated that almost two-thirds of global consumers expect to receive their order within 24 hours. If these expectations aren’t met, your offer will see high cart abandonment as shoppers select it and then realize that it doesn’t come with the delivery service they require.
Walmart Fulfillment Services powers fast and free delivery by automatically enrolling products into the Walmart TwoDay program. Walmart’s studies have shown the program to boost conversion by 30-50% – a massive revenue increase.

Handles Customer Service
Walmart handles all customer inquiries, refunds, and returns for products sold through WFS. In addition to the TwoDay tag, in fact, WFS products get “Free & Easy Returns” and “Fulfilled by Walmart” tags, which further increase visibility and conversion.
WFS saves you a lot of time by handling customer service responsibilities on your behalf. As we’ll see in the next section, though, there’s a drawback to the “Free & Easy Returns” tag.
Drawbacks of Walmart Fulfillment Services
A Point Solution That Doesn’t Work Elsewhere
Just like Amazon FBA and other marketplace solutions, Walmart Fulfillment Services works only for Walmart. You likely know already that the best sellers don’t put all their eggs in one basket – they list across multiple marketplaces and often have their own webstore as well. If you’re one of those top sellers, WFS is only a partial fulfillment solution.
The benefits of Walmart Fulfillment Services as a simple solution for selling on Walmart fade away when you have to manage alternate fulfillment platforms for other selling channels.
Increased Returns
Amazon FBA sellers already are well acquainted with the flipside of easy returns – you may not have to worry about it when a customer calls in a return, but you’ll definitely be worrying about it when you realize how big of a hit your margin is taking. A 5% return rate already sounds like a big issue – but it gets that much worse when you realize that a 5% return rate usually comes out to about a 20% negative effect on net profit.
In its quest to chase Amazon, Walmart has adopted a similar return policy for WFS that enables its customers to process a full refund for almost any reason. Beware – this benefit will boost revenue, but it comes with a big hit to profitability.
Scaling Made Easy: Calis Books’ Fulfillment Journey
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See Scale JourneyAlternatives to Walmart Fulfillment Services
The most cost-effective way to offer nationwide 1-day and 2-day delivery is to adopt a distributed fulfillment strategy. Of course, Walmart Fulfillment Services will achieve this for you, but it’s far from a complete solution. If you want a more flexible fulfillment approach that can support your multi-channel sales, here are your four best options.
1. Open Multiple Fulfillment Centers: Merchants can take it upon themselves to open multiple US fulfillment centers and control fulfillment. The benefits of total control, though, are offset by challenging market dynamics. Warehouse space has never been more limited or expensive, and hiring frontline fulfillment workers is so competitive that Amazon is paying as much as $22.50 per hour for new employees. On top of that, opening one’s own centers for Walmart fulfillment ties up significant capital and is risky. Pick the wrong location, and you’ll be left footing the bill.
2. Third-Party Logistics Companies (3PLs): Another option is to outsource fulfillment to multiple 3PLs. Since the majority of 3PLs are smaller operations with just a few locations, you’ll have to work with a few to get nationwide 1-day and 2-day coverage. Fulfillment costs vary between 3PLs, so be sure to use something like a 3PL request for proposal (RFP) template to get an apples-to-apples comparison.
3. Flexport: Flexport uses a network of 3PLs to provide nationwide fast and free shipping to Walmart sellers, and if you use it to fulfill your Walmart orders, you’ll automatically qualify for the Walmart TwoDay badge. Like Walmart Fulfillment Services and other 3PLs, Flexport does the heavy lifting of fulfillment for their clients. Also like Walmart Fulfillment Services, though, Flexport is limited in scope. The service focuses on small packages and their fulfillment cost balloons as product size rises. They also avoid the elephant in the room, Amazon, and shy away from doing fulfillment for orders on the largest eCommerce channel. If you use their service, be prepared to add the complexity of other fulfillment solutions as you grow.
4. Peer-to-Peer (P2P) Fulfillment Network: A modern and affordable alternative to working with 3PLs is to use a peer-to-peer e-commerce order fulfillment network. A P2P network is a collective of highly vetted eCommerce retailers who offer up excess warehouse space and resources to provide high-quality Walmart fulfillment to other merchants. As a result, costs are typically lower than what you get with a traditional 3PL fulfillment company, and service levels are higher. With a P2P network, flexible multi-channel fulfillment with nationwide 1-day and 2-day delivery is the norm. The diverse set of merchants ensures that each customer gets a solution customized to their needs, while innovative technology ensures the highest quality fulfillment.
Frequently Asked Questions
What does fulfilled by Walmart mean?
Fulfilled by Walmart (FBW) is a fulfillment service where Walmart handles the storage, picking, packing, and shipping of products on behalf of third-party sellers who list their items on Walmart Marketplace. Similar to Amazon’s FBA (Fulfilled by Amazon), FBW allows sellers to leverage Walmart’s extensive supply chain and logistics network to streamline order fulfillment and improve delivery speed.
How do I enable WFS?
To enable WFS, you must sign up for WFS services in your Walmart marketplace. A US bank account is required for WFS fees. Once signup is complete, you can enable WFS for your Walmart sales channel in the Walmart portal.
How much does WFS charge for fulfillment?
WFS shipping fees are determined by the size and category of the product in question. Apparel, oversize items, hazardous materials, and those with a retail value below $10 per item incur additional fulfillment fees. Use this calculator from Walmart to estimate the cost of fulfilling your products using WFS.

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