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walmartHome & KitchenHome goods brand, US (name withheld)

Walmart: moving 80 SKUs to WFS lifted margin 6 points

A brand fulfilling Walmart orders from its own warehouse was losing the two-day badge and paying for late-delivery refunds. WFS on the movers changed both.

+6 pts
Margin on WFS SKUs
4% → 0.6%
Shipping refunds
+44%
Walmart sales

Published March 8, 2022

The challenge

Self-fulfilled Walmart orders shipped in three to five days, so listings rarely showed the two-day tag, and 4% of orders ended in a shipping-related refund. Seller-fulfilled rates were also rising.

What we did

  • Ranked the catalogue by velocity and size; the 80 SKUs that made 85% of units went to Walmart Fulfillment Services.
  • Rebuilt shipping templates for the long tail that stayed seller-fulfilled.
  • Re-priced the WFS SKUs against the fee difference instead of copying Amazon prices.

The results

Two-day badge on all 80 WFS SKUs; shipping refunds fell from 4% to 0.6% of orders; net margin on the WFS group rose six points. Walmart sales grew 44% over the following quarter.

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