How Much Does It Cost to Sell Items on Walmart?

• How much does it cost to sell items on Walmart?
• Which factors influence the costs when selling on Walmart?
• Can I optimize the costs to maximize my profit?

Selling on Walmart doesn’t have to feel overwhelming or expensive. In fact, once you clearly understand the costs involved, it becomes much easier to plan your pricing and protect your profit. This article breaks down the key expenses sellers face on Walmart and shares practical strategies to optimize costs.

How much does it cost to sell items on Walmart?

Selling on Walmart marketplace offers strong opportunities for both businesses and individual sellers. However, like any eCommerce platform, Walmart charges fees to operate its marketplace, support sellers, and provide a smooth shopping experience for customers.

When selling on Walmart, the main cost sellers need to consider is the referral fee. Walmart does not charge a monthly subscription or listing fee. Instead, you only pay a fee when an item is successfully sold.

Walmart calculates the referral fee based on your product category, and it typically ranges from 6% to 15% of the item’s selling price.

How your payout is calculated:

Example:

• If you sell a book for $10 and the referral fee is 15%, Walmart takes $1.50, and you receive $8.50.
• If you sell a mobile phone, the referral fee is lower at 8%, allowing you to keep a larger portion of your revenue.

Factors affect selling costs on Walmart

As mentioned above, Walmart does not charge listing fees, setup fees, or monthly subscription fees. As a seller, you only pay fees when you successfully make a sale. This makes Walmart Marketplace relatively cost-efficient to get started with, since your expenses are directly tied to your actual sales performance.

One of the biggest advantages of selling on Walmart Marketplace is the absence of upfront costs. Sellers do not have to pay for:

• Account setup
• Product listings
• Monthly subscriptions

As a result, Walmart applies fees only after an item is sold, which helps sellers manage cash flow more effectively and reduce financial risk, especially for new sellers.

1. Referral fees

Below is a simplified breakdown of referral fees across major product categories:

Some categories apply lower referral fees once a price threshold is exceeded, such as:

• Consumer Electronics (portion of total sales price > $100)
• Indoor & Outdoor Furniture (amounts over $200)
• Outdoor Power Tools – Hunting Trail Monitors
• Office Products – Calculators

Please note that these fee percentages are subject to change, and it’s essential to check Walmart’s official fee policies for the most up-to-date information.

2. Walmart fulfillment service fee

WFS fulfillment fees directly affect your overall cost per order, alongside referral fees. While WFS adds a per-unit fulfillment cost, it often reduces shipping expenses, operational overhead, and delivery times, making it easier to price competitively and protect profit margins.

On average, sellers can reduce shipping costs by up to 15% by using WFS compared to many competing fulfillment solutions, helping sellers reduce logistics expenses and offer faster delivery. There are no minimum or maximum inventory limits, giving sellers flexibility to scale without upfront volume requirements.

>> WFS standard fulfillment fees

3. Additional fulfillment service fees

In addition, Walmart applies extra handling fees to certain standard items based on product characteristics such as category, size, weight, or price. Therefore, these additional charges can directly increase your total cost per order, and sellers should factor them into pricing and profit calculations upfront.

The table below outlines the most common additional fulfillment service fees sellers may encounter:

For larger items, unit weight also becomes a factor, with fulfillment fees starting to increase significantly once products reach 90 lb or more.

These additional fulfillment service fees may seem small individually, but they can significantly impact total selling costs, especially for low-priced, bulky, or heavy products. When combined with referral fees and base fulfillment charges, they can quickly reduce profit margins. 

4. Large and bulky item handling fees

An item is classified as large and bulky when it meets at least one of the following criteria (including packaging):

• Unit weight is between 150 lb and 500 lb
• Longest side is greater than 108 inches and up to 120 inches
• Longest side plus girth is greater than 165 inches [Girth = 2 × (width + height in inches)]

Shipping weight is calculated using unit weight, rounded up to the nearest pound.

>> Large & Bulky fulfillment fees

Because of the high base fee and added cost per pound, large and bulky items can significantly increase fulfillment expenses and should be priced carefully to maintain profitability.

5. Monthly fixed storage fees

Storage fees cover the cost of storing your inventory at Walmart fulfillment centers. These fees are calculated based on the storage volume and length of time the product remains in storage.

• Unit volume (cubic feet) = (length × width × height in inches) ÷ 1,728
• Fees are charged based on a 30-day calendar month

>> Monthly storage fee rates

Storage costs can add up quickly for slow-moving or oversized inventory. Don’t worry, sellers can completely avoid this risk. Merchize supports sellers with Walmart fulfillment service, where products are only manufactured after an order is placed. 

Instead of sending inventory to a warehouse and paying ongoing storage fees, sellers can route Walmart orders to Merchize for production and fulfillment, helping reduce inventory risk, prevent tied-up capital, and maintain better control over total selling costs on Walmart Marketplace.

6. Return processing fees

Walmart customers are not charged return shipping fees. That is the reason why return costs are the seller’s responsibility. Sellers are charged a return processing fee based on shipping weight.

Standard return fees per unit (Items under 20 lbs)

For items over 20 lbs, sellers should refer to the Return Processing Fees section in Walmart Marketplace Learn for detailed pricing. Additional return fees may apply for apparel, hazardous materials, and oversized items.

For returns classified by Walmart as “Walmart fault” including items damaged in transit, late deliveries, lost packages, or incorrect items shipped, Walmart covers the return shipping costs, and sellers are not charged any return processing fees.

If an item is damaged or lost while at a Walmart fulfillment center, the seller will be reimbursed based on the item’s selling price. However, Walmart retains the original fulfillment fee and referral fee.

7. Other fees

Beyond standard selling and fulfillment fees, sellers should also be aware of several additional charges that may apply when selling on Walmart Marketplace.

• Problem Inventory Processing Fees: These fees apply to inbound shipments that cannot be received at Walmart fulfillment centers. If the issue cannot be resolved, Walmart may return the inventory to the seller, and the seller is responsible for the return costs. Common issues include incorrect labeling, missing poly bags, or non-compliant packaging.
• Removal and Disposal Fees: Sellers may request inventory to be removed from Walmart fulfillment centers and returned to them for a fee. Walmart’s fulfillment centers manage these removal and disposal processes, and the associated fees help cover handling, transportation, and inventory management costs.
• Advertising Costs (Walmart Connect): Sellers can choose to run sponsored ads through Walmart Connect to increase product visibility. These advertising campaigns come with additional costs, which vary depending on bidding strategy, competition, and campaign performance.

How to optimize costs and increase profit on Walmart

1. Optimize fulfillment costs

Compare self-fulfillment and WFS to identify which option delivers the best cost-to-speed balance. Sellers should also evaluate third-party logistics providers for flexibility and scalability. Understanding the fee structure of each fulfillment method helps prevent hidden costs from eroding margins.

2. Optimize shipping and packaging

If you self-fulfill, negotiate bulk shipping rates with carriers to lower per-order costs. Use right-sized packaging to reduce dimensional weight charges and avoid unnecessary oversized fees. Small packaging optimizations can result in meaningful savings at scale.

3. Optimize product pricing

Take advantage of Walmart’s dynamic repricing tools to remain competitive without sacrificing profitability. Offering product bundles or multipacks can increase average order value while helping offset fulfillment and referral fees.

4. Minimize return-related costs

Lower return rates by providing clear product descriptions, accurate images, and detailed specifications that set the right customer expectations. Improve packaging durability to prevent transit damage, and maintain proactive customer support to resolve issues before they turn into returns.

5. Improve listing quality

High-quality images and optimized titles can significantly improve conversion rates. Use keyword-rich descriptions to boost discoverability, and encourage customer reviews to build trust and improve long-term listing performance.

6. Leverage Walmart promotional tools

Participate in Walmart Price Incentives programs to stay competitive through Walmart-funded discounts or reduced referral fees. Combine promotions with selective sponsored advertising to drive efficient, profit-focused sales growth.

FAQs

1. How often does Walmart update or change its seller fees?

Walmart updates its fee structure from time to time to reflect market changes and improve the seller experience. Sellers should regularly check official Walmart announcements to stay up to date

2. What is the minimum cost to start selling on Walmart?

There is no upfront cost to start selling on Walmart Marketplace. Walmart does not charge a monthly subscription fee or listing fee. Sellers only pay fees after a product is sold, mainly the referral fee, which typically ranges from 6% to 15% depending on the product category. Any additional costs depend on your fulfillment method, such as shipping, fulfillment, or advertising.

3. Are there any hidden fees on Walmart Marketplace?

Walmart does not have hidden fees, but sellers should be aware of additional charges beyond the referral fee. These may include fulfillment fees (WFS), storage fees, return processing fees, inventory removal fees, and advertising costs if you choose to use Walmart Connect. Understanding these potential costs upfront helps sellers price products accurately and protect their profit margins.

4. Do I have to pay Walmart fees if my item doesn’t sell?

No. Walmart only charges fees on successfully sold items. If a product does not sell, you won’t be charged any referral or marketplace fees.