Reading Time: 3 minutes

Walmart’s seasonal practices and incentives around holiday shipping have evolved, impacting seller margins and fulfillment decisions. As the peak season nears, adjusting operations seem the way to avoid hidden costs. This update aggregates Walmart’s official announcements and credible industry reporting to present a complete picture.

What Walmart Has Announced (2025 Holiday Support)

From Walmart’s own “Holiday Hub” and Marketplace blog:

  • Deadline to onboard into WFS for holiday shipments: Sellers must add products to Walmart Fulfillment Services (WFS) by October 1, 2025 to qualify for holiday shipping programs.
  • Waived peak season storage fees: For October through December, Walmart is waiving peak season storage fees to reduce cost burdens on sellers during the busiest period.
  • Referral fee incentives: Walmart has announced 0% referral fees on qualifying toy listings and 50% off referral fees on qualifying pet supply items during the holiday season.
  • Performance & shipping enhancements: Walmart is expanding its next-day delivery coverage to more metros, and enabling sellers who self-fulfill to automate delivery promises regionally.
  • Multichannel Solutions (MCS) discounts: New users can get 30% off MCS fulfillment services until October 1, 2025.

These changes reflect Walmart’s effort to balance seller support with customer expectations during peak shopping.

What Sellers Should Watch Out For

While Walmart’s incentives soften many cost pressures, certain penalty or peak-demand surcharges remain relevant, especially from logistics and carriers:

  • Carrier peak surcharges: USPS, UPS, and FedEx peak surcharges are in effect during the holiday period, impacting Walmart and downstream sellers.
  • WFS storage structure: For items held over 30 days during Oct–Dec, additional storage fees may apply beyond the waived base level.
  • Performance penalties: Late fulfillment or poor performance may lead to suppression or penalties if sellers miss metrics like On-Time Delivery or Valid Tracking Rate.
  • Referral/incentive eligibility conditions: To enjoy 0% or discounted referral fees, listings must meet Walmart’s criteria (pricing competitiveness, fast shipping, performance thresholds).

Seller Action Plan (By Timeline)

Time Frame Action Items Why It Matters
Now  Review which SKUs you plan to activate for holiday; check which ones are eligible for WFS and incentives. You need enough lead time to send inventory and qualify.
Before October 1, 2025 Opt into WFS for holiday-eligible products. Only WFS-registered SKUs can benefit fully.
October – December Monitor inventory age, ensure fast turnover; track performance metrics daily. Avoid carrying long-held stock (fees may kick in), and maintain high service levels.
Ongoing Adjust pricing factoring in referral, storage, shipping costs; optimize packaging dimensions. Even waived fees have constraints; every extra inch or pound can push you over thresholds.

Why This Matters (Impact on Margins & Strategy)

  • Without proactive planning, you may assume “waived storage fees” means zero costs, only to be hit with additional charges or ineligibility.
  • Carriers’ holiday surcharges will still impact your bottom line unless you absorb or pass them.
  • Incentives like reduced referral fees are conditional, missing the criteria means reverting to full commission structure.
  • Sellers who dynamically manage inventory (fast turnover, accurate forecasting) will benefit more than those who rely on “set-and-forget” operations.

Conclusion

Walmart’s 2025 holiday shipping policy shows a more seller-friendly stance, especially via storage fee waivers, referral discounts, and expanded fulfillment features. But the devil lies in the details. Sellers must act decisively now, onboard to WFS, plan inventory flow, meet performance thresholds, and keep a sharp eye on hidden surcharges from third-party carriers.

Source: Walmart Marketplace

Tags:
Walmart WFS fees