In this article, learn about:

Key differences between Walmart sellers and suppliers

Walmart’s performance standards for sellers and suppliers

The Walmart platforms each group uses to manage their business

Logistics and fulfillment expectations for both selling models

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For brands looking to sell through Walmart, there are multiple paths to getting your products into the hands of shoppers. The two main options are becoming a Walmart Supplier, which gets your products into physical stores, or a Walmart Seller on Walmart.com, which sells your products online. While some brands may operate in both spaces, each model has its own requirements and expectations.

Another way to distinguish between the two is through the lens of first-party (1P) vs. third-party (3P) selling. Walmart Suppliers are considered 1P vendors—they sell their products to Walmart, which then sells them to customers. In contrast, Walmart Sellers tend to operate as 3Ps, meaning they sell through Walmart’s Marketplace directly to customers.

In this article, we’ll explore some of the key differences between Walmart sellers and suppliers—focusing on the platforms they use, logistics models, and performance standards.

What is a Walmart Seller?

A Walmart seller refers to brands that sell on Walmart.com, also known as Walmart Marketplace. This means sellers maintain ownership over their merchandise and manage their own pricing, fulfillment, customer service, and inventory. Walmart provides the platform and visibility, but the seller is responsible for ensuring a positive customer experience.

Seller Center

Walmart Marketplace sellers manage their business in a portal called Seller Center. This comprehensive platform is where sellers onboard, list products, manage inventory, adjust pricing, configure fulfillment settings, and track performance metrics.

Shipping/Logistics

Since Marketplace Sellers have greater control over the fulfillment process, they typically are responsible for picking, packing, and shipping products directly to customers, which Walmart refers to as Seller-Managed Fulfillment. Sellers who prefer to outsource their shipping can participate in a program like Walmart Fulfillment Services (WFS) or employ a third party to handle the shipping. Regardless of the method, sellers must meet the performance standards outlined below.

Performance Standards

Marketplace sellers are held to a set of performance standards that Walmart utilizes to ensure a positive experience for Walmart.com customers. Marketplace sellers must ensure compliance with the following five standards:

Metric	Goal	Description
Cancellation Rate	Less than 2%	Refers to the percentage of orders that a seller cancels after receiving the order.
On-Time Delivery Rate (OTD)	Greater than 95%	Measures the percentage of orders that are delivered on (or before) the Expected Delivery Date (EDD).
Valid Tracking Rate (VTR)	Greater than 99%	Refers to the quantity of shipments that provide correct tracking information.
Refund Rate	Below 6%	Measures the percentage of orders that are refunded due to issues on the seller’s end.
Seller Response Rate	Must respond to 95% of customer inquiries within 48 hours	Tracks how quickly sellers reply to customer messages.

Related Reading: Walmart Marketplace Performance Standards

What is a Walmart Supplier?

A Walmart Supplier refers to brands that sell products in Walmart's brick-and-mortar stores. Selling in Walmart stores has a much higher barrier to entry and requires a more rigorous approval process, including close collaboration with Walmart buyers and strict compliance with Walmart’s standards.

Walmart suppliers must be prepared for high-volume sales that require robust operational infrastructure, including reliable manufacturing, warehousing, logistics, demand planning, etc. Success as a Walmart supplier requires building a strong retail partnership with Walmart and meeting performance metrics like OTIF and SQEP.

Related Reading: 4 Simple Steps To Becoming A Walmart Supplier

Retail Link

Suppliers manage their business with Walmart via Retail Link, a comprehensive platform that houses dozens of applications for tracking and managing nearly every aspect of the supplier-retailer relationship.

Some of the most notable Retail Link applications include:

Platform	Purpose
Supplier One	Items and Inventory, Returns and Claims Scorecard, Demand and Forecasts, Order Management, and Payments and Charges.
Accounts Payable Disputes Portal (APDP)	Dispute deductions, track the status of their claims, and access details of any payment discrepancies.
NOVA	Purchase order creation and edits.
OTIF/SQEP Dashboards	Dashboards that allow suppliers to see their performance and compliance metrics.

In addition to applications to help manage their Walmart business, Retail Link also houses important announcements, supplier agreements, Walmart calendar dates, and Supplier Academy (a training platform for suppliers).

Related Reading: Retail Link Essentials for Walmart Suppliers

Shipping/Logistics

Walmart suppliers have the option of choosing between Prepaid and Collect shipping. Using Prepaid, the supplier manages the entire shipping process, from choosing a carrier to scheduling and paying freight costs. With the Collect method, Walmart handles pickup and transportation, while the supplier is responsible for having the order ready by the appointment time. Each method comes with trade-offs in control, cost, and operational burden, and suppliers should weigh logistics capabilities, shipping volume, and desired level of oversight when making this decision.

Related Reading: Should I Use Prepaid or Collect Shipping in Walmart?

Performance Standards

Walmart suppliers are measured by a variety of standards to ensure product availability, accuracy, and customer satisfaction. Meeting these expectations is essential for maintaining a strong relationship with Walmart and avoiding costly deductions or fines.

On Time In Full (OTIF)

For Walmart suppliers, On Time In Full measures the percentage of orders that arrive on time and in full to their planned destination.

Metric	Requirement	Notes
On Time (Prepaid)	90% of all cases delivered must arrive on time at the distribution center.	Applies to LTL, FTL, and mixed shipments.
On Time (Collect)	98% of all cases must be ready for pickup by the appointment time.	Walmart is responsible for delivery to DC or store.
In-Full	95% of all cases must be shipped in full.	Goal applies individually to each merchandise alignment (e.g., Food, Health & Wellness, Apparel, etc.)

Related Reading: Walmart's OTIF Performance Metrics

Supplier Quality Excellence Program (SQEP)

SQEP, made up of four phases and first rolled out in 2021, is Walmart’s effort to ensure high-quality supplier activities across the supply chain. The four phases include:

Phase 1: PO Accuracy

Phase 2: Barcode and Labeling Compliance

Phase 3: Packaging, Pallet, and Load Compliance

Phase 4: Scheduling and Transportation

So far, the first three phases have been rolled out. Failure to meet SQEP standards results in “defects” which in turn leads to fines.

Related Reading: Calculating SQEP Fines by Defect

Which is Right for You?

Selling on Walmart Marketplace can offer greater flexibility, faster onboarding, and direct access to online shoppers. On the other hand, becoming a brick-and-mortar supplier offers unparalleled visibility and sales volume with more rigorous compliance requirements and a longer approval process. Choosing which is right for you requires a close look at your brand’s infrastructure, growth goals, and operational capacity.

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