How Walmart Handles Your Returns

Greetings Vendorville 👋,

Somewhere between shipped and shelved, your product may have taken a detour, straight back through the return channel. Whether it was damaged, discontinued, or just mysteriously unwanted, it may be your problem again.

Returns are one of the great supplier mysteries: sometimes they’re expected, sometimes they’re a surprise, and sometimes they’re just a deduction with no product in sight.

How Walmart Handles Returns

If you’re a supplier, it’s important to know that Walmart can return your products, and when they do, they often charge you for it. These charges come through as deductions on your payment. But what’s actually happening behind the scenes?

Let's break it down:

Why Walmart Returns Products

There are many reasons Walmart might return items, and not all of them have to do with the product being defective. Some of the most common reasons include:

The customer changed their mind
The product arrived damaged
The product didn’t work as expected
There were too many units in stock (overstock)
There was a product recall
The item didn’t meet Walmart’s quality standards

What Happens When an Item Is Returned

How returns are handled all comes down to what’s settled on in your supplier agreement. Depending on those terms, Walmart processes returns in one of two ways:

Return to Supplier:
Walmart initiates the physical return and expects suppliers to respond within 2 business days and retrieve the product within 10 calendar days. If you don’t respond or act in time, the item may be recycled, donated, or disposed of, and you'll still be charged.
Do Not Return to Supplier:
Suppliers may agree to let Walmart process returns without shipping the product back. This option might reduce logistics costs, but it doesn’t eliminate the deduction. You’ll still be charged for the return and related fees.

For helpful tips on negotiating your supplier agreement, see our Walmart Allowances and Agreements Cheat Sheet.

How Returns Turn Into Deductions

When returned goods show up with a deduction

When a return is processed, Walmart issues deductions based on the reason and type of return. Here’s how it typically breaks down:

Things to Keep in Mind

Returned products don’t always get sent back, even if deductions are issued.
You may be responsible for more than the cost of the item, including a 10% handling fee, shipping, and any labor or processing costs.
Payment is due within 10 days of invoicing, or Walmart may dispose of the merchandise at its discretion.

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⭐ Rick’s Tips ⭐

“Shipping smaller quantities can get expensive fast, especially when you’re stuck paying for space you’re not using. That’s where freight consolidation comes in. Instead of sending out partial pallets or half-filled trucks, suppliers can combine shipments with others heading in the same direction. This method, used in LTL (Less Than Truckload), air freight, and more, helps cut costs, reduce transit times, and improve efficiency. Whether done offshore at a warehouse or on-site at the point of origin, consolidation helps small suppliers make smarter shipping decisions. ”

Let's Circle Back 🌀

Returns aren’t exactly the highlight of anyone’s supply chain. Nobody’s cheering when a shipment shows up back at the dock. But according to Buzzfeed, not all returns are bad…

Buzzfeed did a survey where they asked people, “What '90s/'00s trend do you actually wish would come back from the dead?” And the responses did not disappoint.

Here are just a few gems that made the list:

If you could bring back any trend from the good ol’ days — fashion, music, or maybe even a discontinued cereal — what would it be? 😏

Until Next Time,

Vendorville ♥️