Walmart Increasing Return Shipping Rates for Third-Party Sellers

Walmart is raising its return shipping rates for seller-fulfilled orders, citing "changing market conditions," according to an update posted this month on the Walmart Marketplace website. While the retailer doesn't make its return shipping rates public, the company told Talk Business it’s the first rate increase in two years.

Walmart marketplace allows third-party sellers to sell their products on Walmart.com, with zero monthly or setup fees. The retailer said it deducts a "reasonable referral fee" from each completed purchase, with commission rates varying by category and ranging from 6 percent to 15 percent.

Walmart is also giving third-party sellers the option of adding a "Keep It Rule" for unwanted returns, which allows customers to keep their items and still receive a refund when they initiate returns online or in Walmart stores.

Total Retail's Take: Retailers and brands have been navigating the complexities of returns policies, trying to save money while still pleasing the customer. The National Retail Federation (NRF) said in a December report that total returns for the industry amounted to $743 billion in merchandise in 2023. NRF's Executive Director of Research Mark Mathews noted that retailers are continuing to test and implement ways to minimize losses from returns while optimizing the shopping experience for customers.

For example, some retailers testing out returns fees or tightening their return policies include Zara, Bath & Body Works, and H&M.

Amazon.com, the world's largest online marketplace and one of Walmart's top competitors, began charging customers a $1 fee in 2023 if they return items to a UPS store when there is a Whole Foods or Amazon Fresh grocery store (both owned by Amazon) or a Kohl's (with whom Amazon has a partnership) closer to their delivery address.