As sellers and Amazon arrive at the conclusion of Prime Day 2023, all eyes have shifted to the fall and Q4 holiday shopping season that lies ahead. The online retailer wants sellers to start planning, and it has already announced the Lightning Deal submission deadlines for the rest of its major 2023 deal events – the Fall Prime Deal Event and Black Friday / Cyber Monday.

What Events / Weeks do These Include?

The company has announced Lightning Deal Submission deadlines for 2 events: 

• Fall Prime Deal Event (known informally as the 2nd Prime Day)

Amazon announced this event, available exclusively to its Prime members for the first time in October 2022. While many speculate the company introduced it to force another wave of shopping from its customers in the lull between Prime Day and Q4, it is still a great opportunity for sellers to capitalize on. 

• Black Friday / Cyber Monday week

Amazon, like every other retailer, aims to capitalize on the surge in sales during this festive time of the year, as the holidays approach. 

When do I Need to Get my Deals in?

• For the Fall Prime Deal Event, you must get your Lightning Deals in by August 11, 2023. 
• For Black Friday / Cyber Monday, you must get your deals in by September 1, 2023 

Note: Amazon has only announced deadlines for Lightning Deals so far. You can also submit Coupons and Prime Exclusive Discounts for these events. The company will announce the deadline for these later.

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Starting Monday and for an unspecified limited time, all Amazon customers — and not just Prime members — will get free shipping with no minimum purchase, which the e-commerce giant in a press release said will apply to “hundreds of millions of items.”

The news comes as rivals have also boosted their free delivery. Target last month, for example, announced free two-day shipping between Nov. 1 through Dec. 22 with no minimum purchase or membership required. And Walmart has expanded free two-day shipping (with a $35 minimum) to “millions of additional items” sold by third-party sellers on its online marketplace, and customers can return marketplace items to any Walmart store.

Read the article here.

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Watch On-Demand Webinar: Amazon SFP – How To Sell and Win in 2023

On August 8, 2023, Amazon announced a wide range of changes to the criteria it expects sellers to meet on its Seller Fulfilled Prime program. The company introduced new requirements, while updating its expectations from merchants across other metrics. These include on-time delivery, valid tracking, nationwide delivery, delivery speed, free returns and program fees. Amazon has also removed the use of the On-Time Shipment metric and no longer requires the use of its Buy Shipping services.

In this article, we breakdown each criteria – explaining the old requirements and the new ones that will go into effect on October 1, 2023. We also explain the impact we expect sellers to face from each of these changes.

Program Requirements and Criteria

On-Time Shipment (OTS)

The On-Time Shipment Rate is defined by Amazon as the number of units that shipped on or before the Promised Ship Date / Total No. of Shipped SFP Units.

Amazon tracks this metric based on when the carrier scan occurs. 

Previous Expectations

If an order is received before the cut-off time Mon-Fri and Sat/Sun (whichever the seller prefers to enable), carrier scan must occur the same day.

A carrier scan must occur the next day if an order is received after the cut-off time.

This is the most important metric in the current Seller Fulfilled Prime requirements.

New Expectations

Sellers will no longer be judged on this metric.

You don’t have to ship the same day if shipping tomorrow is optimal

Under the current Seller Fulfilled Prime guidelines, Amazon requires sellers to ensure a carrier scan is conducted the same day for all orders received before the cut-off time. 

There are situations where this rule forces sellers to unnecessarily use expensive air shipping, at the expense of more economical services. It’s best to understand this with an example: 

Let’s imagine you’re a seller with 2 warehouse locations – one in Los Angeles and the other in New York. Imagine that you receive an order from a customer in Connecticut at 3PM ET on a Monday:

Ideally, you would like to use an economical ground service which can reach the customer in time by fulfilling the order from your New York warehouse. However, because it is past the cutoff time in New York, but before the cutoff time in Los Angeles, Amazon will expect a carrier scan that same day.  The only way for you to ship from Los Angeles and deliver to the customer by the promised date is through an expensive air shipping service. 

However, with carrier scans no longer required on the same day, you can now choose to ship the next day from your New York warehouse through a service like UPS ground – which is 3.5X cheaper than the air service. Such cost savings can only be achieved, however, if you have the right technology in place. Your shipping software needs to intelligently compare warehouse locations, carriers and shipping services to determine the most economical option to use, which still satisfies the customer expectation.

On-Time Delivery (OTD)

The On-Time Delivery Rate is defined as Number of Units delivered on or before the Promise Date (which the customer sees at the time of checkout) / Total No. of SFP Units Shipped. 

Amazon tracks this metric based on 2 parameters – the delivery date committed to the customer when they checkout, and when the package is actually delivered at their address.

Previous Expectations

Under the old program, Amazon heavily pushed the use of its Buy Shipping Service. Amazon might also believe that only the services on Buy Shipping are capable of meeting the delivery promises made to customers. 

Therefore, it was only in cases when labels were bought off of Buy Shipping that sellers were held to the high bar of 97% on-time delivery.

New Expectations

This becomes the most important metric under the new Seller Fulfilled Prime requirements.

Amazon is also going to minimize the provision of “Promise Extensions” (in some cases, the customer is shown a later delivery date because Amazon factors in buffer time due to logistical challenges at the seller’s end).

They encourage sellers to begin by looking at their On-Time Delivery Rate for orders without Promise Extensions (to get a sense of their ‘true’ order fulfillment levels).

No More Protection Through Buy Shipping Usage Available

While the 93.5% on-time expectation is a reduced one, which is more favorable for sellers (they don’t have to be perfect every time), this metric could still work against them.  The major reason for this is that sellers now lose the protection that the previous program afforded – so long as they bought the label on Amazon Buy Shipping, and performed the carrier scan in time, they could not be held accountable for any delays in order delivery due to carrier issues. Now, it no longer matters whether the label was bought through Buy Shipping or if a carrier scan occurred in time – sellers must meet the 93.5% benchmark. The biggest contributor to making it happen are the shipping carriers. The biggest criteria by which Amazon measures success on the program is now in the hands of a factor that the seller cannot entirely control – the ability of the shipping carriers to execute operations smoothly and without disruption.

Buy Shipping Usage

Amazon Buy Shipping is Amazon’s system through which sellers and merchants can purchase shipping labels to fulfill their orders. 

The Buy Shipping Usage % is defined as the Number of Units for which labels were bought with Buy Shipping / Total No. of SFP Units Shipped 

Previous Expectations

Buy Shipping usage is extremely important. Sellers must print nearly every label on Buy Shipping. Complying with program requirements boiled down to printing labels on Buy Shipping, and then ensuring carrier scans occurred on the same day.

New Expectations

Sellers will not be judged any longer by this metric – this is the biggest step Amazon claims it is taking to provide sellers and merchants “greater flexibility of shipping services and carriers”.

In return for being able to pick services off of Buy Shipping, a timely carrier scan will not suffice – the orders need to actually reach the customer within the Promised Delivery Date >93.5% of the time.

More flexibility in picking carriers and services

Amazon Buy Shipping has one major issue that numerous sellers have reported anecdotally. The platform does not do a good job of estimating the delivery speeds of USPS services.  Buy Shipping sometimes excludes USPS services that are actually capable of meeting the delivery date, forcing the seller to pick a more expensive shipping label that it does believe is capable of reaching the customer in time. Buy Shipping also occasionally runs into errors, where it does not return a particular carrier for no particular reason. In all these cases, merchants are forced to buy labels off Buy Shipping, which reduces their usage less than the 99% bar.  

With this requirement gone, sellers are now free to pick the ‘truly’ cheapest service. However, you can see the benefits of this only if you have an intelligent multi-carrier shipping software in place that rate-shops multiple carriers and shipping services to identify the truly cheapest label on each order.

Valid Tracking Rate (VTR)

Amazon provides its customers tracking numbers for them to be able to see where their order is at. 

An order has valid tracking if it receives a first carrier scan (the scan that is performed by the carrier to indicate that the order is in transit). 

Amazon defines the Valid Tracking Rate as Number of Prime packages with a Valid Tracking ID / Number of Prime packages for which shipment has been confirmed.

Previous Expectations

Sellers were not assessed on this metric.

New Expectations

Sellers are responsible for updating shipping carrier, shipping service and tracking number information on Amazon for each order, to enable customers to track the status of their packages.

Less Hassle for Merchants in Meeting This Metric

Amazon expects each package to have at least one carrier scan. This scan must occur before the customer receives their order, so that they can use the tracking number to see where their order is on Amazon. The fact that the carrier scan does not have to occur the same day is a positive for sellers. Many sellers have reported issues with carrier operations on the weekends – their packages are picked up, but no scans are actually conducted on a Saturday. Under the current program, this leads to violations of the OTS metric.  

Under the new program, sellers should not face too many hurdles with getting packages scanned once before they reach customers.

Nationwide Delivery Coverage

This refers to the ability for products to be made available with fast shipping across the contiguous United States (the lower 48 states). 

This expectation is based on the size tier that the item falls into (Standard Sized / Oversized / Extra Large). 

Previous Expectations

Standard-sized products must be made available within the entire contiguous U.S. on fast shipping.

Oversized items can be serviced within specific regions (also known as Regional SFP) – nationwide fast shipping is not required for them.

New Expectations

Products across all 3 of Amazon’s size tiers – Standard Sized, Oversized and Extra Large – must be made available in the contiguous U.S. on fast shipping.

Any product (regardless of size tier) that is configured with a Prime shipping template has a minimum delivery speed of 3-5 calendar days – sellers cannot edit this.

Prime Badge Available Nationwide For all SKUs, but with the Caveat of Higher Shipping Fees

Amazon is now willing to provide sellers the Prime badge nationwide on oversized and extra large SKUs, whereas previously it was restricted to just the specific regional part of the country the seller operated from. The metrics for 1- and 2-day delivery are not yet extremely high. This is on the whole a positive for sellers because the Prime badge boosts search rank, conversion and sales on these SKUs. 

The negative is that the minimum delivery speed across every size tier is 3-5 days. This is a calendar-day based metric, which includes Sundays and Holidays. Therefore, it may not be possible to always use discount services capable of meeting the delivery timeline, such as USPS Priority Mail, FedEx Home or UPS Ground. In some cases, the seller might still be forced to use expensive air shipping.

Delivery Speed Metrics

Amazon tracks this based on the % of Product Detail page views that promise same-, 1- or 2-day delivery to customers. 

This percentage will be calculated based on pageviews from customers across the entire contiguous United States, not just those in your defined regions for Same-, 1- or 2-day deliveries.

Previous Expectations

Amazon introduced the delivery speed metric as a percentage of product detail pageviews that promise customers same-, 1- or 2-day delivery. 

The calculation is based on calendar days, and includes Sundays and holidays.

New Expectations

The delivery speed metrics across all size tiers have increased. They will now be based on pageviews from customers all over the lower 48 states, in addition to those in your defined regions for same-, 1- and 2-day deliveries.

Amazon has said that it does not have targets for Same-Day Deliveries initially.

However, as Amazon focuses on same-day deliveries for its inhouse FBA logistics network, there might be revisions to this in the coming months.

Delivery Speed Expectations Increase Across Every SKU

• This is how delivery promises will be displayed to customers (assuming a cut-off time of 2PM, and that you deliver every order within 1 day after it ships). 

• These metrics have always been the most crucial and challenging for sellers to meet. Sometimes, they’ve been unfairly penalized for them also. Let’s say you’re based in New York, and a customer in Connecticut is browsing your product detail page at 6 PM ET. Even though you may be capable of delivering the package to them the next day, Amazon will still show only a 2-day delivery promise. 

Achieving a high % of 1- and 2-day delivery pageviews nationwide is not easy, and relies largely on ensuring that your inventory is strategically distributed in a network of USA fulfillment centers so that customers from everywhere see fast shipping promises.

Trial Period

Sellers hoping to be a part of the SFP program must go through a trial period where they can prove to Amazon that they are capable of meeting the rigorous criteria of the program. 

During this trial period, when customers shop their products, they will not see the Prime badge on the listings. On successfully completing the trial period and meeting the SFP criteria, Amazon will enable the Prime badge for the listings.

Previous Expectations

Before the trial:

Have a Professional seller account, and activate Premium Shipping. Fulfill 30 Premium orders in 1 month. 

During the trial: 

Fulfill 200 orders in 90 days. Do so while meeting all requirements of the SFP program. 

New Expectations

Products across all 3 of Amazon’s size tiers – Standard Sized, Oversized and Extra Large – must be made available in the contiguous U.S. on fast shipping.

Any product (regardless of size tier) that is configured with a Prime shipping template has a minimum delivery speed of 3-5 calendar days – sellers cannot edit this.

Time to Enrollment Shortens for Some Sellers, While Others May No Longer Be Eligible

Previously, the trial period was longer in length and order volumes – having to fulfill 200 orders in 90 days while meeting the program criteria. Now, if you’ve self-fulfilled 100 packages in the last 90 days (or under, say 60 days) – you can get on the shorter trial of 30 days.  The overall time to Seller Fulfilled Prime enrollment is potentially shorter (if a merchant can move past pre-qualification quickly).

However, when comparing 200 packages in 90 days to 100 deliveries in 30 days, sellers are expected to ship nearly 50% more orders per month – this can exclude sellers with small monthly volumes who were previously eligible to participate in the program. 

Performance Evaluation

Amazon periodically assesses how its SFP sellers are faring, and to check whether they are meeting the expectations set for them.

The evaluations that Amazon conducts on sellers continues to occur at the same cadence that it always has – sellers will not face anything new.

Amazon will begin tracking sellers against the new set of metrics beginning October 1, 2023. 

Resolving Disputes

Needless to say, order fulfillment is complex and mistakes can occur. While merchants face no penalties for mistakes that FBA makes, sellers on Amazon SFP face severe penalties for issues with orders. 

Previous Expectations

The Plan of Action needs to explain why you slipped up, what specific steps you’re taking to fix the current situation and measures that will be put in place to ensure it does not repeat.

New Expectations

An email will be sent the first time a requirement is missed. The Prime badge will be “paused” the 2nd time you miss the same requirement. If you are sure the issue is fixed, you can restart the Prime badge. If you make it through four weeks without violating the same requirement after you restart the Prime badge, your account will be reset. If you do miss the same requirement the 3rd time, you will lose the Prime badge. If you go through the pre-qualification process, you can start an SFP trial again.

Amazon Gives Sellers More Chances, but the Road Back is Extremely Tough

Under the previous Seller Fulfilled Prime requirements, when Amazon found sellers missing a certain metric, it would suspend them from the program and require submission of a Plan of Action. This was harsh – a single mistake could lead to suspension of the Prime badge. This was exacerbated by the resolution process – it can take a long time for Amazon to get back, and if they deemed the Plan of Action not good enough, they could delay reinstatement on the program.

 Now, sellers have 3 strikes per program requirement. Additionally, this gives a chance to sellers to dig into why they missed a metric and work with their fulfillment partner to ensure it does not repeat again. Sellers that have an SFP fulfillment partner with responsive, reliable customer support should not face too much trouble in ironing out their errors and continuing their participation in the program. However, if the 3 strikes do occur, then it is a long, long way back – sellers must begin all over again – right from the pre-qualification process.

Free Returns

When a customer wishes to return a Return-eligible Prime item, the sellers are in most cases required to pay for the cost of the return shipping label, and to provide the customer a full refund. In a small number of cases, the customer might be required to bear the cost of the shipping label – in these cases, a refund is provided after deducting the price of the label.

Previous Expectations

When the return had these Buyer codes, sellers were exempt from bearing the cost of the return label: 

• Accidental order
• Better price available
• No longer needed or wanted
• Performance or quality not adequate
• Incompatible or not useful for intended purpose
• Part not compatible with existing system
• Excessive installation or did not install

New Expectations

Sellers must bear the cost of the return shipping label even in the cases of the above-mentioned buyer reason codes.

Return Costs Rise for Sellers – Even When the Onus is on the Buyer

Previously, in certain cases, sellers could provide refunds after deducting the cost of the shipping label. Now, even in cases where the onus may lie on the buyer’s side, the seller must bear the cost of the return shipping label. This is an additional expense that they must bear, which was not the case previously.

Program Fees

Amazon originally announced that they would charge sellers 2% of the unit price for every item shipped via Seller Fulfilled Prime, or a minimum of $0.25. 

Amid growing scrutiny from regulators over anti-competitive practises, the company withdrew this fee for concerns over how sellers and officials would perceive such behavior. Amazon withdrew the fee a few days before September 26, 2023 when the Federal Trade Commission and 17 US states sued the company for anti-competitive behavior.

Amazon Resources

We hope you found our breakdown helpful and informative!

To read more about the old requirements that the program wanted sellers to meet, visit this page on Amazon Seller Central: https://sellercentral.amazon.com/help/hub/reference/external/G202072550 

To read about the new requirements that Seller Fulfilled Prime will enforce starting October 1, 2023, visit this page on Seller Central:

https://sellercentral.amazon.com/help/hub/reference/external/GXCRLXHNJNPE2DHM

You can also read our guide to selling and winning on Amazon Seller fulfilled Prime to learn everything there is to know about SFP before you start the process in October 2023. 

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Walmart doesn’t just want to be the biggest brick-and-mortar seller in the world – they know that eCommerce is the way of the future. According to Webretailer.com, Walmart.com is a relatively distant 3rd in online US visitors behind Amazon and eBay, but it’s closing the gap with a huge growth rate. In their efforts to catch up, Walmart is launching programs aimed at ensuring that their delivery experience can match the vaunted standard set by Amazon Prime. Last year, they launched Walmart Fulfillment Services, a new program that enables sellers to store inventory in a Walmart fulfillment center where it is processed and shipped.

In this article, we’ll cover how WFS works, its strengths and weaknesses, and alternative solutions for sellers who want to deliver fast and free on Walmart.com.

Overview of Walmart Fulfillment Services

Walmart Fulfillment Services (WFS) is a program designed to help ecommerce sellers streamline their order fulfillment process. By leveraging Walmart’s extensive network of fulfillment centers, sellers can offer fast and free shipping to their customers, increasing customer satisfaction and loyalty. WFS is a cost-effective solution for ecommerce sellers looking to outsource their fulfillment operations and focus on growing their business.

With WFS, sellers can store their inventory in Walmart’s fulfillment centers, where Walmart takes care of picking, packing, and shipping orders. This not only ensures timely delivery but also enhances the overall customer experience. Additionally, Walmart handles returns and customer service, allowing sellers to concentrate on other aspects of their business. By using WFS, sellers can benefit from Walmart’s logistics expertise and robust infrastructure, making it easier to scale their operations and reach a broader audience.

How does Walmart Fulfillment Services work?

At its core, Walmart Fulfillment Services is a competitive answer to Amazon Prime. The single most important element of competing with Amazon is earning parity on fast and free shipping. Without fast and free shipping, Walmart knows that customers will continue to turn to Amazon. The faster Walmart can grow WFS and get its sellers to use the network, the better its 2-day shipping coverage will be.

Sellers that use Walmart Fulfillment Services for their Walmart listings go through a relatively simple and hands-off process. Once a seller has an account and listings and the seller is approved for Walmart Fulfillment Services, then they send inventory to Walmart fulfillment centers and convert their products to Fulfilled by Walmart listings.

If they don’t have it already, they will then get the Walmart TwoDay badge, boosting impressions and conversion rates. Then, when a customer places an order, Walmart will pick, pack, and ship customer orders – no intervention is needed from the seller. Moreover, Walmart also manages the returns process and provides customer service.

Walmart Fulfillment Centers

Walmart’s fulfillment centers are strategically located across the United States, allowing for fast and efficient shipping to customers. These centers are equipped with state-of-the-art technology and staffed by experienced professionals who handle everything from inventory storage to order packing and shipping. By using Walmart’s fulfillment centers, sellers can take advantage of the company’s expertise in logistics and supply chain management.

Each fulfillment center is designed to optimize the fulfillment process, ensuring that orders are processed quickly and accurately. The advanced technology used in these centers includes automated systems for sorting and packing, which helps to minimize errors and speed up the shipping process. This level of efficiency is crucial for meeting the high expectations of today’s ecommerce customers, who demand fast and reliable delivery.

Multiple Fulfillment Centers

One of the key benefits of WFS is the ability to use multiple fulfillment centers. This allows sellers to store their inventory in different locations, reducing shipping times and costs. This strategic placement of inventory not only enhances the customer experience but also helps sellers save on shipping costs.

With multiple fulfillment centers, sellers can also increase their product visibility and reach a wider audience. Walmart’s network of fulfillment centers is constantly expanding, providing sellers with even more opportunities to grow their business. As Walmart continues to expand its network of fulfillment centers, sellers can take advantage of new locations to further optimize their fulfillment strategy and improve their market reach.

Eligibility and Requirements for WFS

To be eligible for WFS, sellers must meet certain requirements. These include:

• Being a registered seller on Walmart Marketplace
• Having a valid business tax ID and EIN Verification Letter from the IRS
• Meeting Walmart’s quality and safety standards for products
• Agreeing to Walmart’s terms and conditions for WFS
• Meeting the product size, ship-from location, and category requirements set by Walmart

Sellers must also ensure that their products are compliant with Walmart’s policies and guidelines, including providing accurate and up-to-date product information. By adhering to these requirements, sellers can maintain a high level of trust and reliability with their customers, which is essential for long-term success on the Walmart Marketplace.

Costs and Fees for Using WFS

The costs and fees associated with using WFS vary depending on the seller’s specific needs and requirements. These costs include:

• A monthly storage fee based on the volume of the product and the length of time it is stored
• A fulfillment fee based on the item’s weight and product category
• Additional fees for hazmat items and storage during peak season (October 1 – December 31)
• Return shipping fees
• Removal/disposal fees
• Inventory handling fees for inbound shipments and prep services
• Additional fees for special projects

Sellers can estimate their storage and fulfillment fees using Walmart’s online calculator. It’s essential to note that fees are subject to change, and sellers should regularly review Walmart’s website for updates on fees and pricing.

By understanding the costs and fees associated with WFS, sellers can make informed decisions about their fulfillment operations and optimize their business for success. Properly managing these expenses is crucial for maintaining profitability while taking advantage of the benefits that WFS offers.

Benefits of Walmart Fulfillment Services

A Straightforward Solution For Walmart Orders

Simply put, sellers that use Walmart Fulfillment Services for their Walmart orders have a low-complexity solution. There aren’t complicated integrations to worry about, and management tools are available through the seller’s account with Walmart.

Enables Fast Shipping

Since Amazon introduced its Prime program, 2-day shipping has quickly evolved from a “nice benefit” to a “must have.” In fact, a 2024 Statista report indicated that almost two-thirds of global consumers expect to receive their order within 24 hours. If these expectations aren’t met, your offer will see high cart abandonment as shoppers select it and then realize that it doesn’t come with the delivery service they require.

Walmart Fulfillment Services powers fast and free delivery by automatically enrolling products into the Walmart TwoDay program. Walmart’s studies have shown the program to boost conversion by 30-50% – a massive revenue increase.

Handles Customer Service

Walmart handles all customer inquiries, refunds, and returns for products sold through WFS. In addition to the TwoDay tag, in fact, WFS products get “Free & Easy Returns” and “Fulfilled by Walmart” tags, which further increase visibility and conversion.

WFS saves you a lot of time by handling customer service responsibilities on your behalf. As we’ll see in the next section, though, there’s a drawback to the “Free & Easy Returns” tag.

Drawbacks of Walmart Fulfillment Services

A Point Solution That Doesn’t Work Elsewhere

Just like Amazon FBA and other marketplace solutions, Walmart Fulfillment Services works only for Walmart. You likely know already that the best sellers don’t put all their eggs in one basket – they list across multiple marketplaces and often have their own webstore as well. If you’re one of those top sellers, WFS is only a partial fulfillment solution.

The benefits of Walmart Fulfillment Services as a simple solution for selling on Walmart fade away when you have to manage alternate fulfillment platforms for other selling channels.

Increased Returns

Amazon FBA sellers already are well acquainted with the flipside of easy returns – you may not have to worry about it when a customer calls in a return, but you’ll definitely be worrying about it when you realize how big of a hit your margin is taking. A 5% return rate already sounds like a big issue – but it gets that much worse when you realize that a 5% return rate usually comes out to about a 20% negative effect on net profit.

In its quest to chase Amazon, Walmart has adopted a similar return policy for WFS that enables its customers to process a full refund for almost any reason. Beware – this benefit will boost revenue, but it comes with a big hit to profitability.

Alternatives to Walmart Fulfillment Services

The most cost-effective way to offer nationwide 1-day and 2-day delivery is to adopt a distributed fulfillment strategy. Of course, Walmart Fulfillment Services will achieve this for you, but it’s far from a complete solution. If you want a more flexible fulfillment approach that can support your multi-channel sales, here are your four best options.

1. Open Multiple Fulfillment Centers: Merchants can take it upon themselves to open multiple US fulfillment centers and control fulfillment. The benefits of total control, though, are offset by challenging market dynamics. Warehouse space has never been more limited or expensive, and hiring frontline fulfillment workers is so competitive that Amazon is paying as much as $22.50 per hour for new employees. On top of that, opening one’s own centers for Walmart fulfillment ties up significant capital and is risky. Pick the wrong location, and you’ll be left footing the bill.

2. Third-Party Logistics Companies (3PLs): Another option is to outsource fulfillment to multiple 3PLs. Since the majority of 3PLs are smaller operations with just a few locations, you’ll have to work with a few to get nationwide 1-day and 2-day coverage. Fulfillment costs vary between 3PLs, so be sure to use something like a 3PL request for proposal (RFP) template to get an apples-to-apples comparison.

3. Flexport: Flexport uses a network of 3PLs to provide nationwide fast and free shipping to Walmart sellers, and if you use it to fulfill your Walmart orders, you’ll automatically qualify for the Walmart TwoDay badge. Like Walmart Fulfillment Services and other 3PLs, Flexport does the heavy lifting of fulfillment for their clients. Also like Walmart Fulfillment Services, though, Flexport is limited in scope. The service focuses on small packages and their fulfillment cost balloons as product size rises. They also avoid the elephant in the room, Amazon, and shy away from doing fulfillment for orders on the largest eCommerce channel. If you use their service, be prepared to add the complexity of other fulfillment solutions as you grow.

4. Peer-to-Peer (P2P) Fulfillment Network: A modern and affordable alternative to working with 3PLs is to use a peer-to-peer e-commerce order fulfillment network. A P2P network is a collective of highly vetted eCommerce retailers who offer up excess warehouse space and resources to provide high-quality Walmart fulfillment to other merchants. As a result, costs are typically lower than what you get with a traditional 3PL fulfillment company, and service levels are higher. With a P2P network, flexible multi-channel fulfillment with nationwide 1-day and 2-day delivery is the norm. The diverse set of merchants ensures that each customer gets a solution customized to their needs, while innovative technology ensures the highest quality fulfillment.

Frequently Asked Questions

What does fulfilled by Walmart mean?

Fulfilled by Walmart (FBW) is a fulfillment service where Walmart handles the storage, picking, packing, and shipping of products on behalf of third-party sellers who list their items on Walmart Marketplace. Similar to Amazon’s FBA (Fulfilled by Amazon), FBW allows sellers to leverage Walmart’s extensive supply chain and logistics network to streamline order fulfillment and improve delivery speed.

How do I enable WFS?

To enable WFS, you must sign up for WFS services in your Walmart marketplace. A US bank account is required for WFS fees. Once signup is complete, you can enable WFS for your Walmart sales channel in the Walmart portal.

How much does WFS charge for fulfillment?

WFS shipping fees are determined by the size and category of the product in question. Apparel, oversize items, hazardous materials, and those with a retail value below $10 per item incur additional fulfillment fees. Use this calculator from Walmart to estimate the cost of fulfilling your products using WFS.

For many sellers in ecommerce, Amazon has long been the platform that they simply could not ignore. However, in recent times, another channel has emerged. Walmart is arguably America’s most well known retailer – the company has a sprawling footprint of around 4,615 physical locations in the US alone. Recent developments, including the rise of Amazon and the Covid-19 pandemic have pushed the Arkansas-based retailer into investing more in ecommerce.

Walmart’s ecommerce accounts for 18% of its total sales volume and expects its ecommerce business to continue to grow significantly, as it has grown over 10% year over year for the last 4 years. The company’s Chief Financial Officer John David Rainey acknowledged that the majority of the company’s profits come from its physical stores. However, he expects ecommerce to continue to grow significantly in the coming years, outpacing Amazon growth. To that end, the company has invested $7.2 billion in supply chain, omnichannel and technology infrastructure. Early results from the company are promising – in the second fiscal quarter of 2024, ecommerce sales grew 24% (compared to 6.4%) for comparable in-store sales. The company also reported that active digital users grew 20% in the quarter. 95% of American consumers visit Walmart stores at least twice a year. While Walmart crossed 150,000 third party sellers on its marketplace as of May 2022, that number pales in comparison to the 1.9 million that Amazon has. However, one thing is certain – Walmart is likely to continue growing investments in ecommerce, and take advantage of the enormous shopper base their physical locations attract. This represents a growing base for ecommerce brands and merchants to sell to.

However, just like Amazon, free and fast shipping is almost a prerequisite for success. On Amazon, customers apply the Prime filter when shopping just to see products that come with fast delivery. In many ways, shipping is no longer a back office operation, it has become central to today’s customer experience. Walmart allows sellers to gain competitive advantages by offering TwoDay and ThreeDay delivery.

In this article, we’ll take a look at what benefits TwoDay and ThreeDay delivery offers on the marketplace, what it takes to earn the TwoDay fast shipping badge, how to ensure you’re compliant with the seller performance standards and some options available to merchants to offer fast Walmart fulfillment.

What is TwoDay and ThreeDay Delivery?

As their names suggest, TwoDay and ThreeDay delivery tags are applied to offers on Walmart which feature free delivery to customers in two or three business days.

In a world where customers are constantly comparison shopping across brands, listings and marketplaces, free and fast shipping provides strong competitive advantages. In many cases, customers choose knockoff or imitation products over superior alternatives simply because of faster delivery.

The Delivery Tags are a great way to gain prominence on the marketplace, distinguish yourself from competitors and to build customer lifetime value through repeat purchases.

What Benefits do the Two Day and ThreeDay Tags Give?

The important thing to understand is that the two day and three day delivery options are slightly different from each other in a few, significant ways. In each section, we’ll examine the difference between them and what benefits sellers get from each.

High Conversion Lift

The single biggest advantage sellers get from offering customers TwoDay or ThreeDay delivery is the increased conversion. In Walmart’s words, these are the conversion lifts that sellers can expect to see with these delivery offerings:

Boosts Search Rank and Discoverability

Many sellers are already familiar with Amazon’s A9 algorithm. For those not aware, the A9 algorithm factors in a variety of criteria to rank listings on search results in the Amazon marketplace. In a similar fashion, Walmart has what it calls a “Listing Quality Score”. The algorithm applies weights to different criteria (such as price and shipping speed) before ranking listings on search results.

Offering two day or three delivery, and earning fast delivery tags go a long way toward improving your Listing Quality Score, improving metrics such as Buy Box win rates and search rankings. Here’s the difference according to Walmart:

The filter inclusion is similar to the filter Prime shoppers apply when browsing the Amazon marketplace just to see Prime eligible listings.

Fast Shipping Badges

On marketplaces like Walmart, customers have almost infinite choice – fast shipping badges are a great way to stand out and quickly become the preferred listing for customers.

Here’s what you get with TwoDay and ThreeDay:

How To Qualify for TwoDay and ThreeDay Delivery

Now that we’ve taken a look at all the benefits that the two badges offer, let’s examine what actually needs to be done to qualify for these options.

ThreeDay Delivery

For ThreeDay Delivery, sellers need to perform no extra work! They can simply configure a shipping template with “Standard” shipping method and then pick a transit time of 3 days.

Sellers can configure their shipping template in the Walmart Seller Center.

TwoDay Delivery

Sellers aiming to achieve two day speeds on their Walmart fulfillment (and earn the fast shipping badge that comes with it) have 3 different options available to them:

• Use Walmart Fulfillment Services
• Work with Walmart’s partners – ShipBob or Flexport
• Ship yourself (using your own warehouses or 3PL).

If you’re choosing to use your own fulfillment, you will need to meet these requirements:

• Have been a seller on Walmart for 90 days or fulfilled at least 100 orders
• Maintain an on-time shipping and delivery rate greater than 95%
• Maintain a valid tracking rate greater than 95%
• Have a cancelation rate lesser than 1.5%
• Offer free returns

Let’s assume you do what it takes and you’re now selling more with your fast delivery tags – great! But as sellers know, it’s crucial to stay on top of the requirements of the marketplace to ensure you retain your fast shipping badges and keep your listings active. Here’s what sellers need to do on Walmart:

Walmart Seller Performance Standards

As per Walmart’s seller help documentation, these are the requirements that merchants on its platform must adhere to; sellers must ensure their products are delivered on time and in good condition. This includes providing accurate tracking information and maintaining a low rate of order cancellations and returns. Additionally, sellers using freight services must ensure timely delivery to maintain performance standards. Let’s look at these points in detail:

On-Time Delivery Rate

Sellers must maintain an On-Time Delivery Rate greater than or equal to 95%. To give this some perspective, let’s compare this against a program like Seller Fulfilled Prime.

While SFP has more demanding speed metrics (expecting roughly 30% of orders on standard sized SKUs to be delivered within 1 calendar day), Walmart has higher on-time delivery expectations. SFP expects only 93.5%, while Walmart expects 95% on-time delivery.

This means that you need to find partners with order fulfillment networks that have warehouses at multiple strategic locations, so that you can shorten the distance to your customers and make your Walmart fulfillment faster.

The only downside is that this leaves sellers at the mercy of the carriers, such as USPS, UPS and FedEx. Their ability to deliver products accurately and on time becomes important.

Valid Tracking Information

Sellers must maintain a Valid Tracking Rate greater than 99%. This requires strong technology and integrations between your fulfillment platform and Walmart. Whenever you receive orders, your systems must write back tracking information automatically to Walmart.

Make sure that you check your fulfillment partner has solid technology and 2-way integrations (such as Cahoot’s with Walmart) that fetch and push important information.

Refund Rate

Sellers must maintain a refund rate less than 6%. This applies to reasons that the seller is responsible for, such as items being damaged or incorrect items being received.

It is essential that you identify fulfillment partners with checks, balances and procedures to prevent such issues. For example, Cahoot has scan-verification technology to nearly eliminate the possibility of incorrect items being picked and packed. Additionally, you need to ensure that your fulfillment partner has excellent pick-pack and order fulfillment practices to package items well, following all relevant guidelines and procedures. Warehouses on the Cahoot network must pass a 44 point checklist before they can begin fulfilling orders for sellers – ensuring industry leading fulfillment standards.

Cancel Rate

Brands must maintain a seller-initiated cancel rate of less than 2%. Such events can commonly occur when orders are received on items that are actually out-of-stock.

Cahoot has a powerful integration with Walmart that pushes back inventory count information. Additionally, the system also comes with dashboards that provide color-coded alerts about your inventory levels (yellow to indicate it’s time for replenishment, and red to indicate that it needs to be done in a hurry!) This ensures you can minimize stock-outs.

Additionally, if you’re fulfilling from multiple locations, make sure that your software has intelligent exception management capabilities to handle problems at one node. If stock-outs or bad weather occur, you can still keep your promise to customers if your shipping software intelligently reroutes orders to other locations.

Seller Response Rate

Sellers must respond to customer inquiries that they receive within 48 hours, more than 95% of the time. The reason for this is obvious – Walmart is positioning itself as a serious challenger to Amazon, which has built a reputation for stellar customer experience. Walmart expects its sellers to offer customers a similar quality of service.

Offering TwoDay Delivery: Walmart Fulfillment Services

Walmart Fulfillment Services is the retailer’s inhouse logistics network, using which you can make your listings eligible for TwoDay Delivery. Let’s take a look at its pros and cons.

Pros of using WFS

Cons of using WFS

image courtesy: Walmart Fulfillment Services

This illustrates the problem – if you don’t have a SKU that is fast moving, you’re in trouble. This means storage fees triple on SKUs that have been sitting in Walmart Fulfillment Centers for more than just 30 days! For SKUs that have been sitting for more than a year in their warehouses, the rates can be even more expensive.

Offering TwoDay Delivery: ShipBob

Pros of Using ShipBob

Cons of Using ShipBob

Offering TwoDay Delivery: Flexport (Deliverr)

Pros of Using Flexport (Deliverr)

Cons of Using Flexport (Deliverr)

Offering TwoDay Delivery: Your Own Warehouses

Pros of Using Your Own Warehouses

Cons of Using Your Own Warehouses

Offering TwoDay Delivery: Cahoot

Pros of Working with Cahoot

Cons of Working with Cahoot

Conclusion

Like with Amazon, offering free and fast shipping is critical to succeeding on the Walmart marketplace. Offering TwoDay and ThreeDay delivery has a number of advantages – including improving buy box win rates, rankings in search results and most importantly, conversion lift. Merchants have a number of options available to offer two and three day deliveries, including using Walmart Fulfillment Services, their inhouse logistics, ShipBob, Flexport or Cahoot. It’s important for merchants to identify partners with both a large warehouse network, as well as competitive rates across the size spectrum. It’s also important to look for providers that bring full-service capabilities beyond just the Walmart channel, so that sellers can cut down the number of providers they have to work with to manage their logistics. This has the added benefit of streamlining inventory management. Lastly, sellers should make sure to pick a fulfillment partner that offers reliable, responsive support. After all, you’re accountable to Walmart, not your 3PL!

With the nation’s largest retailer now aggressively investing in ecommerce, it’s a perfect time for all sellers and brands to bring their products to Walmart. The key is doing so in a way that keeps complexity and costs low, while growing sales with free two and three day deliveries on every order.

Frequently Asked Questions

Can I charge customers a shipping fee with TwoDay Shipping?

No, Sellers cannot charge shipping fees while using TwoDay Shipping.

Do I need to apply TwoDay Shipping to all my products?

No. Once approved for TwoDay Shipping, Walmart does not require sellers to apply it on all products.

Does Two Day Shipping include weekends?

No. Weekends and holidays are not included in Walmart TwoDay Shipping.

Amazon is a competitive platform. You need to have a quality product, excellent listing content, and plenty of reviews to catch the attention of busy shoppers. You also need to have plenty of inventory in stock and be prepared to fulfill orders quickly.

Selling on Amazon also requires you to be extremely vigilant. Unfortunately, hijackers and fierce competitors abound. You must pay close attention to the details to keep your business running smoothly. One critical aspect to monitor is suppressed listings, which can significantly impact your sales and visibility. In this article, we’ll share why you need to monitor your Amazon listings for suppression and how to do it.

Understanding Amazon Listing Suppression

When an Amazon listing is suppressed, it is removed from Amazon’s search results, making it invisible to potential customers. This can happen for various reasons, including policy violations, poor product quality, or incorrect listing information. Understanding the causes and consequences of listing suppression is essential for sellers to take proactive measures to prevent and fix listing suppression. A suppressed Amazon listing can lead to a substantial loss in sales and visibility, which is why sellers must stay vigilant and ensure your listings comply with Amazon’s guidelines.

Causes and Prevention of Listing Suppression

Listing suppression can be caused by a range of factors, including missing product details, incorrect or misleading information, low-quality images, and policy violations. To prevent listing suppression, sellers must ensure that their product listings are accurate, complete, and compliant with Amazon’s policies and guidelines. Regularly reviewing and updating product listings, using high-quality images, and monitoring customer feedback can help prevent listing suppression. Additionally, sellers can use tools like Seller Central’s Inventory Tab and Amazon’s Search Suppressed Listings Report to identify and address potential issues before they lead to suppression. By staying proactive and attentive, you can correct suppressed listings before they impact your business.

Search Visibility is Essential for Amazon Listings

Simply put, shoppers won’t see your listings in Amazon’s search results if they are search-suppressed. Since over 50% of product searches begin on Amazon, a suppressed listing is a real problem that can quickly hurt your bottom line.

Amazon suppresses listings from search for a variety of reasons, including failure to meet its image requirements, incorrect listing content, and titles that are too long. You can check to see if any of your listings are currently search suppressed on the Manage Inventory page in Seller Central. If you have suppressed or inactive listings, a hyperlink that says “Search Suppressed and Inactive Listings” will be displayed at the top of the page. Clicking that link will take you to the Fix Your Products page where you can learn more about the issues and find out how to resolve them.

Inactive Amazon listings are not available for purchase and will not appear to customers who are searching for your product. If your product goes out of stock and you don’t have a restocking process in place, the listing will become inactive. Changes such as the manufacturer discontinuing the product or you choosing to stop selling the product can also cause a listing to become inactive. Policy violations are another common reason that listings are inactive.

If your listing is inactive due to a change you’re aware of, it’s not a surprise that you’re not selling that particular product. However, policy violations can be a surprise, particularly if someone else made changes to your listing that caused a violation. Having a process in place to regularly check for search-suppressed and inactive listings can save you a lot of time and money.

Fixing Suppressed Listings

Fixing suppressed Amazon listings requires a thorough understanding of the reasons behind the suppression. Sellers can use the Suppressed Listings Report in Seller Central to identify the issues and take corrective action. This may involve updating product information, uploading new images, or addressing customer complaints. Sellers can also appeal the suppression by providing additional information or evidence to Amazon. By taking prompt action to correct the issues, sellers can restore their listings to Amazon’s search results and regain visibility for their products. Utilizing the tools available in the Amazon seller central dashboard can streamline this process and help you fix suppressed listings efficiently.

Staying in Stock

Amazon customers expect fast and free shipping. Failing to provide it can quickly lead to lost sales and a decline in your product’s organic search ranking on Amazon. It takes a lot of time and resources to build momentum for your product listing at launch, but it takes even more effort to rebuild that momentum for a product that goes out of stock.

Having a system in place that tells you what to restock and when can help prevent these issues. It’s also important to have backup systems in place if you rely on Amazon FBA to fulfill your orders. Delays in shipping and receiving can cause your product to go out of stock. Inventory management is a delicate balance and trends can change very quickly. Having a product go viral on social media is every seller’s dream, but if you don’t have the inventory available to fulfill those orders, your listing is going to suffer while traffic diverts to your top competitors. But you also don’t want to overstock and get stuck paying for aging or excess inventory! Working with a fulfillment solution such as Cahoot can help you manage your inventory for Amazon and other channels so you can deliver the best experience to your customers.

Look Out for Suspicious Activity

Hijackers take over existing Amazon listings, making changes to the listing or price and sometimes even selling a counterfeit version of a branded product. Being hijacked can cause you to lose the Buy Box, revenue, and your excellent seller reputation. After all, buyers who receive a sub-par version of your product or who experience shipping delays will leave product reviews and seller feedback reflecting their experiences.

Battling Amazon hijackers is tough, but regularly monitoring your listings for unauthorized changes can help you identify suspicious activity so you can start building a case with Amazon. Look for changes to your listing content, such as the title, images, and brand name. Look out for keyword stuffing and misleading images that can damage your high-quality listings. Changes to the number of offers available or Buy Box ownership may signal hijacking activity if you sell a private label product.

If you suspect hijacker activity on your listing, start by making a test purchase from the other seller so you can determine whether the product is counterfeit. Send a cease-and-desist letter if your intellectual property or trademark is being used without permission. Report counterfeit products and any trademark infringement or copyright violations to Amazon.

The Impact of Search Suppression on Your Business

Search suppression can have a significant impact on an Amazon seller’s business, leading to a loss of sales, revenue, and visibility. Suppressed listings can also damage a seller’s reputation and credibility, making it harder to attract new customers. Furthermore, suppressed listings can lead to idle inventory, which can take up valuable storage space and impact a seller’s Inventory Performance Index (IPI) score. By understanding the causes and consequences of search suppression, sellers can take proactive measures to prevent it and maintain a healthy online presence. Ensuring your listings are always visible in Amazon’s search results is crucial for sustaining and growing your business.

Aim for Five Stars

Both seller feedback and product reviews are ratings provided by customers via a five-star scale on Amazon. Doing your best to provide a five-star experience to every buyer will set you up for success with both ratings.

Maintaining a strong Amazon seller feedback rating helps protect your overall account health. Seller feedback is provided by buyers about their experience with you as a seller, including packaging and shipping. Ensure that you have consistent and reliable fulfillment processes. Amazon looks at your seller feedback score to evaluate how well you meet buyer expectations.

Amazon reviews impact your product’s performance in Amazon’s search results. They also build buyer trust. Strong customer reviews positively impact your ad performance and marketing efforts. Having recent and relevant reviews shows Amazon that buyers like your product, leading to better positioning on the platform. After all, Amazon wants buyers to buy products that meet their expectations. Great reviews along with strong seller feedback show Amazon that you are prepared to deliver the customer experience it expects.

Protect Your Amazon Business

Growing and protecting your Amazon business requires careful attention, but there are tools to make it easier. Amazon doesn’t send alerts for search suppression and other changes to your listings, but eComEngine does. Our Amazon seller software is designed to make selling on Amazon simpler, from monitoring your listings to getting more reviews.

Understanding Hazardous Materials Regulations

Navigating the landscape of hazardous materials regulations is crucial for ensuring the safe and secure transportation of these potentially dangerous goods. These regulations are meticulously designed to prevent accidents, injuries, and environmental damage during the transportation process.

In the United States, the Department of Transportation (DOT) plays a pivotal role in regulating the transportation of hazardous materials. The DOT’s Hazardous Materials Regulations (HMR), found in Title 49 of the Code of Federal Regulations, outline comprehensive guidelines for the classification, packaging, and labeling of hazardous materials. These regulations ensure that hazardous materials are properly identified and handled with the utmost care.

The HMR mandates that hazardous materials must be accurately classified, appropriately packaged, and clearly labeled before transportation. Additionally, individuals involved in handling these materials are required to undergo proper training to adhere to established safety procedures. This training is essential for minimizing risks and ensuring compliance with regulatory standards.

Beyond the DOT, other regulatory bodies also contribute to the safe handling of hazardous materials. The Occupational Safety and Health Administration (OSHA) enforces regulations that govern the handling of hazardous materials in the workplace, ensuring the safety of employees. The Environmental Protection Agency (EPA) oversees the transportation of hazardous waste, further safeguarding public health and the environment.

By adhering to these regulations, individuals and organizations can significantly reduce the risk of accidents and injuries, while also protecting the environment. Compliance with hazardous materials regulations is not just a legal obligation but a critical component of responsible and safe transportation practices.

What is a Hazardous Material?

For many ecommerce brands and sellers, there are already lots to think about when shipping orders – you need to send inventory to warehouses, have shipping labels printed, and pick, pack and ship items correctly.

However, some sellers sell products that require extra diligence, care, and attention while shipping them. Shipping Hazardous Materials, or HAZMAT as they’re commonly called, can be complex. In January 2025, the United States Postal Service (USPS) announced a number of changes to the guidelines sellers have to follow while shipping HAZMAT items. Following these guidelines is important for sellers to maintain compliance and mitigate regulatory risks, while also ensuring the safety of USPS staff who ship and deliver your packages.

A lot of sellers may not be aware of the extent and impact of these new changes. Failing to comply with the new requirements can cause significant damage to your brand. In this article, we’ve compiled everything you need to know about HAZMAT shipping.

We start by understanding the definition of a hazardous material and what items are classified as HAZMAT. We then take a deep-dive into how the Postal Service was handling HAZMAT previously and what has changed in the latest requirements. We examine why the USPS might be making these changes and the potential penalties you face for non-compliance. Lastly, we look at what your fulfillment partner (3PL) must do to ship hazmat orders in a compliant manner, keeping your brand, USPS personnel, and your customers safe.

What Items Are HAZMAT?

The Postal Service classifies every hazardous material into one of nine categories.

Common hazardous materials that are regulated include:

• Combustible liquids
• Hazardous substances
• Lithium batteries
• Lithium ion batteries
• Hazardous waste
• Hazardous wastes
• Common hazardous materials

Proper packaging of hazardous materials packages is crucial to ensure compliance with safety standards and prevent leaks or spills during shipping.

Classes of HAZMAT Items

Let’s first examine these categories, understanding their definitions, example items that fall into them, and the risks they can pose to people, the environment, or property.

You can use this as a template to do a preliminary analysis of whether your items are likely to fall into any of these HAZMAT categories. Proper classification and packaging are essential for shipping dangerous goods safely and in compliance with regulations. Packages that do not meet HAZMAT regulations can be held and delayed, destroyed by the postal service, or result in fines.

What Classes Can Ship Using USPS Services?

Based on the class of item your product falls into, it may or may not be allowed on Ground or Air services in the US or International shipping.

You can use this as a resource to understand whether your item is allowed to ship, and what services it can be sent through.

Ensure that each package is labeled with the proper shipping identification to comply with USPS regulations.

Substantial portions of this chart are based on Publication 52 – Hazardous, Restricted and Perishable Mail from the USPS.

For more information on a specific hazard class or regulation, refer to Publication 52. For help with a specific SKU you’re trying to ship, refer to the Postal Service’s HAZMAT Shipping tool.

What Changes Have USPS Recently Made to Hazardous Materials Regulations?

Recently, the USPS has been making a number of changes to the way it handles and processes HAZMAT shipping.

These have important implications for sellers. In this section, we take a look at each of them:

Declaring HAZMAT During Label Generation

USPS now requires shippers to officially declare that packages contain HAZMAT when they purchase shipping labels.

The shipping label consequently clearly indicates this, making it easy for USPS staff to handle the shipment with the required care. Proper documentation is essential for transporting hazardous materials safely and in compliance with regulations.

Items Allowed on Ground vs. Air

Recently, USPS has begun restricting electronic devices that are used, damaged, or defective to ground services alone.

These packages must now be labeled as ‘Restrictive Electronic Devices’ for ‘Surface Transportation Only’.

Separation of HAZMAT And Non-HAZMAT Items

The USPS has also begun requiring that HAZMAT and non-HAZMAT items must be clearly separated into different parcels or mail receptacles. The HAZMAT parcels need to have clear marking and identification.

Why Have These Changes Been Made?

Why is there suddenly an increased focus on these compliance requirements from the Postal Service? Many shippers have been used to operating without any changes to requirements for a long time and might be surprised about why these changes are taking place now.
In this section, we’ll take a look at why USPS is enforcing these new requirements, as well as the risks you face if you don’t comply with them.

Safety of USPS Personnel and Transportation

According to Shippo’s estimates, over 10,000 safety incidents involving HAZMAT shipping were reported in the first nine months of the 2020 fiscal year. That number has continued rising – in 2022, there were over 25,000 HAZMAT incidents reported.

Such incidents pose significant risks for USPS personnel, the environment, property, and other people sharing the road or airspace during their transportation. In a bid to reduce this impact and improve overall safety outcomes, these new requirements are being enforced.

More Reliable On-Time Delivery

While these incidents are detrimental from a health and safety perspective, that isn’t their only negative. They disrupt operations and delay deliveries. In fact, Shippo estimates that packages are delayed by an average of 2 weeks after such incidents.

With USPS aiming to compete more aggressively in parcel delivery with the likes of UPS and FedEx, an increasing accident rate can lower their delivery SLAs and affect service levels for all shippers.

USPS’ latest regulations are aimed at streamlining their network operations and reducing downtime and disruptions.

Penalties For Non-Compliance

As the number of HAZMAT shipping related incidents is on the rise, failure to comply could affect your brand’s ability to conduct operations normally. With health, safety, and lives at stake – the penalties for noncompliance are heavy. Here are the possible penalties:

• Your shipments could be denied entry into the USPS mailstream – affecting your ability to meet customer delivery promises.
• For serious infractions, the US Department of Transportation can pursue civil penalties.
• The maximum penalty for Hazardous Materials violation is $89,678. However, if the violation results in death, serious illness, severe injury to an individual or significant damage to property, you could be fined as much as $209,249.

Such incidents can be financially damaging, affect your brand’s reputation and in some cases even threaten its very existence.

What Should You and Your 3PL Do While Shipping HAZMAT?

The first question you might have is – which of my SKUs are HAZMAT? The quickest way to identify this is using the Product Safety Data Sheet (SDS). What is a Safety Data Sheet?

Identify Your HAZMAT SKUs Using Product Safety Data Sheets (SDS)

A Safety Data Sheet (SDS) is a document that provides detailed information about the properties, hazards, and safe handling procedures of a product. It includes essential details such as the product’s composition, physical and chemical characteristics, potential health and environmental hazards, safe usage guidelines, emergency response measures, and regulatory information.

You can use the SDS database to locate your product’s safety sheet.

On it, you’ll need to go to Section 14, which provides transportation information, including the category that DOT classifies the product under. Using this, you can understand which USPS services can be used to ship the item, as well as specific marking/labeling, and packaging requirements.

Properly Designate HAZMAT SKUs on Shipping Software

You need to designate your HAZMAT SKUs on your shipping software. This is important for a number of reasons:

• This can be transmitted to USPS when purchasing labels, so that they know you are shipping HAZMAT.
• It helps your fulfillment partner affix the right marking/labels when packing these items.
• It helps your fulfillment partner package these items the right way.

Having your SKUs properly designated on a digital system of record is the best way to ensure defect-free, compliant fulfillment. Relying on spreadsheets or human-to-human conversation can lead to potentially costly lapses.

Adhere to Packaging Requirements

While shipping HAZMAT, you must make sure to follow packaging requirements to keep your items secure and spill or leak-proof.

Your fulfillment partner must have deep knowledge of what HAZMAT SKUs you are shipping, and then package them in accordance with the specific requirements laid out in Appendix C of Publication 52.

While the details can vary significantly based on the item, these are broad best-practice guidelines applicable across most items. Following these packaging practices requires industry-leading fulfillment standards from your 3PL. Warehouse staff must make sure to diligently pack each SKU in the best possible way on every order.

Inner Packaging

• Employ inner packaging that is compatible with the specific hazardous material but also capable of withstanding the conditions of transportation.
• Inner packaging must be leak-tight for liquids and gas-tight for gasses, preventing unintended release during transit.

Outer Packaging

• Utilize robust outer packaging that serves as a primary barrier to protect the inner packaging and the contents from external forces and potential hazards.
• All HAZMAT and Dangerous Goods need to ship in rigid outer packaging that meets minimum edge crust test (ECT) requirements:
  • Packages weighing 20 lbs or less: ECT of at least 32, burst strength of 200 lbs.
  • Packages weighing more than 20 lbs: ECT of at least 44, burst strength of 275 lbs.
• Choose outer packaging materials that are suitable for the specific characteristics of the hazardous material being shipped.

Cushioning and Absorption

• An effective cushioning system safeguards the inner packaging from movement and potential damage during transit, providing an additional layer of protection.
• For liquids, incorporate absorbent materials within the packaging to contain and manage spills, preventing leakage that could pose safety and environmental risks.

Closure and Sealing

• Ensure secure closure and sealing of packages to prevent any leakage or spillage during transportation.
• Verify that closures meet regulatory standards and are appropriate for the specific hazardous material being shipped, maintaining the integrity of the package.

Overpack Requirements

• If applicable, employ overpacking techniques as an additional layer of protection and consolidation for smaller packages.
• Overpacks should not only consolidate packages but also be designed to contain leaks or spills, providing an extra measure of safety.

Separation of HAZMAT

• Package hazardous materials with a keen focus on preventing any reactions between different substances within the package.
• Separation of incompatible materials within the packaging ensures that any potential chemical reactions are avoided, maintaining the safety and stability of the shipment.

Quantity Limits

• Adhere strictly to quantity limits specified for each hazardous material to prevent overloading and ensure compliance with safety regulations.
• Packaging must be designed to accommodate the specified quantity, preventing any compromise in the safety of the contents.

Adhere to Marking and Labeling Requirements

When shipping HAZMAT items, it is important to affix various marking labels onto the package that provide information to USPS staff about what the package contains.

This helps them handle the package the right way and ensures higher safety standards. While these can vary significantly by product, here are a few common marking/labeling practices required for HAZMAT items. For your specific SKU, make sure to refer to Appendix C of Publication 52.

Your 3PL must be capable of mapping each SKU you have to its specific labeling requirements. This detail-oriented rigor must be backed up by defect-free, high-quality fulfillment standards that ensure each package has all the necessary labels on it.

• Hazard Class Labels
  • Hazard class labels need to be affixed to the outer packaging, indicating the primary hazard class or division of the material.
  • Ensure hazard class labels are prominently displayed, providing USPS staff a quick visual identification of the potential risks associated with the shipment.
• Handling Labels
  • Mark packages with handling labels, communicating specific instructions on how to safely handle them during transportation.
  • Clear and concise handling labels contribute to the safe and proper management of the package during transit.
• Identification Numbers
  • Clearly display proper shipping names and identification numbers on the outer packaging.
  • This information assists in identifying the material and its associated hazards, aiding in emergency response and handling procedures.
• Limited Quantity Marking
  • If applicable, mark packages with the “Limited Quantity” marking to indicate compliance with quantity limitations for certain hazardous materials.
  • This marking is crucial for packages that qualify for reduced regulatory requirements.
• Overpack Marking
  • For overpacks, mark them appropriately to indicate that they contain hazardous materials.
  • Overpack markings help handlers and emergency responders quickly identify packages that include multiple smaller packages.
• Orientation Arrows
  • On packages containing liquids, include orientation arrows to indicate the correct orientation for safe handling.
  • Proper orientation ensures that liquids are transported in a manner that minimizes the risk of leaks or spills.
• Elevated Temperature Marking
  • If applicable, mark packages containing materials at elevated temperatures to communicate the additional risks associated with heat.
  • This marking ensures awareness of temperature-related hazards during transportation.

Declare HAZMAT During Label Generation

If you’ve designated your SKUs as HAZMAT in your shipping software, this step shouldn’t be too difficult!

When generating labels, your shipping software needs to inform USPS that you’re shipping HAZMAT. This allows the Postal Service to prepare to handle your items the right way.

Additional Resources and Support

Ensuring compliance with hazardous materials regulations can be a complex task, but fortunately, there are numerous resources available to assist individuals and organizations. These resources provide valuable information, guidelines, and support to help navigate the regulatory landscape effectively.

Key resources include:

• Department of Transportation’s (DOT) Hazardous Materials Regulations (HMR): The primary source for regulations governing the transportation of hazardous materials.
• Occupational Safety and Health Administration’s (OSHA) Hazardous Materials Regulations: Guidelines for handling hazardous materials in the workplace.
• Environmental Protection Agency’s (EPA) Hazardous Waste Regulations: Regulations specifically focused on the transportation of hazardous waste.
• International Air Transport Association’s (IATA) Dangerous Goods Regulations: Guidelines for the safe transportation of dangerous goods by air.
• International Maritime Organization’s (IMO) Dangerous Goods Regulations: Regulations for the safe transportation of dangerous goods by sea.
• Federal Regulations Hazardous Materials Table: A comprehensive resource providing information on the classification, packaging, and labeling of hazardous materials.
• Safety Data Sheet (SDS): Detailed documents for a SKU that provide information on the safe handling and use of hazardous materials. Obtained from the manufacturer.
• Material Safety Data Sheet (MSDS): Similar to SDS, these sheets offer information on the safe handling and use of hazardous materials. Obtained from the manufacturer.
• Hazardous Materials Information Center: A resource center providing information and support on hazardous materials regulations and safety procedures.
• National Institute for Occupational Safety and Health (NIOSH): Offers information and resources on workplace safety and health, including hazardous materials safety.
• American Society of Safety Professionals (ASSP): Provides resources on workplace safety and health, including hazardous materials safety.

In addition to these resources, various organizations and companies offer training and consulting services to help ensure compliance with hazardous materials regulations. These services are invaluable for individuals and organizations looking to enhance their understanding of regulatory requirements and implement effective safety procedures.

Staying up to date with the latest regulations and utilizing available resources is essential for maintaining compliance and ensuring the safe transportation of hazardous materials. By leveraging these resources, individuals and organizations can effectively manage the complexities of hazardous materials regulations and contribute to a safer transportation environment.

Conclusion

With an increased focus on the safety of its personnel and the performance of its network, USPS has rolled out these new HAZMAT changes.

Many, many items fall under HAZMAT, and a lot of them may not be immediately obvious as meeting the classification. With increased penalties and regulations, it is important for shippers to carefully scan their product catalog for HAZMAT SKUs and then ship them following all necessary protocols.

This takes deep attention to detail, high quality fulfillment standards, and solid technology at your fulfillment partner’s end. Shipping HAZMAT items can seem daunting – but with the right fulfillment partner, you’ll be able to ship them as seamlessly as your other SKUs. Good luck, and happy shipping!

Frequently Asked Questions

What are the Risks of Not Shipping HAZMAT Correctly?

Improperly labeled packages can be delayed or destroyed by the post office. Your business may also be fined for violations, and penalties up to $209,249.00 can occur if the HAZMAT violation results in death, serious injury or property destruction.

Do HAZMAT Rules Apply to All Shipping Carriers?

Each shipping carrier has its own rules and regulations for shipping HAZMAT goods. USPS rules and regulations do not apply to UPS or FedEx.

How Can I Tell if an Item is Considered HAZMAT?

Always make sure! Check the product’s Safety Data Sheet (SDS) from the manufacturer or use a HAZMAT search tool.