Common Walmart Seller Account Issues and How to Fix Them

Walmart is one of the most trusted marketplaces for online sellers, especially for those who are interested in selling beyond borders. It lets sellers have access to millions of customers and grow their sales in the highly competitive market. Undoubtedly, the platform offers numerous benefits to sellers – but selling on Walmart is not an easy task. More often than not, sellers enter this market without understanding the right strategies, performance rules, market demands, platform requirements and strong competition, which often leads to the listing suppression or suspension of their Walmart accounts. But we don’t want you to be making the same mistakes. Therefore, we have outlined some of the common Walmart seller account issues along with their fixes. So, without any further ado, let’s get started…

Common Walmart Seller Account Issues with Solutions

Here are the top 11 issues that Walmart sellers often face along with their solutions. Take a look…

ISSUE NO. 1: Ignoring Approval Standards

Walmart has strict requirements and approval standards. The platform carefully reviews every seller before giving approval in order to have only trusted sellers on the platform. As a seller you need to have a U.S.-based business, a valid tax ID (EIN), proper business documents, product details, business address proof and reliable shipping systems. Besides that, Walmart also checks product quality and may even review your past selling performance. Missing on these pointers often leads to delay in approval.

SOLUTION: Sellers are advised to gather all important documents prior to opening a Walmart seller account. Also, you should ensure your products do not fall under Walmart’s restricted or prohibited items list before having a Walmart account.

ISSUE NO. 2: Not Pricing Products Strategically  

Walmart gives preference to competitive pricing, i.e., the lowest total price (product cost + shipping). Your pricing should be competitive and align with similar products in your category. Besides that, Walmart also enforces price parity. If your products are listed cheaper on other online platforms, then Walmart may unpublish your listing.

SOLUTION: Make sure to follow value-based pricing model to stay competitive and prevent suspension of your Walmart seller account.

ISSUE NO. 3: Not Understanding Fee Structure

Most sellers prefer Walmart marketplace because of no registration fee. Yes, there is no monthly subscription, listing or setup fees for sellers. The platform charges category-based referral fee, which is 6%–15% of the gross sales price. Besides that, there is Walmart Fulfillment Services (WFS) fee for warehousing, storage and packing and it is optional. Not taking these fees into consideration when pricing your products often leads to reduced profit margins.

SOLUTION: Sellers need to consider referral fee and shipping costs, along with returns storage charges (if using Walmart Fulfillment Services) when pricing their products.

Formula for Product Pricing:

Selling Price = Unit Cost + Shipping Cost + Referral Fee + Fulfillment Fee (if opted for) + Target Profit Margin.

ISSUE NO. 4: Avoiding Reliable Shipping System

Walmart has strict rules when it comes to shipping. Its search system gives importance to fast shipping and strong inventory availability. This means even an optimized listing may not help fetch results if shipping is slow or stock levels are poor.

SOLUTION: Choose for a reliable shipping system. You can opt for Walmart Fulfillment Services or partner with a reputable third-party eCommerce account management service provider to help you with seamless shipping and improve customer experience.

ISSUE NO. 5: Incorrect Product Categorization

Walmart notices whether or not your product titles, descriptions and categories are accurate. Placing items in the wrong category may impact your brand visibility, leading to poor performance. Poor performance on Walmart simply leads to suspension of your seller account.

SOLUTION: List your products in the correct category so customers can find them easily, improving both visibility and overall selling performance.

ISSUE NO. 6: Not Optimizing Product Listing

Optimizing your product listing is crucial on Walmart marketplace. Incomplete listings, improper attributes, missing product details and incorrect information can reduce visibility, while affecting customer trust. This often leads to lower ranking and poor Walmart sales performance.

SOLUTION: Optimize your product listing to make it easily accessible for your customers. Use high-quality product images along with strong titles, detailed descriptions and correct attributes to enhance both your sales and performance.

ISSUE NO. 7: Ignoring Competition

With over 2,00,000 active sellers, Walmart is one of the most competitive marketplaces for sellers planning expansion. Some categories, such as beauty, electronics and home products, are already highly saturated. This makes it more challenging for new sellers to stand out and compete effectively. Besides that, there are Walmart’s own products to compete with. More often than not, Walmart’s own listings appear first and often offer lower prices.

SOLUTION: Sellers are advised to price their products strategically on Walmart. Make sure to study your competitors before you price your products to enhance your visibility and sales.

ISSUE NO. 8: Ignoring Advertising

Unlike other marketplaces, Walmart offers limited advertising options. Its platform, Walmart Connect, mainly focuses on Sponsored Search Ads, display ads, Brand Shops and search engine marketing support. With limited ad options, sellers need to be really careful when choosing advertising options.

SOLUTION: Sellers are advised to focus on advertising options that work better on Walmart. They must create proper strategy prior to investing in Walmart advertising. For instance, Sponsored Search Ads work well as they appear directly in customer search results. In addition, testing the right keywords and adjusting bids based on performance can enhance sales.

ISSUE NO. 9: Not Focussing on Performance Standards

Walmart follows strict performance standards. The platform closely tracks seller behavior using important performance metrics. Frequent cancellations, delayed delivery and not responding to customer messages within 48 hours often lead to listing suppression or suspension of Walmart seller account.

SOLUTION: Make sure to have high-quality products so that the cancellation rate stays low. Besides that, you should regularly check your Seller Center dashboard, track shipping performance and respond quickly to customer concerns to avoid listing suppression or account suspension.

ISSUE NO. 10: Not Maintaining Enough Inventory

Maintaining inventory, especially during shopping seasons, such as Black Friday, holidays and so on is crucial to have your Walmart seller account performing its best. Without proper planning, sellers can run out of stock or face delayed shipping, which negatively impact rankings and customer trust.

SOLUTION: You are advised to monitor your sales performance, increase inventory before busy seasons and update product listings early with seasonal images and keywords to stand out.

ISSUE NO. 11: Ignoring Customers

Customer service matters more than ever! Walmart expects high standards when it comes to customer services. Poor customer service often leads to listing suppression, account suspension or permanent removal of seller account.

SOLUTION: Sellers handling their own fulfilment must manage returns, delivery updates and refunds quickly and professionally. Make sure to respond to customers’ concerns in a timely manner to ensure smooth experience. Additionally, provide them support as and when needed to protect your brand image and build trust.

The Bottom Line

So, these are the top 11 issues that Walmart sellers face pretty often. These issues often lead to listing suppression or account suspension for them. Undoubtedly, Walmart offers huge opportunities for growth and expansion, allowing sellers to reach a wider customer base, increase brand visibility and scale their business in a highly competitive eCommerce marketplace. However, it is crucial for sellers to avoid making mistakes outlined above. If you are unsure about the right steps to succeed on Walmart, then it’s wise to partner with a professional eCommerce seller account management service provider. Selling OS is a leading eCommerce seller account management service provider in India, helping online sellers in India expand their businesses on various international marketplaces, including Walmart. Selling OS has a team of highly experienced and skilled account managers who can guide you through the process and improve your chances of growth. The brand also offers fulfilment and inventory management services in international locations to ensure seamless delivery and improved performance on Walmart marketplace.