Marketplace Newsletter

February 2022 | View All

News & Announcements

Submit your early application to Open Call 2022 by February 25

In case you missed it, Walmart’s annual Open Call event is back. And this year, Walmart Marketplace sellers have exclusive access to apply early! Similar to last year, selected applicants will have the opportunity to pitch their products made, grown, or assembled in the U.S. to Walmart and/or Sam’s Club merchants. If you are a brand owner, you could have the chance to become a supplier for Walmart.com, Walmart stores, and/or Sam’s Clubs.

Questions? Read through our Sell Better Blog for more information about the application process, FAQs, and tips on how to prepare for a successful product pitch meeting.

 

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Upcoming enhancements to your Listing Quality Score calculation

Later this month, we’re making some enhancements to the way we calculate the Offer and Ratings & Reviews metrics of your Listing Quality Score. These metrics are determined by your shipping coverage/speed, in-stock and published rates, and customer feedback. If you are looking to earn or maintain the Pro Seller Badge, we recommend:

This will help increase product discoverability, build trust and credibility for your brand, and boost your Listing Quality Score. Head to the Listing Quality & Rewards Dashboard now to view your score and see where you can improve.

 

View dashboard

 

iHerb grows sales 85% YOY by investing in price, delivery, time, and reviews

After experiencing a spike in demand for their health-conscious products during the height of the COVID-19 pandemic, Marketplace seller iHerb, found it challenging to sustain the same growth long-term. However, with the help of Walmart Marketplace’s ecosystem of programs and tools, iHerb was able to significantly increase their sales on Walmart.com. Keep reading to discover which solutions iHerb leveraged and learn how you can apply these strategies to help drive growth and see more success this year.

 

Keep reading

Leverage Helium 10 tools to make more impactful business decisions

Helium 10 is providing Marketplace sellers with more data-driven insights so you can make better informed decisions about your catalog. For example, if you’re looking to add a new item to your assortment, Helium 10’s solutions allow you to collect valuable, keyword-relevant data from other marketplaces to help determine the likelihood of its success on Walmart.com. Read the full guest blog below to learn more.

 

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Update to Item Spec categories

We recently removed the Baby Clothing category from the Item Spec. Please use the Clothing or Footwear categories to upload or update baby clothing items.

Managing return and/or refund resolution emails

If you file multiple return dispute cases on the same day, you will now receive one consolidated email regarding the resolution of each case. This will significantly reduce the number of emails you receive.

Not sure how to file a dispute? Watch a quick tutorial below.

 

 

Applying cancellation codes to customer orders

As a reminder, the cancellation code Customer Changed Mind should only be selected when a customer requests to cancel an order. Any other use of this cancellation code is a violation of Walmart Marketplace Seller Performance Standards and could lead to account suspension. For more information on how to navigate the order management process, watch the quick tutorial below.

 

 

 

Payments & Tax

Payment fees

As a reminder, in accordance with our Seller Promise, our default payment method is “direct deposit” to your bank account with no fees to you, ensuring that you receive 100% of your funds.

Requirements for no fee payments:

  1. Enrollment with your payment processor must be initiated from your Seller Center account.
  2. Payment must be delivered to a U.S. or Canadian bank account that supports direct deposit (ACH).

If you are paying fees today and wish to change to “no fees payment delivery”, please contact your payment service provider (Payoneer or Hyperwallet). You will need to have your business bank account details available when you contact them.

Complying with IRS mandates

IRS mandates require Walmart to ensure that your tax profile on file is accurate. To comply with this mandate, we are verifying the seller tax IDs and legal names we have on file with the IRS, and we may contact you if your information cannot be successfully verified.

How do I verify my tax profile is correct?

  1. Login to Seller Center
  2. Select “Tax Profile” under “Settings” on the top menu bar
  3. Verify that your:
    • Legal name is in the Name field
    • Tax ID (TIN)
    • Tax classification (W-9, W8-ECI, W-8BEN) is correct.
  4. If the information shown is correct, please open a Partner Support case for further assistance
  5. If you made changes to your tax profile, you will be notified after the information has been verified

What happens if I don’t correct my information?

If after 30 days, you have not updated your information or opened a Partner Support case, your payments may be suspended until we can verify your tax information with the IRS. Further actions may include, but are not limited to:

  1. Collecting backup withholding on gross payments at the rate of 24%, as directed by the IRS
  2. An IRS-imposed $280 penalty for incorrect information if updates are not made before your 1099-K form is filed for the calendar year (penalty assessed each year information remains incorrect)
  3. Additional solicitations from Walmart to obtain correct information
  4. Note that it may take up to 30 days after you obtain a tax ID from the IRS or make changes affecting your tax profile with the IRS for the change to be electronically verifiable with the IRS.

Please refer to the IRS for more detailed information.

1099-K reporting

As a reminder, the information listed on the 1099-K form should have been verified and corrected in Seller Center by December 31, 2021. 1099-K forms will not be amended or re-issued if your information was not updated, and you may be assessed an IRS penalty of $280 as a result.

Carefully review the key information and important dates below to ensure you are not penalized.

 

2021 tax year reporting thresholds:

Rule Type Applicability Min Order Count Min Gross Value ($)
IRS All states 201 $20,000
State override IL 4 $1,000
State override MA n/a $600
State override MD n/a $600
State override MO n/a $1,200
State override MS n/a $600
State override NJ n/a $1,000
State override VA n/a $600
State override VT n/a $600

 

Eligibility and Important Notes:

  1. Only sellers with a W-9 tax classification are eligible to receive a 1099-K form
  2. Reporting thresholds are applied to orders shipped between January 1, 2021, and December 31, 2021
  3. State given reporting thresholds take precedence of IRS thresholds
  4. Refunds are not considered: if you shipped 201 orders and 10 were refunded, you will receive a 1099-K
  5. Canceled sales, even if shipped are not counted towards thresholds eligibility
  6. If you do not meet filing criteria, you will not be issued a 1099-K and will instead need to self-report
  7. Follow IRS guidelines
  8. Maintaining the accuracy of tax information used for reporting is your responsibility
  9. Amended reports will not be issued if your tax information is incorrect by the close of 2021
  10. 1099-K sales reports will be issued to you via your Payment processor (Payoneer or Hyperwallet) to your primary contact email
  11. Failure to maintain accurate tax information as part of your 1099-K filing may result in IRS penalties of up to $280 (IRS Pub. 1586)

 

Important dates:

Limit Date Activity
Jan 5-14, 2022 1099-K sales reports will be generated based on the information on file at the close of 2021
Jan 31, 2022 Your payment processor will contact you via email with instructions on how to retrieve your 1099-K
Feb 1 – Mar 15, 2022 You may file for corrections if there was a change of ownership or split 1099-K forms are required
Mar 31, 2022 1099-Ks will be filed with the IRS and Department of Revenue of the state corresponding to your legal address

 

 

Product Fees

As of January 1, the State of California now requires Walmart.com to collect and remit other taxes and fees for products such as tires, lead-acid batteries, and electronic waste–plus any applicable product taxes and fees.

To help you track these fees, we’ve added a new FeeWithheldFlag column in the Payment Report so you can easily identify if a fee was included in the net payable amount of a sale. Please note, other states are expected to follow the same requirements in the coming months.

FeeWithheldFlag Column Legend: 

  • Blank: sale was not subject to a fee.
  • Y: sale was subject to a fee, and we withheld the fee from your payment.
  • N: sale was subject to a fee, and we included the fee in the amount paid to you.

Policies & Guidelines

Prohibited Products Policy reminder

We want to remind you of our Prohibited Products Policy, which lists the types of products that are prohibited and/or restricted from the Walmart Marketplace. The policy is subject to change so please periodically review the page.

Walmart will remove any product listings that per our discretion may be in violation of Law, the Prohibited Products Policy, or any other Walmart policy. Please consult with your legal counsel if you have questions about the laws and regulations concerning your products. Note that corrective action may be taken on your account as needed due to violations of our policies, this may include suspension and/or termination of your account.

If you have questions about our Prohibited Products Policy or would like additional guidance, please create a case for Partner Support and reference code TNS.

Review the Walmart Seller Pricing Policy

We want to remind sellers that the Walmart Marketplace pricing policy is in place to ensure that customers have access to fair, competitive prices for products offered by sellers on Walmart Marketplace.

For all products, including products such as hand sanitizers, cleaning agents, face masks, etc., we require sellers to continue to adhere to Marketplace policies regarding price and advertising claims to ensure customer trust in Walmart Marketplace. Products that are priced in violation of the pricing policy will be removed. Please refer to the Pricing Policy and our Prohibited Products Policy for more information.

If prices change and the item now falls within the acceptable range, the item will automatically republish, typically within 48 hours. If more than 48 hours has passed and you believe your item remains incorrectly unpublished, please create a case with Partner Support.

Product restrictions and pre-approval categories

Walmart strives to be the most trusted retailer, having a marketplace that is inclusive, robust and compliant is one of our highest priorities. As per our Prohibited Products Policy, please be aware that the following categories require pre-approval from Walmart before a Seller may offer such products on the Marketplace.

    • Fragrance
    • Luxury brands
    • Software
    • Cell Phones and Accessories
    • Halloween and select seasonal products
    • Custom Content

Sellers may apply for approval to offer products in these categories by contacting Partner Support and selecting: Items/Inventory > My item is unpublished. Include a list of the brands or products you wish to sell. Approvals will be granted for specific brands or products within these categories. Please note that approval may be retracted if there are any legal claims related to products or if your products, or account are found to be in violation of any of our policies.

If you have questions about category restrictions or our Prohibited Products Policy, please create a case via Seller Center with the code “TNS”.

 

Security & Privacy

Walmart protects your security and privacy. We will never ask for personal information (such as passwords or credit card numbers) in an email. If you receive such a request, please do not respond to the email.