Selling on Walmart Marketplace opens up access to millions of customers—but with great opportunity comes strict performance expectations. Walmart’s Seller Performance Standards are designed to ensure a high-quality shopping experience for customers. Failing to meet these standards can result in penalties, reduced visibility, or even account suspension.
In this post, we’ll break down Walmart Seller Performance Standards, explain why compliance matters, and provide actionable tips to help you stay compliant and succeed as a third-party seller.
What Are Walmart Seller Performance Standards?
Walmart evaluates sellers based on several core metrics that reflect customer satisfaction and operational efficiency. Understanding and optimizing these metrics is crucial for long-term success on the platform.
Here are the primary performance indicators:
1. Order Defect Rate (ODR)
ODR measures the percentage of orders with issues, such as cancellations, late shipments, and customer complaints. Walmart expects an ODR below 2%.
2. On-Time Shipment Rate
This measures the percentage of orders shipped by the expected ship date. Sellers must maintain a minimum 95% on-time shipment rate to avoid compliance issues.
3. Valid Tracking Rate
Providing valid tracking information is non-negotiable. Walmart expects at least 99% of orders to have valid tracking numbers uploaded on time.
4. Cancellation Rate
This refers to seller-initiated cancellations. Keep this rate under 2% to stay in good standing.
Why Walmart Seller Compliance Matters
Maintaining strong performance metrics doesn’t just help you avoid penalties. It can also improve your:
Search placement in Walmart listings
Eligibility for Walmart’s TwoDay Delivery program
Customer satisfaction and repeat business
Account longevity and brand reputation
In short, consistent compliance helps grow your sales and protect your seller account.
Tips to Stay Compliant with Walmart Seller Standards
1. Automate Order Management
Use robust order management software that integrates with Walmart Marketplace. Automation ensures real-time inventory updates, timely order processing, and accurate shipping timelines.
2. Maintain Accurate Inventory Levels
Overselling leads to cancellations—one of the top causes of non-compliance. Sync your inventory across all channels to avoid stockouts and overselling.
3. Ship Orders Promptly
Invest in a reliable fulfillment solution, whether it’s in-house logistics, third-party logistics (3PL), or Walmart Fulfillment Services (WFS). Monitor shipping cut-off times and avoid delays.
4. Upload Valid Tracking Info Immediately
Make it a standard process to upload tracking numbers as soon as shipments are scanned. Use carriers that are integrated with Walmart’s system for smoother validation.
5. Monitor Performance Metrics Regularly
Log into your Walmart Seller Center dashboard frequently to track your performance. Walmart updates metrics daily—catch issues early and act quickly.
6. Respond to Customer Inquiries Promptly
Fast, courteous responses to customer questions and complaints help reduce negative reviews and increase customer trust.
7. Optimize Product Listings
While not a direct metric, clear and honest product listings reduce customer confusion, returns, and complaints—all of which affect your ODR.
Consequences of Non-Compliance
If your performance metrics fall below Walmart’s thresholds, the following can occur:
Account warnings or probation
Lower listing rankings
Removal from premium programs like Walmart TwoDay
Suspension or termination of your seller account
To avoid these penalties, it’s critical to treat performance standards as a core business priority—not an afterthought.
Final Thoughts:
Understanding and adhering to Walmart Seller Performance Standards is essential for marketplace success. By actively monitoring your metrics, investing in automation, and focusing on customer satisfaction, you can stay compliant and thrive on Walmart Marketplace.
If you need help optimizing your Walmart seller account, our team of marketplace experts is here to assist. Contact us today for a free consultation and take the next step toward becoming a top-rated Walmart seller.