Managing inventory effectively on Walmart’s marketplace is essential for success. Unlike Amazon FBA, Walmart Marketplace sellers have more control over their fulfillment but must also take proactive steps to avoid stockouts, overstocking, and storage inefficiencies. In this guide, we’ll cover key inventory management strategies to help you keep stock levels optimal and grow your Walmart business.
Why Walmart Inventory Management is Critical for Sellers
Efficient inventory management on Walmart ensures that you:
✅ Prevent Stockouts – Avoid lost sales and penalties for canceled orders.
✅ Reduce Overstocking – Minimize unnecessary storage costs and free up cash flow.
✅ Win the Buy Box More Often – Walmart favors sellers with consistent stock availability.
✅ Boost Customer Satisfaction – Fast fulfillment leads to positive reviews and repeat purchases.
✅ Stay Competitive – Walmart’s algorithm promotes sellers who maintain steady inventory levels.
How Walmart’s Inventory System Works
Unlike Amazon FBA, Walmart allows sellers to choose their fulfillment method:
📦 Walmart Fulfillment Services (WFS): Similar to Amazon FBA, Walmart stores, picks, packs, and ships orders for you.
🚚 Seller-Fulfilled (3PL or In-House): You handle warehousing and fulfillment through your own network or third-party logistics (3PL).
To maintain high seller performance, Walmart requires accurate stock levels and on-time fulfillment. Let’s explore the best strategies to achieve this.
1. Use Data-Driven Inventory Forecasting
Effective inventory forecasting prevents running out of stock or overloading warehouses. Use these key data points:
📊 Sales Trends: Analyze historical data to predict future demand.
📅 Seasonality: Plan for holiday surges, Black Friday, and Prime-like sales events.
📈 Lead Times: Know how long it takes for suppliers to restock your inventory.
🔢 Reorder Point Formula:Reorder Point=(Average Daily Sales×Lead Time)+Safety Stock\text{Reorder Point} = (\text{Average Daily Sales} \times \text{Lead Time}) + \text{Safety Stock}Reorder Point=(Average Daily Sales×Lead Time)+Safety Stock
- If you sell 50 units/day and have a 10-day lead time, your reorder point is 500 units.
- Adding a 100-unit safety stock, restock when inventory hits 600 units.
2. Optimize Walmart Fulfillment Services (WFS) Inventory
If you use Walmart Fulfillment Services (WFS), follow these best practices:
✅ Monitor Stock Levels Weekly – Avoid long-term storage fees by keeping only the necessary stock at WFS warehouses.
✅ Send Inventory in Smaller, More Frequent Shipments – This prevents excessive storage fees and ensures steady availability.
✅ Use Multi-Channel Inventory Syncing – If selling on Amazon & Walmart, avoid duplicate overstock issues with automated syncing tools.
✅ Leverage WFS Benefits – Faster delivery improves rankings and increases conversion rates.
3. Prevent Overstocking & Minimize Storage Costs
Too much inventory can hurt profits. Reduce excess stock by:
🚀 Identifying Slow-Moving SKUs – Run promotions or discounts on stagnant products.
📦 Using a 3PL for Overstock – Store extra stock at a third-party logistics provider instead of Walmart warehouses.
🔄 Forecasting Demand Accurately – Use predictive analytics to avoid over-purchasing.
💰 Avoiding Walmart Long-Term Storage Fees – Excess stock stored at WFS for more than 365 days incurs additional fees.
4. Automate Inventory Management with SelloPod
Manually tracking Walmart inventory can be time-consuming. SelloPod automates the process with:
📊 AI-Powered Demand Forecasting – Predict stock needs based on real-time sales trends.
⏳ Automated Restock Alerts – Get notified when it’s time to reorder.
🔄 Multi-Channel Integration – Manage inventory across Walmart, Amazon, and 3PL warehouses from one platform.
🚀 Faster Replenishment Planning – Prevent stockouts while avoiding costly overstocking.
📢 Want to simplify your Walmart inventory management? Try SelloPod today!
Final Thoughts: Mastering Walmart Inventory Management
Proper inventory management is essential for success on Walmart Marketplace. By following these best practices—data-driven forecasting, optimizing WFS inventory, preventing overstocking, and leveraging automation tools like SelloPod—you can:
✔ Maximize Walmart sales
✔ Maintain high in-stock rates
✔ Reduce storage & fulfillment costs
✔ Improve Walmart Buy Box performance
📢 Start optimizing your Walmart inventory today with SelloPod!