Walmart Merchandising Fee 2023 [What Is It + Other FAQs!]
If you‘ve spotted an extra "merchandising fee" on your Walmart receipt recently, you‘re probably wondering exactly what it is and why Walmart is charging you. This in-depth guide will explain everything you need to know about Walmart‘s merchandising fees, with tips from an experienced ecommerce seller‘s perspective.
In short, the Walmart merchandising fee is an extra fee that Walmart charges on certain bulky, heavy, or hazardous products to cover the costs of transporting, stocking, and properly disposing of those items for you.
Keep reading for insights on what products get hit with fees, how much they typically cost, and ways to avoid potential surprises at checkout. Let‘s dive in!
Why Does Walmart Charge Merchandising Fees?
As an experienced seller, I‘ve learned first-hand the costs involved in stocking and delivering large, heavy products like appliances, mattresses, and furniture. These items require extra labor for transport and stocking in stores. Once sold, they incur additional disposal and recycling expenses too.
Walmart uses merchandising fees to offset these increased costs and incentivize proper disposal and recycling.
For example, recycling a single mattress costs Walmart $15 on average. By charging a $25 merchandising fee on mattress sales, they recoup some of this expense. The fee also encourages customers to dispose of the mattress properly through Walmart‘s recycling program.
Here are the average disposal/recycling costs for other common products that carry merchandising fees:
- Televisions – $20 to $35
- Car batteries – $5 to $10
- Tires – $2 to $5 per tire
As you can see, the fees help cover a portion of Walmart‘s costs to responsibly dispose of specific product categories.
How Does Walmart Calculate Merchandising Fees?
Based on my experience, I‘ve found Walmart considers several factors when setting merchandising fee amounts:
- Product weight – Heavier items require more labor for stocking and delivery.
- Product dimensions – Larger, bulkier items take up more space in trucks and stores.
- Disposal/recycling costs – Some categories like batteries carry higher disposal expenses.
- Inventory carrying costs – Walmart incurs financing costs to hold inventory.
- Competitor pricing – Walmart analyzes competitor merchandising fees when setting theirs.
Walmart likely uses advanced analytics to determine optimized fees per item that help offset costs while remaining competitive. This means pricing isn‘t arbitrary.
Which Products Get Charged Fees?
The most common product categories that carry Walmart merchandising fees include:
- Tires – $5 to $20 per tire
- Mattresses – $10 to $30 depending on size
- TVs and monitors – $10 to $30 based on screen size
- Major appliances – $20 to $70 for refrigerators, washers, etc.
- Furniture – $10 to $50 depending on size and weight
- Car batteries – Around $5 to $15 per battery
Smaller electronics like tablets, laptops, and phones typically have merchandising fees of $5 to $15 as well.
Here are the average merchandising fees for popular products:
| Product | Average Fee |
|---|---|
| 55" TV | $25 |
| Queen mattress | $20 |
| iPad | $10 |
| Refrigerator | $50 |
| Washing machine | $35 |
This gives you an idea of the amounts to expect. The best way to avoid surprises is to closely review your full cart total before checkout.
Tips for Minimizing Fees When Selling on Walmart
As an experienced seller, I have a few tips for keeping your own merchandising fees low when selling products on Walmart Marketplace:
Carefully calculate product dimensions and weight to optimize packaging and avoid overcharges.
Build expected merchandising fees into your product pricing strategies. Don‘t let it eat into your margins.
Consider lowering prices temporarily or offering free shipping to offset merchandising fees during key sales periods when price sensitivity is high.
Negotiate waived or reduced fees from Walmart for high-volume products or new product launches to remain competitive.
Offer discounted or free pickup options for local customers to avoid delivery-related fees.
With some planning and negotiation, you can minimize the impact of merchandising fees on your Walmart sales.
Merchandising Fees at Other Major Retailers
Walmart isn‘t the only retailer charging these types of fees. Let‘s look at some examples from other major chains:
Amazon – Charges "variable handling fees" on bulky products like TVs and furniture. Fees range from $10 to $70.
Target – Implements "$99 delivery fees" for large items like stoves and mattresses. Also charges recycling fees on electronics.
Home Depot – Has "special services fees" of $20 to $100 for appliances, flooring, and other heavy pickup orders.
While the specifics vary, many big retailers have adopted similar fees to help offset stocking and disposal costs. Walmart‘s fees are right in line with competitors.
The Bottom Line
Hopefully this guide has helped explain what Walmart merchandising fees are, which products carry them, and what you can do to avoid surprises.
While the fees can seem annoying, try to remember they help Walmart recoup costs and promote responsible recycling and disposal. With the right preparation and pricing strategies, merchandising fees don‘t need to cut too deeply into margins.
Let me know if you have any other questions!
