A Seller’s Guide to Walmart Suspension

Last updated on June 16th, 2023

Written by Ken Zhou

Walmart is a giant retail force. It’s only second to Amazon as America’s biggest ecommerce retailer. Their online arm, Walmart Marketplace, offers an even more diverse range of products than their brick-and-mortar stores. 

Applying as a Walmart Marketplace seller can be a bit challenging because of the meticulous process. Sellers have rules to follow when selling on the platform. Failure to observe Walmart’s Performance and Policy Standards could result in consequences, such as a Walmart suspension. 

Walmart account suspensions are something every Walmart seller dreads. But, if you’ve experienced it, please know there’s a solution to this problem. This article will teach you how to recover from and manage such situations to prepare yourself for a possible encounter.

Why Does a Walmart Account Suspension Happen?

Walmart seller account suspensions are fairly common, but that normalcy doesn’t make it less stressful. Does the platform work together with sellers in resolving issues? Yes. However, there are instances where they’re left with no choice but to suspend Walmart accounts when violations and issues persist.

There are four primary grounds for Walmart seller account suspensions. Let’s tackle each one in depth.

1. Seller Performance Fails To Meet Walmart Standards

Sellers are responsible for meeting Walmart Performance Standards. So keep an eye on these four metrics of seller performance.

Return Rate

A Walmart seller’s return rate is the percentage of customer order returns due to seller fault. Return causes may include item damage and sending the wrong order. The rate shouldn’t exceed 6% within 90 days.

Cancellation Rate

Going by its name, the cancellation rate is the percentage of seller-initiated order cancellations after receipt of orders from Walmart. Sellers should keep the rate below 2% within 14 days.

On-Time Delivery Rate

This rate determines the percentage of orders delivered during or before the expected delivery date (EDD). Keep your account in Walmart’s good graces by keeping this rate above 95% within 14 days.

Valid Tracking Rate

Sellers should have their valid tracking information provided including the delivery scan during or before the EDD. This rate should be above 99% in 14 days. 

Exceptions

Walmart acknowledges situations that are beyond sellers’ control. Walmart sellers will be pardoned if they provide sufficient evidence that proves that such situations were behind their failure to meet standards. 

If you receive a warning and believe that the infraction isn’t your fault, you can make your case by submitting the following details:

• Valid reason/s for issue
• Sufficient evidence/proof
• The period when the issue occurred
• Total number of orders affected by the issue

We recommend checking your Seller Scorecard frequently to keep track of your performance. You can access it by clicking on the Performance option of your Seller Center account’s Analytics tab.

2. Breaching the Marketplace Retail Agreement

The Walmart Marketplace expects sellers to follow the terms stated in their Marketplace Retail Agreement upon signing up for the platform. The Agreement ensures you won’t sell used, fake, and unauthorized items. 

It also enumerates the processes you’ll be responsible for. It’s a legally binding contract once you sign it, so pay attention to its content to stay out of trouble.

3. Violation of Trust and Safety Standards

The Trust and Safety Standards protect sellers from harmful or offensive materials. These are the three violations you should never commit.

Offensive Material

This category covers product listings and items that are deemed offensive to shoppers. This includes products encouraging discrimination and violence and items containing explicit content.

Intellectual Property

This violation occurs when sellers don’t cite the original creators of their listed paintings and other products. Unauthorized product distribution falls under this category as well.

Regulatory Compliance

Items that pose risks to product and food safety regulations belong to this category. These items can include prescription drugs and untested and uncertified baby products.

4. Operational Standards Aren’t Met

Walmart Marketplace sellers should efficiently run and maintain their operations. Meeting the platform's operational standards includes giving helpful customer service and ensuring quick order shipment. Pay extra attention to these two areas to gauge Walmart’s expectations.

Customer Service

Sellers should be able to provide excellent customer service to their shoppers. They must be transparent and precise with delivering information to customers to keep them updated on their purchases. 

They should also be responsive to their queries while complying with Walmart standard changes as they happen.

Respect and Equality

Sellers shouldn’t engage in forced and underaged labor practices, nor should they exhibit discriminatory behavior towards any individual. They should also maintain a safe working environment for workers and employees.

How Does Walmart's Suspension Process Work?

When sellers commit a violation, Walmart initially sends them a warning before giving a suspension. They’ll state the grounds for their warning and provide extra recommendations or requirements, giving sellers a chance to improve. 

A suspended Walmart seller account goes through a meticulous process, just like the seller application process. First, a team of experts will monitor seller performances through the Walmart Partner Performance Review. Then, after thorough deliberations, they’ll communicate their decision to the seller as soon as possible.

When they suspend a seller, they’ll send them a notice and the earliest date for an account reinstatement appeal. We’ll explain that process in the next section.

How Can Sellers Appeal Walmart Suspensions?

An appeal after a Walmart seller account suspension is possible. However, note that this is only applicable to sellers that haven’t violated their Trust and Safety Standards. Reinstate your account by following these steps.

1. Review Your Performance and Spot Areas for Improvement

Pinpoint the areas that contributed to your suspended Walmart seller account. You can consult an expert for this step since there are areas that may be difficult to analyze. Don’t forget to document your analysis—you’ll need it for the next step. 

2. Create an Action Plan

Apply the takeaways from your analysis and turn them into an actionable plan. It should state the problem, cause, and solution/s. Your plan should emphasize that while you continue to sell on the Walmart Marketplace, excellence will be your priority. 

3. Send Your Plan to Walmart

Log in to your Seller Center account and go to Support. Next, click Partner Account/Profile and choose the Appealing Account Suspension option. Once there, attach your plan and submit it. 

It’ll take Walmart two days to review your plan and make a decision. 

Then, should your account be reinstated, they’ll give you guidelines for strict compliance, along with steps to take your account back to good standing.

4. Maintain Your Progress

The work doesn’t stop at reinstatement. Walmart expects sellers to stick to their action plans and improve their performances.

How Can You Avoid Walmart Seller Account Suspensions?

We know how stressful seller account suspensions can be. Keep a suspended Walmart account at bay by considering this simple yet sometimes overlooked tip: understand their terms.

There’s a reason why people often remind each other to “read the fine print” when signing contracts. With a platform as big as Walmart, this advice becomes all the more important. Simply reading terms and policies isn’t enough; sellers should understand them if they want to keep their businesses alive.

Final Thoughts

The last thing you want is to have your Walmart seller account suspended. Avoid getting yourself in such a position by taking cues from this article. Even if you display great behavior on the platform, this remains an important lesson to learn.

Are you having difficulty handling account management by yourself? Let Seller Interactive help! Our team’s years of ecommerce experience will guide you through your selling journey on a large online platform.

Reach out by emailing [email protected] to get started.