Understanding Walmart's Updated On-Time Delivery (OTD) Standard for Sellers

For current and future sellers on Walmart Marketplace, understanding and adhering to the On-Time Delivery (OTD) standard is crucial for maintaining good standing and optimizing product visibility. Walmart has recently updated its OTD measurement to provide more flexibility and better reflect fulfillment realities. Here's a comprehensive breakdown of the updated policy and what it means for you.

Key Changes to the OTD Standard

OTD Target Adjustment: The OTD standard has been adjusted from >95% to >90%. This change aims to give sellers more leeway while still ensuring timely deliveries.

Consideration of Carrier Delays: Carrier delays are now factored into OTD calculations. This means you won't be penalized for delays caused by the carrier, provided you meet the program criteria.

Protection with Walmart Fulfillment Services (WFS), Ship with Walmart, and Simplified Shipping Settings: When using WFS, Ship with Walmart, or Simplified Shipping Settings, your OTD rate will not be impacted by carrier delays as long as you meet the program criteria. You will also not be held accountable for weather-related delays.

Essential Requirements for Sellers

To meet Walmart's shipping standards and maintain a healthy OTD rate, you must:

1. Support a Minimum of One Shipping Method: Ensure you offer at least one shipping method to ship orders to customers.

   
   

2. Accurate Lag Time and Shipping Selection: Choose an appropriate lag time, shipment method, carrier, and carrier service level to deliver the order to the customer on or before the Expected Delivery Date (EDD).

   
   

3. Meet the Expected Delivery Date (EDD): Consistently meet the EDD set for your items. Walmart reserves the right to update or extend shipping dates to provide a consistent and accurate shipping experience for customers.

   
   

4. Configure Your Operating Schedule: Define the timeframe in which you'll stop receiving orders on a given day by configuring your operating schedule for each of your active fulfillment centers in Seller Center.

   
   

5. Support Shipments Until 11:00 AM Local Time: Support shipments until 11:00 am in your local time zone, at least five days per week. Select your preferred days for each of your active fulfillment centers.

   
   

6. Use Additional Days Off Sparingly: Use Additional Days Off for exceptional cases only, with a limit of 30 days off per fulfillment center per calendar year. Excessive use is monitored and can result in account suspension or termination.

   
   

7. Provide Accurate Tracking Information: Provide tracking numbers that are accurate and valid, and only communicate them to Walmart once a package has been tendered to the carrier for shipment.

   
   

   

   Walmart Lag Time

   
   

Understanding Key Shipping Dates

Expected Delivery Date (EDD):

• The EDD is the projected date of delivery to the customer, calculated based on the order cutoff time, fulfillment lag time, seller-selected operational days, and transit time specified for the item.

• The EDD shown to customers on Walmart.com is calculated based on your historical OTD rate, your carrier’s delivery input, and Walmart’s logistical insights.

• If an item is five days past the EDD and the carrier has reported no movement in the last three days, Walmart may consider the item to be in a terminal state and may cancel the order.

• Walmart assigns the EDD by adding the maximum transit time for a given method and region.

Fulfillment Lag Time:

• Fulfillment lag time is the number of days it takes for you to prepare an item for shipment.

• Walmart Marketplace requires sellers to ship orders within two operational days after receiving an order, unless a lag time exemption has been approved.

• Operational days are the active days specified in your fulfillment center settings, defaulting to Monday through Friday while allowing for adjustments.

Expected Ship Date (ESD):

• The Expected Ship Date is the date by which you must mark the order as "Shipped" with valid tracking information.

• If the shipping confirmation is received on or before the ESD, the order is considered shipped on time.

• Walmart will auto-cancel an order if it’s not marked as shipped and tracking information hasn’t been uploaded by the ESD plus four calendar days.

Frequently Asked Questions (FAQ)

Can I modify my order cutoff time?

Yes. Fulfillment centers have a default order cutoff time of 2:00 pm in your local time zone and are automatically enrolled to support all operational days, Monday through Friday. Failing to configure your order cutoff time could negatively impact your on-time shipping rate.

Can I opt out of having Walmart shorten my delivery promise times?

Yes. Navigate to the Shipping Info page in Seller Center, locate the Delivery Promise Optimization section and select Opt Out. If you want to avoid late deliveries, you can try Simplified Shipping Settings, which helps you close the gap between your actual and promised delivery dates.

Can I opt out of having Walmart extend my delivery promise times?

No. Walmart reserves the right to update or extend shipping dates to provide a consistent and accurate shipping experience for Walmart.com customers. Walmart may also extend delivery promise times due to weather-related delays.

Can I use Amazon Multi Channel Fulfillment (MCF)?

Yes. When using Amazon MCF, you must ship the items in a neutral box and block Amazon Logistics as a carrier to ensure orders aren’t delivered using Amazon-branded vehicles and to comply with Walmart’s shipping and fulfillment policy.

Can I use stamps or prepaid envelopes to ship orders via USPS?

No. All orders must have a valid tracking number.

By understanding and adhering to Walmart's updated On-Time Delivery standards, sellers can improve their performance, maintain good standing on the marketplace, and provide a better experience for customers. Prioritize accurate shipping information, timely fulfillment, and strategic use of Walmart's shipping tools to maximize your success on Walmart Marketplace.