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What to do when you're suspended from Walmart.com

Jan 5

It is important that Walmart 3rd party sellers remain prepared in case their Walmart seller account is suspended. To get your account back up and running, you need to understand why your account was suspended and how you can reinstate it. 

Walmart's reasons for suspending seller accounts

The following are five reasons why Walmart seller accounts are suspended revealed by walmart consultants:

  • Violations of the Performance Standard: 

Amazon keeps track of the cancellation rates, returns, delivery, and tracking of its sellers through its Seller Scorecard. You may lose your selling privileges if you violate Walmart's standards in your walmart account management practices. Marketplace sellers are also required to comply with the following standards:

  • Less than 2% Order Defect Rate (ODR) over a 90-day period. Divide the number of orders with at least one defect by the total number of orders during the same time period to calculate your order defect rate.
  • An on-time delivery rate of greater than 99% is desirable. Based on the expected delivery date (EDD), this shows the percentage of orders that arrived on time. 
  • It is required that you provide valid tracking information and delivery scans on or before the EDD in order to ensure a 14-day valid tracking rate (VTR) of more than 99%. FBA MCF orders associated with Amazon logistics codes are not considered valid

 

  • A breach of the agreement between Marketplace and the Retailer: 

Selling on Walmart is a condition of agreeing to the Walmart Marketplace Retailer Agreement, which includes all Walmart's retail policies and requires adherence to them. By signing this agreement, you are ensuring that no fraudulent, used or unauthorized goods are being sold. The document also details how you will be held responsible for processes such as order fulfillment and inventory syncing, as well as policies governing product content.

You should continue monitoring the quality of your listings, as Walmart's requirements are constantly being altered. The risk of missing the memo and facing compliance issues is high if you are not paying attention.  

  • Violations of the Trust & Safety Standards:

Walmart requires its sellers to follow its policies regarding intellectual property, regulatory compliance, and offensive product sales; failing to do so could result in suspension. There are three types of safety violations tracked by Walmart's Trust and Safety Dashboard within Seller Center:

  • Compliance with regulatory requirements. These regulations apply to products that pose a risk to products and to food safety regulations
  • Products which are offensive. Items which encourage discrimination, glorify violence, or contain profanity may be considered offensive
  • Property owned by an individual. The misuse of intellectual property is defined as products that do not cite the creator or intellectual property owner, indicating that you do not have permission to distribute these products.

 

  • Non-compliance with operational standards:

Maintaining a satisfied customer base requires Walmart to adhere to strict operating standards. Complying with these standards will help prevent Walmart from being suspended, this standard also demands respect and equality. By taking steps like these, you can ensure a safe, healthy work environment.

  • Strictly enforcing workplace safety measures
  • Paying workers on time on a regular basis
  • Water, food, and, if possible, living facilities should be on hand in the workplace to keep it hygienic and stocked
  • A trained professional should be on hand to assist if the need arises to provide proper First Aid

 

  • Pricing Violations of Extreme Importance

Walmart doesn't fudge the prices. A suspension could be initiated if there are too many infractions or a very egregious violation. Most pricing violations result in delisting on a per-SKU basis.

Walmart adheres to two pricing rules:

  • Price Parity. Neither the price of the item (including shipping) nor the cost of shipping must be lower on the site of the competitor. 
  • Price Leadership. Other sellers on Walmart.com or a competitor site must not provide your products at a drastically lower price (including shipping fees). 

Walmart is also looking for price gouging following the COVID-19 pandemic. What is the general rule of thumb? Don't use situations such as the global health crisis as an excuse to charge unfairly, you'll be booted straight from the market if you do that.

Warning Signs that You Might Face Suspension

It is possible that a sudden suspension is approaching despite your best efforts. A Walmart account is usually suspended after at least one warning and a reason is given. In Walmart's Partner Performance Review teams, for example, you will be notified if your ODR metric is off target.  

The threat of suspension will only be raised against sellers who have been on Walmart Marketplace for three consecutive months in a show of good faith towards new sellers. After warning sellers, they tend to give them 30 days to improve their ODR before they declare a breach.

Providing the following information may be helpful if you believe you are not at fault for a violation, or if you have evidence to prove that you are not at fault:

  • Evidence of the issue's cause with a valid explanation
  • When the problems first occurred and where they occurred
  • Approximately how many orders were damaged as a result of the issues
  • Walmart will suspend your account for 30 days if you do not improve your performance or comply with regulations. If any further action is taken, such as canceling all open orders on your account, Walmart will let you know when the situation is resolved.

Find out why you were suspended

An audit of your business practices may reveal why your seller account was suspended, or it may be a simple matter. Regardless of whether you reinstate your account or not, you must understand what happened beforehand. If the account of your Walmart seller is suspended, contact a consulting agency such as Urtasker. We can help you pinpoint the exact reason why your account was suspended. Since our vast experience deals with e-commerce giants, it may be possible for us to observe issues differently.

Prepare and submit a Walmart business plan

As part of your reinstatement plan, you will need to include the following in order to demonstrate that you are serious about the matter:

  • Discovering what caused the suspension in the first place is the right step you took. Walmart will want to be certain you understand what happened. 
  • The steps taken to correct the error 
  • By implementing protocols, you have ensured that the same error won't happen again 

Keeping Walmart from being suspended in the future

Once your account has been reinstated, you will need to ensure you won't suffer another suspension for the same or a different reason. If you wish to do this, it is imperative you re-familiarize yourself with the terms of the Marketplace Retailer Agreement and adopt a system that will ensure that any changes to the contract are communicated to you. Investing in inventory management software and other workflows is also recommended if you want to keep Walmart happy.

Consult Urtasker if your Walmart account is suspended

If your Walmart seller account was suspended, contact the professionals at our consultancy agency, Urtasker, to schedule a meeting. We can help you to get your account back and get it running in no time. We provide Walmart account management services to our clients, to effectively manage their Walmart account and our expert's guidance also ensures that your account is not suspended ever again in the future.