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Walmart Performance Expectations

Walmart Performance
Walmart measures performance based on a few factors. Primarily, they want their sellers to focus on two major targets: Service Level Agreements (SLAs) and quality post-transaction customer support.

Service Level Agreements (SLAs), include the following:

  • On-time Shipment: Greater than 99%
  • Cancellation: Less than 1.5%
  • Refund Rate: Less than 5%

Walmart considers quality post-transaction customer support to include the following:

  • Refunds
  • Cancellations
  • Customer questions & email

Seller Scorecard
You can review your standing by viewing your Seller Scorecard, which is divided into three sections;
On-time Shipment Rate, Unit Cancellation Rate*, Sales Cancellation Rate*.

On-time Shipment Rate:
When shipping is confirmed before the Expected Ship Date (ESD), see the four subsections below;

  • a. Total late units (including b, c, and d)
  • b. Units not shipped (total items not shipped within the reported date range/not shipped by last refresh time of the Scorecard)
  • c. Units shipped one or more days late (shipped over 24 hours after ESD)
  • d. Units shipped late by less than a day (shipped less than 24 hours after ESD)

Unit Cancellation Rate:
Percentage of units sold that have been cancelled, see the four subsections below;

  • a. Total cancelled units (including b,c, and d)
  • b. Units cancelled late (cancelled after ESD)
  • c. Units cancelled on time (cancelled before ESD)
  • d. Units cancelled due to inactivity (auto-cancelled after left dormant for an extended period of time [30+ days])

Sales Cancellation Rate: Percentage of total sales that have been cancelled

 

When looking at the Seller Scorecard, you should see the following:

SellerScorecardExample.png

Ranges for On-time Shipment Rate:
Target: >99%
Good: 96-99%
In trouble: <96%

Ranges for Unit Cancellation Rate and Sales Cancellation Rate:
Target: <1.5% 
Good: 1.5%-2.5%
In trouble: >2.5%

*All cancellations affect the Seller Scorecard

 

It is important to note that, according to Walmart, occasional under-performance does not necessarily put the account in negative standing, but failure to improve over prolonged periods of time may result in selling restrictions.

 

Partner Performance Notifications
If Walmart does see that your account is in trouble, they will send you a series of Partner Performance Notifications.

  • The first notification (Partner Performance Notification 1) is an attempt to contact you to ask for measurable improvement within 15 days of the first warning.
  • The second notification (Partner Performance Notification 2) is a second attempt to contact you, also to ask for measurable improvement within 15 days of the second warning.

This gives you a total of 30 days to make measurable improvement before receiving the third notification, the Suspension Notification, in which your selling privileges may be removed temporarily.

Improving Your Seller Scorecard
Seller Scorecards update over time as you continue to improve your performance. The best way to improve your Seller Scorecard is to deliver excellent service, to avoid cancellations and to meet shipping deadlines.
You should not contact Walmart Partner Support to have your Seller Scorecard adjusted simply because you have failed to meet your Partner Performance Expectations. 

The only exception is if your performance has dropped significantly due to a massive problem for which you are not at fault (e.g., failure of API update, mass cancellation due to pricing problem, severe inclement weather that affected carriers' ability to deliver by EDD, etc.). If this type of event occurs and impacts your Seller Scorecard, file a case with Partner Support and provide the following: 

  • Reason for massive problem
  • Proof of your claim that you are not at fault (e.g., a case number regarding an API failure where it was validated that you were not at fault, a list of the warehouse addresses that have been impacted by a storm)
  • Date range orders were impacted
  • Affected order #s

Once Walmart has verified this claim, no action will be taken against you regarding your Seller Scorecard. Your Seller Scorecard will still display the lower performance rates, until they improve over time. If you did experience this type of problem but your performance is still within the targets, you do not need to contact Partner Support. In the event that you open a case and do not receive a response within 3 business days, please send an email to mponboard@walmart.com with the case number in the subject line.

Source links:
https://marketplace.walmart.com/knowledgebase/articles/Article/What-are-Partner-Performance-Expectations
https://marketplace.walmart.com/knowledgebase/articles/Article/Frequently-Asked-Questions-Orders
https://marketplace.walmart.com/knowledgebase/articles/Article/Use-the-Seller-Scorecard-to-Optimize-Your-Business