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4 Reasons that can get your Walmart Account Suspended

Jan 4

Walmart Marketplace sellers can almost fall into a frenzy when they learn their accounts have been suspended. It is not impossible to regain access to your account from this unfortunate episode, even though it is bad news. However, by following marketplace guidelines for the Walmart account management you can avoid this unfortunate event.

Walmart continues to be one of the most popular marketplaces in the US for online sellers. Its stores and e-commerce website are visited by more than 130 million customers monthly, giving online sellers an enormous opportunity.

Product analytics, advertising, content, and support are excellent features. The company's number one priority is to serve and maintain quality, as is expected of any World-class online marketplace. It is important for sellers to respect the rules pushed by Walmart in order to maintain such standards.

What are the reasons for the Walmart account suspension?

There are a variety of reasons why Walmart accounts are suspended, and here are four major ones. 

Reason #1. Infringement of Walmart's performance standards

Sellers can review their performance on Walmart's Seller Scorecard to determine if they meet the performance standards. Walmart's Performance Standards are composed of four metrics. These are as follows:

  • Rate of cancellations

The cancellation rate indicates how many orders are canceled by sellers after being delivered by Walmart. Under 2% in 14 days is considered acceptable.

  • Rate of Return

It is calculated as the percentage of orders that are returned by customers for reasons the seller is responsible for, such as incorrect items, damaged items, etc. In 90 days, the return rate should be less than 6%.

  • Rate of on-time delivery

Your On-Time Delivery Rate is the percentage of orders that are delivered before or on the expected delivery date. In 14 days, you should have over 95%.

  • Tracking rate that is valid

The Valid Tracking Rate represents the percentage of orders that have valid tracking information provided and have their deliveries scanned on time or before when expected. Ideally, it should be higher than 99% within 14 days. It's not as easy as it seems to provide Valid Tracking information. There is more to it than just providing a valid tracking number.

Reason #2. Failure to comply with Marketplace Retailer Agreement

In the process of setting up a Walmart Seller Account, sellers must agree to abide by the Terms and Conditions for Walmart after they accept the agreement. Retailer policies are the terms and conditions, policies, and guidelines that Walmart Marketplace sellers need to follow while participating in the program.

You should carefully read the contract, and if you find a clause that you may not follow later, it is advisable to incorporate that in your business practices. You can't escape this condition by refusing to sign the contract, and failing to comply with the terms in the contract will result in the suspension of your Walmart account.

Reason #3. Failure to adhere to Walmart's operational standards

It is absolutely critical for Sellers to maintain top-tier operations at all times if they are going to be able to sell on Walmart Marketplace. The best customer service includes on-time shipment and delivery, a refund within the time period, and a refund within the refund period.

Walmart's sellers are also required to keep their prices competitive. The following standards apply:

  • Providing customer service
  • To prevent disappointment after a delivery, all information should be explained transparently, and customer expectations should be realistic.
  • Ensure that Walmart is a reliable partner and that you can respond to customer inquiries. Make sure you follow the Walmart seller standards to the fullest extent, and ensure you take part in any training Walmart offers.
  • Keep proper documentation and promote these standards throughout your chain of command to demonstrate how you adhere to the standards.
  1. Respect for individuals and mankind

  • The practice of forced or underage labor should not be practiced by Walmart sellers.
  • For sellers to be able to sell on Walmart Marketplace, they need to maintain the legitimacy of hiring people based on their talent rather than racial, gender, age, or creed.
  • Work to protect the rights of all employees by following the existing laws about recompensing and working hours.
  • Don't deduct things that are not allowed under the law. Or to delay or withhold wages or to follow any other unfair, illegal practice that would harm the workers and make their living conditions difficult.
  • Work environment safety should be ensured and maintained, and employees should be encouraged to follow all safety measures prescribed by law. Set up a hygienic workplace with clean water, sanitation, and, if necessary, food and housing. 
  1. Become a successful Walmart seller

As a Walmart seller, you should maintain Performance Standards all the time and strive for excellence as much as you can. As Walmart policy requires sellers to comply with all fair trade and tax laws as well as Walmart policies, sellers must evaluate the risks involved and take steps to minimize them.

The following guidelines apply to all third-party sellers looking to make sales through Walmart Marketplace, and failure to abide by each of them may result in the suspension of their Walmart Account.

Reason #4. Violation of safety and trust standards

Walmart's sellers should maintain the goal of maintaining customers' trust by keeping them safe. They should ensure that legal business practices are followed and no violations occur. Sellers at Walmart Marketplace are strictly required to adhere to the Trust and Safety Standards, failing which their accounts will be suspended immediately.

The following clauses are included in these standards:

  • Compliance with regulations

It is an illegal act to sell a prohibited product on Walmart marketplace due to food safety regulations and risk to the product. Prescription drugs, gambling or spying products, and equipment for babies that hasn't been certified and tested are examples.

  • Product that is offensive

A product that promotes discrimination, promotes violence, or displays profanity can offend customers.

  • Patents and intellectual property

There are some articles that could be infringing on someone's intellectual property rights, or something that could be violating their Copyright Policy.

Conclusion 

Walmart Seller Account Suspension is caused by violation of these policies, and the process itself is complex. Experts review sellers' performance on Walmart to determine if action needs to be taken. Walmart may temporarily terminate or block seller accounts of a store anytime the ODR limit of 2% is exceeded by a significant amount. There will be at least one warning by Walmart before it suspends the sellers.

In addition to protecting the privacy and safety of its customers and sellers, Walmart adheres to fair trade policies. The consequence is that, in the event of any violation of Walmart's policies or guidelines, sellers are advised to cease doing business. It is possible that Walmart will suspend or terminate the seller's ability to sell on the Walmart marketplace if this continues.

If you fear you have violated Walmart policy and your account may be suspended, reach out to us at Urtasker. We provide Walmart account management services to ensure that you comply with all rules and regulations of Walmart. We can also help you set up your Walmart seller account if you are facing any issues in setting it for yourself.