By Bethany Davis, President, Bentonville Team (from our Walmart retail expert video series)
Shipping might not sound glamorous, but it’s one of the most critical parts of succeeding at Walmart. And it’s also one of the easiest to get wrong. The way you handle logistics can make or break your in-stock performance, your sales and even your relationship with your Walmart merchant.
Here are the top things to know before your Open Call pitch:
1. Understand “Collect” Shipping
For your Open Call pitch, always price your product using “collect” shipping.
That means you assume Walmart will pick up your product and pay for the freight.
Here’s what to keep in mind:
Collect = Walmart arranges pickup and covers shipping costs.
Pro: It’s simple to quote and acceptable for your initial pitch.
Con: Walmart’s trucks rarely deliver on time.
While you won’t be fined for late deliveries (it’s Walmart’s freight), it will hurt your sales.
When shipments arrive 7 to14 days late, your product will show out of stock at stores, even though it’s not your fault.
The impact: Suppliers that switch from collect to a 3PL often see higher sales and in-stock rates jump.
Bottom line: Collect works for your initial pitch, but it’s not the best long-term strategy if you want strong in-stocks and consistent sales.
2. Why a 3PL Partner Is a Game-Changer
Once you know where and how Walmart is placing your items, it’s time to switch to a 3PL (Third-Party Logistics provider).
Trusted options: Dot Foods and RJW are two top-tier 3PLs that specialize in Walmart fulfillment.
How it works:
3PLs consolidate shipments from multiple vendors to ship smaller, mixed loads to Walmart on time and in full.
This model supports Walmart’s preference for smaller, more frequent orders. Think cases, not pallets.
The payoff:
3PLs deliver on time, helping you avoid costly OTIF fines (3% of your COGS) for late deliveries.
They handle complex multi-DC or multi-store distribution seamlessly.
Pro tip: You’ll need to know your DC count, expected store volume and forecast to price out 3PL shipping accurately. You will receive this information after your pitch.
3. The Smart Shipping Sequence To make your shipping plan work for both your pitch and your long-term Walmart business:
Pitch using “collect” pricing. • Keeps things simple and accurate while you’re still estimating scope.
Once awarded stores/DCs, switch to a 3PL model. • Recalculate your cost of goods with your logistics partner’s rates. • Present the updated plan to your merchant, they’ll appreciate the proactive approach.
Getting shipping right means more than just moving boxes, it’s about protecting sales, keeping shelves full and showing Walmart that you’re ready to play at their level.
Want expert help mapping out your logistics strategy or choosing the right 3PL partner? Contact us. Your secret weapon team is here to make sure your products stay in stock and on Walmart shelves.
