Walmart has introduced a new service providing ocean freight capacity and customs clearance for sellers on its online marketplace.
This service, named Walmart Cross Border, initially supports full container shipments from three major Chinese ports—Yantian, Shanghai, and Ningbo—on a port-to-door basis.
Sellers using this service can take advantage of Walmart’s negotiated ocean freight rates for 20-foot, 40-foot, and 45-foot high cube containers, according to a statement released by Walmart on Thursday.
To qualify, sellers must source or manufacture their products in China and have enough goods to fill a container. They must also be part of the Walmart Fulfillment Services (WFS) program, which connects sellers to Walmart’s two-day U.S. domestic delivery network. Additionally, sellers have the option to utilize Walmart’s preferred U.S. customs broker.
This offering highlights the growing demand from international sellers for comprehensive logistics solutions, including ocean freight and customs coordination. Through its online marketplace, Walmart provides sellers access to U.S. buyers they might not otherwise reach.
Targeting Amazon
By integrating logistics services with demand and fulfillment, Walmart is positioning itself as a direct competitor to Amazon, which has also started offering ocean freight and customs services to its marketplace sellers. However, Walmart has a long-standing advantage as a Beneficial Cargo Owner (BCO), allowing it to secure preferential ocean rates from shipping lines—an area where Amazon has only recently gained ground after becoming a BCO.
Walmart’s new service also presents a challenge to e-commerce platforms like Shopify and digital customs brokers or forwarders that assist sellers unfamiliar with the complexities of international logistics.
By consolidating ocean volume from its marketplace sellers, Walmart strengthens its bargaining power with shipping lines. As one of the largest U.S. container importers, increasing its shipping volume would further enhance Walmart’s leverage in negotiations.
Walmart also operates a subsidiary non-vessel-operating common carrier called WMSC Logistics Services.
