Walmart Expands Cross-Border Shipping with Vietnam
Walmart is making waves in the e-commerce world by enabling marketplace sellers to utilize its cross-border ocean freight service to ship items from Vietnam. This addition complements existing shipping options that allow merchants to source products from China, showcasing Walmart’s commitment to enhancing logistics for its sellers.
Benefits for Vietnamese Sellers
Sellers who manufacture or source goods in Vietnam will now find it easier to access Walmart’s extensive logistics network. This integration means sellers can book full-container ocean freight from key ports like Ho Chi Minh City and Hai Phong. Once the goods have been shipped, they will be routed to Walmart Fulfillment Services (WFS) facilities scattered across the United States.
By incorporating these two Vietnamese ports into its system, Walmart expands its shipping capabilities to a total of seven ports across both Vietnam and China. The already-existing options include bustling ports such as Shanghai, Ningbo, Yantian, Qingdao, and Xiamen.
Strategic Logistics for the Holiday Season
Walmart’s announcement, released on July 31, is particularly timely, as it includes a significant benefit: waiving peak season storage fees for WFS sellers from October to December 31. This move is designed to help sellers move more inventory during the crucial holiday shopping period without incurring additional costs—a strategic boon for those looking to capitalize on seasonal demand.
Once containers are dispatched from the ports in Vietnam or China and clear U.S. customs, Walmart takes over the logistics. The company’s established network ensures that most inventory is delivered to one of four fulfillment centers located in Los Angeles, Dallas-Fort Worth, Topeka, Kansas, and Sacramento, California.
Inventory Management and Transit Times
Walmart employs a smart allocation strategy, directing standard-sized inventory to fulfillment centers that are closer to its customers while oversized items are fulfilled directly from the destination facility. Given the growing demands of the holiday season, Walmart advises sellers to coordinate their shipping schedules accordingly. They recommend that full container loads be shipped from the Asian ports by mid-August to meet the inbound cutoff date of October 1.
Generally, Walmart anticipates that shipments will take 35 to 60 days from the cargo-ready date to final delivery. For example, shipments to the West Coast are typically completed in about 44 days, while those headed to the Midwest and East Coast may take 50 and 55 days, respectively.
Strategic Shifts in Sourcing
Walmart’s initiative to incorporate Vietnam into its cross-border shipping program comes in response to the evolving dynamics of global sourcing. As businesses actively search for alternatives to China, Vietnam has increasingly become a favored destination for sourcing and manufacturing. Companies are particularly drawn to Vietnam amid the complications brought on by tariffs imposed during previous trade negotiations.
With heightened tariffs on goods from China—including a steep 55 percent total due to additional duties related to fentanyl trafficking—Vietnam’s comparatively lower tariffs of 20 percent have made it an attractive option for sellers aiming to minimize costs. This shift has motivated many U.S. companies to scout for opportunities in Vietnam—a trend highlighted by recent statistics showing a robust 27.8 percent increase in exports from Vietnam to the U.S. in the early months of the year.
Recent Developments and Trade Relations
Trade relations between the U.S. and Vietnam have been bolstered by positive negotiations. A preliminary trade agreement struck on July 2 has kept the momentum flowing, with exports to the U.S. in July alone rising 26 percent compared to the previous year. Interestingly, Vietnam’s imports from the U.S. also saw an uptick of 22.7 percent, showing a reciprocal trade dynamic.
Walmart has been proactive in strengthening its ties with Vietnamese suppliers, having previously participated in the Vietnam International Sourcing Expo. Furthermore, events held in Hanoi aimed at educating local sellers about Walmart’s e-commerce platform underline Walmart’s commitment to fostering a robust marketplace for Vietnamese businesses.
Enhancing Seller Experience Beyond Logistics
In addition to expanding cross-border shipping options, Walmart is fine-tuning the experience for its marketplace sellers in other crucial ways. As part of its July announcement, Walmart unveiled a 30 percent discount for sellers using the Multichannel Solutions “fulfill from anywhere” feature. This facilitates effective inventory fulfillment across multiple platforms, including Walmart itself, Amazon, eBay, Shein, and Temu.
Through these initiatives, Walmart is not only enhancing its logistical capabilities but is also investing in the overall seller experience, making it easier for businesses to thrive in an increasingly competitive e-commerce landscape.