Dive Brief:
- Walmart's cross-border importing service now has a Vietnam-to-U.S. connection after the retail giant added Ho Chi Minh City and Hai Phong to its roster of origin ports, according to a July 31 announcement.
- Sellers using Walmart Cross Border can book full-container ocean freight shipping from the two cities to Walmart Fulfillment Services facilities in the U.S., Adam Aldrete, a senior program manager for the Walmart Imports Program, said on LinkedIn.
- The new ports of origin are the first outside of China for the Walmart Cross Border service, with other available locations in Yantian, Ningbo, Shanghai, Qingdao and Xiamen.
Dive Insight:
Walmart Cross Border's Vietnam expansion arrives in time for sellers to inbound inventory from the country to the company's U.S. facilities before the holiday shopping season.
The imposition of higher tariffs and other U.S. trade policy changes have led importers to revamp their sourcing strategies or accelerate existing plans to diversify their supply base beyond China. Vietnam has become a popular alternative, with companies like HP and Boot Barn sourcing more from the country to help reduce their reliance on China.
Walmart said in its announcement that the Vietnam additions make it easier for sellers to move merchandise from manufacturing hubs to end customers through the retailer's supply chain services.
Beyond the new cross-border connections, Walmart has rolled out various other perks to attract more businesses to use its supply chain offerings in Q4 and beyond, fueling further competition with Amazon. The third-party fulfillment titan’s ocean freight transportation service for sellers, Amazon Global Logistics, offers the ability to ship inventory directly from China to the e-commerce giant's facilities in the U.S., U.K. and European Union.
One incentive Walmart is offering is the waiver of peak season storage fees for Walmart Fulfillment Services from October through Dec. 31. In addition to its fixed monthly storage charge of $0.75 per cubic foot, Walmart normally adds $1.50 per cubic foot per month for items stored more than 30 days during that timeframe.
The retailer said waiving the holiday fee will allow sellers to meet the expected demand surge without incurring extra inventory costs.
Another perk Walmart touted is a 30% discount through Oct. 1 for sellers using Multichannel Solutions. The service helps businesses fulfill items from an array of sales channels, including Walmart.com, Amazon, Shein and Temu.
