Walmart Suppliers Face New Fees

Walmart is planning to charge some of its suppliers a new fee to transport goods to its warehouses and stores, according to a report by The Wall Street Journal.

In a memo obtained by the paper, as of August 1, companies that use Walmart to transport goods to the retailer’s warehouses and stores will be charged a fuel surcharge and a college pickup charge. The new policy “is a result of Walmart adapting to the significant transformation and increased cost seen in the transportation industry over the past few years,” says the memo.

Walmart explained the new charge will be calculated as a percentage of the cost of goods received by the chain. The fuel surcharge is based on the cost of fuel to transport goods to stores and warehouses.

Added Walmart, the fees are a method to help it adapt to the current economic environment while continuing to keep prices low for consumers. Walmart plans to soon let individual suppliers know details about specific charges they will face.

One solution for suppliers is to stop using Walmart’s collect shipping service and instead switch to prepaid shipping, where a supplier pays for shipping into Walmart’s supply chain. This option was posted on the company’s website for suppliers. The move by Walmart is the latest example of how businesses are attempting to offset rising costs for transportation and fuel.