Returns, Refunds & Fraud

Start by understanding why customers are returning your products

Before focusing on fraud, identify which refunds are caused by actual product, listing, or fulfillment problems.

Walmart’s Returns Insights dashboard provides SKU-level return information.

Walmart says sellers should maintain a seller-responsible Refund Rate of less than 6%.

Go to Seller Center → Orders → Returns → View Returns Insights

Look for SKUs with unusually high return rates.

Don’t look only at the number of returns. Look at the cost of the returns.

Reduce legitimate returns before fighting fraudulent ones

Walmart analyzed its own return trends and identified three major preventable return drivers:

Defective, damaged or wrong products

• Make sure all parts are included.
• Check products for defects.
• Use packaging appropriate for the product’s size and weight.
• Make sure UPCs are mapped to the correct products.

Incorrect listing information

• Images accurately represent the product.
• Titles are correct.
• Dimensions are clear.
• Compatibility information is clear.
• Included accessories are listed.
• Product variations are mapped correctly.
• Key features match the actual product.

Check your live listings regularly. Sellers report cases where pack quantity or product details changed, causing customers to expect something different from what was shipped. Pay special attention to quantity, variations, images, compatibility, and setup instructions.

Delivery problems

Delivery issues usually come from shipping late or carrier problems.

• Check your shipping performance and adjust your cutoff time if needed. The lowest you can go is 11 AM.
• Adjust lag time. You can use 0 or 1 day without approval. Getting 2 days approved is very difficult.
• If USPS is not scanning packages on pickup, try using an End-of-Day SCAN form.
• Consider switching to UPS or FedEx if they are more reliable, even if they cost more. Check the math. Paying a little more for shipping may be worth it if it reduces refunds and delivery problems.

Record serial numbers for high-value products

This is one of the most commonly mentioned practices among sellers dealing with return fraud.

For products with serial numbers, record the exact serial number shipped with every Walmart order.

Useful categories include:

• Electronics
• Computers
• Cameras
• Gaming devices
• Appliances
• Power tools
• Expensive equipment

What to record:

• Walmart PO number
• SKU
• Serial number
• Shipment date
• Tracking number
• Photos (Serial number / identifier close-up)

Photograph expensive orders before shipping

For higher-risk products, consider documenting what you are shipping.

Take photos showing:

• Product
• Serial number
• Product condition
• Accessories
• Packaging
• Shipping label

Ideally, keep everything associated with the Walmart order number (use spreadsheet created in the step 3).

Inspect and document returns immediately

Don’t wait several days before opening returned packages.

Have someone review Walmart returns every business day.

Know what Walmart may reimburse

• Different product returned
  If a customer returns a completely different item, an approved dispute may qualify for 100% of the sale proceeds.
• Empty box or missing item
  Provide photos and the return shipping label. If approved, Walmart may reimburse the applicable sale proceeds.
• Unsellable return
  This can include customer damage, missing accessories, used merchandise, destroyed packaging, or a locked device. An approved dispute may qualify for 20% of the item value, excluding return shipping.
• Delivered but reported missing
  Evidence can include signature confirmation, carrier delivery photos, or customer messages confirming receipt. If approved, the seller may receive 100% of the sale proceeds.

Use strong proof of delivery

“Item not received” or “lost after delivery” claims are frequently discussed by Walmart sellers.

For expensive orders, consider stronger delivery evidence.

This may include:

• Carrier tracking
• Delivery photo
• GPS-supported carrier delivery record
• Signature confirmation
• Signed bill of lading for applicable shipments

Walmart specifically recognizes several of these as supporting evidence for a dispute.

Ask Walmart to review suspicious orders before shipping

Walmart already screens Marketplace orders for fraud.

When Walmart detects suspected fraud before shipment, it may automatically cancel the order.

If Walmart identifies fraud after sending the order to the seller, it can send a “Fraud – Stop Shipment” notification.

More importantly, sellers can request a fraud review themselves.

If an order looks suspicious:

1. Open the suspicious order in Seller Center.
2. Select Cancel Order.
3. Choose Cancel – Fraud, stop shipment.
4. Click Contact our Walmart Risk Prevention team.
5. Include the order number in your message.

Walmart flagged fraud after you shipped. What now?

If you receive a “Fraud – Stop Shipment” email after the order has already shipped, act quickly.

Contact the carrier! Ask UPS, FedEx, USPS, or your carrier to stop/intercept the shipment and return it to you.

If you successfully stop it and once the package is returned:

• Refund the order
• Contact Walmart Seller Support
• Include the order number
• Attach the Fraud – Stop Shipment email
• Provide the invoice for the return shipping charge

Walmart says it will reimburse the return shipping charge, typically within 60 days.

Dispute eligible refunds

Don’t assume every Walmart refund is final.

Walmart allows disputes for several situations, including:

• Wrong item returned
• Empty return
• Missing components
• Customer-damaged merchandise
• Certain delivery disputes
• Certain failed deliveries
• Incorrect refund amounts
• Returns outside the allowed window

Each dispute type has different requirements and reimbursement rules.

Only submit disputes with accurate information and the correct reason. Walmart warns that false, misleading, or inaccurate disputes can result in warnings, suspension, or account termination.

We also suggest creating a simple dispute file for every case: photos, serial numbers, return label, case number, deadline, decision, and appeal status. This makes follow-up much easier.

Appeal legitimate disputes that were denied

A denied dispute is not necessarily the end of the process.

Walmart currently allows one appeal of an eligible dispute decision.

The appeal must be submitted within 30 days of the initial denial or decision.

Consider Ship with Walmart for delivery-related protection

Ship with Walmart (SWW) is Walmart’s shipping-label program for seller-fulfilled orders. You buy the shipping label through Walmart, while you still pack and ship the order yourself.

Using SWW can give you extra protection for some delivery-related refunds.

For eligible orders, Walmart may protect you when a package is:

• Lost in transit
• Reported lost after delivery

Walmart can cover up to $100 of the qualifying refund, handle the carrier claim, and protect certain seller performance metrics.

Consider WFS for stronger delivery and return protection

Walmart Fulfillment Services (WFS) stores, ships, and handles returns for your Walmart orders. It can also provide stronger protection against some delivery problems and fraudulent returns.

Walmart at fault

For WFS orders, Walmart may consider issues such as these Walmart at fault:

• Lost in transit
• Lost after delivery
• Damaged in transit
• Late delivery
• Unable to deliver
• Shipping-box damage

For these cases, Walmart generally refunds the customer while the seller keeps the original sales proceeds, although Walmart keeps applicable WFS fulfillment and referral fees.

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Example

A $350 WFS order is delivered, but the customer reports it missing. If Walmart determines it is a Walmart-at-fault case, the customer can be refunded while the seller keeps the original sales proceeds.

WFS can also help with fraudulent returns. Walmart says its fulfillment centers may report suspicious returns to its fraud team. If fraud is confirmed, Walmart may recharge the customer and reimburse the seller.

For example, if a customer returns an old or different product instead of the item you sold, Walmart may investigate the return and reimburse you if fraud is confirmed.

Use Keep It Rules carefully

Walmart’s Keep It Rules allow customers to receive a refund without shipping the product back.

This can make economic sense for low-value merchandise.

Example:

• Product value: $10
• Return shipping: $8
• Inspection/restocking cost: $2

Paying to return the product doesn’t make sense.

Walmart also offers Partial Keep It, where the customer keeps the product and receives a partial refund.

Track repeat refund patterns

Walmart Seller Center provides return data, but sellers handling large volumes may benefit from additional internal analysis.

Possible risk signals include:

• Unusual Keep It activity
• Same customer repeatedly ordering the same SKU
• Multiple orders from the same address
• Several returns from the same customer
• Repeated “incorrect item” returns
• Repeated “not as described” claims
• Multiple “item not received” refunds
• Same-day duplicate orders
• Expensive products repeatedly refunded

Create a simple fraud and refund workflow

For seller-fulfilled orders, a practical process could look like this: