Walmart Suppliers Face New Fees to Use Retailer’s Transport

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Walmart plans to charge some suppliers a new fee to transport goods to its warehouses and stores, as businesses across the country try to combat the rising costs of transportation and fuel, The Wall Street Journal reported Tuesday (July 5).

According to a memo viewed by the Journal, companies using Walmart to transport goods to the retailer’s warehouses and stores will face a new fuel surcharge, as well as a “collect pickup charge,” as of Aug. 1.

The report noted the collect pickup charge will be calculated as a percentage of the costs of goods received by Walmart, while the fuel surcharge is based on how much fuel cost to transport the goods. According to a Walmart spokesperson, the fees would help Walmart accommodate itself to the current challenging economics while keeping prices as low as possible.

Some suppliers were critical of this, though, frustrated that the retail giant is not providing more detailed information about the charges, as suppliers now have limited time to account for the additional costs.

Per the report, suppliers have the option of quitting Walmart’s collect shipping service, in favor of switching to prepaid shipping where the supplier arranges and pays for shipping into Walmart’s supply chain.

This update comes after big companies like Walmart reported big sales increases earlier in the pandemic, though they recently saw more diminished profits, with consumers going back to older, pre-pandemic buying patterns.

At a June investor meeting, executives for Walmart said they wanted to pass on some of the costs that were added to suppliers. PYMNTS reported that Walmart’s annual open-sourcing event “Open Call” had over 1,100 businesses pitching products this year.

Read more: Walmart Wraps Biggest-Ever ‘Open Call’

The report noted that the retailer said over 330 such pitches were resolved with a deal for the businesses, meaning the products have received a place on the shelves at Walmart or Sam’s Club, online at Walmart.com or at Walmart’s Marketplace.


45% of Non-Recurring Transactions Now Use Instant Payments

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The gig economy and gaming industries have driven a rise in ad hoc transactions, payments made outside of regular invoicing and payroll. Businesses are relying on instant payments to streamline these transactions, which involve contractors, consumers and small businesses.

According to a PYMNTS Intelligence report, “Gigs and Games: How Instant Payments Are Gaining Ground for Ad Hoc Transactions,” a collaboration with Ingo Payments, with increased demand for efficiency and speed, instant payment systems are becoming a preferred solution, though obstacles to wider adoption remain.

Instant Payments Comprise Nearly Half of Ad Hoc Transactions

Instant payments are gaining in popularity for ad hoc transactions, according to the report. With the demand for quicker and more efficient methods of payment, businesses are adopting real-time payment systems to facilitate faster transactions, reduce fraud risk and improve overall financial processes.

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PYMNTS found 45% of all ad hoc payments made in July 2024 were sent via instant methods, a notable increase from 36% earlier in the year. Industries that rely heavily on nonrecurring payments, such as gaming and the gig economy, have seen the most significant uptake.

Larger Enterprises Leading the Shift

Larger companies are leading the adoption of instant payments for ad hoc transactions. Businesses with more than $1 billion in revenue are sending half of their ad hoc payments via instant rails, revealing a preference for speed and efficiency. Smaller companies, however, are lagging in adoption, with those earning between $50 million and $100 million turning to instant methods for just 34% of ad hoc payments. The delay in adoption among smaller enterprises is often linked to the high costs of integrating instant payment systems into their existing processes.

Despite this, the trend toward adopting instant payment methods is gaining momentum across the board. Many large enterprises view instant payments as the future standard for ad hoc transactions, especially in business models that no longer rely on recurring payees, such as contractors or freelance workers. But challenges persist in scaling this technology across industries of all sizes.

Barriers to Broader Instant Payment Adoption

While instant payments offer considerable benefits, particularly in terms of speed, cost savings, and enhanced customer/vendor retention, the report shows businesses face obstacles in fully adopting them. For many enterprises, the cost of integrating real-time payment systems remains the primary barrier. According to the report, 35% of businesses cite integration costs as the biggest obstacle to adopting instant payments for ad hoc transactions.

Additionally, there is a digital divide, with industries like gaming and the gig economy leading the charge in adopting instant payment systems. But two-thirds of small and medium-sized businesses (SMBs), particularly those in industries with less digital momentum, are dealing with the costs and complexities of implementing these systems. Despite these challenges, businesses that do embrace instant payments could gain a competitive edge by securing customer and vendor loyalty, driving down transaction costs, and improving cash flow management.