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Walmart’s Seasonal Favorites Incentive

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What if you could eliminate Walmart’s referral fees during the busiest shopping season of the year?

For arbitrage sellers, referral fees are a constant squeeze on margins, especially in Q4 when competition is fierce and every percentage point matters. That’s why Walmart Marketplace’s Seasonal Favorites Incentive Offer is such a game-changer. Running from August 31st 2025, through January 31st 2026, this incentive could allow you to maximize profits and scale your arbitrage business during the most lucrative time of year.

In this post, we’ll break down exactly how the incentive works, who qualifies, and practical steps you can take to get the most out of it. 

                                                                                                                                               

What Exactly Is the Seasonal Favorites Incentive?

The Seasonal Favorites Incentive is designed to reward eligible sellers with a Referral Fee reduction off the standard base fee on select categories during the peak seasonal period. This program aims to drive competitive pricing, exceptional fulfillment performance, and enhanced customer visibility across the Walmart Marketplace.

 

Why This Incentive Matters for Arbitrage Sellers

Q4 is the Super Bowl of retail. Toys and pet supplies - two of the strongest seasonal and evergreen categories - skyrocket in demand during the holidays and beyond. But here’s the kicker: referral fees, which normally sit at 15%, often slash into what could otherwise be highly profitable flips.

With the Seasonal Favorites Incentive, those fees can shrink dramatically for eligible sellers and items:

  • Toys: Referral fees drop from 15% to 0% — a complete fee waiver.
  • Pets & Supplies: Referral fees are cut in half, from 15% to 7.5%.

For sellers, that’s not just a discount - it’s a profit amplifier! Imagine sourcing a hot holiday toy, pricing it competitively, and keeping an extra 15% margin in your pocket. That’s the power of this awesome incentive.

 

Structure & Timeline: Key Details You Need to Know

Here are the essentials:

  • Eligible Categories: Toys, Pets & Supplies.
  • Incentive Period: August 31, 2025 – January 31, 2026 (covering Black Friday, Cyber Monday, Christmas, and even the January rebound).
  • Automatic Application: Fee reductions are applied to all qualifying items as long as you meet the requirements.
Exclusions:
  • Items discounted by Walmart directly don’t qualify.
  • No stacking with other referral fee incentives - Walmart applies whichever incentive benefits you most.


Explore Marketplace offerings

Walmart’s Seasonal Favorites Incentive isn’t a free-for-all - it’s designed to reward sellers who can deliver competitive pricing, fast shipping, and reliable performance. To access those reduced referral fees, you’ll need to tick every box on the eligibility checklist. Here’s the full breakdown:

1. Competitive Pricing

  • Your items must maintain competitive pricing—meaning equal to or lower than the competition, either onsite or on other comparable marketplaces.
  • Pricing is calculated based on total item cost (item price + shipping).

    Important: If your item’s competitive pricing is achieved through Walmart-funded discounts, it won’t qualify for the incentive!

2. Fulfillment Method

  • You must either: Use Walmart Fulfillment Services (WFS), or Offer Standard Free & Fast (SFF) shipping with a 3-day or faster delivery promise.

    Important: Shipping speed is based on the calendar-day promise at checkout, not business days.

3. Performance Metrics

To stay in good standing, you’ll need to hit specific performance targets:

  • Maintain at least 4% advertising spend through Walmart Connect Sponsored Search or Display (measured as a percentage of Gross Merchandise Value, excluding Walmart-funded credits).
  • Keep a 90% On-Time Delivery (OTD) rate in the most recent 4 weeks (L4 weeks) within the eligible category.
  • Walmart gives sellers a 30-day ramp-up period (until September 30, 2025) to meet these targets. From October 1, 2025, full enforcement begins.

4. Good Seller Standing

  • You must remain in good performance standing according to Walmart’s Seller Performance Standards.
  • Falling below those standards (or being flagged as high-risk) means forfeiting your incentive for the period.


Additional Program Rules

Beyond the core requirements, Walmart has set out a few additional program details you should know about:

  • No Price Coverage? No Problem: If your item doesn’t have comparable pricing on-site or on another marketplace, it may still qualify, don't write it off stright away.
  • No Double Dipping: This incentive cannot be stacked with other referral fee incentives. If more than one applies, Walmart automatically applies the best one.
  • Shipping Speed & OTD Enforcement: Walmart will track delivery promises and actual on-time rates to ensure sellers keep pace.


Our Takeaway:  Turn Walmart’s Incentive Into Q4 Profits

Think of eligibility as Walmart’s way of ensuring you’re competitive, fast, reliable, and invested in advertising. If you’re already running a tight arbitrage operation with strong fulfillment and pricing systems, you’ll be well positioned to qualify!

Walmart’s Seasonal Favorites Incentive is more than a holiday promotion - it’s a strategic opportunity to slash costs, improve competitiveness, and grow your business.

The rules are clear, the timeline is set, and the opportunity is waiting.

Are you ready to leverage this incentive to dominate Walmart Marketplace this holiday season? Start sourcing now, plan your ad spend, and put the systems in place to make Q4 your most profitable yet!


Want to see how your product might perform on Walmart?

Tools like our brand new product WAMP give you sales estimates, profitability insights, and keyword demand - so you’re not guessing, you’re growing!

 
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