Walmart Marketplace Category Restrictions in 2025: What Sellers Need to Know

A Sudden Shift on Walmart Marketplace

In mid-2025, Walmart Marketplace rolled out one of its most dramatic policy changes yet: suddenly gating entire product categories that sellers had been freely selling in for years. Overnight, thousands of listings disappeared, and sellers found themselves stuck with inventory they could no longer move.
The categories hit the hardest include Beauty & Personal Care, Health & Wellness (including supplements), Baby Consumables, and Pet Consumables. Going forward, only brand owners and authorized distributors who pass Walmart’s new vetting program are allowed to list these items.

Why Walmart Is Cracking Down

Walmart explained that the move was part of its effort to create a safer, more trustworthy marketplace. By gating sensitive categories, Walmart hopes to reduce counterfeit items, ensure regulatory compliance (especially with FDA rules for cosmetics and supplements), and attract major brands.
To sell in these categories now, sellers must submit invoices, brand authorization letters, and proof of compliance. While this creates a more controlled environment for big brands, it has left many smaller sellers scrambling.

The Impact on Sellers

The abrupt enforcement — with no grace period — meant many sellers woke up to hundreds of compliance errors and stranded inventory in Walmart Fulfillment Services (WFS). For resellers and arbitrage sellers, this has been especially devastating, as they often lack direct brand relationships.
On seller forums, frustration is high. Many argue that legitimate businesses were swept up in the ban simply for not being brand owners, despite sourcing authentic products from reputable distributors. Others are worried about cash flow as unsellable inventory piles up.

Tools That Can Help Sellers Stay Ahead

While the new restrictions are frustrating, sellers can reduce risk by staying proactive and using tools that give early visibility into gating issues:

• Marter- A profit calculator for Walmart sellers that now also provides gate reports. With Marter, sellers can quickly see if a product is gated before committing to large purchases, helping avoid stranded inventory.
• Inventory Falcon- An advanced inventory management tool that lets you list products quickly and check gating status instantly. By testing listings ahead of time, sellers can identify potential restrictions before sending inventory into WFS.