Table of Contents
- What Is Walmart Dropshipping?
- How Does Walmart Dropshipping Work?
- 3 Ways to Dropship With Walmart
- 1. Become a 3P Walmart Seller
- 2. Become a Walmart Supplier or Drop Ship Vendor (DSV)
- 3. Resell Walmart Products
- What Is a Walmart Drop Ship Vendor?
- The Pros of Walmart Dropshipping
- Less Competition
- No Upfront Costs
- Extensive Range of Product Categories
- Brand Reputation
- The Cons of Walmart Dropshipping
- Extended Application Process
- Strict Seller Rules
- Low-Profit Margins
- Related Reading
- How to Start Walmart Dropshipping
- Start Your Journey as a Walmart Marketplace Seller
- Find Reliable Dropshipping Suppliers
- Sync Your Shopify Dropshipping Store with Walmart Marketplace
- Here’s how to sync your inventory using Shopify
- List Your Products On Walmart Marketplace
- Fulfill Orders on the Walmart Marketplace
- Related Reading
- Is Walmart Dropshipping Profitable?
- Prospective Profits of Walmart Dropshipping
- Pick the Right Products to Dropship
- Delight Customers With Fast Shipping
- Keep a Close Eye on Your Performance Standards
- Optimize Your Product Listings
- Track Your Performance
- Related Reading
- Sign Up For A Free Trial (No Credit Card Required) To Our Shopify Sales Tracker To Find Your Next E-commerce Opportunity Today!
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Many dream of starting their own online business but do not know where to start. Others who take the plunge become overwhelmed by numerous choices and options. For instance, they struggle to choose a niche and a platform for dropshipping. If this sounds familiar, you’re not alone.
The good news is that some options are more intuitive and profitable. Walmart dropshipping is one such choice. This guide will reveal the ins and outs of building a successful Walmart dropshipping business that generates consistent profits with minimal risk and efficient operations. We will also touch upon best dropshipping niches 2025.
Tracking your sales, including dropshipping, is essential for running a profitable online business. And that’s where Shophunter’s Shopify sales tracker can help. This straightforward tool lets you monitor your real-time sales, orders, and profit. With this knowledge, you can adapt to changing circumstances to stay on top of your business.
What Is Walmart Dropshipping?
Walmart dropshipping involves selling dropshipping products on Walmart’s marketplace. As a third-party seller, you can register as a marketplace seller to create product listings. When a customer makes a purchase, your dropshipping supplier handles the packing and shipping of the product. You never hold any inventory.
How Does Walmart Dropshipping Work?
You can sell dropshipping products on Walmart.com. However, you are not allowed to dropship Walmart products on other platforms. According to Walmart’s Terms of Use, reselling Walmart products on your eCommerce store or third-party platforms and using Walmart to ship directly to your customers is prohibited. However, there are legitimate ways to make money with Walmart dropshipping.
3 Ways to Dropship With Walmart
There are three different ways to dropship with Walmart.
1. Become a 3P Walmart Seller
Dropshipping on Walmart is the most viable option. After finding a product to sell, you can list the item on the Walmart Marketplace, and the supplier will handle the shipping when you make a sale. This is the fastest and cheapest way to get started with Walmart dropshipping.
2. Become a Walmart Supplier or Drop Ship Vendor (DSV)
You can apply to become a registered Walmart supplier and act as manufacturer or wholesaler of goods. This method involves buying in bulk and shipping your products to Walmart warehouses. Once you’ve agreed on wholesale prices, Walmart purchases and sells your goods on its website. You can also apply to become a Drop Ship Vendor (DSV).
This is similar to becoming a Walmart Supplier. However, you will be responsible for sending items to Walmart customers instead of shipping your goods to a Walmart Fulfillment Center. As a Walmart DSV, you’re paid a fee to cover the shipping cost when Walmart sells one of your products. Both of these options involve selling to Walmart rather than consumers.
3. Resell Walmart Products
Reselling Walmart products directly from the marketplace is prohibited. But you can get around this rule. Instead of shipping directly to your customers from Walmart, you can have the product shipped to your address. Then, when you make a sale, you send the item to your customer. This is known as a retail arbitrage method. The downside is that it is a much more hands-on approach than the traditional dropshipping eCommerce model.
What Is a Walmart Drop Ship Vendor?
A Walmart Drop Ship Vendor (DSV) is a Walmart supplier that ships goods directly to customers. Walmart Drop Ship Vendors are responsible for the fulfillment process, but goods are sold under the brand name. To become a DSV, you’ll need to meet Walmart’s requirements, including:
- A registered business address
- US business tax ID
- W9 or W8 and EIN Verification Letter from the Department of Treasury
- Insurance documents
- Product safety and compliance testing documents
You can learn more about the application requirements at the Walmart Supplier Help Center.
The Pros of Walmart Dropshipping
Walmart’s online marketplace has seen massive growth over the last few years. The platform currently generates around 235 million organic visitors per month. That’s a vast market of online shoppers you can sell to. While it’s smaller than Amazon, Walmart has some key dropshipping advantages. Let’s take a look at the pros.
Less Competition
You have a much higher chance of claiming the all-important Buy Box, a highly coveted Add to Cart button that lets shoppers purchase something very quickly and easily on Walmart than you do on Amazon. In 2021, the number of active sellers on Walmart hit 126,599. On Amazon, the number of active sellers is over 1.5 million. Less competition can mean more sales.
No Upfront Costs
It doesn’t cost anything to register as a seller on Walmart. You only need to pay a referral fee when you sell an item. Compared to Amazon, the fee per sale is typically lower, too.
Extensive Range of Product Categories
Walmart has 24 main product categories, with even more subcategories. If your niche doesn’t involve Prohibited Products, you can find the correct category for your dropshipping products.
Brand Reputation
You can leverage consumer brand recognition and trust in Walmart to increase sales. People know the Walmart brand and are comfortable spending their money in-store and online with the retailer.
The Cons of Walmart Dropshipping
Walmart dropshipping has its pros and cons. But there are lots of entrepreneurs making money with the platform.
Extended Application Process
The application process to become a Walmart seller isn’t easy. Once you’ve sent your application, a response can take two weeks. The onboarding process can take an additional few weeks after that.
Strict Seller Rules
Walmart is quite strict when it comes to Seller Standards. There are rules around pricing, and if your seller rating drops below Walmart’s standards, you could find yourself removed from the platform.
Low-Profit Margins
Because of Walmart’s strict pricing rules, the profit margin per item can be lower than that of other platforms. Walmart will remove a listing if a product is listed at a higher price than shoppers can find elsewhere.
Related Reading
How to Start Walmart Dropshipping
Start Your Journey as a Walmart Marketplace Seller
To sell on Walmart.com, you must register as a Walmart Marketplace seller. There’s no fee to become a seller, but you will pay a referral fee on each item sold, similar to the fees on Amazon and eBay.
Here’s what you need to sign up:
- Business tax ID or business license number
- Documents verifying your business name and address
- A sales history for your business
- Products with GTIN or UPC numbers
Ensure the products you plan to sell comply with Walmart’s Prohibited Products Policy. For example, you can’t list alcoholic beverages or cosmetics requiring refrigeration.
Walmart requires sellers to fill out a lengthy application as part of the sign-up process. You must show that your dropshipping store can reliably ship products and process returns. This can be the most challenging part of the approval process for dropshipping businesses, as your suppliers will need to meet Walmart’s fulfillment requirements—something that you, as a store, can’t control.
New businesses can’t apply to become Walmart sellers. Walmart must confirm a sales history and see established company credentials, such as a taxpayer identification number (TIN), tax classification, business address, customer service email, and customer service phone number.
Seller verification can take several days. You may need to provide additional verification information if you're based outside the US.
Find Reliable Dropshipping Suppliers
Once the onboarding process is completed, you’re ready to go. However, you need products to sell before you can drop shipping. So, it is time to find a dropshipping partner if you don’t already have one. There are plenty of options when it comes to finding a dropshipping supplier. You can directly work with different suppliers or partner with third-party dropshipping companies.
When choosing your supplier, you should consider various factors:
- The size of their product catalog
- The product quality
- Shipping time and methods
Sync Your Shopify Dropshipping Store with Walmart Marketplace
Once you’ve successfully become a Walmart Marketplace seller, the next step is to upload your product catalog to the Walmart Marketplace. This will make your products visible to Shoppers on Walmart.com.
Here’s how to sync your inventory using Shopify
- Download the Marketplace Connect app from the Shopify App Store. It’s designed to link your store with marketplaces like Walmart.
- Launch the app, choose Walmart from the home screen, and follow the on-screen instructions to connect your marketplace account.
- Provide your Walmart seller credentials to link your store and seller account.
List Your Products On Walmart Marketplace
Before listing your products for sale on Walmart, you need to map your product identifiers to Marketplace Connect. Ensure that each product you list on Walmart has an identifier such as a GTIN or UPC number.
If the product you wish to sell is already available on Walmart by another seller, list your product by submitting an “offer to sell.” An offer requires adding product details such as price, inventory count, and shipping terms. This information is integrated into Walmart’s existing listing under your seller profile.
On the other hand, if you are introducing a completely new product to Walmart, submit additional information to create a fresh listing. A blue icon will appear during the offer creation process to signal when there is no existing product on Walmart. This is an excellent opportunity to introduce something unique to Walmart shoppers.
Fulfill Orders on the Walmart Marketplace
Walmart offers a 2-day shipping program to help sellers improve their customer experience.
However, it may not be possible for you to take advantage of this as delivery times can vary in dropshipping. Unless you’re working with US-based suppliers offering fast nationwide shipping, it’s best to stick with standard shipping.
Alternatively, you can fulfill your orders via Deliverr.
As an official partner for Walmart’s TwoDay fulfillment program, Deliver guarantees fast shipping and better store visibility. They’ll pick the products from your suppliers and keep them close to your customers so you can offer fast shipping nationwide.
Related Reading
- Men's Clothing Dropshipping Suppliers
- Luxury Furniture Dropshipping Suppliers
- Drop Shipping Pros and Cons
- Is Dropshipping Coffee Profitable
- Dropshipping Baby Clothes
Is Walmart Dropshipping Profitable?
Prospective Profits of Walmart Dropshipping
With the rise of e-commerce, more and more people are looking for ways to make money online. Walmart dropshipping has become increasingly popular because it has much potential for profit with relatively low competition. Most dropshipping entrepreneurs flock to Amazon or eBay, leaving Walmart’s marketplace under the radar.
As with most business strategies, you’ll get out of Walmart dropshipping what you put into it. Walmart's e-commerce arm accounted for 16% of its total sales in Q3 2022, making it one of the most valuable environments for sales. Walmart is even closing on the world’s top e-commerce retailer – Amazon. However, dropshipping from Walmart requires some finesse. You’ll need to learn the rules, figure out your strategy, and commit to constantly building and improving. To ensure Walmart dropshipping is worth it for you, make sure you:
Pick the Right Products to Dropship
There’s less competition with Walmart dropshipping, but you need the right products to generate sales. Before you add a product to your Walmart store, you should verify customer demand. Paid keyword research tools like Ahrefs can show you how many people search Google and Amazon for the product each month. You can also see the interest over time. A free alternative tool to research customer demand is Google Trends. You can see the search volume over time to judge whether there is enough interest to make a product viable for Walmart dropshipping.
Delight Customers With Fast Shipping
If your dropshipping store can offer expedited shipping, use Walmart’s fast shipping program. Qualifying for the program requires meeting consistently high fulfillment standards like an on-time delivery rate of more than 95%, an order cancellation rate of less than 1.5%, and offering free returns. In return, Walmart rewards listings with Buy Box placements, Fast Shipping tags, and priority ranking in product search. Walmart claims that sellers in this program see between 30% and 50% average increases in conversions—partner with dropshipping suppliers that can meet the program demands and take advantage of them.
Keep a Close Eye on Your Performance Standards
Maintaining high-performance standards is crucial as Walmart continues to raise the bar for sellers in its marketplace. Pay attention to Walmart’s five key performance metrics:
- Cancellation rate: The percentage of customer orders you cancel must be less than 2%.
- On-time delivery rate: 95% or more orders must meet the delivery estimate.
- Refund rate: Less than 6% of orders are refunded for reasons the seller is responsible for, such as a damaged item or an incorrect item received.
- Valid tracking rate: 99% of orders should provide valid tracking information.
- Seller response rate: You must respond to at least 95% of customer inquiries within 48 hours of receipt.
Monitoring these metrics can help maintain your standing in the marketplace, as Walmart prioritizes high-performing sellers for increased visibility and traffic. You can view your performance data under the Performance section in the Walmart Seller Center, helping you stay informed and responsive to any needed improvements.
Optimize Your Product Listings
Whether you import products to Walmart from your store or upload listings manually, it’s essential to optimize your product listings. Key tips to improve product descriptions include using high-quality product photography, writing compelling product copy focusing on benefits and features, and pricing products competitively (but not so low that you don’t make a profit). Additionally, excellent customer service is critical. Satisfied customers are more likely to leave positive reviews, enhancing your reputation and appeal on Walmart’s marketplace.
Track Your Performance
Walmart provides a helpful dashboard to help you evaluate your performance and get insights into your sales data. You can see sales analytics and a breakdown of each product you sell on the platform, including customer reviews. One of the most important things to watch is the Seller Scorecard. This shows you the metrics that Walmart uses to judge seller performance. Comparing your metrics to the Seller Standards lets you see if you’re meeting the required levels or needing improvement.
Related Reading
- Dropshipping Christmas Products
- Sunglasses Dropshipping
- Halloween Dropshipping Products
- Car Accessories Dropshipping
- Best Items to Dropship on eBay
- Organic Dropshipping Suppliers
- Dropship Kitchen Products
- Dropship Swimwear
- Dropshipping Knives
- Dropship Designer Handbags
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