Walmart Dropshipping? Wondering if it is still worth it? Of course, you just need the right guidance. And, if you are here for that, stop your research! You are in good hands!
Walmart, one of the largest retail companies in the world, is a popular platform for dropshippers due to its wide range of products and large customer base. However, as the e-commerce landscape evolves, it is essential to re-evaluate the effectiveness of this business strategy.
In this guide, I will explore the current state of Walmart dropshipping and provide valuable tips and tricks to help you navigate this competitive market. Plus, you will get a step-by-step guide about how to start dropshipping with Walmart. Let’s dive in!
What Is Walmart Dropshipping & How Does It Work?
First of all, let’s see what Walmart is. I bet you know, but I will give a short explanation.
Walmart is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. It is one of the largest retail companies in the world, with a presence in multiple countries.
The best part, it offers a wide range of products, including groceries, clothing, electronics, home goods, and more. It has both physical stores and an extensive online presence, allowing you to shop in-store or through its website or mobile app.
One of Walmart’s key strategies is its focus on low prices. The company aims to provide customers with affordable products, often through its “Everyday Low Price” (EDLP) policy.
👉 Also, read about Is AliExpress Legit And Safe For Buying And Selling?
So, with all that, I can pretty much say that Walmart is your dropshipping supplier. But, how does it work? Let’s find out.
How Does Walmart Dropshipping Work?
As a dropshipper, my strategy involves listing Walmart products in my Shopify dropshipping store. When a customer visits my store and places an order, I proceed to Walmart.com to make the same purchase on behalf of the customer.
To ensure smooth delivery, I provide the customer’s shipping information to Walmart, who will then ship the order directly to the customer’s address. So, all I am doing is providing my customer with the tracking info and getting my profits.
Now, how do I profit? I set the prices of the products in my store higher than those on Walmart’s website. This allows me to earn a profit equal to the price difference when I purchase the product from Walmart. For example, if the product is priced at $100 in my store but costs $70 on Walmart.com, I make a profit of $30.
💡 Tip: Discover the 17 Best Multi Vendor Marketplace Platforms For Ecommerce.
In addition, there are 3 different methods on how you can dropship with Walmart:
The last method is considered when dropshipping as a third-party seller. This is when you list all the Walmart products you are dropshipping under your business name. Although, keep in mind that you have to first get approved.
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Does Walmart Allow Dropshipping?
Walmart permits dropshipping, but it is important to adhere to specific guidelines and regulations for conducting dropshipping on the platform. These guidelines encompass maintaining precise inventory levels, delivering shipments promptly, and ensuring that products align with Walmart’s quality criteria.
👉 Read about Dropshipping Taxes and Payments – Must-Know Facts.
Now, as I already mentioned, there are a few options for dropshipping at Walmart. So, let’s see what you need to do for Walmart dropshipping!
1. Becoming a Drop Ship Vendor (DSV)
Becoming a Drop Ship Vendor (DSV) on Walmart Marketplace is a relatively straightforward process. First, you need to apply and complete the onboarding process.
Once you’re approved, you can start listing your products on the marketplace. As a DSV, you have two options for shipping:
- you can either ship your items to a Walmart warehouse
- Deliver items directly to customers
This flexibility allows you to choose the most efficient and cost-effective shipping method for your dropshipping business.
Overall, becoming a DSV on Walmart Marketplace provides a great opportunity to reach a vast customer base and expand your dropshipping business.
2. Reselling Walmart Products
When it comes to reselling Walmart products, the process is a bit different from traditional dropshipping.
Instead of simply listing products and having a supplier ship them directly to customers, reselling Walmart products requires purchasing the items yourself and having them shipped to you before sending them to your customers.
Unfortunately, this method involves more hands-on involvement and doesn’t follow the streamlined approach of dropshipping.
However, reselling Walmart products does offer some advantages, such as access to a wide range of high-quality products and a vast customer base. By purchasing items directly from Walmart, you have more control over the product quality and can ensure that your customers receive the best possible products.
3. Dropshipping On Walmart’s Platform
Now, let’s dive into the specifics of dropshipping on Walmart’s platform.
The first step is to sign up for a Walmart Marketplace account. This can be done by visiting the Walmart Seller Center or known as a Walmart Marketplace. So, once you are on their website, click on the “Join Marketplace” button, in the right upper corner.
Here, you need to provide all the necessary information, such as your business address and tax forms. Once you’re approved, you can start listing your dropship products for sale.
Can I Dropship From Walmart To Other Platforms?
I will give a straight answer – YES, but with a number of considerations. While Walmart itself does not allow direct dropshipping from its platform to customers, there are ways to integrate Walmart into your dropshipping business model.
One option is to dropship Walmart products on other platforms such as Facebook Marketplace or eBay.
When it comes to product research, eBay is often favored by dropshippers. With its vast customer base and excellent product research tools, eBay offers a wide selection of high-quality products that appeal to a variety of potential customers.
💡 Tip: Check out Shopify Vs Etsy: The Ultimate Reviews For Online Sellers.
Walmart Dropshipping- The Step-By-Step Process
Having a difficult process of getting approved, here are a few steps you should follow in order to start dropshipping with Walmart:
Step 1: Find Products and Suppliers
It is a dropshipping product research tool. Great for finding trending products, and uses data sources from AliExpress, Shopify stores, and Amazon.
What’s more, you can also research Walmart categories to find products. For instance, you can go through these categories, and find your dropshipping products.
What’s more, before you start searching for products and suppliers, I suggest you take the following things into consideration:
- Suppliers location – if you want to dropship with Walmart, I recommend going with a local supplier. You’ll be able to ship a product much faster, and that is exactly what Walmart wants. They even reward you for shipping fast, a great first impression for you as a new seller.
- How prepared they are – check how fast suppliers are at responding to queries. How fast they take action when you communicate or request something. Check how well they know the products they sell. This shows you almost everything if they are the right ones or not.
- Research popular product niches– check which niches are the most popular among consumers. Don’t forget about prohibited products. You don’t want to sell a product that is against the policy of Walmart.
- Product pricing – try to analyze prices from your competitors. You don’t want to sell at higher prices or very low prices where you don’t earn anything at the end.
Step 2: Apply
Now, as a start, go to Walmart’s Marketplace website and click the “Join Marketplace” button.
After that, you’ll have to fill in the required information which should take you anywhere from 10 to 15 minutes.
You definitely won’t be able to sell any products without getting approved by Walmart. Walmart takes its application process very seriously and chooses carefully who it accepts, in order to select quality sellers.
So, I will tell you what you might need in order to get accepted by Walmart. 👇
So, the first thing you need is an actual business, hence, this can be an LLC.
Also, you need a business address, business email, EIN (Employer Identification Number), W8 or W9 Form, etc.
What’s more, they can even ask for sales proof. What I know from word of mouth is that they appreciate Amazon sellers. However, if you are already selling on Facebook Marketplace, or eBay, this can work as well.
Don’t forget to be patient as it may take up to 14 days to get accepted.
Step 3: Walmart Marketplace Onboarding
After 2 weeks, you’ll need to go through the Walmart onboarding process.
The onboarding process can take up to 2 weeks to be fully approved by Walmart. This prolongs the entire process to a maximum of 1 month at the longest.
After you are approved in the registration phase, you’ll receive a registration email. From the registration email, you’ll be asked to:
- Create a seller’s account. In order to create this account, Walmart will ask for your business address, bank account, tax ID, etc.
- Agree to the Walmart Retail Agreement
- Fulfill the necessary tax forms.
- Fill in payment and shipping information. You only accept payments through Hyperwallet or Payoneer.
- Establish product listings and upload your inventory.
- Finalize the Walmart Partner Profile, which encompasses all the information visible to your potential buyers. This includes your company name, description, logo, and policies
💡 BONUS: Check our complete comparison: Dropshipping vs. Retail Arbitrage.
Step 4: Setup Your Store
Once everything is approved, you can start listing the products that you wish to sell.
When listing your products on Walmart Marketplace, accuracy and attention to detail are key. Therefore, Walmart has specific guidelines that you must follow when creating product listings. So, be sure to familiarize yourself with these guidelines to ensure your listings meet the platform’s requirements.
To maximize your success on Walmart Marketplace, it’s crucial to provide accurate and detailed product information. Thus, this includes clear and enticing product titles, comprehensive product descriptions, and high-quality images.
For example, you can check Walmart.com’s product pages and get your inspiration. Because, obviously, all those sellers there follow rules. 👇
Likewise, make sure to test the order process with a couple of items you have already listed. Hence, you can do that in the Seller Center, which has 4 steps:
- Order acknowledgment
Also, Walmart will do a final review once you do the testing. When your account goes up and running, customers will be able to purchase within 24 to 48 hours after your account is live.
Step 5: Start Fulfilling Orders
Now, your store is all setup and ready to go. All you have to do now is to fulfill orders. You can do that with Walmart’s own Fulfillment Services. All products can be delivered at low costs and shipped fast.
Also, if you choose not to use Walmarts fulfillment services, you always have another option. Deliverr by Flexport is one of them.
The platform is firmly integrated with Walmart’s 2-day program of fast shipping and increased product visibility. Delivery is also an official partner of Walmart.
Walmart Shipping And Return Policies
Walmart has a policy where customers can return most products within 90 days. What’s more, if a product was purchased from Walmart’s website, returns can be made through the mail.
Also, Walmart will deliver refunds using the original payment method.
In contrast, Walmart offers a standard next-day delivery option for thousands of products.
Hence, if the order exceeds $35, shipping is free. Otherwise, the buyer is responsible for the shipping cost. Additionally, express delivery is available for an extra fee of $10.
For members of Walmart+, these shipping fees are waived. This means that members can enjoy free shipping for their orders without having to meet a minimum purchase requirement.
What Is The Best Software For Walmart Dropshipping? (My Opinion)
When it comes to dropshipping at Walmart, utilizing the right software can greatly enhance your business operations. There are several top software options available that can make the dropshipping process more efficient and effective.
One of the highly recommended software for Walmart dropshipping is Zik Analytics. It offers a range of powerful features, including product research tools, competitor analysis, and sales data analytics.
With Zik Analytics, you can easily find profitable products to list on Walmart and other platforms. It also provides valuable insights into market trends and customer preferences, enabling you to make data-driven decisions.
Also, this tool has three pricing plans, starting at $14.99/month at a discounted price. Also, you can start a $1 trial to try Zik Analytics. 👇
Hence, you can also subscribe to pay annually. Check out the pricing here.
AmaZone DropShipper + Walmart is a software tool that enables you to easily dropship products from Amazon and Walmart directly to your customers.
It provides a convenient and efficient way for you to expand your product offerings without the need for inventory management or shipping logistics.
Plus, to initiate dropshipping from Walmart to Shopify, you will require an application such as AmaZone DropShipper + Walmart to commence the process. With it, you can import merchandise to your Shopify store and sell through both Shopify and Walmart.
When it comes to pricing, this tool is available for free. Also, the pricing starts at $50/month and is up to $2500/month. 👇
Why Dropship On Walmart Marketplace?
When it comes to dropshipping, there are countless online marketplaces to choose from. However, one platform that stands out for its potential and vast customer base is Walmart Marketplace. Let’s see, why Walmart Dropshipping is a good option.
🔸 Easy Onboarding and Streamlined Fulfillment Process
First and foremost, one of the reasons why dropshipping on Walmart Marketplace is appealing is the simple and straightforward onboarding process.
From signing up to getting approved, Walmart makes it easy for sellers to get started and list their products. This means you can quickly set up shop and begin selling your dropshipped products in no time.
Additionally, one major advantage of Walmart’s platform is the streamlined fulfillment process. As a dropshipper, you don’t have to worry about the logistics or customer service aspects of your business. Walmart takes care of shipping products to customers and handling any customer inquiries, allowing you to focus on sourcing high-quality products and growing your business.
🔸 No Upfront Costs: Minimizing Financial Risk
One of the most attractive aspects of dropshipping on Walmart Marketplace is the concept of “No Upfront Costs.” Unlike many other platforms, Walmart does not charge any setup fees, monthly fees, or subscription fees to become a dropship vendor. This means that you can start your dropshipping business at Walmart without the need for a significant initial investment.
This cost structure offers several advantages for aspiring dropshippers.
➡ Firstly, it minimizes financial risk, allowing you to test different product categories and strategies without committing substantial funds upfront. With no need to purchase and store inventory, you can focus your budget on marketing and growing your business.
➡ Additionally, as a dropship vendor on Walmart Marketplace, there is no need to invest in expensive warehousing or fulfillment centers. Walmart takes care of the warehousing and shipping of your products, saving you money and logistical headaches.
➡ What’s more, Walmart Marketplace operates on a referral fee model. This means that you only pay a fee for each sale made through the platform, based on the specific product category.
🔸 Fair Fees
When it comes to Walmart Dropshipping, one of the factors that attracted me the most was the fair fees associated with it. Unlike some other platforms, Walmart charges a commission or referral fee for each sale made through the platform. This means that as a dropship vendor, I only pay a fee once I start making money.
Hence, the specific referral fee for each sale varies based on the product category, with most referral fees falling between 8% and 15%. Thus, this ensures that I have a clear understanding of the costs associated with selling different types of products on Walmart Marketplace.
🔸 Large Customer Base
One of the biggest advantages of dropshipping on Walmart Marketplace is the opportunity to tap into their large customer base. With millions of customers actively shopping on Walmart’s online marketplace, I have the potential to reach a vast audience and increase my dropshipping sales.
According to Statista, there are around 240 million customer visits each week to Walmart stores throughout the world in 2023.
Plus, you don’t have to worry about bringing the customers to your store, because they are already here!
This large customer base provides a steady stream of potential customers who are already familiar with Walmart’s reputation and trust their brand.
🔸 Quality And Usefulness
The quality and usefulness of the products offered on Walmart’s platform are top-notch. As a dropshipping business owner, this is crucial to ensure customer satisfaction and the success of my business.
With a large selection of products available, I can cater to the diverse needs of my target audience. Walmart also offers deals and discounts, allowing me to offer competitive prices and attract more customers.
Plus, the next-day delivery option is a game-changer, as it allows me to provide speedy shipping and exceed customer expectations. Moreover, Walmart’s price-match policy ensures that I can offer the best prices without compromising on product quality.
Pros and Cons of Walmart Dropshipping
- Extensive range of products
- Special offers & savings
- Expedited shipping within 24 hours
- Price matching guarantee
- Only suitable for the US market
- Strict shipping and return policies
- Long-lasting application and onboarding process
Best Tips For Walmart Dropshipping
When it comes to dropshipping on Walmart, there are a few top tips that can greatly increase your chances of success in this competitive marketplace.
➡ Take advantage of Walmart’s large customer base
Firstly, take advantage of the large customer base that Walmart has to offer. With millions of customers visiting their website each day, you have the opportunity to reach a vast audience with your dropshipping business.
➡ Leverage the low competition
Secondly, leverage the fact that there is less competition compared to other online marketplaces. By setting up your dropshipping business on Walmart, you can avoid the saturation that often comes with selling on popular platforms.
This gives you a better chance of standing out and making sales.
➡ Don’t underestimate the Product research process
Lastly, pay close attention to the product research process. Identify high-demand products that have a good profit margin, and find reliable suppliers who can provide you with high-quality products.
Is Walmart Dropshipping Worth It?
When considering whether dropshipping on Walmart is worth it, there are several factors to take into account.
🔹 Potential Sales Volume
Evaluating the worthiness of dropshipping on Walmart involves considering various factors. One of them is the potential sales volume. Walmart is a trusted and established marketplace with a vast customer base, which can translate into high sales numbers. However, it’s important to recognize that achieving good sales requires effort and dedication.
Hence, developing a strategy is essential. A well-thought-out dropshipping business plan will guide your actions and help you stay focused on your goals.
🔹 Level Of Effort
Another consideration is the level of effort required. Dropshipping at Walmart involves tasks such as product research, listing creation, order fulfillment, and customer service. It requires time and energy, especially in the early stages. However, once your dropshipping business is established, it can provide a level of freedom and flexibility in managing your operations.
🔹 Shipping Times
As of January 31, 2023, Walmart operated a grand total of 3,572 supercenter stores across the United States, along with 781 neighborhood markets. So, there’s no doubt that this online marketplace has fast shipping times and affordable fees.
🔹 Walmart Dropshipping Integrations
Integrating a Walmart dropshipping business with a Shopify store can also be beneficial. It allows you to leverage the strengths of both platforms and reach a wider customer base.
Hence, if we merge these two eCommerce giants, what do we get? Shopify provides powerful tools for building and managing your online store, while Walmart offers access to its vast marketplace and customer base.
In conclusion, Walmart Dropshipping can be worth it if you understand the rules, develop a strategic approach, and commit to continuous improvement.
FAQs- Walmart Dropshipping
1. Does Walmart allow dropshipping?
Yes, Walmart allows dropshipping on their marketplace. However, Walmart has specific guidelines and regulations that dropshippers must follow to ensure a seamless and positive experience for customers.
2. What is sold and shipped by Walmart?
When it comes to what is sold and shipped by Walmart, you can find a wide range of products on their platform. From electronics to household essentials and everything in between, Walmart offers a comprehensive selection for its customers. Popular items include clothing, beauty products, home appliances, and groceries.
3. What’s the most sold item at Walmart?
What’s the most sold item at Walmart? Well, considering its vast customer base and excellent customer service, it’s no surprise that Walmart has some popular products. One such item is the fire pit with a mesh screen, which is perfect for cozy outdoor gatherings. Another top-seller is the cloth slide slippers, known for their comfort and durability.
4. Who pays for shipping on Walmart?
When it comes to shipping at Walmart, the responsibility for paying for shipping depends on the specific arrangement between the seller and the customer. In most cases, customers are responsible for covering the costs of shipping.
However, some sellers may offer free shipping as a promotional offer or as a way to attract more customers.
5. Who is Walmart’s target market?
Walmart’s target market encompasses a wide range of consumers from different demographic backgrounds.
From young families looking for affordable everyday essentials to budget-conscious individuals seeking quality products, Walmart caters to a diverse customer base.
The demographic characteristics of their target market include middle to lower-middle-income households and individuals of all ages.
6. What is the onboarding process for Walmart dropshipping?
The onboarding process for Walmart dropshipping involves creating a Walmart Marketplace seller account, which includes providing necessary information such as your business address and tax identification. Once your account is approved, you can start setting up your product listings and optimizing your store to attract potential customers.
7. How does the fulfillment process work in Walmart dropshipping?
In Walmart dropshipping, the fulfillment process is handled by third-party suppliers. When a customer places an order on your Walmart Marketplace, the supplier takes care of packaging and shipping the product directly to the customer.
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Overall, Walmart dropshipping provides a great opportunity for online sellers to expand their business and reach a wide range of customers. By understanding the onboarding process, fulfillment process, and best practices for success, sellers can benefit from the vast resources and customer base that Walmart offers.
By reading this article, you can gain valuable insights into the world of Walmart dropshipping. Hence, it can help you understand the key steps and considerations involved in starting a dropshipping business on the Walmart marketplace.
Additionally, you will learn about the benefits and potential challenges they may encounter, allowing you to make informed decisions about whether or not Walmart dropshipping is the right fit for your business goals.