Having a 79% increase in online sales as of 2021, Walmart is considered to have the world’s second-largest online dropshipping marketplace.
You may have thought that Amazon was the only big fish in the ocean, but every day, Walmart is just getting closer to leveling Amazon.
Having known that, it’s important you know the rules if you are looking to dropship with Walmart.
There are many new policy changes and new programs, which make it difficult to know what is right and what isn’t when dropshipping with Walmart.
Furthermore, in this guide, we’ll show you what you need to know about dropshipping with Walmart and if it is the right fit for you.
What Is Walmart Dropshipping?
Walmart dropshipping is the process of selling Walmart products to 3rd-party suppliers or other marketplaces.
There are 4 different methods on how you can dropship with Walmart:
- Selling Walmart products on other online platforms and marketplaces like eBay, Amazon, AliExpress, etc.
- Selling dropshipping products on Walmart’s own Marketplace.
- Sending products directly to a buyer by using Walmart’s Drop Ship Vendor program.
- 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.
Pros and Cons of Walmart Dropshipping
Just like any other selling model you use, there will always be pros and cons. It’s always important you scale the pros and cons in order to see if the benefits exceed the downsides.
Pros of Walmart Dropshipping
Without having to mention the biggest pro of dropshipping with Walmart, you probably already know that selling a product under Walmart’s name increases customer trust and loyalty.
Even if you were to buy, you would feel more comfortable buying a product from Walmart than buying a product from an unfamiliar brand.
When you dropship with Walmart, you don’t have to worry about product marketing. The Walmart team takes care of all content listing and makes sure that it gets the highest organic search that it can. These products get an automatic boost when they are listed on Walmart.
This makes it easier for your product to gain great exposure since you have all of Walmart’s support behind you. Let’s not forget that Walmart has over 35 categories that you can sell in and find your target audience.
Looking for a product niche? Try Dropshipping Toys.
The only thing you want to keep an eye on is to make sure it isn’t on the Prohibited List.
Another great benefit of Walmart dropshipping is that they also pay for the shipping. Imagine you are selling a product that has high shipping costs, only because Walmart pays for the shipping, it makes it easier for you to earn higher revenue and increases your chance of winning the Buy Box on the Walmart Marketplace.
Cons of Walmart Dropshipping
Even though Walmart dropshipping has many benefits, there are also a few drawbacks.
One of the main drawbacks is that you sell your products at wholesale prices. Your profits aren’t as high if you sell your products directly on the Walmart marketplace.
Learn the difference between wholesale and dropshipping.
Walmart has strict pricing rules because they want to offer their customers the lowest prices possible. This makes it more difficult to benefit from profit margins.
The application and registration process is very long. Walmart doesn’t approve you just like that, you need to provide a lot of details. It can take up to 1 month to finish the approval process. All of which you will need to provide Walmart with your tax ID, physical business address, etc.
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
Here are a few websites you can use to find products and suppliers:
- Niche Scraper – created by ex-Instagram and Facebook employees. With Niche Scraper, you get access to best-sellers and other online stores with many profit estimates. It is great mostly for beginners.
- Sell The Trend – another top dropshipping product research tool. Great for finding trending products, and uses data sources from AliExpress, Shopify stores, and Amazon.
- Doba – a solid wholesale supplier who is compatible with all major shoppin cart providers such as Woocommerce, Wix, Bigcommerce, Shopify, etc.
- Wholesale Central – millions of buyers use Wholesale central in order to find the latest product and suppliers.
You can try finding additional suppliers on other marketplaces like eBay or Amazon too.
On this comprehensive resource page by Helium 10, you can find user-friendly tools for selling on Amazon.
Before you start searching for products and suppliers, take the following things into consideration:
- Suppliers location – if you want to dropship with Walmart, we 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 for 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
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.
As a start, go to Walmart’s Marketplace website and click the “Request to Sell” button.
After that, you’ll have to fill in the required information that should take you anywhere from 10 to 15 minutes.
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 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 sellers account. In order to create this account, Walmart will ask for your business address, bank account, tax ID, etc.
- Fill in payment and shipping information. You only accept payments through Hyperwallet or Payoneer.
- Agree to the Walmart Retail Agreement
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. Make sure to test the order process with a couple of items you have already listed.
You can do that in the Seller Center, which has 4 steps:
- Order acknowledgment
Walmart will do a final review once you do the testing. When your account goes up and running, customers will be able to purchase in 24 to 48 hours after your account is live.
Step 5: Start Fulfilling Orders
Now, your store is all set up 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.
If you choose not to use Walmarts fulfillment services, you always have another option. Delivery 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.
It is considered a privilege to be able to sell on Walmart. Try to always get customer feedback and to improve where you may be wrong. The more customer data you collect, the better it’ll be for you.
Want to learn more about different marketplaces to sell your products? Try Etsy Dropshipping.
Wanna learn about Dropshipping from AliExpress to eBay? Here’s our guide.
You can take a look at some of our suppliers who source products related to Walmart on our Free Suppliers Directory.