Dropshipping is the most popular way to sell products. Shopify is the best platform to start your own store.
The second? Dropshipping is possible on a marketplace. Marketplaces provide a great way to make initial sales and increase traffic to large domains.
Although most entrepreneurs start their business with Amazon and eBay, you might also benefit from looking at Walmart.
The rapidly growing online marketplace of Walmart generated $35.86 billion last year. It also accounted for 6.7% of all US ecommerce sales. Walmart will account for 7.1% of all US ecommerce sales this year. These numbers show that dropshipping can reap big rewards by using Walmart as a channel.
How does Walmart dropshipping work exactly? What are the benefits and drawbacks of dropshipping to Walmart’s marketplace? Is it really worth it?
This guide will help you determine if dropshipping on Walmart is a good idea, what steps to take to get started, and the best tips to help make your dropshipping business stand out on the market.
First things first.
- Is Walmart allowed to dropship?
- Walmart allows dropshipping in three ways.
- Become a Walmart Drop Ship Vendor
- Amazon and eBay allow you to sell Walmart products
- Dropship products to Walmart.
- Let’s have a closer look at these options.
1. Becoming a Drop Ship Vendor (DSV)
Walmart Marketplace offers a program that allows entrepreneurs to become suppliers. You can act as a manufacturer, wholesaler or supplier to Walmart. You have two options: either you can ship the items to Walmart’s warehouses or deliver directly to the customer via the DSV program.
2. Reselling Walmart Products
Reselling Walmart products is different from traditional dropshipping. You must purchase the items, have them shipped to yourself, and then you can send the items out to your customers. This means that you won’t get the same streamlined dropshipping approach.
3. Dropshipping on Walmart’s Platform
Dropshipping suppliers allow you to sell dropshipped products directly at Walmart customers. Dropshipping direct products from Walmart to customers is not allowed. However, dropshipping is permitted on the Walmart marketplace.
Why dropship to Walmart?
Walmart is a great option for ecommerce entrepreneurs. Walmart is a trusted and reliable marketplace that offers high-quality products, quick delivery times, excellent customer service, and a wide range of other services.
These are the top benefits of dropshipping at Walmart
Walmart has low overhead costs: There is no fee to open a store, or to register to sell on the platform. When you make a sale, you only need to pay a referral charge. This page provides more information on their referral fees.
Fast shipping: Walmart’s logistics partners are able to ship products immediately to customers with next-day delivery. Customers who are satisfied with their purchase will be more likely to return.
You can sell a variety products. Walmart offers over 35 product categories. You can sell your product as long as it doesn’t appear on the Prohibited Products List.
Quickly launch: Walmart dropshipping removes the stress of store creation and branding so that you can concentrate on your business.
Dropshipping Walmart is not easy. To win customer loyalty, you will need to outshine a lot of competitors.
- Walmart wants its customers to pay the lowest possible price.
- However, small business owners and entrepreneurs face many challenges.
What is a Walmart Drop Ship Vendor and How Does It Work?
Walmart Drop Ship Vendor (DSV), is a manufacturer or supplier who stores goods in their warehouse and then ships the goods directly to customers after they are purchased from Walmart.
Walmart has strict guidelines regarding what types of entities can become suppliers. To meet these requirements, you may have to revise your paperwork. Walmart, for instance, requires applicants for DSV to possess:
- An address for the company
- A clear legal identity (sole proprietor, corporation, etc.)
- Number of DUNS
- Get complete insurance documentation for your industry
- Global location number
- Complete product safety and compliance testing
DSVs that work with Walmart ship products directly to customers. Regular Walmart suppliers ship products to Walmart warehouses.
How to Dropship Walmart
1. Find Suppliers for Your Business
Finding suppliers for the products that you are selling is the first step.
Dropshipping suppliers can be found on platforms like DSers. Suppliers can be found for jewelry, clothing, toys, games, home and garden, and other niches.
Walmart dropshipping is best for suppliers with fulfillment centers and warehouses in the US. They can ship products quicker.
Pay attention to the customer service and product knowledge of suppliers you are considering when choosing which suppliers to work alongside. Suppliers who have a good customer service rating and a track record of selling on the platform are safer.
2. Register to Sell at Walmart
No matter which Walmart dropshipping option you choose, you will still need to apply in order to sell on Walmart.
To start your application, visit the Walmart Marketplace page. You will see a form that you can fill out when you click on “Request to sell”. Enter:
- Your business tax ID (SSN) is not applicable
- W8 or W9, and an EIN verification note
- Your business address and place of operation
- Methods for planning catalog integration (e.g. API)
- Primary product categories (e.g. catalog size)
3. Complete Onboarding
Walmart will send an email to you with a link for registration once your application has been approved. This link will take to you to onboarding. You will need to complete the onboarding process by:
Register for an account by entering information about your company, address, and bank details.
- Walmart has provided a retailer agreement.
- Complete tax forms
Please fill in your shipping and payment details. Payoneer and Hyperwallet are the two options for payment.
Upload inventory and set up items
Complete the Walmart Partner Profile. This profile contains all information that your customers will see, including details such as your company name, description and logo.
4. Fulfill Your Orders
Walmart offers 2-day shipping to help sellers improve customer service.
Dropshipping can be costly and delivery times may vary. Standard shipping is the best option unless you are working with US-based suppliers that offer fast nationwide shipping.
You can also order via Deliverr.
Deliverr is an official partner of Walmart’s TwoDay Fulfillment Program. This guarantees faster shipping and greater store visibility.
They will pick your products from suppliers and keep them close by your customers to enable you to offer quick shipping across the country.
Is dropshipping from Walmart worth it?
Walmart dropshipping is like most business strategies. You get what you put in. Walmart Marketplace saw a 79% increase in ecommerce sales between 2020-2021. This makes it one of the most important environments for sales. Walmart is closing in on Amazon, the top ecommerce retailer worldwide.
Dropshipping Walmart is a tricky business. It is important to understand the rules and to decide what strategy you will use. You must also be willing to continue learning and improving. Make sure to do these things to ensure Walmart dropshipping is worthwhile for you.
Optimize your Product Listings
Every online marketplace uses algorithms to decide which products customers should see when they search for specific solutions. You will need to optimize your listings according to Walmart’s SEO standards to rank higher than the rest. Take, for example:
Make sure to be specific when naming products
You can describe your product using a product name, but not more than 50 to 75 characters An excellent formula is brand + size + defining features + style.
Additional tips
- Do not include special characters
- Don’t include retailer-specific information like special offers
- Use keywords if relevant
- High-quality images are essential
Professional-looking photos should be taken with clear angles and excellent lighting. Images with high resolution are best. Use white backgrounds and minimize background space.
Additional tips
- Show your customer the details of multiple products.
- Zoom in and out to get the perfect focus on your product
- Make sure to use the same background for every product image
- Highlight the key features of your shelf description
In a simple, easy-to-read description, highlight the most important benefits of your products. A shelf description is an excellent way to grab the attention of your audience.
Additional tips
- In your shelf description, keywords are often very helpful.
- List the main benefits of your item (bullet point work well here).
- Double-check every description for grammar mistakes
- Leverage your short description
Your shelf description should have a short description. Without keyword stuffing, write an engaging, emotional, and keyword-rich summary. There are approximately 500-1000 characters.
Additional tips
Highlight the unique features of your product
- Your customers’ benefits are your priority
- Avoid duplication or general content
- Learn the lengthy description
- Your long description on your Marketplace page can be between 250-300 words.
Additional tips
- You can list anywhere from 10-30 benefits and features
- Use conversational language and unique language
- To establish your thought leadership, include facts and tips
- Choose competitive pricing
Walmart dropshipping strategy is influenced by pricing. Compare the pricing of your competitors and then focus on stock-out prevention with an inventory strategy.
Additional tips
- Keep an eye on your competitors and their prices
- Walmart offers free shipping
- Deliver products as quickly as possible
- Choose product attributes
Your product attributes are displayed on the left side of your Marketplace listing. They help customers find filtered results by categorizing your products. Select the appropriate classification from the 24 available options.
- Avoid the “other” category
- Please share relevant information regarding product attributes
- Include keywords and precise details
- Provide an excellent customer experience
Customers expect fast and secure service, no matter what product they are shopping for. Make sure your product listings include Walmart’s “fast shipping” badge to attract attention and increase brand loyalty.
Your chances of selling are also increased by:
- Positive customer reviews
- Reliable fulfillment providers
- Providing accurate tracking details for shipping
- Walmart’s Expectations
Walmart is a top retail brand and holds its partners to high standards. You will need to adhere to specific guidelines in order for Walmart to maintain its strong position on the platform. For example, keep the 90-day order defect rate lower than 2%, and ensure that the on-site shipping rate is at least 99%. You can increase your chances of success by following these guidelines:
Clear return policies are important: In the Partner Profile section at Walmart, you can detail your return policy. This will allow you to defend yourself in case of dispute.
Include shipping information: Provide shipping information to let your customers know what they can expect from you when purchasing from you. The estimated delivery time you provide customers should be matched by your fulfillment process.
Get an inventory tracking software: Use software to keep track of your inventory so you are always able to serve your customers.
Walmart may remove you from their Marketplace if you fail to meet their expectations. Dropshipping strategies at Walmart are vulnerable to frequent returns, cancellations, or complaints.
Dropshipping from Walmart to Amazon or eBay
Dropshipping from Walmart to Amazon is not possible. Walmart will cancel any orders it suspects that you are dropshipping to your marketplace store. Additionally, both Amazon’s dropshipping policy as well as eBay’s dropshipping policies state that sellers cannot buy other products from other retailers and ship directly to customers.
You can also use retail arbitrage to buy Walmart products, store them in your warehouse, or storage, then later sell them on a market. You own the products so Amazon and eBay won’t have to complain. Keep your receipts safe!
Dropshipping from Walmart to Shopify
Dropshipping from Walmart to Shopify requires an app such as AmaZone DropShipper+ Walmart. These apps allow you import products into your Shopify store. You can then sell through Shopify or Walmart depending on your business goals.
This method allows you to add images from dropshipping suppliers onto your products, making them more attractive for your customers.