The Walmart Dropshipping: Everything You Need To Know

A lot of eCommerce sellers are attracted to Walmart, just like its main rivals eBay, Amazon, and Facebook  to maximise their profits. It makes sense given that the marketplaces have already established their brands, invested in increasing traffic, and developed reliable, fast websites that you can use to sell your products.
walmart dropshipping feature

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Walmart is the second-largest e-commerce retailer. It is only second to Amazon and makes use of its brick-and-mortar stores to keep ahead of other e-commerce platforms such as eBay.

If you’re dropshipper, the Walmart marketplace could be very beneficial.

Dropshipping is the method used to sell items where the seller does not have to store or ship items. Instead, they work with third-party suppliers to fulfill orders. It’s generally quite expensive, however, Walmart is a somewhat exclusive company, which makes it perfect for dropshipping.

With Walmart, the sellers have access to an extensive marketplace, which is more in competition than platforms such as Amazon. In addition, dropshippers will be able to reach more customers than if they had to create an online store by scratch.

We’ll go over the details of what Walmart dropshipping means and the ways to begin dropshipping via this exclusive channel. You can learn about Amazon, eBay and Aliexpress dropshiping here. You can also download product images from Walmart using this free chrome extension.

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What is Walmart Dropshipping?

what is walmart dropshipping

Walmart dropshipping involves the method of selling products via third-party suppliers to the market or dropping shipping Walmart products to other marketplaces.

Dropshipping is possible in three different ways with Walmart:

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  1. Dropshipping Walmart products to other platforms such as Amazon or eBay
  2. Making use of Walmart’s Drop Ship Vendor program, where a merchant sends items directly to customers
  3. Dropshipping products for sale on Walmart Marketplace


We’ll concentrate on the most recent form of dropshipping which is an intermediary seller.

Third-party sales is the process of listing your items on Walmart under your business’s name. The seller controls the entire procedure while also benefitting from Walmart’s vast customer base. It’s not easy to gain approval for this kind of business model at Walmart but it’s beneficial, as discussed here in the article.

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Pros & Cons of Walmart Dropshipping

pros and cons

Pros:

Walmart has less competition than Amazon because it is a newer player in the e-commerce space. It currently has just over 100,000 sellers, a low number when compared to Amazon’s 1.8 million.

 

Walmart benefits dropshippers in a variety of additional ways in addition to providing a less crowded market.

 

  • No fees or costs in advance: Setting up a store or signing up to sell on Walmart’s platform is free of charge. In actuality, you only pay a referral fee when a sale is made. 

  • A wide range of items: Walmart offers over 35 categories that you can sell in. You can offer a variety of products on the site as long as your product is not included among the Prohibited Products.

  • Since there is less competition for the Buy Box on Walmart’s marketplace than on Amazon’s, sellers have a higher chance of winning it.

 

Cons:

Dropshipping on Walmart is not an ideal experience, despite its advantages. Several drawbacks include:

Lengthy registration and application procedures: Given that Walmart is particular about the quality of its sellers, you’ll need to give a number of details (such a tax ID and a real address for your business) merely to get accepted. Before applying, you might want to think about starting on another platform. The approval process can take up to two weeks, and onboarding can take three to four weeks to complete.

Rigid pricing regulations: There are some pricing guidelines that sellers must follow in order to comply with Walmart’s constant desire to provide customers with the lowest prices on products.


Lower profit margins:  Despite the fact that lower prices may result in more sales, selling on Walmart may result in reduced profit margins for the seller. This is possible because of Walmart’s pricing policies, which state that listings must be taken down if the same item is offered on another website for a clearly greater price.

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How To Start Walmart Dropshipping?

Even though it appears like the Walmart Marketplace would be a great place to sell, becoming a vendor or seller can be challenging. To start Walmart dropshipping, take the following actions:

1: Search Products and Suppliers

Finding wholesale vendors is made easy by using websites like SaleHoo, Doba, and Wholesale Central

You must pay close attention to a number of factors when doing supplier research, including:

The quality of their technology:  Check to see if the supplier accepts orders by email and how current their website is.

Location:  Because they can frequently ship items more quickly, local suppliers are better when dropshipping on Walmart. This is crucial since, as a new seller, you should benefit from Walmart rewarding quick shipment with increased exposure.

2: Apply to sell on Walmart Marketplace

You will require authorization no matter how you decide to work with Walmart to sell items. Walmart has a strict application and onboarding procedure to choose qualified merchants that can give their customers a wonderful experience.

Visit the Walmart Marketplace website and select “Request to Sell” to sign up as a seller.
         

the fields that must be filled in. If you have everything ready, it should only take you 10 minutes to finish. To apply, you must have this information ready. It is advisable to check the profit margin using this free chrome extension before you list the product price on Walmart.

3: Go via Walmart Marketplace Seller Onboarding

You must finish the onboarding procedure after being accepted in order to sell on Walmart. You’ll get an email with the registration link in it. There are ten steps in the full onboarding procedure.

 

A registration email will be sent to the approved seller with instructions on how to finish the registration process. In this area, vendors can:

 

  • Create a profile. You’ll need the following details on hand when setting up your seller account: your company’s address, bank account information, and company details to complete tax forms
  • Accept the terms of the Walmart Retailer Agreement
  • Complete tax forms
  • Complete the payment and shipping fields. Two payment platforms are available to you for accepting payments: Hyperwallet or Payoneer

4: Start fulfilling orders

For your store to succeed after going live, shipping and fulfilment times are crucial.

All sellers are eligible to use Walmart’s Two-Day delivery service. The TwoDay delivery service is a fantastic way to boost consumer traffic and merchandise sales. Walmart additionally incentives quick shipment with Buy Box positioning and top search rankings.

However, keep in mind that not all sellers should use the TwoDay shipping service, despite the fact that doing so would boost your positions on Walmart’s search results. By using the TwoDay tag, you commit to providing all of your customers with free, domestic delivery, at a cost to your company. Stick to standard shipping if your company cannot afford it. Avoid overpromising and underdelivering if you want to be successful doing Walmart dropshipping.

Final Thoughts

Dropshippers have access to a number of benefits from Walmart, but there are also some drawbacks. Dropshippers have a lot of influence in the marketplace, which can lead to your products being removed from stores. To expand your business, you might consider selling on other platforms than Walmart.

To increase your sales, you can list your items on other online platforms like Amazon and eBay. These sites can have a greater price difference than your items.

Walmart will also deactivate your profile. You should exercise caution when Walmart dropshipping. Your business will succeed once you have successfully captured the market.

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Mark Kennedy

Mark Kennedy

Mark Kennedy is an Ecommerce Consultant & Dropshipping Trainer at eComWiser California. He has 12 years of experience in Ecommerce industry. He likes to write articles about dropshipping, ecommerce and online business.

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