Walmart is a multinational retail corporation and the second largest eCommerce marketplace in the world, placing only behind Amazon.
It has become a household name, especially in the U.S, and has grabbed the attention of digital entrepreneurs from around the world.
This has also made dropshipping professionals eager to jump on the bandwagon.
Which brings us to the question: Is Walmart dropshipping even possible? The short answer is yes, but it isn’t as simple as it sounds.
In this guide, we’ll discuss all aspects of dropshipping on Walmart so you can decide if it’s the right platform for you.
Let’s get right into it!
Can You Dropship on Walmart?
Yes, Walmart allows dropshipping and there are 2 different ways to get started:
- Apply for their Drop Ship Vendor Program (DSV)
- Sell Dropshipped Products on Walmart
Let’s quickly explain what each of these methods are about.
1. The Drop Ship Vendor Program (DSV)
Walmart offers two options to its sellers. One is to become a supplier for the platform and ship items to the Walmart warehouse.
The other is to apply for their DSV Program and directly ship the products to the customers.
In order to become a DSV, you need to meet their supplier checklist and receive an invitation from a Category Specialist (buyer) on Walmart.com.
2. Sell Dropshipped Products on Walmart
This approach is closer to traditional dropshipping. You find a reliable third-party supplier, such as AliExpress or 1688, and sell their products directly on Walmart’s marketplace.
Once a customer places an order, the supplier ships the product directly to the customer.
This method allows you to run a dropshipping business without holding inventory.
Just be sure not to violate Walmart’s policy by reselling products sourced directly from Walmart itself — as that would be considered a violation of their guidelines.
How to Dropship on Walmart with the DSV Program?
The Drop Ship Vendor (DSV) Program allows sellers to dropship products directly to Walmart customers, but it’s slightly different from traditional dropshipping. Here’s how to get started with the DSV Program:
Step 1: Meet the Eligibility Criteria
Before you can apply, it’s important to meet Walmart’s basic requirements.
They have a supplier checklist that outlines the expectations they have for potential vendors.
This includes things like product quality, pricing, inventory management, and shipping capabilities.
Step 2: Apply for the Program
Once you’ve met the eligibility criteria, you can apply for the DSV Program through Walmart’s supplier portal.
However, this isn’t a simple “apply and get approved” process — you must wait for an invitation from a Walmart Category Specialist (buyer). They’ll review your application and decide if you’re a good fit for the program.
Step 3: Set Up Your Account and Product Listings
After you’ve been accepted into the DSV Program, you’ll need to set up your Walmart Marketplace account.
This is where you’ll upload your products and manage your inventory.
You’ll need to provide detailed information about your products, including pricing, descriptions, and high-quality images.
Step 4: Integrate Your Inventory and Order Management System
Walmart expects DSV partners to integrate their inventory systems with Walmart’s.
This allows you to keep track of stock levels, update listings, and ensure orders are fulfilled on time.
Many sellers use third-party software to manage their product inventory and order processing, but you can also handle this manually if your catalog is small.
Step 5: Fulfill Orders
When a customer places an order, your job as a dropshipper is to fulfill it by shipping directly to the customer.
The main difference with the DSV Program is that Walmart handles the transaction, including customer service and returns.
You’ll be responsible for shipping the product on time, with the same level of customer service you’d expect from Walmart.
Step 6: Maintain Compliance with Walmart’s Standards
To stay in the DSV Program, it’s essential that you meet Walmart’s standards for shipping times, product quality, and customer service.
Any violation of these guidelines can result in penalties or even removal from the program. Therefore, staying consistent in fulfilling orders and providing a top-notch customer experience is key.
Step 7: Track and Optimize Performance
Finally, as with any dropshipping business, monitoring performance is crucial. Keep an eye on your sales, reviews, and customer feedback to identify areas for improvement.
Walmart offers data and analytics tools to help you track your product performance, and over time, you can optimize your listings to increase visibility and sales.
How to Dropship on Walmart without the DSV Program?
Direct reselling on Walmart is prohibited, but that doesn’t mean you can’t use a third-party supplier. So here are some steps you can follow to start selling on Walmart without the DSV Program:
Step 1: Find a Dropshipping Supplier
The first step of dropshipping on Walmart pretty much remains the same, which is to find a reliable supplier.
Most sellers would turn towards AliExpress for this, mainly because they can find cheaper products there.
But bear in mind that price isn’t the only factor to consider. The delivery time also plays a major role in customer satisfaction.
For example, if you’re operating in the U.S, then finding a supplier who has warehouses there would be the ideal scenario.Â
This will speed up your delivery time, which in turn, can help you offer a satisfactory customer experience.
Step 2: Create a Seller Account on Walmart
Whether you’re using the Walmart Dropshipping Program or not, you still need a seller account to get started.
You can find the sign-up form by clicking on “Request to Sell” on the Walmart Marketplace. After that, enter the following details:
- Tax ID of your business.
- Address of your business.
- Catalog integration methods.
- Product information (category, size, etc.)
- Tax verification letter (EIN, W8, or W9 forms)
Step 3: Complete Their Onboarding Process
After the approval of your application, Walmart will email you a registration link to complete the onboarding process. For that, you will need to enter the following information:
- Your company information, bank account details, and address.
- Retailer terms and conditions that you must agree on.
- Shipping and payment information.
- Necessary product info to upload your listings.
- Set up your Walmart Partner Profile that will be visible to the customers.
Step 4: Start Fulfilling the Orders
Your account is now ready to go and you can start dropshipping on Walmart.
As for shipping, Walmart has officially partnered with Deliverr to provide a two days order fulfillment program.
But as a dropshipper, your supplier will also probably offer an order fulfillment service.
The Pros and Cons of Walmart Dropshipping
Dropshipping on Walmart has its advantages and challenges. Here’s a quick look at both sides to help you decide if it’s the right platform for you:
Pros
- Lesser Competition: While Walmart is well-known in retail, the eCommerce space is still relatively new for dropshipping. This means there’s less competition, giving new sellers a better chance to stand out.
- Low Startup Costs: Walmart’s Drop Ship Vendor Program doesn’t charge any sign-up fees. You only pay a referral fee when you make a sale, making it an affordable option for low-budget entrepreneurs.
- Variety of Product Categories: With over 35 categories available, Walmart allows you to experiment with different types of products, giving you the flexibility to find the best fit for your niche.
- Quick Shipping: Walmart’s partnerships with logistics providers enable two-day delivery for many products, ensuring fast fulfillment that can boost your reviews and attract more customers.
Cons
- Long Registration Process: The process to get started can be time-consuming. After submitting your application, you’ll need to wait for approval from Walmart before setting up your store.
- Strict Pricing Restrictions: Walmart is known for offering low prices, and their pricing rules are strict. This can make it difficult to maintain competitive pricing without affecting your margins.
- Low-Profit Margin: Due to the platform’s pricing rules, your profit margins may be thinner than on other platforms, making it harder to generate substantial income from dropshipping.
Can You Directly Dropship Walmart Products?
While it might seem like a good idea to expand your product offerings by dropshipping Walmart products, it’s important to be aware of the challenges that come with it.
For starters, reselling Walmart products directly from their marketplace isn’t allowed, and if Walmart notices you’re using their platform this way, they may suspend your seller account. It’s best to avoid this method to stay within their terms.
Another issue to consider is the pricing. You’d need to sell Walmart products for more than the listed price to make a profit, but customers can easily find those same items directly from Walmart.
This makes it tough to compete on price. Even if you try to justify the price difference with better marketing or added value, you risk losing customers’ trust, especially if the gap is too large.
Instead of taking this route, it’s often a better idea to work with reliable third-party suppliers or explore Walmart’s official Dropship Vendor Program (DSV), which offers a more legitimate and sustainable way to dropship on the platform.
What Is Walmart Dropshipping Automation?
In case you don’t know already, automating a dropshipping business means using automation software to ease your day to day tasks. This includes adding products as well as shipping and fulfilling orders.
Nowadays, most modern platforms offer automation services to some extent and Walmart is not an exception to it.
There are many third-party integrations that you can use to automate your Walmart dropshipping store. You will also be asked during the onboarding process if you plan on using an API.
Following are some of the most popular automation tools that you can use to build an automated dropshipping store on Walmart:
1. Ecomdash
The primary purpose of Ecomdash is to help Walmart sellers to list products and auto-update the inventory. It can also assist with order fulfillment, management as well as shipment tracking.
Overall, it’s a convenient tool that can streamline almost every aspect of your dropshipping store.
2. Elite Automation
If you want to build a Walmart dropshipping store from scratch but do not have the time then Elite Automation can help you.
They offer end-to-end management services by not only managing every aspect of your business but also assisting you with tax exemption and the application approval process.
3. EcomCircles
EcomeCircles also aims to help sellers throughout every step of starting a dropshipping business. From account approval to product research and the selection process, they offer guidance on each step.
In addition, they provide account metrics and analytics and keep your store safe by ensuring that you’re following Walmart’s rules and policies.
5 Tips to Remember for Dropshipping on Walmart
Hard work and effort are the prerequisites for running a successful business. However, here are some tips for Walmart dropshipping that can give beginners an edge over their competitors:
Optimize Your Listings
Your main goal while selling on any eCommerce marketplace is to appear at the top of the listings. Similar to Google and Amazon, Walmart also has algorithms to decide which rank you will secure.
So if you want to optimize your Walmart product listings, then here are some SEO tips to keep in mind:
1. Product Titles
The product title consists of up to 75 characters and makes a huge impact on your clickthrough rate. If you’re unable to decide what to add to the product title, then here’s a general formula that you can follow:
Brand and Product Name + Model + Style
Some sellers also add features to their product titles and that is completely fine. However, it isn’t necessary for every product unless the feature is unique or in demand.
2. Product Descriptions
The real challenge for any online store nowadays is to write catchy product descriptions.
If a buyer is reading your product description, then it’s likely because they’re about to make a purchase.
Plus, product descriptions also play an important role in the SEO of your store.
So make sure that you do not cut corners while writing the descriptions.
If needed, hire a professional, as spending a few hundred dollars can potentially help you earn thousands more.
3. Product Images
Quality product images can also be a great way to help you stand out from the competition.
It’s the first thing that the buyers see in your listings so be sure to leave a positive impact.
Most dropshipping suppliers don’t mind if you use their product pictures, but we still recommend asking for permission.
If possible, try capturing the pictures of the products yourself in a neat and attractive background.
Otherwise, at least use a photography backdrop to make the clicks look professional.
Follow Walmart’s Terms of Service
Every platform has certain terms and conditions that you need to follow.
Violating the terms of service can get your listings deranked and in the worst-case scenario, it can also lead to account suspension. So carefully go through and familiarize yourself with Walmart’s seller guidelines.
With that said, normally, you shouldn’t face a problem as long as you’re behaving professionally with your customers and aren’t selling any copyrighted products.
Track Your Seller Scorecard
Walmart provides insights on your sales performance through its Seller Scorecard that you can find on your Walmart stores’ dashboard.
It gives you a detailed breakdown of how each product is performing along with the customer reviews.
Keep an eye on the scorecard to see if you’re in line with your goals and if not, then devise a strategy for how you can get back on track.
Find the Right Products
Product selection is the most important part of running a dropshipping business. We already discussed how you could search for products on Walmart by going through the daily deals section.
If that doesn’t work out, then you can also take inspiration from other platforms and dropshipping directories. Similarly, plenty of online tools like Google Trends can also help you with product hunting.
It gives you data on the popularity of a keyword and how frequently it has been searched for. You can use that data to determine whether a product would perform well or not.
Offer Good Customer Service
Lastly, Walmart is a huge brand and they take their customer service seriously.
So if you want to succeed on the platform then make sure that you’re going the extra mile to meet the customer expectations.
This includes delivering the orders on time, initiating refunds, and being proactive to resolve complaints.
Failing to follow these standards can potentially get you suspended from the platform.
FAQs about Walmart Dropshipping
Why Walmart Dropshipping Is Better Than Many Other Platforms?
Walmart’s dropshipping program offers several advantages over other platforms. First, it has a massive customer base, which means more potential sales for your store.
Additionally, Walmart provides a robust infrastructure, including quick shipping (2-day delivery), which helps you offer a great customer experience.
Compared to platforms like Amazon, Walmart has relatively less competition in the dropshipping space, which could make it easier for new sellers to stand out.
Plus, there are no upfront sign-up fees, making it a cost-effective option for those just starting out.
How Much Does It Cost to Dropship on Walmart?
Dropshipping on Walmart comes with minimal upfront costs. There are no fees to sign up for the Drop Ship Vendor Program (DSV), but Walmart does charge referral fees on sales, which typically range from 6% to 20%, depending on the product category.
Additional costs may include third-party tools or services for inventory management, listing optimization, and order fulfillment. You’ll also want to factor in any marketing costs to help increase visibility and drive traffic to your store.
However, the overall cost to start dropshipping on Walmart is relatively low compared to other e-commerce platforms, especially considering the access to a large customer base and fast shipping options.
Is Walmart Dropshipping Challenging to Start?
Starting a dropshipping business on Walmart is easy if you can get approval for their DSV program. There’s no upfront cost or hidden charges You will only have to pay a referral fee on each sale.
How to Dropship from Walmart to Shopify?
There are multiple ways to connect Walmart to Shopify. One of them is to install the Walmart Marketplace sales channel from the Shopify app store.
After that, fill out the seller form and once it is approved, you can start making changes and adding products on Shopify and it will automatically be updated on your Walmart store.
Another way is to use a third-party app like Walmart Integration which also offers a convenient multichannel solution with its cutting edge features.Â
Where to Find Products to Dropship from Walmart?
Walmart is a great platform to find dropshipping products due to its vast product assortment.
Reselling on Walmart is prohibited, but you can consider dropshipping from Walmart to platforms like eBay or Amazon since Walmart usually provides high product quality along with a rapid 2-day delivery.
The easiest way to search for products on Walmart is by visiting its daily deals section. This section compiles the best deals from multiple departments and displays them at the lowest or most competitive prices.
This can give you some inspiration for the potential products you can sell in your dropshipping store.
You can further narrow it down by checking the ratings and reviews of each product along with the best price you can find from the suppliers.
Walmart has several search filters to make your hunt even easier. Ideally, look for sellers with a rating of 4.5 stars or higher.
Is Dropshipping from Walmart to Amazon/eBay Legal?
Amazon and eBay forbid purchasing products from the retailers and directly sending them to the customers.
So in short, traditional dropshipping from Walmart to Amazon/eBay isn’t legal.
However, you can still use the arbitrage method, which is to first get the product delivered to your place and then send it to the customer.
Is Walmart Dropshipping Challenging to Start?
There are two ways to dropship on the Walmart marketplace.
One is to join their DSV program in which the supplier houses and ships the item directly to the customers, but the delivery charges are covered by Walmart.
The other is to sell on the Walmart marketplace which requires the seller to fulfil the orders by themselves.
Regardless of the method you choose, you still have to become a seller on Walmart first.
For that, they have a rigorous screening process and require the seller to have some success and background in the eCommerce industry.
As a result, it may not be challenging for professionals, but for beginners, it’s next to impossible to start dropshipping on Walmart.
Final Thoughts
Walmart already has an established customer base and its eCommerce sales are also rapidly growing with each passing year.
Overall, it’s safe to say that the idea of Walmart dropshipping packs a ton of potential.
While the platform does have its drawbacks like pricing restrictions, the exposure you get makes up for it.
If you’re ready to jump the gun with Walmart dropshipping and are looking for a supplier then, NicheDropshipping is here to help you.
We can source your desired products at competitive prices so you can keep a reasonable profit margin.
So give us a call and we’ll help you get connected with reputable suppliers.
