Walmart Dropshipping: A Complete Step-by-Step Guide

Many people don’t know that retailers like Walmart have made it much easier to start dropshipping.

You can apply as a third-party seller on the Walmart marketplace, then dropship products from another supplier so you don’t have to manage inventory.

If you want to start a Walmart dropshipping business, you’ve come to the right place.

In this guide, I’ll detail everything to know about Walmart plus dropshipping. I’ll explain the platform’s policies and how to start this business.

Let’s begin.

Does Walmart Allow Dropshipping? How Does Walmart Dropshipping Work?

Yes, Walmart allows dropshipping. 

You can learn how to dropship with Walmart in three different ways:

1. Dropshipping from Walmart to your online store

2. Selling on Walmart as a Walmart dropshipper

3. Being a Walmart Dropship Vendor

1. Dropshipping From Walmart to Your Online Store

In this approach, you list Walmart’s products on other platforms. For example:

• Dropshipping from Walmart to eBay

• Dropshipping from Walmart to Shopify

• Dropship from Walmart to Amazon

When a customer places an order, you buy the product from Walmart and have it shipped directly to the customer. This way, you can have Walmart ship a customer’s order on your behalf.

2. Selling on Walmart as a Dropshipper

If you have your own dropshipping supplier, you can sell products on the Walmart Marketplace. You list your products on the platform, and you fulfill orders using your supplier who ships the product directly to the customer.

You can also source your products from other marketplaces, like eBay or Amazon.

3. Being a Walmart Drop Ship Vendor

As a Walmart Drop Ship Vendor, you work directly with Walmart as a warehouse supplier. You provide Walmart with the products, and they handle the fulfillment and shipping process to their customers.

This option is not publicly available. You must receive an invitation from a Walmart Category specialist before you can apply to join this Walmart dropshipping program.

Why Dropship on Walmart?

Before you start dropshipping products on Walmart, review if it’s the right venture for you.

Review the following advantages and disadvantages, and see if you can work with them to your advantage.

Pros

• There Are No Upfront Costs.
  Unlike brick-and-mortar stores, dropshipping doesn’t require you to invest significant capital on product stocks, warehousing, or an inventory-tracking system.
  Moreover, Walmart doesn’t charge sellers any setup or subscription fees, minimizing your fixed costs. Walmart only charges you a referral fee every time you sell products.

• You Can Reach a Large Audience.
  The Walmart website gets over 100 million visitors monthly, meaning your store has more chances of getting traffic than other lesser-known businesses.
  Reaching your target audience requires less work because they’re already on the same platform as you.

• It’s Highly Automated.
  Walmart dropshipping is a business you can easily automate, meaning you won’t have to do as much manual work. Your store will continue generating revenue while you sleep.
  With dropshipping, you can create automation in various parts of your business, including product research, payment collection, and fulfillment.

Cons

• Walmart Has Strict Performance Standards.
  Walmart’s performance standards leave little wiggle room. Failure to meet these standards can result in penalties, account suspension, or removal from the platform.

• The Application Process Is Lengthy.
  Store creation is easy, but it has a lot of steps and approval can take longer than other marketplaces.
  To register as a seller on Walmart, you must have already demonstrated your selling capabilities on other platforms. Then, Walmart must still approve your application, which can take a few weeks or more.

• You Have a Lot of Competition.
  Walmart Marketplace attracts many sellers wanting to take advantage of the website’s traffic and brand identity. It can be challenging to stand out and gain visibility.

How To Dropship on Walmart in 9 Simple Steps

1. Find a Product To Sell.

Before looking for suppliers for your Walmart dropshipping shop, you must decide what you want to sell on Walmart first.

Know Your Target Audience.

When finding products to sell at Walmart, reverse engineer your research by determining your target audience.

Who is your ideal customer? What kind of products are they buying?

Identifying their needs, preferences, and buying behavior helps you select products that they’re more likely to buy.

Do Product Research.

Check what products are selling well on Walmart’s marketplace. One thing you can do is look for products with bestseller tags.

Look for products with a good profit margin, low competition, and consistent demand.

To find in-demand products, here are some effective product research methods. 

Consider these factors when choosing which products to dropship on Walmart.

• Profit margin

  Determine which products might yield better margins using the retail arbitrage method.

• Demand

  Are people buying these products from other retailers?

• Supply

  Can you find a steady and reliable supplier or set of suppliers?

• Competition

  Go for low-competition products or those not many other Walmart sellers offer. Selling the same product as others can result in meager profits.

• Shipping costs

  Will your customers find the shipping fees reasonable?

Analyze the market to ensure you can match the existing prices and you have a chance to stand out.

Avoid Trending and Prohibited Products.

Ensure you don’t choose products that violate Walmart’s selling policies, such as the following categories:

• Alcohol

• Animals

• Auto and Motor Vehicles

• Dietary Supplements

• Drugs and Drug Paraphernalia 

• Medical Devices

• Tobacco

• And more

Some categories require pre-approval, such as the following:

• Luxury Brands

• Fragrance

• Cell Phones and Accessories

• Jewelry and Precious Metals

Ensure you review Walmart’s list of prohibited and restricted items before selecting dropship products.

Another category I recommend you avoid – trending products.

Walmart’s approval process is relatively lengthy, so your chosen products might not be relevant anymore when they go live.

Choose products with consistent demand at the start. Then, expand your offerings to include trending items when you’re in a better selling position.

2. Find a Reliable Dropshipping Supplier.

Once you have an idea of what you want to sell, look for a reliable supplier that offers it.

In general, the best dropshipping suppliers have the following characteristics:

• Good reviews and ratings

• Up-to-date technology with Walmart integration

• High-quality products

• Local suppliers in the U.S. and/or speedy shipping times

• Good customer service

For your reference, here’s a list of potential dropshipping suppliers.

3. Apply To Be a Walmart Marketplace Seller.

Before you join, ensure you have the following documents:

• Complete Tax forms with Business Tax ID or Business License Number

• Business Name and Business Address with supporting documents  

• History of success in any other sales channels or your website

• History of success in a U.S. ecommerce marketplace (if you’re an international third-party seller)

• Planned integration method for your product catalog

• Primary product categories, catalog size, and other information, including total SKUs and verified UPC information (Are your products are new, used, or refurbished?)

You’ll have to provide a detailed explanation for why you think you’re a good fit for the Walmart Marketplace. You must also read and agree to the Walmart Retailer Agreement.

When all your information is ready, it only takes a few minutes to create a seller account.

To become a Walmart marketplace vendor, visit the website and click the Join Marketplace button.

The website will take you to a new page, where you must enter some personal and business information.

4. Complete Your Walmart Marketplace Seller Onboarding.

Walmart can take anywhere from one business day to four weeks to approve your application.

Wait for an email with a registration link, which will take you to a page where you can complete your Seller Profile.

It only takes three steps to begin the onboarding process.

1. Business Verification
   In this step, you submit your business details for seller verification.

2. Payments
   You enter your bank account details, where Walmart pays you your earnings.

3. Shipping
   Here, you adjust your shipping methods and costs, including preferred returns method and carrier.

Once you finish setting up your Walmart dropshipping account, you’ll have to go through the launch checklist. This includes testing the following processes:

• Listing and publishing products

• Placing orders

• Order acknowledgement

• Purchase cancellations

• Shipping and delivery

• Refunds and returns 

When you’ve finished the onboarding process, you can push your store for publishing. Walmart will review it and make it live.

5. Create and Optimize Your Product Listings.

On the Seller Center, you can integrate your Walmart product catalog in three ways:

• Solution providers

• API connection

• Manual upload

Choose the best method for your dropshipping business, but make sure you do the following for each listing.

Perform Keyword Research. 

Walmart is a search engine. Meaning, you must also use SEO strategies to improve your visibility and drive traffic to your listings.

You must find the right keywords to use for each product. Follow these quick tips to research efficiently:

• Understand your target audience and their search behavior.

• Find keywords with decent search volume and low to moderate competition.

• Use keyword research tools to analyze search volume and competition.

• Incorporate keywords strategically into your product listings.

• Use keywords naturally and avoid keyword stuffing.

Optimize Your Listings. 

• Product Title
  Write a clear, compelling title that accurately represents your product. Include keywords with the important details, like color, size, and its unique selling point. 

• Product Description
  Learn how to write product descriptions properly. For starters, you must include every detail a buyer needs to know to make a purchasing decision.

  List down your product’s specifications and features, but focus on highlighting its benefits. At the same time, incorporate short and long-tail keywords naturally throughout the copy. 

• Product Images
  Choose product images from your supplier that have high resolution, allowing potential customers to zoom in for a more detailed look. If available, upload multiple photos showing different angles and variations.
  If you have on-hand product samples, consider getting professional photography. 

• Pricing and Offers
  Set competitive pricing by accounting for the product cost, your desired profit margin, and market demand. Keep track of your competitors’ prices, and consider offering deals and promotional pricing to attract customers.

• Product Attributes
  Select the right product attributes, which help categorize your listings so your customers can find them more easily. Use the most relevant keyword to find the proper attribute, but whatever you do, don’t choose the Other category.

Leverage Customer Reviews.

Walmart’s search engine also considers ratings to assign rankings. To improve your visibility, offer excellent customer service and get your first five-star reviews. 

Here are some tips to keep your customers satisfied:

• Respond to inquiries promptly. 

• Encourage your buyers to leave reviews. 

• Address any issues and concerns efficiently. 

Positive reviews can also boost trust and buying confidence, increasing your sales. 

6. Set Up Your Online Store and Integrate with Walmart.

I recommend having your own ecommerce store you can integrate with your Walmart dropshipping shop. Doing this gives you greater control over your branding, profits, and customer experience. 

Choose Your Hosting Plan.

Select a hosting plan that suits the needs of your online store. Look for a reliable hosting provider with the following features:

• High uptime

• Fast loading times

• Scalable

• Good customer support

Consider your budget and the expected traffic and size of your store.

At the moment, I find Bluehost and Hostgator to have the best value for money services.

Choose an E-commerce Platform with Walmart Integration.

Select a service that supports integration with Walmart, allowing you to easily manage your inventory and orders.

Consider the following factors when choosing an e-commerce platform:

• Built-in or third-party app integration for Walmart Marketplace

• Intuitive and easy-to-use interface

• Customization features

• Scalability

• Functionalities

I highly recommend having a Shopify store, although you can also choose from other reliable services like WooCommerce and BigCommerce.

7. Promote Your Walmart Dropshipping Store.

Simply having a Walmart store won’t make money start pouring into your dropship business.

You must promote outwards to successfully sell on Walmart.

Remember: You have plenty of competition, and Walmart sells its products too.

Here are various ways to drive traffic to your store.

• Run paid ads on Facebook, Google, TikTok, or other advertising platforms.

• Create a blog page and post high-value content.

• Post content on social media.

• Create an email newsletter.

• Offer discounts and promos.

• Tell your family and friends about your business.

8. Start Fulfilling Orders.

Depending on your supplier, you can fulfill customer orders using the following methods:

• Manual order fulfillment

• Automatic fulfillment through the supplier’s platform

• Automatic fulfillment through a Walmart Dropshipping automation app, like AutoDS

Whichever method makes sense for your business, ensure you’re aware of Walmart’s shipping rules and policies.

Walmart Shipping and Return Policies

• 90-day return policy

• Next-day delivery

• Free shipping above $35

• Express delivery at an additional cost

• Free shipping for Walmart Plus members

Walmart Fulfillment Services

Walmart offers fulfillment services, which allow you to take advantage of the platform’s facilities to ship your products for you. It offers the following benefits:

• Two-day shipping

• Higher search rankings

• More Buy Box wins

• Free or low shipping costs

• Easy returns

WFS works great for dropshipping, but you have to ship products from your supplier to a Walmart warehouse facility beforehand.

9. Monitor and Scale Your Business.

Stick to Walmart’s Performance Standards. 

Ensure you meet and maintain Walmart’s performance standards for sellers, such as the following:

• Order defect rate – less than 2% within the last 90 days

• On-time delivery – greater than 99%

• Valid tracking rate – greater than 99%

Regularly review your performance metrics to see where you can improve. Here are some tips:

• Ensure your listing details are accurate.

• Detail your return policies clearly.

• Choose a dropshipping provider with fast shipping.

• Provide your customers with accurate shipping information, which you can get from your supplier.

If you underperform, Walmart may sanction your account. The platform will give you a chance to make improvements before suspending your selling privileges.

Sell More Products.

Continuously analyze your product performance and identify top-selling products. Consider expanding your offerings to include more varieties and cater to different customer preferences.

Expand Your Sales Channels.

The Walmart Marketplace is a good opportunity to reach a wide audience, but your business growth has limits on the platform.

Explore opportunities beyond the platform to grow your operations. Consider selling on other online marketplaces, like Amazon or eBay.

Doing so can help you reach a broader audience and reduce dependency on a single sales channel.

Frequently Asked Questions (FAQs)

What Is Walmart Dropshipping?

Dropshipping on Walmart can refer to three different business models:

1. Dropshipping Walmart products to your online store

2. Dropshipping from a third-party supplier to Walmart

3. Becoming a Drop Shipping Vendor on Walmart

In either of these methods, the platform fulfills customer orders on your behalf.

Is Walmart Dropshipping Profitable?

Yes, but profitability can vary depending on various factors, such as:

• Your product offering

• Competition level

• Pricing strategy

• Marketing efforts

Success in Walmart dropshipping requires careful product research and effective marketing strategies.

What Is a Walmart Drop Ship Vendor?

Walmart drop ship vendors are suppliers or manufacturers that provide their products to the online marketplace. The retailer then lists and sells these products on its website.

When a customer places an order, Walmart coordinates with the drop ship vendor to fulfill and ship the products directly to the customer.

Is Dropshipping on Walmart Worth It?

It depends on your preferences and goals. However, it does offer a lot of benefits, such as:

• Easy access to millions of Walmart customers

• Walmart’s brand credibility

• No upfront costs

• Automated fulfillment from wholesale suppliers to your customers

To start dropshipping, review the Walmart dropshipping policy to ensure you’re following the rules.

How Does Walmart Dropshipping Compare with Amazon?

Both Walmart and Amazon are major ecommerce platforms with some notable differences, like:

• Amazon has an international reach, while Walmart focuses on the U.S. audience.

• The platforms have different fee structures for selling on their websites.

• Amazon has a much larger customer base with more product categories.

The Bottom Line

Dropshipping on the Walmart platform requires careful consideration on several aspects.

Although dropshipping is a low-risk business opportunity, you must still prepare for it with thorough product research and effective marketing planning.

The key is to differentiate your retail business from other sellers stores and continuously providing value.

Stay on top of the market trends, sign up for a Walmart dropshipping course, and monitor your store’s performance to identify areas for improvement.