Many people don’t know that retailers like Walmart have made it much easier to start dropshipping.
If you’re looking for information on creating a Walmart dropshipping online store, you’ve come to the right place.
I wrote this article to teach you how to start your Walmart dropshipping business from the ground up. I’ll also tell you why Walmart dropshipping is a fantastic business model.
Table of Contents
What Is Walmart Dropshipping?
Walmart is one of the most well-known US retailers and has an online marketplace.
Compared to other online marketplaces, Walmart has one of the most extensive selections of products.
As an ecommerce marketplace, Walmart had over $64.62 billion in ecommerce sales in 2021.
If you’re an entrepreneur in the ecommerce industry, you sell on Walmart and focus on dropshipping products.
Dropshipping is a segment of online retail where a dropshipper takes orders from customers and forwards them to a third-party supplier so the supplier can deliver the products to customers directly.
This form of ecommerce makes it easier for a retail business to operate and helps wholesale suppliers tap into more customers. It’s a win-win arrangement.
Walmart’s retail marketplace is now for people to start dropshipping Walmart products.
If you want to sell on Walmart’s marketplace without having to store inventory or shell out large sums to buy products in bulk at wholesale price, Walmart dropshipping is the best route for you.
Can I Dropship on Walmart?
Yes, you can because it’s 100% legal.
Walmart dropshipping is a legitimate way of making money online.
When you master retail arbitrage and spot high-quality products, you can succeed with dropshipping Walmart products.
Here are two ways to start dropshipping on Walmart.
Walmart Drop-ship Vendor (DSV)
Become a Walmart dropship vendor if you’re sure about dropshipping.
Remember, you participate as the wholesaler or supplier, not the retailer.
Through the Walmart drop-ship vendor program, dropship vendors provide the marketplace with products. Walmart will then become your dropshipper.
With this option, you don’t have to do much marketing as a Walmart dropship vendor.
You can focus on providing fast shipping, fulfillment, and high-quality products.
The only challenge is you’ll need vast amounts of inventory, requiring significant capital.
Furthermore, your profit margins won’t be as high as when selling direct to consumers. However, your margins will still make sense, considering Walmart handles marketing.
When fulfilling orders, you have two options: to ship your items to a Walmart warehouse or deliver straight to Walmart’s customers.
To become a Walmart Drop Ship Vendor, you’ll need to receive an invitation from a Walmart Category Specialist.
Becoming a Dropshipper on Walmart’s Platform
Becoming a third-party seller means you’ll work with dropshipping suppliers who will supply products for you and send them to Walmart customers.
Remember, you can’t dropship products from the Walmart Marketplace. You can’t dropship on other sites and have Walmart deliver to your customer.
You’ll need to find other wholesalers who can dropship and sell their products on Walmart’s platform.
Why Start Dropshipping on Walmart?
There are other marketplaces where you can start dropshipping products, with each option having its advantages.
Creating a Walmart dropshipping business is no different, so why dropship products on Walmart?
How does Walmart dropshipping compare to other platforms?
Here are the compelling benefits that make dropshipping on Walmart worth it.
There Are No Upfront Costs.
You have two alternatives to sell at Walmart.
You can either resell products online or drop ship products.
When you take the Walmart dropshipping option, buying bulk products isn’t necessary.
You don’t need to invest significant capital in product stocks, warehousing, or inventory-tracking system.
You only need to take orders and tell your supplier to ship to your customers.
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.
When you build brick-and-mortar stores, foot traffic is crucial to success. With online businesses, website traffic is the direct equivalent.
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.
You Save on Shipping.
A unique selling point of Walmart dropshipping is the shipping payment arrangement. Walmart pays to ship products to customers, meaning you and your client save on shipping costs.
You can earn more through higher profit margins or help your customers save on shipping. Either way, someone saves money.
How to Start Dropshipping on Walmart
How does Walmart dropshipping work? Here’s a step-by-step guide to show you.
Decide What Products To Sell.
Before looking for suppliers for your Walmart dropshipping shop, you’ll need to decide what you want to sell on Walmart first.
Check what products are selling well on Walmart Marketplace. One thing you can do is look for products with bestseller tags.
Look at what other Walmart sellers offer and see if you can match their prices. You can also read reports and blogs about what products sell on Walmart Marketplace.
Consider these factors when choosing products to dropship from 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 sellers offer. Selling the same product as others can result in meager profits.
Shipping costs
Will your customers find the shipping fees reasonable?
When finding products to sell at Walmart, reverse engineer your research by determining your target audience.
Who do you want to sell to on the Walmart Marketplace? What kind of products are they buying?
It’s harder to get approval to sell trending products, so avoid them as much as possible. You also shouldn’t sell anything on Walmart’s list of prohibited products.
Find a Reliable Dropshipping Supplier.
After you’ve found products to offer, you’ll need to look for reliable suppliers.
There’s no shortage of dropshipping suppliers you can work with for your Walmart store.
Here are some great dropshipping suppliers you can get products from for your Walmart marketplace store.
Before deciding on a supplier, take time to study their performance and check out reviews and feedback.
Local suppliers often supply products faster. You want a partner offering fast shipping and quality products.
Apply to Be a Walmart Marketplace Seller.
Anyone who wants to become a Walmart marketplace vendor must apply.
Visit Walmart’s supplier application page to start your application process.
Apply as a Warehouse Supplier or Dropship vendor, depending on what route you want to take for selling on Walmart Marketplace.
Warehouse Suppliers are the dropshippers, and Walmart drop-ship vendors work under the DSV program we discussed earlier.
The application process should be quick, taking about ten minutes.
You’ll need to present the following information.
- US Business Tax ID
- Business address (Only those in the US can be Walmart sellers.)
- W9 or W8 and EIN Verification Letter from the Department of Treasury to verify your business address
- 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?)
Complete Your Walmart Marketplace Seller Onboarding.
After Walmart has reviewed and approved your application, you’re ready to start the Walmart onboarding process.
Walmart will email your application status and a registration link to the Walmart Seller Center.
Once you’ve created an account, complete the information required by Walmart about your business.
Connect your bank account details to allow Walmart to send money when customers pay you. Hyperwallet and Payoneer are the available payment methods.
Don’t forget to agree to the Walmart Retailer Agreement, complete tax forms, and provide shipping information on your Seller account.
Once you have completed the onboarding process, you now have your seller profile!
Manage Your Product Listings.
Add the products you want to dropship from Walmart.
You’ll need to integrate your products and platforms into your Walmart account.
Here are some ways to add products to your account.
- Upload your products in bulk.
- Use an Open API.
- Set up an integration with a third-party supplier.
Unlike other marketplaces, Walmart doesn’t have a minimum or maximum SKU requirement. You can create as many product listings as you want.
Customize your catalog and set shipping rules, refund policies, and promotional pricing.
You’ll have to install the Walmart app into your Shopify account to integrate your Shopify store with Walmart Marketplace. You can then run your Walmart drop shipping operation from your Shopify dashboard.
Top Tips for Dropshipping on Walmart
Before you start selling on Walmart Marketplace, follow these tips to increase your chances of success as a Walmart dropshipper.
Find High-Demand, Low-Competition Products.
The most crucial aspect of your dropshipping business is the products you sell.
Increase your chances of success by finding products with the highest demand, lowest competition, and most significant profit margin.
Product research should be part of your routine as a dropshipper. Study different niches and add products in those niches to your list.
Test other offers. If an item doesn’t sell, remove it from your listings. Only keep products that sell.
Provide Top-Level Customer Service.
Customer service is another factor to consider. Always provide quick resolutions, speedy shipping, and excellent client support.
Buyers like it when sellers offer fast shipping.
The challenge falls on your supplier to fulfill orders in the quickest time possible. However, you must also ensure you provide accurate shipping information to suppliers.
When customers have issues, respond to them quickly. Acquiring a new customer costs five times more than retaining an existing one. Thus, you must take care of your current clients.
Promote Outwards.
Simply having a store won’t make money start pouring into your dropship business.
You’ll need to 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.
The Bottom Line
I’ve shared all the information you need on Walmart dropshipping store creation.
Follow my tips and strategies and you can create a successful online Walmart store for dropshipping.
