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Walmart is a multinational chain of hypermarkets, headquartered in the US. While it has been traditionally brick-and-mortar, it has gone online paving a way for Walmart dropshipping as its large base of customers has started shopping online.
In 2022, Walmart US had eCommerce sales amounting to 47.8 billion U.S. dollars, an increase of about 11 percent in comparison to 2021’s figure.
These figures are promising and no matter whether you want to dropship on Walmart or drop ship from Walmart, it offers a great opportunity to online sellers.
In this article, I will share what Walmart dropshipping is and how you can use Walmart dropshipping services
Are you ready? Let’s get started!
Walmart dropshipping: In a Nutshell
When we say “Walmart dropshipping”, it can use the platform in 3 different ways:
1. You can use Walmart as a supplier to sell its products on other platforms like eBay.
2. You sell to Walmart customers by dropshipping
3. You become a Walmart Dropship Vendor (DSV)
Let’s discuss each of these ones by one in detail.
1. Selling Walmart Products
This is where you list Walmart products on to your online store and when your products get sold, you place an order with Walmart for order fulfillment. This is what the majority of drop shippers do – reselling products on other platforms.
While it is easy, you might have challenges in having healthy profit margins. If you are selling on eBay, your account may be on their radar as eBay allows dropshipping only from Whole suppliers.
2. Dropshipping on Walmart’s Marketplace
For this, you can join the Walmart marketplace seller community and sell the products to Walmart customers using suppliers who ship your products directly to your buyers.
3. Becoming a Walmart Drop Ship Vendor (DSV)
Using the DSV program you can become a supplier to the Walmart warehouse or ship items directly to the customers and act as a wholesale supplier or a manufacturer.
Walmart has laid down strict guidelines as to who can become suppliers. If you want to act as a DSV, you need to have:
- A business address
- A business entity (sole proprietor, corporation, etc.)
- DUNS number
- Complete insurance documents
- A global location number (GLN)
- Product safety and compliance testing
Why You Should Dropship on Walmart?
Walmart offers a reliable ecosystem to business owners ranging from high-quality products to fast shipping timelines to excellent customer service. All these are particularly advantageous to drop shippers.
Let’s discuss the main advantages of dropshipping on Walmart:
Low overhead
Walmart doesn’t charge any fee for registering to sell on its platform or to create a store. They charge only a referral for a successful sale that you can learn about on this page.
Fast Shipping
Walmart’s logistics partners offer a next-day delivery option to customers that results in happier customers, and that in turn increases the chances of repeat buyers.
Multi-category Products:
With over 36 product categories, you can increase the chances of more business volume by selling your products to a large customer base.
How to Dropship on Walmart
1. Find Suppliers for Your Business
The very first step is finding your business supplier, irrespective of your business type (offline or online). You should try to find a supplier that offers multiple categories with fast shipping and excellent customer-centric services.
As Walmart is in the US, it is better if you have US suppliers that provide faster shipping.
2. Register as a Seller on Walmart
Walmart requires you to apply to become a seller by beginning your application. You need to have specific details to fill out in the form as:
- A business tax ID (SSN isn’t applicable)
- An EIN verification letter and W8 or W9
- Your business address
- Primary product categories
- Planned catalog integration methods like API
2. Onboarding Process
At Walmart, the process takes a little time. What it means is your application is reviewed first and then approved. Once your request is approved, you will receive an email containing a registration link which you can click on and proceed to complete the onboarding process. While completing this process, you need:
- Enter your company details, business or operation address, and bank account information.
- Accept retailer agreement.
- Provide tax details.
- Complete shipping and payment details. Walmart offers Hyperwallet and Payoneer which are two payment methods
- Complete the process of setting up items and uploading inventory
- Finish the Walmart Partner Profile that includes details like your company’s name, a short description, policies, and logo.
4. Order Fulfillment
I recommend faster order fulfillment (2-3 days delivery) which is an important factor to beat competitors and become a successful seller at Walmart.
Alternatively, you can Deliverr to fulfill your orders. Deliverr is a Walmart partner offering Two- Day fulfillment.
Walmart Dropshipping Automation
As you are now equipped with all the required information needed to start your online business on Walmart, let’s talk about Automation.
As your business grows, you feel stuck and feel the need to free up time and resources to better focus on your business and increase revenue. This is where you need a process to automate your business operation to ease your stress and strain.
For your Walmart dropshipping automation, you could use automation tools as automation is such a vital factor to keep your business operation smooth.
Let’s discuss two automation tools and how they can make your life easier:
1. Ecomdash
Ecomdash is a reliable Walmart dropshipping automation tool. I have personally used this tool and can give my personal assurance that it is worth using. Once you have been approved by Walmart to sell on its marketplace, you can sign up at Ecomdash and integrate with Walmart so that automation can start.
Once your listings are active on Walmart, everything will be automated including repricing and stock quantity synchronization. When the sales order is received, it will be sent automatically to the warehouse to be fulfilled and shipping tracking information will be sent to Walmart to be updated. Everything will be a completely automated and hassle-free experience.
2. Inventory Source
Inventory Source is a powerful Walmart automation tool. You can automatically upload products, sync inventory & route orders with your dropship suppliers.
The process to automate your Walmart business becomes very simple in just 3 steps:
- Connect directly with Inventory Source 230+ trusted supplier network.
- Automate your product sourcing, categorizing, and price markup tools.
- Integrate inventory levels, product details, and images directly into Walmart.
FAQs on Walmart Dropshipping
Does Walmart allow dropshipping?
Yes, Walmart allows dropshipping and there are 3 ways:
1. Selling Walmart Products
2. Dropshipping on Walmart’s Marketplace
3. Becoming a Walmart Drop Ship Vendor (DSV)
How do I set up dropshipping at Walmart?
1. Find Suppliers for Your Business
2. Register as a Seller on Walmart
3. Complete Onboarding Process
4. Order Fulfillment
What is a Walmart drop ship vendor?
Drop Ship Vendor (DSV) is a Walmart program where you can act as a manufacturer or supplier to Walmart.
Is dropshipping from Walmart to eBay legal?
While there is no such law that prevents one from dropshipping from Walmart to eBay, it is against eBay’s dropshipping policy.
Learn more:
Final Words
Dropshipping is a thriving business model and Walmart offers a great opportunity to drop shippers by allowing access to its large buyer base. If you are a manufacturer or wholesale business seller, you can apply to become DSV that can help you generate good revenue for your business. It is certainly worth dropshipping on Walmart as long as your put in your efforts and do your business strategically.
Are you already dropshipping on Walmart? How has been your experience? Please do share your comments with me below in the comment box. If you have learned something to your benefit, please share this article link in your circle by spreading the word on Facebook, Twitter, and other social media platforms. Sharing is caring. 🙂
