Walmart Dropshipping: How It Works And How To Get Started (2024)

Table of Contents

1. Introduction
2. What is Walmart Dropshipping?
3. Why Dropship on Walmart?
4. How to Start Dropshipping on Walmart
5. Top Tips for Dropshipping on Walmart
6. FAQs About Walmart Dropshipping
7. Conclusion

Introduction

Have you ever wondered how to tap into the vast potential of Walmart’s online marketplace? If you're an aspiring entrepreneur or an experienced dropshipper looking to expand your reach, this blog post is for you. With Walmart securing a strong position as one of the leading eCommerce platforms in the U.S., understanding the mechanics of dropshipping on Walmart can significantly boost your business prospects.

In this comprehensive guide, we’ll dive deep into what it means to dropship on Walmart, the steps required to get started, and essential tips to optimize your performance. By the end of this post, you'll have a robust understanding of how to successfully launch and manage a dropshipping business on Walmart, leveraging the power of Shopify for seamless integration.

What is Walmart Dropshipping?

Walmart dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when you sell a product, you purchase the item from a third-party supplier who then ships the item directly to your customer. The primary benefit is that you don’t need to handle the products directly, reducing complexities and overhead costs.

By listing products on Walmart’s online platform, dropshippers can tap into a significant pool of potential customers. Integrating with Shopify, a prominent eCommerce platform, simplifies the process by allowing sellers to manage product listings and orders across multiple marketplaces, including Walmart.

Why Dropship on Walmart?

While Amazon may dominate your thoughts as the premier online retailer, Walmart’s eCommerce sphere shouldn’t be underestimated. As of 2023, Walmart.com captured 6.4% of the eCommerce market share and drew over 100 million monthly visitors. This substantial audience makes Walmart an enticing marketplace for dropshippers.

Advantages of Selling on Walmart:

• High Traffic: Gain exposure to millions of shoppers without the need to independently drive traffic to your site.
• Reduced Marketing Pressure: Leveraging Walmart’s established customer base allows you to focus less on marketing and more on product selection and supplier relationships.
• Trusted Platform: Walmart’s established brand credibility naturally instills trust, likely increasing conversion rates for listed products.

How to Start Dropshipping on Walmart

1. Become a Walmart Marketplace Seller

The first and most crucial step is registering as a Walmart Marketplace seller:

• Eligibility: Ensure your products comply with Walmart’s Prohibited Products Policy.
• Application Process: Complete a detailed application form that assesses your store's ability to ship products reliably and manage returns.
• Established Business Requirement: New businesses are not eligible. You need to prove a history of sales and provide business credentials such as a taxpayer identification number (TIN), tax classification, business address, customer service email, and phone number.
• Verification: The verification process might take several days, and additional information may be required if you’re based outside the U.S.

2. Link Your Shopify Dropshipping Store

Once approved, link your Shopify store to Walmart Marketplace to facilitate inventory management and order processing:

• Sync Inventory: Import your product catalog to Walmart, making your items visible to the wide audience on Walmart.com.
• Centralized Management: Handle all your orders through Shopify, simplifying the administrative tasks associated with multiple marketplaces.

3. List Your Products on Walmart

Listing products on Walmart involves mapping your product identifiers (e.g., GTIN or UPC) to Marketplace Connect:

• Existing Products: If a product is already listed on Walmart by another seller, submit an offer to sell with your price, inventory count, and shipping terms.
• New Listings: For unique products not currently on Walmart, create a new listing with comprehensive product details to attract interest.

Dropshipping Walmart Products

It's important to understand the limitations and risks of dropshipping Walmart products directly. Walmart prohibits using its platform purely to resell products purchased from Walmart.com. This practice can lead to the suspension of your seller account and challenges in establishing competitive pricing.

Top Tips for Dropshipping on Walmart

Delight Customers with Fast Shipping

Enroll in Walmart’s fast shipping program to enhance your listings’ visibility:

• Fulfillment Standards: Maintain a high on-time delivery rate (over 95%) and a low order cancellation rate (less than 1.5%).
• Benefits: Gain the Buy Box placement, Fast Shipping tags, and higher priority in product searches, potentially increasing conversions by 30% to 50%.

Keep a Close Eye on Performance Standards

Walmart evaluates sellers on five key performance metrics:

• Order Defect Rate: Products shipped without defects.
• On-Time Shipping: Ensure products are shipped promptly.
• Valid Tracking Rate: Provide accurate tracking information.
• Marketplace Cancellation Rate: Minimize order cancellations.
• Return Rate: Manage low return rates.

Regularly reviewing these metrics is crucial to maintaining a good standing on the platform.

Optimize Your Product Listings

Optimize product descriptions to enhance searchability and attract buyers:

• Detailed Descriptions: Include key benefits, features, and specifications.
• High-Quality Images: Use multiple high-resolution images.
• Competitive Pricing: Ensure your pricing is competitive with similar products.

FAQs About Walmart Dropshipping

Is Walmart Dropshipping Legal?

Yes, dropshipping on Walmart is legal as long as you adhere to their marketplace guidelines and fulfill orders through approved third-party suppliers.

How Does Walmart Dropshipping Compare to Other Marketplaces?

Walmart offers a considerable market with potentially lower referral fees for certain product categories compared to Amazon and eBay. However, be mindful of Walmart’s commission on sales when setting product prices.

Can I Dropship from Walmart to Shopify?

Technically possible but risky—Walmart can terminate accounts suspected of purchasing for third-party resale, posing challenges for price competition.

Conclusion

Walmart dropshipping presents a dynamic opportunity to reach millions of potential customers with relatively low upfront investment. By adhering to Walmart’s stringent requirements and leveraging platforms like Shopify for seamless integration, dropshippers can optimize their operations for success.

Carefully select your suppliers, maintain high performance standards, and continually optimize product listings to achieve the best results on Walmart. With diligent management and strategic planning, Walmart dropshipping can be a significant revenue stream in your eCommerce portfolio.