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According to eMarketer, Walmart is the second-largest retail ecommerce marketplace, making up 6.7% of retail ecommerce sales in 2020. It trails only behind Amazon and leverages its brick-and-mortar stores to stay ahead of other ecommerce platforms like eBay.

And if you’re a dropshipper, Walmart’s marketplace can be particularly advantageous.

Dropshipping is a way to sell products where the seller doesn’t have to store or ship any products. Instead, they use a third-party supplier to fulfill orders. It’s typically pretty competitive, but thankfully, Walmart is a somewhat exclusive platform, making it ideal for dropshipping.

On Walmart.com, sellers will have access to a large marketplace that is less competitive than platforms like Amazon. At the same time, dropshippers can reach far more shoppers than if they created an online store from scratch.

We’ll be covering what Walmart dropshipping is and how you can get started dropshipping through this unique channel.

What is Walmart dropshipping?

Walmart dropshipping is the process of selling products through third-party suppliers on the marketplace or dropshipping Walmart products on other marketplaces.

There are three ways to dropship using Walmart:

  1. Dropshipping Walmart products to other platforms like Amazon or eBay
  2. Using Walmart’s Drop Ship Vendor program, where a merchant sends products directly to shoppers
  3. Selling dropshipped products on Walmart Marketplace

We’ll be focusing on the last type of dropshipping as a third-party seller.

Third-party selling involves listing your products on Walmart under your business name. The seller owns the whole process while also benefiting from Walmart’s large customer base. It isn’t easy to get approval for this type of selling on Walmart, but it is worthwhile, as will be explained in this article.

Why use Walmart dropshipping?

Dropshipping is a lucrative business, but it can be difficult to be noticed with so many competitors. Walmart offers this type of seller the best of both worlds—a top ecommerce marketplace with over 380 million visitors in September 2020 alone, but not so crowded that standing out is impossible.

Pros

Walmart is newer to ecommerce, so it doesn’t have as much competition as platforms like Amazon. It has a little over 88,000 sellers at the moment, which is minuscule compared to Amazon’s 1.6 million.

Besides offering a less crowded marketplace, Walmart is beneficial to dropshippers in a number of other ways.

Cons

Despite its benefits, dropshipping on Walmart is not a perfect experience. Some downsides include:

Don’t let these downsides steer you away from dropshipping on Walmart. Consider the downsides of platforms like Amazon, where you have several fees while dealing with massive competition. Or Shopify, where you’ll have to build your customer base from scratch.

When compared to these platforms, dropshippers are often better off selling on Walmart because they have low overhead costs and a large customer base ready to sell to.

How to dropship with Walmart

While Walmart Marketplace is a great platform to sell on, it is also difficult to get approval as a seller. Follow these steps to get started dropshipping on Walmart.

Step 1: Find suppliers and products for your dropshipping business

Platforms like SaleHoo, Doba, and Wholesale Central are great for finding wholesale suppliers. YouTuber Noah Mincis has a guide to finding suppliers starting at 6:45. Noah recommends finding suppliers at trade shows and on other marketplaces like Amazon or eBay.

When researching suppliers, you’ll need to pay attention to certain details, including:

Put these details and any other criteria you deem necessary in a checklist to streamline the process of interviewing potential suppliers. Check out this article for a more detailed guide to selecting dropshipping suppliers.

When deciding which product to sell, research what products/product niches are popular among consumers and how much you can sell your products for. You’ll also need to check your products against Walmart’s Prohibited Products policy.

You can try Google Trends or Facebook Audience Insights for product research. Running the search terms for products you’re considering through these tools can help you understand consumer sentiments toward them.

To determine product pricing, you can look at how competing sellers are pricing their products. Also, consider whether you can afford to sell your products at discounts to compete with them.

For a more detailed guide to selecting dropshipping products to sell, check here.

Step 2: Apply to sell on Walmart Marketplace

Regardless of how you choose to sell products with Walmart, you’ll need approval. Walmart has a rigorous application and onboarding process to select quality sellers who can provide a great experience to their customers.

To become a Walmart Marketplace seller, visit Walmart Marketplace’s website and click “Request to Sell.”

walmart dropshipping

Fill in the required fields. It should take about 10 minutes to complete if you have all the information prepared. You’ll need to have this information prepared to apply.

Walmart Marketplace

Approval to sell on Walmart Marketplace can take one to two weeks, and onboarding takes three to four weeks.

Step 3: Go through Walmart Marketplace Seller onboarding

Once approved, you’ll need to complete the onboarding process to sell on Walmart. You’ll receive an email that contains the registration link. The entire onboarding process consists of 10 steps.

The approved seller will receive a registration email, which will direct the seller to complete the registration process. Here, sellers will be able to:

The seller will then complete Walmart’s Partner Profile. This will include information buyers will see and include information like your company name, description, logo, company policies, and more.

walmart dropshipping

Example of Partner Profile registration

Once your store is set up, you will start preparing to sell by listing your products. Test the order process by publishing two to three items and placing your own orders. You’ll need to test the following scenarios in the Seller Center: order acknowledgment, order cancellation, order shipping, and order refund.

Once everything is confirmed to be working, you are ready to go live. Walmart will perform a final review and then release your account to go live.

Once your store is live, your items are published to Walmart Marketplace. Customers will be able to purchase within a few hours of publishing, and your products will be searchable in 24 to 48 hours.

Step 4: Start fulfilling orders

After going live, shipping and fulfillment speed is vital for the success of your store.

All sellers can take advantage of Walmart’s TwoDay shipping program. The TwoDay shipping program is a great way to draw in more customers and sell more products. Walmart also rewards fast shipping with Buy Box placements and priority ranking in search.

walmart seller

However, keep in mind that although leveraging the TwoDay shipping program will get you high rankings on Walmart’s search results, it’s not for every seller. Using the TwoDay tag means that you’ll be offering free nationwide shipping to your customers—which comes as a cost to your business. If your business cannot afford it, then stick to regular shipping. Don’t over-promise only to under-deliver.

You can use Deliverr to fulfill orders quickly with Walmart. This platform integrates directly with Walmart’s TwoDay program to guarantee fast shipping and boost item visibility. Deliverr is also Walmart’s official partner for Walmart’s TwoDay fulfillment.

Deliverr can pick up your items from your supplier and stores them close to your buyers so you can offer fast shipping at an affordable rate. You pay a fixed fulfillment rate.

Keep in mind that you are not required to use any particular fulfillment service, but Walmart makes recommendations and offers shipping guidelines that sellers might find useful.

3 tips for Walmart dropshipping

Selling on Walmart might provide you a large customer base and less competition than other platforms, but success won’t happen without effort. Use the following tips to ease your Walmart dropshipping experience.

Keep an eye on your metrics

Without reporting, it’s impossible to know whether your dropshipping on Walmart is going well. Gauge your performance to determine what works and what doesn’t by tracking metrics. Walmart’s reporting helps sellers evaluate their:

walmart dropshipping

Walmart Seller Scorecard

Meet Walmart’s customer service expectations

Walmart has certain factors they use to track seller performance on their platform. These measures of quality service include:

For a more detailed guide to performance requirements for sellers, check here.

Keeping up with these measures means responding to all customer queries on time and fulfilling orders in a timely manner. It also means making sure that cancellations and returns are minimized and managed properly. To manage your performance as a Walmart seller:

Walmart Dropshipping

Example of a return policy

Walmart unpublishes sellers for a number of reasons, including flouting rules and unhappy customers. Returns, cancellations, and complaints can impact your seller performance—even if issues are resolved. Minimize problems by communicating constantly with your supplier to keep customer dissatisfaction low or non-existent.

Optimize your product listings

Your product listings can do a lot of work for you—if you position them correctly. Strategically crafting your listings helps more customers find you, which helps you sell more products.

Sell on multiple channels to reach more customers

Walmart offers a number of benefits for dropshippers—but it isn’t perfect. The marketplace holds a lot of control over sellers’ stores, and an infraction can cause your products to be taken down. To grow your operations, consider selling on other channels in addition to Walmart.

Diversify your selling by listing your products on other ecommerce platforms like Amazon or eBay, or create an online store with WooCommerce or Shopify. However, there can’t be too much of a price disparity for your products on these platforms. Otherwise, Walmart will deactivate your account.

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