How to Dropship on Walmart – A Beginner’s GUIDE

Have you ever come across an amazing product online but thought – I wish I could sell this.

Well my friend, let me introduce you to dropshipping – the business model that lets you sell products without ever needing to handle inventory or shipping.

I’ll walk you through the complete process of How to Dropship on Walmart.

What if I told you one of the world’s largest retailers, Walmart, offers an amazing marketplace platform for aspiring entrepreneurs to start dropshipping? Almost too good to be true right?

Well in this guide, I’m going to walk you through exactly how to leverage Walmart’s massive customer reach to start your own dropshipping business, step-by-step. You’ll learn:

• Why Walmart is the perfect platform to get started on
• How their marketplace model and fulfillment services enable easy dropshipping
• Tips for finding proven and popular product niches tailored to Walmart’s shoppers
• Step-by-step guidance on registering as a Walmart Marketplace seller

I’ll also share key strategies around promoting your listings using Walmart SEO best practices, driving external traffic sources to your product pages, and properly fulfilling orders once they start rolling in.

So if you’re ready to tap into an online marketplace of over 100 million monthly visitors, with established trust and name-brand recognition, let’s dive in and get you dropshipping on Walmart.

Does Walmart Allow Dropshipping?

A common question that comes up is – “does Walmart even allow dropshipping on its marketplace?”

It’s easy to assume a giant retail chain would restrict reselling of products. However, Walmart proudly welcomes independent sellers to list products across many categories on Walmart.com.

This unlocks the massive potential to tap into Walmart’s customer base as a dropshipper.

There are a few different ways sellers can leverage Walmart’s platform for dropshipping:

Becoming a Drop Ship Vendor

Walmart invites certain qualified sellers to become part of its Drop Ship Vendor (DSV) program. This involves being personally approved and contracted for bulk inventory at wholesale prices.

• Benefits include discounted product costs to enable better profit margins
• The downsides are fixed purchase quantities and a longer onboarding process

If you have an established e-commerce business and can commit to large order volumes, applying for Walmart’s vendor program is worthwhile.

Reselling Walmart Products

Another avenue is simply purchasing Walmart products at retail prices and relisting them on Walmart’s marketplace.

• Allows anyone to easily source products to dropship
• Margins can be thinner so focus on high-value products

Marketplace Dropshipping

Finally, Walmart Marketplace has an “open first-party” model similar to Amazon, allowing sellers to create listings even without existing inventory on hand.

• No approval is needed from Walmart
• Integrates with Walmart Fulfillment Services for easy order handling
• A broad assortment of products eligible outside Walmart’s main catalog

This “pure” dropshipping model provides the most flexibility for new sellers to test ideas without upfront risks. Products can be sourced from any supplier before customer orders come in.

Next, we’ll explore why Walmart stands out above other major e-commerce platforms for starting as a small dropshipper.

Why Dropship with Walmart?

So why should you consider dropshipping on Walmart’s Marketplace vs other major platforms? There are some compelling reasons Walmart stands out:

Massive Customer Reach

Let’s start with the obvious – as one of the largest retailers in the world, Walmart drives over 100 million visits to Walmart.com every month. That’s a ton of potential shoppers who could stumble upon your product listings.

Listing on Walmart Marketplace extends your products not just to their main website, but also exposure across:

• The Walmart mobile app with tens of millions of downloads
• Walmart’s popular social channels and email programs

Tap into dedicated Walmart buyers without spending big on marketing.

Brand Trust

Shoppers flock to Walmart for good prices, but also the trust in quality that comes with the brand. You can take advantage by sourcing reliable products for dropshipping that align with customer expectations.

Buyers may browse out of pure curiosity for what’s available. But, converting that interest to sales depends on upholding Walmart’s brand promise around order fulfillment and support.

Low Seller Fees

Walmart charges between 6-20% referral fees per sale, competitive with Amazon and lower than most dedicated platforms. For products in furniture, household, or fashion categories some of Walmart’s most popular – fees start at just 6%.

Compare that to Shopify’s transaction fees of around 2% + payment processing, or eBay’s charging up to 15%, plus subscription costs for advanced features.

Walmart also provides sponsors advertising options to promote product listings, with flexible daily budgets starting around $1/day. Compare that to Google charging about $9 per click.

Seller Support

I know learning the ropes for any new sales channel can feel intimidating. The good news is Walmart provides an abundance of free training materials, daily webinars with Q&A, ongoing one-on-one support for registered sellers, and a thriving community forum to connect with other sellers.

You won’t be left guessing how to manage listings or orders. Walmart empowers sellers with the data, insights, and tools needed to scale successfully. Everything from inventory alerts to shipping efficiency, meaning your focus stays on sourcing great products.

Speaking of inventory, what exactly does Walmart expect from its dropshipping partners?

Also Read:

• How To Dropship On Temu
• How To Dropship On TikTok Shop

What is a Walmart Drop Ship Vendor?

Earlier I touched on Walmart’s Drop Ship Vendor (DSV) program for established sellers. Let’s explore what exactly it means to be a vendor partner.

Walmart invites certain high-volume sellers to sign contracts as official dropshipping vendors. This unlocks special perks like:

• Access to wholesale pricing on bulk inventory purchases from brands
• Get products featured as part of Walmart’s Buy Box listings for higher visibility
• Expedited onboarding with a dedicated account manager

In exchange, vendors commit to large order volumes (usually multiple pallets or truckloads) of a product to keep continuously in stock.

You take care of negotiating with suppliers and managing the inventory. Walmart handles bringing the product into their own warehouses for faster order fulfillment when customers purchase through your listings.

It’s almost like having your virtual storefront backed by Walmart’s infrastructure.

• Pros: Higher margins, exclusive benefits
• Cons: Large upfront product commitments, lengthy application process

Becoming a Walmart Vendor has appeal for established retailers looking to scale at volume. But it does require significant capital and operations to fulfill at the needed quantities.

For most starting, the regular Walmart Marketplace path allows listing products at any quantity without fixed vendor agreements. So don’t worry – you’ve still got plenty of flexibility as a new seller.

Now let’s get into the step-by-step process for signing up.

Choose the Right Product Niches for Walmart

Deciding what to sell is arguably the most important choice for any e-commerce business. You want products aligned with market demand from Walmart’s customer base.

Walmart shoppers browse across categories, but some niches see especially lucrative sales volume:

• Electronics – phones, wearables, audio
• Home goods – furnishings, storage, decor
• Apparel and accessories – clothing, shoes, bags
• Toys – indoor play, outdoor sets, educational

Beyond broad categories, consider specific product opportunities:

Smart Home Devices

• Shoppers increasing adoption of connected gadgets
• Focus on popular brands like Google Nest or Amazon Alexa
• Average sales price $50+

Comfortable Loungewear

• With remote work, demand skyrocketed for stylish leisurewear
• Include slippers, pajama sets, yoga pants
• Present lifestyle brand appeal

Pet Gear

• 63% of Walmart shoppers own pets
• Emphasize multi-functional and outdoor accessories
• Target breeds like dogs over 20 lbs

Arts and Crafts Kits

• Creative projects as affordable family activities
• DIY kits for candle-making, macrame, jewelry-making, etc
• Gift potential for holidays, birthdays

Soft Toys and Plush

• Cute plushies appeal to kids and adults
• Licensed characters like Disney drive emotional appeal
• Impulse purchases with low price points

Dig into Walmart’s category and search data tools to identify rising trends. Evaluate potential suppliers and order minimums before committing.

Remember to align niches to your own interests and existing experience levels to make things smoother as a new seller.

Next up, navigating Walmart’s registration and account setup.

How to Dropship on Walmart

Now for the step-by-step on getting set to sell as a dropshipper:

Locate Suppliers for Your Business

Find reputable suppliers carrying products aligned to niche demand on Walmart before listing.

Expect 2-4 week shipping times. Recommend US-based to start for faster delivery. Check minimum order quantities.

Register as a Walmart Marketplace Seller

• Go to www.Walmart.com/sell and sign up for a free account
• Provide contact info, ID verification, tax interview
• Enroll in WFS shipping protection programs
• Agree to Walmart’s seller terms and conditions
• No account approval is needed to get started.

Leverage Walmart Fulfillment Services

Walmart offers order fulfillment solutions called Walmart Fulfillment Services (WFS). Major benefits:

• Store inventory in Walmart Warehouses
• Automated picking, packing, and shipping
• Fast 2-day or next-day delivery unlocks
• Customers get free returns for 60 days

The downsides are storage fees, order commissions, and using Walmart generic packaging. Still recommended when starting for simplicity.

Complete Onboarding & List Products

Now build out your seller profile and publish the first product listings:

• Complete your business profile and connect your payment account
• Enroll in advertising and 21DC merchant training
• Create listings with competitive pricing
• Upload professional photos and optimized titles/descriptions
• Manage inventory availability

Fulfill Orders

• New orders auto-download into the WFS portal
• Print shipping labels and confirm tracking info
• Orders routed to suppliers for direct fulfillment
• Manage returned items under the WFS dashboard
• Reply to any customer inquiries within 24 hrs

Stay tuned for tips on growing your dropshipping business through promotions, SEO, and more.

Is Dropshipping from Walmart Worth It?

Short answer – Walmart provides incredible opportunities for sellers, especially those just starting in e-commerce.

Unlike Shopify or paid ads routes which require large upfront investments, Walmart has low barriers to test product-market validation.

You can create listings at no upfront cost. Only a 6-15% referral fee on sales. There are no risks in testing niche products before committing serious capital.

But to truly unlock Walmart’s potential and turn profits, some optimization is required:

Optimize Your Product Listings

Focus on maximizing listing quality for higher conversions:

• Compelling titles and descriptions: Showcase key features and benefits
• Detailed specifications: Dimension, materials, compatibility info
• High-res imagery: Use lifestyle photos from multiple angles
• Competitive pricing: Undercut Amazon and big-box sites
• Attribute tagging: Proper product categorization for discoverability

This ensures customers instantly recognize an appealing, high-quality offering aligned to their search.

Meeting Walmart’s Performance Expectations

Walmart sets minimum standards around order cancellations, refunds, and response times. Consistently fall below targets and risk account suspension.

• Maintain 95% 1-business day ship time
• Keep under 2% cancellation rate
• Average 4-5 star seller rating
• Reply to customer inquiries within 1 business day

As long as you source from reliable suppliers and stay attentive, achieving Walmart’s benchmarks is very realistic.

You can also unlock premium features like 2-day shipping potential down the road by maintaining metrics.

In reality, Walmart provides unmatched infrastructure and logistics solutions for new e-commerce sellers. Start small, reinvest profits into inventory, and exponential growth follows.

Promote Your Walmart Listings

Creating listings is just the first step. Driving searches and sales requires promoting exposure.

Walmart SEO Best Practices

• Place target keywords in titles, bullets, and backend tags
• Write detailed descriptions demonstrating expertise
• Curate related products in bundling and comparisons
• Earn 5-star ratings and reviews for social proof

Driving External Traffic

Explore additional channels driving conversions:

• Run paid ads across search and social media
• Recruit influencers and content creators for reviews
• Link to your store on e-commerce directories
• Cross-sell between multi-channel listings

Leverage Promotions

Maximize seasonal events like back-to-school, holidays, clearance sales, and daily deals for extra visibility.

Consider Giveaways to spike initial product interest and social sharing.

Seller analytics tools provide insight into which marketing initiatives deliver ROI. Start small while collecting data before scaling budgets upwards.

The combination of optimizations and paid promotion ensures your listings convert browsers into loyal customers.

Summary: How to Find Dropshipping Success on Walmart

The appeal of dropshipping through Walmart is clear: instant access to over 100 million monthly visitors, established brand trust driving conversions, and robust tools for store management.

Yet achieving consistent sales requires effort across:

• Researching in-demand niches
• Sourcing reputable suppliers
• Optimizing compelling listings
• Providing excellent customer service
• Driving external traffic to listings

Commit to the process, reinvest profits smartly, and sustainable growth follows.

Follow this guide to leverage Walmart’s infrastructure for your own business. Don’t let worries over limitations hold you back from getting started.

Conclusion

Dropshipping allows almost anyone to start an online business on nights and weekends. Walmart provides the ultimate launchpad for first-time entrepreneurs.

Between sourcing great products and fulfilling orders efficiently, the profits stack up quickly.

FAQs on How to Dropship on Walmart?

Do I need a business entity to sell on Walmart Marketplace?

No, you can register as an individual seller using your ID and details. If you do already have an LLC or Corporation, provide that business info during signup.

What are the common reasons Walmart suspends seller accounts?

Consistently failing to meet order fulfillment SLAs, high cancellation/return rates, listing counterfeit/unsafe products, and policy violations around reviews or feedback extortion.

What product categories are restricted from Walmart Marketplace?

Categories prohibited: weapons, recreational drugs, adult goods, medical devices, hazardous materials, recalled items, and automobiles. Must pass application for beauty, grocery, and health.

Does Walmart charge monthly or annual seller fees?

No. Beyond referral sales commissions, no subscription or monthly fees to sell. Optional advertising and warehouse storage fees apply if using.

Can I connect my Shopify store or Amazon listings to Walmart?

Yes. Platforms like Zentail can help centralize multichannel inventory. Or list manually across each marketplace separately.

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