As we saw in the introduction, there are two ways to use Walmart for dropshipping.
1
Dropship on Walmart’s Marketplace
Dropshipping on Walmart is when you sell products that you don’t own on the Walmart marketplace.
Walmart has two options for selling on its marketplace.
Drop Ship Vendor (DSV) - A DSV seller ships items directly to the customer. This is the option we use and that we’ll explore in this article.
Warehouse Supplier - A Warehouse Supplier is a seller who ships items to Walmart’s warehouse. Walmart stores the inventory and packages and ships the orders directly to customers.
Higher profit margins
Yes, Walmart allows you to list your dropshipping products on its marketplace.
However, you need an existing sales history. So, it’s not an option for new sellers. You have to have an existing store or sell on another marketplace like Amazon or eBay before you join.
How Do I Dropship on Walmart’s Marketplace?
To dropship on Walmart, you’ll need to sign up for the Walmart Marketplace and list your products. When a customer orders your product from Walmart, you will contact your supplier or manufacturer. The supplier or manufacturer will ship the orders directly to the customer.
If you sell on Shopify already, you can add your Shopify listings to Walmart’s Marketplace.
To do this, sign up for Walmart Marketplace. Then, install a tool like Shopify Marketplace Connect to your Shopify store. This allows you to link your Shopify listings with Walmart Marketplace. You can then manage your Walmart orders easily from your Shopify account.
We’ll cover exactly how to dropship on Walmart in the How To section below.
Should I Dropship on Walmart?
Walmart has grown to become the largest retailer globally [1] and is one of the most well-known American brands. 90% of Americans live within 15 miles of a Walmart. It is the go-to destination for affordable prices.
Therefore, it has a huge audience of loyal customers.
Listing your products on Walmart gives your business instant visibility. This can help generate sales.
However, it is only an option for experienced sellers with US or Canadian businesses.
We can look at the pros and cons to help you decide if Walmart is the right place to list your dropshipping products.
Pros of Dropshipping on Walmart’s Marketplace
An existing audience of millions of loyal customers.
Trusted marketplace with pre-vetted sellers, which helps encourage customers to buy.
Possible to manage through your Shopify account.
Sellers tools to boost sales. Including the Review Accelerator Program, Repricer, and Sponsored Products.
If you want to move away from the dropshipping model, Walmart offers fulfillment services. This allows you to send inventory to Walmart’s warehouses. Walmart then handles the fulfillment of your orders to customers.
No listing fees or monthly costs
Cons of Dropshipping on Walmart’s Marketplace
Difficult for international sellers. You need a US business number or have your business incorporated in Canada.
It is not suitable for new sellers. You need a history of sales on either your own e-commerce store or an alternative marketplace.
Limited contact with customers.
Difficult to establish yourself as a brand compared to selling on your own website.
Referral fees for every sale.
5
Dropship Walmart Products
Dropshipping Walmart products is when you source products from Walmart’s marketplace. You then list them on your own website or an alternative marketplace, like Amazon or eBay.
Can I Dropship Walmart Products?
Walmart isn’t clear if you’re permitted to dropship its products directly to customers.
The terms of service state that it can limit the quantity of products purchased per person, per household, or per order for any reason. It also reserves the right to prohibit sales to dealers or resellers.
For this reason, we wouldn’t recommend manually fulfilling your dropshipping orders from Walmart.
However, there are legitimate ways to use Walmart as your dropshipping supplier.
AutoDS is a dropshipping automation tool that uses Walmart as a supplier. This allows you to sell Walmart products on Shopify, Facebook, Etsy, WooCommerce, eBay, Amazon, or Wix.
How Do I Dropship Walmart Products?
If you want to dropship Walmart products, we recommend using AutoDS.
Sign up for the platform or marketplace where you want to sell Walmart products.
Then, join AutoDS.
AutoDS allows you to look through Walmart’s products. When you find a product to list, you can import it to your store. AutoDS also allows you to automate the fulfillment process.
We’ll look at this in more depth in the How To section below.
Should I Dropship Walmart Products?
Walmart is a discounted retailer. Its online site lists millions of products from different sellers.
The affordable prices and variety of products make it a good place to source your dropshipping products.
However, there are some potential issues. Such as the risk of Walmart canceling resellers' orders and that you can only ship to US addresses.
Therefore, Walmart won’t be the best place for everyone to source their products from.
We can look at the pros and cons of sourcing your products from Walmart to help you decide if it’s the right option for you.
Pros of Dropshipping Walmart Products
Fast shipping from the US
Free shipping on most orders
Can use AutoDS to automate your fulfillment
Affordable prices
Can join Walmart+ for free shipping and other benefits
Cons of Dropshipping Walmart Products
Only suitable for selling to US customers
Low margins as you’re paying retail price
Cannot confirm if you are permitted to dropship products directly to customers. You can buy and resell Walmart products, and AutoDS has Walmart as a supplier. So you can dropship Walmart products on certain platforms.
Is Dropshipping On Walmart Profitable?
Absolutely. If you find the right product, you can generate profit by dropshipping on Walmart.
Walmart is a huge marketplace with many existing customers actively looking to spend.
It is also free to list on. There are no setup costs or monthly subscriptions required. When you make a sale, you’ll be charged a referral fee ranging from 6-15%.
How To Dropship On Walmart
In this section, we’ll explore how to sell your dropshipping products on Walmart’s marketplace.
If you haven’t got time right now to read each step, here is a quick overview:
1. Find a product to sell at Walmart.
2. Find a supplier based in the US from which you can source the product.
3. Apply to Walmart Marketplace. Create your listings. Decide how you want to fulfill your orders.
Note: If you have a Shopify store already, you can manage Walmart orders from here. Or you can do it manually.
4. Use Walmart Connect to advertise your products.
5. Analyze and optimize your business to increase profits.
