Are you an established dropshipper with some experience under your belt? If so, you can expand your dropshipping business model to new online marketplaces.
As long as you have a proven track record as a dropshipper, Walmart Marketplace provides a huge opportunity to reach a new audience with your dropshipping products.
Dropshipping Walmart products is an excellent option for your eCommerce business if you want to boost your sales and make a good profit. Over one-third of Walmart sellers have earned between 50,000 and one million dollars on the platform.
However, dropshipping on online marketplaces can be challenging. You have to choose the right platform, compete with other sellers, and ensure you have an effective and competitive pricing strategy.
In this guide, we'll help you decide if Walmart Marketplace is the right option for you, and provide some expert tips on how to stand out from the competition and make more sales.
Walmart dropshipping is a business model where a seller lists products on Walmart Marketplace without keeping inventory.
Instead of stocking products, the seller purchases items from third-party suppliers, such as wholesalers, manufacturers, or retailers, only after a customer orders.
The supplier then ships the product directly to the customer on the seller's behalf. You can do this as long as you meet Walmart's supplier requirements, which we will discuss later in this article.
This method allows sellers to operate without the overhead costs of warehousing and fulfillment.
However, Walmart has strict policies regarding dropshipping, making it more challenging compared to platforms like Amazon or having a Shopify store.
Imagine you list a set of kitchen knives on Walmart Marketplace for $49. When a customer places an order, you immediately purchase the same set from a wholesale supplier for $28.
The supplier packages and ships the knives directly to the customer, while you earn the profit margin without ever handling the product yourself.
Selling your products on an online marketplace platform might sound complex, but with the right selling tools, Walmart dropshipping is a great option. More dropshippers are selling on the Walmart Marketplace for the following reasons:
Unlike Amazon or eBay, this platform is selective about who qualifies as a Walmart drop-ship vendor. The application process to become a Walmart Marketplace seller is more complex, but it also means you won't have to compete with nearly as many sellers as you would on other online marketplaces.
Selling products manually can be challenging, which is why so many Walmart dropshipping companies use third-party tools like Spark Shipping to manage their eCommerce businesses.
Walmart is an excellent choice for dropshippers because it easily integrates with tools to streamline listings, orders, pricing, and store inventory.
If you aren't already selling your products on Walmart Marketplace, you're missing out on a big opportunity, as it has more than 120 million monthly visitors looking for products like yours.
Additionally, Walmart now offers two-day shipping, so as long as you can meet the platform's delivery and pricing rules, you'll attract more shoppers eager for a good alternative to Amazon Prime.
Over 90% of Walmart's 120 million online shoppers make purchases monthly, highlighting their trust in this platform.
Shoppers are becoming more wary of platforms like Amazon and eBay. However, because Walmart is so careful about its vendor selections, shoppers tend to trust this platform more, which means they trust your dropshipping products, too.
Unlike other dropshipping platforms, Walmart Marketplace's fee structure is straightforward. You only pay a referral fee based on product categories, unless you pay for fulfillment, which we'll cover later in this article.
Walmart only wants to work with established dropshippers with a solid reputation, so you can only drop ship on Walmart if you've been dropshipping for some time.
If you're accepted as a seller on Walmart's platform, they will display your products alongside their products in relevant searches.
When shoppers purchase items from your Walmart dropshipping store, you route that order either through Walmart (if you're using Walmart Fulfillment Services) or a third-party fulfillment company to handle the dropshipping.
In exchange for using the platform, Walmart will charge you a single fee. The referral fees cover all costs associated with the Walmart drop ship program, minus Walmart Fulfillment Services (WFS) fees if you use Walmart for fulfillment.
The fee is percentage-based per order, simplifying Walmart dropshipping fees.
However, these referral fees differ by product category and can be pricey. For example, jewelry has a 20% fee, while video games have a 15% fee.
Although these might seem more expensive than other platforms, Walmart doesn't have hidden fees, which keeps things simple for sellers.
Walmart will pay you every two weeks, although your first payment will take longer to clear as the platform vets you first.
They will continue monitoring your performance metrics through a Seller Scorecard, which assesses your quality in terms of reviews, returns, and other metrics.
If the platform notices a dip in your quality, it could revoke your selling privileges. If this does happen, the Walmart seller dashboard will tell you exactly what you need to do to resolve this.
One of the biggest challenges in Walmart dropshipping is becoming an approved vendor. Remember, Walmart is highly selective about who sells on its platform, so not just any dropshipper can join.
There are three main steps you'd need to follow to become a Walmart Marketplace seller:
First, set up a Seller Profile and add your business details. You'll manage your Partner Account within the Walmart Seller Center. Walmart will need a lot of information for this, so we recommend gathering all your details before applying as a seller.
To sell Walmart products, you'll need:
After submitting this information, you'll need to wait for Walmart to verify you. This process could take up to a week, especially during busy times of the year.
Once Walmart verifies your business details, you will be asked to set up payment and shipping information. Walmart requires you to register with Payoneer to receive payments.
The good news is that Walmart will guide you through the registration process through your Seller Center account, which will take you over to Payoneer.
Registering through your Walmart Marketplace account is vital because it protects you from Payoneer's $1.50 withdrawal fee.
Once you've set up payments, it's time to provide Walmart with your:
Walmart can take anywhere from three business days to three weeks to review your application.
It isn't unusual to receive a rejection the first time around, usually for documentation issues. Don't let this deter you: Take Walmart's feedback, rework your application, and apply again.
As long as you're a valid business with a proven dropshipping track record, you stand a good chance of dropshipping on Walmart.
Selling on Walmart is a great way to improve your dropshipping sales, but your online business will need optimization to succeed. Follow these best practices for competitive, profitable Walmart dropshipping:
WFS is Walmart's version of Fulfilled By Amazon (FBA). If you don't already have a dropshipping supplier, this is a great way to save hours every week managing your dropshipping business.
You'll be paying WFS fees on every transaction, but this cost is worth the quality service and time savings.
With WFS, you ship all of your inventory to the Walmart warehouse. When shoppers order your products, Walmart picks, packs, and ships the order for you. It also offers benefits like:
WFS pricing depends on your product dimensions and pricing. You can use the WFS fee calculator to get a rough idea of your WFS fees. They generally range from $3.45 to $17.55, although items retailing for over $10 and oversized items have higher fees.
Over 40% of global shoppers expect to receive their orders within 24 hours, which means standard shipping isn't always good enough.
To build a following of loyal shoppers, you need to offer affordable, speedy shipping. Signing up for WFS is the best way to do this, but the fees don't always make sense, especially if your drop shipping business is still small.
Fortunately, you can sign up to offer two-day or three-day shipping through Walmart. Sellers who qualify for these shipping options see as much as a 50% improvement in conversions, so it's worth considering.
You need to meet these rules to qualify for expedited shipping:
The platform encourages dropshippers to invest in some kind of Walmart dropshipping automation and inventory management tool. Solutions like Spark Shipping can:
Instead of spending hours every day updating inventory figures and tracking numbers (and wondering if the information is correct), automate everything with Spark Shipping. It's the best way to save time and scale your Walmart dropshipping business with little manual effort.
Most sellers source products through manufacturers or dropshipping suppliers. But if you want to get more value out of your margins, consider the retail arbitrage method.
With retail arbitrage, you buy products from another seller or location at the lowest price and then resell them to buyers on platforms like Walmart Marketplace.
This can be challenging as Walmart wants to work with high-volume, reliable suppliers. If you're doing arbitrage, you need a way to source hundreds of low-cost products at once. You won't find these deals on Facebook Marketplace, and you'll likely need to import products from overseas.
For example, maybe you realize sneakers are way cheaper in Malaysia than they are in the United States. It might require a bit of a process, but if you can find a way to import plenty of lower-cost sneakers, you can sell them for a good profit on Walmart Marketplace.
Walmart cares about quality, so it's no surprise that it places a lot of emphasis on the customer experience. If you want to retain your good standing as a seller, you have to provide your customers with excellent service throughout the entire selling process.
Additionally, customer service is also a factor in your Seller Scorecard, so this can have a big impact on your ability to drop ship from Walmart.
Follow these basics to offer high-quality customer experiences at scale:
You must maintain high performance standards on Walmart Marketplace to remain a seller on the platform. This is how Walmart ensures only the best suppliers sell on its Marketplace.
There are five performance metrics that Walmart Marketplace will score you on, so it's essential to monitor these in the Performance section in the Seller Center:
Up to 80% of customers do online research before buying a product. For this reason, your product listings need to be excellent if you want to make more sales.
Here are some essentials for creating good product listings on Walmart Marketplace:
Below is an example of a high-quality product listing on Walmart. It has over nine good visuals, displays the product from multiple angles, and includes detailed and compelling descriptions:
Instead of running paid adverts on Facebook and Instagram to sell your dropshipping products, you can run ads on Walmart Marketplace. This is done through a feature called Walmart Connect.
Below is an example of a seller that is using Walmart Connect to have their products highlighted on the platform's homepage:
Walmart Connect lets you advertise your products in places on their website that will attract customers' attention. This can increase your sales and boost visibility for your Walmart store.
The feature allows you to choose a schedule, budget, and keywords. These ads are sold on a cost-per-click basis, meaning you only pay for ads that a customer clicks on and nothing else.
Like Google and Amazon, Walmart uses an algorithm to suggest products based on shoppers' search queries. Making a few changes to your Walmart seller account and product listings could help you stand out from the competition in Walmart search.
Follow these quick tips to master Walmart SEO:
Successful dropshipping on Walmart isn't just about listing random products and hoping for sales.
To build a profitable business, you must identify high-demand, low-competition products with good profit margins.
This is where Walmart product research becomes a must. You can make informed decisions that drive sales growth by analyzing market trends, pricing strategies, and customer demand.
Below are some tips for your product research:
Without research, you risk choosing products that don't sell, leading to wasted time and potential losses. By evaluating product costs, supplier fees, and Walmart's commission structure, you can ensure you're selecting profitable items with strong demand.
Walmart Marketplace has strict guidelines on what sellers can sell, especially for dropshipping businesses. Violating these policies can lead to account suspension or permanent bans.
Below is a breakdown of restricted and prohibited items Walmart doesn't allow dropshippers to sell:
These products can't be sold at all, whether you're dropshipping or holding inventory:
Some items require additional approval before you can sell them on Walmart, including:
Dropshipping on Walmart comes with strict shipping and return policies. As mentioned earlier, Walmart prioritizes fast delivery, customer satisfaction, and hassle-free returns.
This makes it essential for dropshippers to comply with these policies. Below is a breakdown of what you need to know:
Walmart expects sellers to provide fast and reliable shipping, as delayed deliveries can impact performance metrics. The standard shipping time is two to five business days, while sellers offering free two-day shipping tend to gain better visibility in search results.
Expedited shipping, which is one to two business days, is optional, but it can help increase your conversions.
As a dropshipper, you're responsible for ensuring that orders are shipped on time and tracking information is uploaded within 24 hours of order confirmation.
Walmart requires sellers to accept returns for at least 30 days from the delivery date, except for specific categories like perishables or personal care items.
If the return is due to a seller error, such as shipping the wrong item or sending a damaged product, the seller must cover the return shipping costs.
However, if a customer returns an item because they've changed their mind, the seller can charge a restocking fee, provided it's clearly stated in the return policy.
Customers initiate return requests through Walmart, and the seller must provide a return label and instructions. The returned item is then shipped back to the seller or supplier, and a refund is processed once it's received.
Dropshipping from Walmart to other platforms like eBay, Amazon, or Shopify is a business model where sellers purchase products from Walmart at a low price and resell them at a higher price on another marketplace.
This approach may seem like an easy way to profit from Walmart's vast inventory, but it does come with risks and challenges that you should consider.
For example, most major platforms prohibit retail dropshipping, which is buying from one retailer and selling on another. Amazon and eBay, in particular, don't allow orders to be fulfilled from Walmart or other retailers if the package arrives with Walmart-branded packaging, receipts, or invoices.
Violating this policy can lead to account suspension or permanent bans. Additionally, if Walmart suspects you're buying products from its marketplace to sell them to a third party, it has the right to terminate your seller account.
As mentioned above, Walmart offers access to millions of customers. However, it comes with several challenges that make it more difficult than dropshipping on platforms like Amazon or Shopify. Below are some of the key challenges you may encounter and how you can handle them:
One of the biggest challenges when you start Walmart dropshipping is the high competition and potentially lower profit margins. Since Walmart is known for its low prices, sellers may struggle to compete while maintaining healthy margins.
Find high-margin items through product research tools like Helium 10 and Jungle Scout. You can also use bundle strategies, which means selling related products together, to increase perceived value.
Walmart has zero tolerance for policy violations. Even minor infractions can lead to account suspension or bans. Dropshippers must comply with Walmart's strict performance standards.
Ensure you work with wholesale suppliers or private manufacturers instead of retailers. Additionally, use fulfillment tools like Spark Shipping to manage your orders efficiently.
Unlike Shopify, where anyone can start dropshipping on the platform immediately, Walmart Marketplace has a strict approval process. Sellers must apply and wait for approval, which can take a long time.
Ensure your business is legally registered before applying, and provide detailed information about your previous sales performance.
The right tools can make managing your Walmart dropshipping business more efficient. Below are five useful tools that can help you with automation and more:
Spark Shipping connects your Walmart store directly to your suppliers, automatically syncing product data, inventory levels, and pricing.
It also routes orders to the correct supplier without manual effort, helping you reduce errors and save time on repetitive tasks.
Helium 10's tools support Walmart Marketplace research. You can analyze product demand, competition levels, and keyword trends to identify profitable opportunities before adding new products to your store.
Clear, compelling visuals are essential for product listings on Walmart. Canva's drag-and-drop design platform lets you create high-quality images, banners, and infographics that meet Walmart's listing guidelines without needing graphic design skills.
ShipStation helps with order fulfillment by generating shipping labels, consolidating orders from multiple channels, and providing customers with real-time tracking information. It can also integrate with various carriers to simplify logistics.
Keeping accurate financial records for your dropshipping business is essential for monitoring your profitability. QuickBooks Online can track your expenses, automate invoicing, and help you generate reports that make it easier to stay compliant during tax season.
Getting approved as a Walmart Marketplace seller is challenging, but sustaining strong performance is the most difficult part of selling on this platform.
Spark Shipping gives Walmart dropshippers the tools to automate time-consuming processes, keep product data accurate, and ensure orders are fulfilled smoothly.
By reducing manual work, you can focus on strategic growth and delivering the best experience for your customers.
Feel free to book a Spark Shipping demo to see how our software can help you run a more efficient Walmart dropshipping business.