When it comes to drophipping, there might be multiple things you need to consider. The first thing that springs to mind is to get a product to sell. The second thing is to have an online store. However, the last but not least thing is to get a marketplace, such as Walmart, Amazon, eBay, or create a store on Shopify or other ecommerce platforms to dropship. The article will explore how to dropship on Walmart. Before starting, let’s answer the following questions first:
While most dropshippers get started on Amazon or eBay, Walmart dropshipping might also benefit you a lot. Walmart's marketplace grows rapidly last year with generating $35.86 billion in sales. Moreover, the sales of Walmart made up 6.7% of total US e-commerce sales. Thus, Walmart is expected to make up 7.1% of total US e-commerce sales this year. All these figures show that dropshipping on Walmart can bring you big returns. However, let’s begin with whether you can dropship on it or not.
Can you dropship on Walmart? The short answer is yes. The truth is Walmart allows you to dropship in three ways: be a Walmart dropship vendor, become a reseller, dropship from Walmart directly. Let’s look at them one by one.
1. Become a Dropship Vendor
The first way to dropship on Walmart Marketplace is to become a dropship vendor since it has a program enabling entrepreneurs to become the supplier of the company. You may act as a manufacturer or wholesale offering goods for Walmart. You can ship products to Walmart warehouses, or directly deliver products to customers through its dropship vendor program.
2. Resell Walmart Products
Dropshipping on Walmart also lets you resell Walmart products, which means you can be a Walmart reseller. However, remember to get the reseller permission, a kind of business license before doing so. Reselling Walmart products requires you to purchase items and have them shipped to you. Then, you can then send the items to your customers. It’s a little special compared to the traditional dropshipping business.
3. Dropship on Walmart Platform
The last method is to sell dropshipped products directly to Walmart customers using dropshipping suppliers from AliExpress. Although you could not dropship products from Walmart directly to your customers, dropshipping on the Walmart marketplace is fine and permitted.
Walmart is particularly beneficial to e-commerce entrepreneurs. With Walmart, you can reach a well-known and reliable ecosystem with high-quality products, fast delivery, and excellent customer service.
Following are the main pros of dropshipping on Walmart:
- Low cost: Walmart does not need to charge fees for creating stores or registering sales on its platform. You only need to pay the referral fee at the time of sale.
- Fast shipping: Walmart's logistics partners can ship products to customers immediately, with the option of next-day delivery. Faster delivery speed means more satisfied customers, increasing your chances of repeated purchases.
- Multiple ranges of products: Walmart has more than 35 product categories available for sale. Just make sure that your product is not included in the company's "prohibited products" list, and you are ready to go.
- Quick launch: Walmart dropshipping eliminates the stressful work of creating stores and brands, so you can focus on developing your business.
You have learned the advantages of dropshipping on Walmart, next let’s explore how to dropship on Walmart together.
1. Find Suppliers for Your Products
Suppliers are crucial for your dropshipping business since it’s them who will fulfill the orders for you. Trustworthy suppliers always mean half-success of selling online. Thus, the first step is to find a supplier for your products.
Platforms like AliExpress are great for finding dropshipping suppliers for different product categories. AliExpress is a powerful platform that you can find suppliers for women’s clothing, jewelry, home and garden, toys and games, and several other niches.
Also, dropshipping tools like DSers are helpful when finding your dropshipping suppliers. Its Supplier Optimizer feature enables you to reach better and cheaper suppliers on AliExpress with a few clicks. For more details about finding reliable suppliers with DSers, go here.
When deciding which suppliers to work with, you need to pay attention to their customer service and knowledge of the items they sell. You’d better find suppliers with a high satisfaction rating or suppliers who have a long track record of selling on the platform. Plus, it’s better to write them to get a sample so you can evaluate the quality of the merchandise you’re going to dropship.
2. Register to Sell on Walmart
The second step is to register to sell at Walmart. I have mentioned above with Walmart, there is no need for you to start an online store. However, to dropship on Walmart, you must register on Walmart.
You can visit the ‘Walmart Marketplace’ page to start your application. First of all, click the “Request to Sell” button to start.
Then, you’ll see a form. In the form, you need to enter the following information:
- Your business tax ID (SSN isn’t applicable for this marketplace)
- W8 or W9 and an EIN verification letter, - the official U.S. documents for application processing
- Business address or place or country of operation
- Planned directory integration methods like API
- Basic product categories such as catalog size
3. Complete Onboarding
You will receive an email with a registration link from Walmart once your application is approved. Click the link and it will direct you to the onboarding process. Following are things you need to do to complete the onboarding process:
- First of all, you need to create an account by entering your company information, business address, and bank account details
- Then, agree to Walmart’s retainer agreement
- Finish tax forms
- Complete shipping and payment information. There are two payment methods available on Walmart: Hyperwallet and Payoneer
- Then, you can set up items and upload inventory
- Lastly, you should finish filling in the Walmart Partner Profile. It includes all the information your potential customers will see like your company’s name, description, logo, and policies.
When you have finished this, the process of application is over. The next thing is to decide a way to fulfill the order when you receive them.
4. Fulfill Orders
The last thing is to decide the delivery method. There is a 2-day shipping program to help sellers improve their customer experience on Walmart.
However, it might not be an advantage of dropshipping on Walmart since the delivery time can vary when doing dropshipping. Unless you work with a US supplier to provide fast nationwide shipping, it is best to stick to standard shipping.
Another alternative is that you can fulfill your orders via Deliverr. Deliverr is the official partner for Walmart’s TwoDay fulfillment program, it guarantees fast delivery.
It will pick the products from your suppliers and keep them close to your customers. Then, you can offer fast shipping for your nationwide customers.
As I mentioned above, dropshipping on Walmart doesn’t come without challenges. First, there are countless competitors since there are plenty of sellers on Walmart. Thus, you need to stand out from them to earn customer loyalty.
Plus, dropshipping on Walmart requires you to adhere to certain pricing rules since it always wants to offer the lowest price possible to its customers. The truth is that a large customer base and low management fees make up for the challenges faced by first-time entrepreneurs and small businesses.
Here I have to mention AliExpress. Why? It’s a reputable marketplace with millions of better and cheaper suppliers or sellers. Thus, AliExpress dropshipping might make up for the challenges you might confront when dropshipping on Walmart.
Here are some main advantages of AliExpress dropshipping:
- Excellent shipping: AliExpress dropshipping allows you to ship products through ePacket shipping, which is free and quick
- Fixed price: The products prices are fixed on AliExpress and usually low.
- Multiple payment options: You can use various payment options like Mastercard, web money, American Express, PayPal, etc.
- Powerful dropshipping tools: AliExpress provides you with many simple but useful dropshipping solutions such as DSers to automate your dropshipping work
- No upfront charge: You don’t need to pay upfront for products you plan to dropship. You may need to purchase it once you have an order
If you are new to this market, starting with AliExpress dropshipping can be easier and you can operate a dropshipping business at a lower cost.
After learning, you might have to know Walmart dropshipping can be a good way to increase revenue for your online dropshipping business. Walmart's e-commerce sales grew by 74% during the pandemic in the past year. And the data is expected to rise even further as Walmart takes new measures to endorse its online business.
In summary, whether you are a newcomer or a veteran in the e-commerce industry, Wal-Mart dropshipping can help you quickly gain much-needed exposure. And here are 4 simple steps to start dropshipping on the Walmart marketplace:
- Define suppliers for your dropshipping products
- Register to sell on Walmart
- Complete seller onboarding
- Fulfill orders for customers