Walmart dropshipping is one of the most profitable ways of earning money. You might have thought about starting dropshipping on other online marketplaces but want to know about Walmart’s worth for an online store. Walmart is the second biggest retailing e-commerce platform in the U.S., and projections indicate that its income from this sector could increase by 8% in 2021.
This blog post will discuss Walmart dropshipping, its benefits, and how businesses can start selling on the marketplace using it to make a profitable venture — with risks, challenges, and tips included.
So, if you want to maximize your revenue from e-commerce sales going into 2023, read on!
What is Walmart Dropshipping?
Dropshipping with Walmart involves becoming a DSV (Drop Ship Vendor), reselling their products, and/or dropshipping on the Walmart Marketplace.
Becoming a Drop Ship Vendor (DSV)
Walmart Marketplace offers a program for entrepreneurs to become Drop Ship Vendors (DSVs). DSVs keep merchandise in their warehouses and directly ship it when customers place orders.
To become a DSV, businesses must meet all of Walmart’s criteria, including accreditation by a professional third-party verification service and providing valid business registrations, registrations with local state/federal tax authorities, and up-to-date import permits for dropshipping products.
Walmart focuses on high-volume suppliers with inventory across different categories, supporting multiple stores and promotions across the retailer’s channels. Becoming a supplier or DSV is an ideal way to participate in Walmart dropshipping while leveraging the sheer size of the customer base from retailers offering reasonably priced goods.
Reselling Walmart Products
Dropshipping Walmart products is one of the most cost-effective and convenient ways to increase eCommerce sales. As a Walmart Dropshipper, you can leverage Walmart’s expansive supply chain and low prices to offer customers high-quality goods at competitive rates and fast delivery.
When reselling dropshipping items on third-party sites or your eCommerce store, you purchase items from approved suppliers on the platform and ship them directly from the Walmart warehouse using Warehouse Shipping Solutions (WSS).
This way, you don’t have to pay extra inventory costs or worry about sourcing new stock. Furthermore, dropship from Walmart will benefit from doing business with an established company such as Walmart since it has years of industry experience that instills trust in its partners, which may lead to increased sales potential due to more customers willing to shop with confidence.
Dropshipping on Walmart’s Platform
Walmart dropshipping is a convenient way for eCommerce sellers to access one of the largest customer bases in the world. Sellers can list products from Walmart on their online marketplaces without holding inventory or bearing the storage and shipping costs.
All they need is a reliable supplier and sufficient product information before they can start listing items. Becoming a Drop Ship Vendor (DSV) on Walmart’s platform gives you automatic access to over 100 million shoppers, plus pre-existing suppliers who have previously uploaded millions of verified product images and descriptions – saving you time and money when starting your store!
Dropshipping from Walmart offers low start-up costs, zero upfront spending on inventory, convenience with fulfillment services, access to quality products already trusted by shoppers, and numerous opportunities for expansion into other categories such as apparel, home goods, etc. You must find the right Walmart category specialist to improve the sales channel for your dropshipping business.
Benefits of Dropship on Walmart Marketplace
By partnering with Walmart, entrepreneurs can take advantage of the retailer’s large customer base and enjoy low start-up costs and the convenience of web-based ordering.
Large customer base
When dropshipping on the Walmart Marketplace, sellers can benefit from Walmart’s massive customer base. With a presence in 27 countries and over 115 million weekly shoppers, Walmart provides access to one of the largest retail consumer bases.
A great benefit is that many customers are already familiar with purchasing items from the site—making it easier for retailers to capitalize on their loyal following. Furthermore, by selling products through Walmart’s site, drop shippers become eligible for promotion opportunities like paid product placements that you can use to increase visibility and drive additional sales.
Low start-up costs
Dropshipping is a beneficial business option for Walmart dropshippers due to the meager cost of entry and minimal overhead associated with selling on the marketplace. By not needing to purchase inventory upfront, entrepreneurs can launch their businesses without taking on significant financial risks and expenses.
Dropshipping also provides cost savings regarding warehousing needs, as goods don’t need to be kept in-store because they are shipped directly from sellers or third-party suppliers.
It helps differentiate this business model from traditional retail models, where costs related to warehouse space represent a substantial chunk of the retailer’s income. With dropshipping becoming more accessible, now is an excellent time for entrepreneurs looking for unique ways to enter the eCommerce market with relatively little initial investment.
Convenience
Walmart Dropshipping provides immense convenience to those starting an eCommerce business. Without needing any physical inventory, drop shippers can save time and money for storing and transporting goods.
Working from anywhere in the world with just a laptop or smartphone is also possible since all that needs to be managed are online sales channels such as Walmart Marketplace.
It allows dropshipping with so much flexibility for individuals who wish to scale their business without moving across different locations when expanding operations. Moreover, dropshipping eliminates the hassle associated with traditional retail businesses, such as packaging and shipping orders directly from warehouses, allowing them to manage product information on various marketplaces like Amazon or dropshipping on Walmart Marketplace.
How to Start Dropshipping from Walmart in 2023
Walmart dropshipping works smoothly and is relatively user-friendly. Here is the step-by-step process of dropshipping and some tips for Walmart dropshipping. Let’s take a look.
Sign up for a Walmart Marketplace account
First, you have to create an account if you want to sell at Walmart. Becoming a registered seller on the Walmart Marketplace is essential in starting your Walmart dropshipping business. By signing up for a marketplace account, you’ll gain access to millions of potential customers and can list products from third-party suppliers with ease.
To sign up, complete all necessary steps appearing during onboarding, such as providing valid identification documents like a Tax Identification Number or Social Security Number before submitting your application.
Ensure that this information matches what you provide while establishing your store identity via Business Address Verification with the U.S. Postal Service (USPS). Additionally, refer to the 2023 Walmart Playbook for Sellers, which provides comprehensive resources and guides on selling on their platform.
Finish the onboarding process
The onboarding process for Walmart dropshipping is a detailed registration and application program that must be completed to become a formal Drop Ship Vendor (DSV). It requires submitting appropriate documentation such as legal documents, product data sheets, website links, payment terms & methods, return policy setup, current retail customer list, and other information.
The length of the step-by-step process will vary depending on the complexity of your individual needs. After completing all the requirements, including passing rigorous tests and reviews from coverage specialists who evaluate both products and sellers, you can finally access available DSV programs like the 1P Direct Fulfilment solution, through which suppliers will send products directly to customers via Walmart’s warehouses.
Finishing this lengthy onboarding process is essential in establishing an approved marketplace seller status so that you can start selling products on Walmart’s platform without any interruptions and inconsistencies in working with potential customers.
Find a supplier
Finding a trustworthy supplier for Walmart dropshipping in 2023 is essential for any successful e-commerce business. By choosing suitable suppliers, you can ensure your orders are fulfilled quickly and accurately while reducing costs.
To locate reliable supplier options, start by researching companies that specialize in dropshipping and offer products preferred by customers of Walmart. Do product research and search each company thoroughly before engaging with them – check their customer reviews online and ask questions about how they fulfill orders, shipping times, product quality standards, and return policies.
Additionally, read all terms & conditions documents closely to know what services the supplier provides and any associated obligations or charges. Ensure compliance with price regulations set out by Walmart and meet high customer service expectations from the retailer; these two requirements will help make your store stand out and sell on Walmart.
List your products
Once you have established a reliable supply chain, the next step in starting Walmart Dropshipping is to select and list products on the Walmart Marketplace. Carefully research your product before listing it, and ensure all information, such as price, images, titles, and descriptions, is accurate; Walmart’s regulations require precise product details.
Furthermore, they do not allow sellers to mark up prices significantly above wholesale cost—this would make your listings uncompetitive compared to other retailers. Additionally, take care not to list any identical items that might accidentally violate reputability guidelines.
Once done with this step, successfully proceed towards adding attractive titles for every listing along with eye-catching visuals of high quality to draw in customers at first glance, followed by adding complete product descriptions that include all relevant information about the item for sale, including beneficial features associated with it if possible.
Promote your product listings
To maximize the success of your Walmart dropshipping store, you will need to invest in effective product promotion. Set up a marketing strategy and use various tools such as content marketing, email campaigns, coupon distribution, influencer marketing, and social media advertisement to drive traffic to your listings.
Optimizing product information with quality images, descriptions, and titles is essential for successful promotion. Be sure that the title of each product listing is precise yet appealing – this can make the difference between someone clicking on or skipping over your listing.
Adopting an omnichannel approach can also help widen your customer reach – offering promotions on other ecommerce sites like Amazon or eBay leads customers back to Walmart’s platform, where they may come across similar merchandise, if not identical to what initially caught their interest on another marketplace.
Fulfill orders
Fulfilling orders is an essential part of the Walmart dropshipping model. Unlike having store inventory, where the dropshipper ships from their warehouse or store, when dropshipping on Walmart’s platform, you outsource your order fulfillment to a third-party supplier who handles and ships orders directly to customers.
Having the right supplier plays a crucial role in successful order fulfillment, as they must be reliable and consistent with their shipping times. Dropshippers should ensure that their chosen suppliers can provide quality customer service and fast delivery times to guarantee customer satisfaction.
Also, dropshippers have multiple product lines and suppliers, so they can switch between them if needed and avoid any lengthy delivery delays. Partnering with trusted suppliers while meeting Walmart’s pricing regulations, adequately managing stock levels, and optimizing descriptions for maximum visibility on listings results in increased sales opportunities, leading to higher profits for the seller.
Risks and Challenges of Walmart Dropshipping
If you want to sell on Walmart, you must know it does have its risks and difficulties. The application and registration process for becoming a Drop Ship Vendor (DSV) can be lengthy and complicated; customer service standards are stringent with regular reviews of seller performance, pricing regulations are strict, and profit margins tend to decrease over time.
Lengthy application and registration process
The application and registration process involved in Walmart dropshipping is lengthy, involving various steps and requirements to meet before becoming a Walmart dropship vendor on Walmart’s platform.
Sellers must sign up for a Walmart Marketplace account and complete onboarding. It includes completing various legal documents related to taxes, privacy, contact information, business location proof of address, etc. As soon as this finishes, sellers need to find an approved supplier with experience working directly with Walmart and researching wholesale pricing information so they can price products accurately without violating Walmart’s rules, which forbid price undercutting.
Additionally, after listing products, they must provide product details such as brand name, product ID, SKU number, etc., while adhering to Walmart’s specific labeling and packaging guidelines when it comes time for fulfillment.
Stringent pricing regulations
Walmart imposes strict pricing regulations on dropshippers, creating low profit margins for some items. Dropshippers must be aware of these regulations and factor them into their business strategy; compliance could result in removing a listing from Walmart’s platform.
Profits from Walmart store dropshipping can vary depending on products sold and the vast competitive landscape; referral fees generally range between 8%-15%. To make a successful Walmart dropshipping business, merchants must monitor company analytics consistently to ensure that their prices are up-to-date with competitors and meet other pricing requirements set by Walmart.
However, sellers must maintain quality and customer experience while attempting to remain price competitive; this will lead directly to increased returns, reducing future profits even further.
Shrinking profit margins
Shrinking profit margins are one of the significant challenges for Walmart dropshippers, primarily as competition within the e-commerce space has grown. Pricing regulations placed by large retailers such as Walmart make it challenging to increase profits and can limit innovation. You must also agree to the Walmart retailer agreement before you make all the decisions.
In addition, increased market saturation with more sellers entering the fray puts additional pressure on existing sellers to differentiate themselves to bring sales. Increasing fixed costs due to customized packaging systems, labor expenses, and taxes contribute to lower profits.
To mitigate this problem, it is essential that Walmart Dropshippers stay up-to-date on trends in their industry and keep pricing competitive without compromising efficacy – continually assessing what they’re selling, how much inventory they have at any given time and setting marketing plans effectively before taking any risks regarding digital products or drop shipping services.
Tips for Success in Dropshipping on Walmart
It is advisable to monitor company analytics carefully, satisfy Walmart’s customer service standards, optimize product information and listings, and make listing titles precise yet appealing to ensure success in Walmart.
Monitor company analytics
It is crucial for Walmart dropshippers to constantly monitor their company analytics to track their sales performance and identify trends and patterns. It will help them optimize the listing of the products on Walmart, make data-driven decisions, and improve overall success in the Walmart marketplace.
By closely monitoring analytics such as customer reviews, brand reach, conversion rates, sales volume over time, etc., retailers can gain valuable insights into what works well with customers and which areas might require improvement.
Additionally, analyzing past performance provides a basis for forecasting future revenue potentials accurately and with greater confidence. Overall, tracking of analytics helps optimize resources like human capital investment and inventory management for better productivity.
Satisfy Walmart’s customer service standards.
Meeting Walmart’s customer service standards is critical for success when dropshipping on the Walmart Marketplace. Dropshippers must be prepared to adhere to a high set of service guidelines that cover every aspect of customer satisfaction, from turnaround times to product availability and communication.
One should take strategies and systematic approaches to provide exceptional customer care. Procedures should include prompt responses, helpful advice, and reliable remedies for any issues that may arise. Additionally, ensuring accurate order fulfillment and returns policies are beneficial in building trust with customers and avoiding penalties or blocklists caused by negligence.
By satisfying Walmart’s customer service standards, drop shippers can gain loyalty from returning shoppers, increasing profits and success when selling products through the marketplace.
Optimize product information and listings.
Optimizing product information and listings is crucial for success in Walmart dropshipping. Accurate and detailed product descriptions, high-quality images, and competitive pricing are all key elements that can help attract customers’ attention in Walmart’s marketplace.
It’s also important to note that customer reviews and ratings influence online purchasing decisions, making it essential for digital merchants looking to shop on Walmart’s platform.
Furthermore, automation tools can be used as a strategic approach to streamline running a successful dropshipping business from start to finish – this includes manual tasks such as tracking shipments or even making bulk orders easier by connecting multiple suppliers directly with retailers through automated order fulfillment systems.
Make listing titles precise and appealing.
Listing titles is an essential part of e-commerce, especially regarding Walmart dropshipping. Listings must have the right keywords so customers can easily find them while browsing and contain information about what the product is and why it would be of value to customers.
Titles must accurately reflect product descriptions and features while being attention-grabbing and concise—not exceeding 70 characters for optimum search optimization. By making listing titles precise and appealing, you can attract potential customers and improve search rankings on Walmart’s website or app, thus maximizing your visibility online and increasing sales – significantly boosting your business.
Take advantage of tools like A/B testing to ensure the best possible outcome about click-through rates (CTR) or other relevant metrics. In addition, using unique phrasing will help differentiate your store from competitors selling similar items as yours on Walmart’s marketplace.
Conclusion
Walmart dropshipping is worth every opportunity for e-commerce businesses to expand their reach and increase their sales in 2023. As Walmart allows dropshipping, the retail giant continues to innovate its marketplace, and entrepreneurs will benefit from Walmart’s large customer base, Walmart rewards, low start-up costs, and, ultimately, more convenience than other online marketplaces.
Walmart requires some key points such as setting up an account, finding reliable dropshipping suppliers, optimizing product listings for visibility and accessibility on the platform, and creating strong return policies—among other things—in consideration of potential risks like shrinking margins and stringent regulations squeezed in between preparation phases —business owners that set out with clear objectives in mind can create a successful dropshipping business model on Walmart by 2023 (or beyond).
FAQs
What is Walmart dropshipping?
Walmart dropshipping is an e-commerce model in which a third-party supplier fulfills customer orders on behalf of a seller by shipping the products directly to the customers.
How can I benefit from Walmart Dropshipping?
Dropshipping on the Walmart marketplace allows sellers to offer competitive prices, removes inventory risk, and saves time as they don’t need to manage stock or fulfill orders themselves.
Will Walmart Dropship become popular in 2023?
Yes, retailers are increasingly looking at dropship opportunities due to its convenience and decreased overhead costs, and industry experts expect it will continue growing in popularity over the next few years.
Is there any training I can take for successful Walmart Dropship implementation?
Yes, you can use Walmart to get training. Various online courses provide step-by-step guidance on effectively implementing a successful dropship model to sell on Shopify or any similar dropshipping store.