Table of Contents
- Introduction
- What is Walmart Dropshipping?
- Why Dropship on Walmart?
- How to Start Dropshipping on Walmart
- Dropshipping Walmart Products
- Top Tips for Dropshipping on Walmart
- Maximize Your Reach on Walmart Marketplace
- Conclusion
- Walmart Dropshipping FAQ
Introduction
In the ever-evolving world of eCommerce, finding unique avenues to expand your customer base is crucial. One effective strategy, especially for entrepreneurs leveraging the dropshipping model, is to list products on established marketplaces. Walmart, known for its extensive reach and trusted brand, offers a powerful platform for dropshippers looking to amplify their visibility. By integrating with platforms like Shopify, sellers can simplify the process of managing their product catalog across multiple marketplaces. This blog post delves into the intricacies of Walmart dropshipping, offering a detailed guide on how to get started and succeed.
What is Walmart Dropshipping?
Walmart dropshipping involves listing products from third-party suppliers on Walmart.com and the Walmart mobile app. Once a customer makes a purchase, the third-party supplier handles fulfillment in compliance with Walmart's guidelines. By leveraging Walmart's marketplace, dropshippers can tap into a vast audience without the necessity of driving traffic to their own independent stores.
Why Dropship on Walmart?
While Amazon leads as the largest online retailer, Walmart follows closely, capturing approximately 6.4% of the eCommerce market share in 2023 and garnering over 100 million monthly visitors. Dropshipping on Walmart presents an opportunity to reach this extensive audience, significantly enhancing the visibility of your products. Moreover, this reduces the burden of attracting customers independently, allowing you to focus more on optimizing your product listings and customer service.
How to Start Dropshipping on Walmart
1. Become a Walmart Marketplace Seller
To initiate your journey on Walmart.com, you must first register as a Walmart Marketplace seller. While there's no fee to sign up, a referral fee is applied to every item sold, akin to the fees on platforms like Amazon and eBay. Key steps include:
- Compliance with Product Policies: Make sure the products you intend to sell align with Walmart’s Prohibited Products Policy.
- Application Process: Complete a comprehensive application form demonstrating your store’s capability to ship products efficiently and handle returns. Proving that your suppliers can meet Walmart’s stringent fulfillment standards can be challenging.
- Business Credentials: Provide solid proof of established company credentials, such as a taxpayer identification number (TIN), tax classification, business address, and customer service contact information.
- Seller Verification: The verification process may take several days, with additional information required for sellers based outside the US.
2. Link Your Shopify Dropshipping Store
Once approved as a Walmart Marketplace seller, the next step is to integrate your Shopify store with Walmart. This synchronization allows you to manage your entire product catalog from one platform. Here's a brief overview of the process:
- Inventory Syncing: Utilize Shopify to upload your products to Walmart Marketplace, ensuring all product details are accurately conveyed.
3. List Your Products on Walmart
To list products for sale, map your product identifiers to Marketplace Connect. Products must have unique identifiers like a GTIN or UPC number. Two primary methods exist for listing products:
- Existing Products: If your product is already listed on Walmart, submit an offer to sell by providing additional details like price and inventory count.
- New Products: For unique products, submit a fresh listing that involves more detailed descriptions and product specifications.
Dropshipping Walmart Products
Some might consider using Walmart as a dropshipping supplier. This entails listing Walmart’s products in your store, then fulfilling orders placed by customers by purchasing directly from Walmart. However, this method presents significant risks:
- Account Termination: Walmart may terminate accounts suspected of purchasing items for third-party resale.
- Competitive Pricing: To ensure a profit margin, you must price products higher than Walmart’s listings, which can be challenging as customers can buy directly from Walmart.
Top Tips for Dropshipping on Walmart
1. Delight Customers with Fast Shipping
Offering expedited shipping can qualify you for Walmart’s fast shipping program, which enhances product visibility and conversion rates. This program demands consistent high-level fulfillment standards, such as on-time delivery metrics and low cancellation rates.
2. Maintain High Performance Standards
Monitoring key performance metrics in the Walmart Seller Center is critical. These include fulfillment lag time, order defect rates, on-time shipping rates, cancellation rates, and return defect rates. High performance ensures better visibility and customer trust.
3. Optimize Your Product Listings
Successful product listings are crucial. Here’s how to optimize:
- Product Titles and Descriptions: Make sure they are clear, comprehensive, and filled with relevant keywords.
- High-Quality Images: Ensure sharp and attractive images that highlight product features.
- Rich Descriptions: Provide as much detail as possible about the product, its benefits, and use cases.
Excellent customer service is equally important. Positive reviews can significantly boost your product's credibility and attractiveness.
Maximize Your Reach on Walmart Marketplace
Diversifying your sales channels can substantially enhance your market reach. Managing multiple platforms from a single interface, such as Shopify, helps streamline operations and keeps your focus on growth. Investment in finding the right suppliers is essential, but the visibility offered by Walmart's marketplace often justifies the effort.
Conclusion
Walmart dropshipping opens a door to a vast customer base, offering substantial growth opportunities for eCommerce entrepreneurs. By effectively leveraging platforms like Shopify for integration, maintaining high performance standards, and optimizing product listings, dropshippers can establish a strong presence on Walmart Marketplace. While the process involves overcoming initial hurdles, the potential rewards make it a worthwhile endeavor.
Walmart Dropshipping FAQ
Is Walmart dropshipping legal?
Yes, dropshipping on Walmart is legal. Upon approval as a Walmart Marketplace seller, you can list and sell items, with fulfillment managed by a third-party supplier. It’s critical to adhere to all marketplace guidelines to maintain your seller status.
How does Walmart dropshipping compare to other marketplaces?
Walmart dropshipping offers several advantages, including potentially lower referral fees for specific categories compared to Amazon and eBay. Additionally, Walmart's broad audience combined with its trusted reputation provides a substantial market for sellers. However, be mindful of Walmart’s commission on sales when pricing products.
Can I dropship from Walmart to Shopify?
It’s technically possible to use Walmart as a supplier for your Shopify store, but it carries risks. Walmart may terminate your account if it suspects you’re purchasing items for third-party resale. Moreover, competing with Walmart’s own prices can pose challenges, as customers often have the option to buy directly from Walmart.
In conclusion, Walmart dropshipping offers a promising avenue for expanding your eCommerce business. With strategic planning and robust execution, sellers can maximize their reach and thrive in a competitive marketplace.
