How to Start a Dropshipping Business on Walmart with Shopify

Table of Contents

  1. Introduction
  2. What is Walmart Dropshipping?
  3. Why Dropship on Walmart?
  4. How to Start Dropshipping on Walmart
  5. Shopify Marketplace Connect
  6. Top Tips for Dropshipping on Walmart
  7. Frequently Asked Questions (FAQ)
  8. Conclusion

Introduction

Ever imagined eking out a substantial income through a robust e-commerce platform without the hassles of managing inventory? Welcome to the world of dropshipping on Walmart. Picture tapping into Walmart's colossal online customer base and managing everything seamlessly through Shopify. Intriguing, right? This blog post aims to be your comprehensive guide on navigating dropshipping on Walmart using Shopify. From setting up your business to optimizing sales, you’ll find actionable insights to set you on the path to success.

What is Walmart Dropshipping?

Walmart dropshipping is where you sell products from third-party suppliers on Walmart's website and app without ever handling the inventory. In this business model, upon making a sale, the supplier delivers the products directly to your customers, adhering to Walmart’s fulfillment requirements. This strategy offers dropshippers the advantage of leveraging Walmart’s immense market reach, setting up an easy product management system through Shopify.

Why Dropship on Walmart?

While Amazon may be the go-to for many online shoppers, Walmart is not far behind, holding a significant portion of the e-commerce market share. In 2023 alone, it attracted over 100 million monthly visitors, a promising stats that could significantly spike your sales. Listing your products on Walmart means you can sidestep the initial hassle of drawing traffic to your own website, enjoying the visibility that Walmart offers.

How to Start Dropshipping on Walmart

1. Become a Walmart Marketplace Seller

The first step to becoming a successful seller on Walmart's Marketplace is registration. While there’s no fee for joining, Walmart does charge a referral fee on each sold item.

To get started, you need to ensure compliance with Walmart’s Prohibited Products Policy. Sellers also complete a detailed application form, showing their capability to ship products efficiently and manage returns. Note that new businesses are not eligible; you need an established history of sales and legitimate business credentials.

The verification process includes document submissions such as taxpayer identification, business address, contact information, and sometimes additional information for sellers based outside the U.S.

2. Link Your Shopify Dropshipping Store

Once you gain approval as a Walmart Marketplace seller, the next step involves uploading your product catalog to the platform. Shopify can be seamlessly linked to manage your inventory and orders from a single, centralized location. This integration not only streamlines your process but also helps in time management and operational efficiency.

3. List Your Products on Walmart

Before listing your products, you must ensure that each has unique identifiers like GTIN or UPC numbers. There are two scenarios for listing products on Walmart:

  • If the product already exists on Walmart, you submit an 'offer to sell,' including details like price and shipping terms.
  • For new products, you need to create a fresh listing, providing comprehensive product details.

Dropshipping Walmart Products: Potential Pitfalls

While it might seem tempting to list Walmart products in your store for dropshipping, this can be risky. Walmart reserves the right to terminate any seller account if they suspect purchases are intended for resale. Moreover, competing directly with Walmart’s prices can be challenging. Instead, focus on sourcing unique products from reliable suppliers that meet Walmart's fulfillment standards.

Shopify Marketplace Connect

Shopify Marketplace Connect is the go-to app for managing and fulfilling orders across multiple platforms, including Walmart. This tool helps synchronize your listings, orders, and inventory, providing a streamlined approach to expanding your market reach.

Top Tips for Dropshipping on Walmart

Delight Customers with Fast Shipping

Walmart incentivizes sellers that offer expedited shipping through its Fast Shipping program. Sellers who consistently meet high fulfillment standards get rewarded with Buy Box placements, Fast Shipping tags, and higher search rankings. Partnering with suppliers who can meet these demands can significantly enhance your store’s performance and customer satisfaction.

Keep a Close Eye on Performance Standards

Maintaining high performance is crucial for sustained success on Walmart Marketplace. Focus on these key performance metrics:

  1. On-time shipment rate
  2. Order cancellation rate
  3. Seller response time
  4. Product quality issues
  5. Customer reviews

Monitoring these metrics helps you stay in Walmart’s good graces, ensuring higher visibility and traffic for your products.

Optimize Your Product Listings

Effective product listings require optimization. Key tips include:

  • Writing detailed and honest product descriptions
  • Using high-quality images
  • Providing complete and accurate specifications
  • Setting competitive prices

Great customer service is also vital. Positive reviews from satisfied customers can bolster your store’s reputation and attract more buyers.

Maximize Your Reach on Walmart Marketplace

Diverse sales channels can amplify your reach. Using Shopify to manage your Walmart Marketplace allows seamless synchronization, helping you tap into millions of potential customers.

Frequently Asked Questions (FAQ)

Is Walmart Dropshipping Legal?

Yes, dropshipping on Walmart is legal. Approved sellers can list and sell items while third-party suppliers manage fulfillment. Adherence to Walmart's guidelines is crucial to maintain seller status.

How Does Walmart Dropshipping Compare to Other Marketplaces?

Walmart dropshipping offers lower referral fees on certain product categories compared to Amazon and eBay. Its broad reach, combined with Walmart's trusted brand name, makes it an attractive option for sellers. However, it does involve sales commissions, which should be factored into pricing strategies.

Can I Dropship from Walmart to Shopify?

While possible, this comes with risks. Walmart might terminate accounts for purchases meant for resale. Additionally, price competition can be a challenge since customers can find lower prices directly on Walmart.

Conclusion

Dropshipping on Walmart with Shopify simplifies reaching a broad audience without the logistical burdens of handling inventory. This guide aimed to provide you with the essentials needed to kickstart and optimize your Walmart dropshipping venture through Shopify. By following these steps and leveraging Shopify's tools, you can tap into Walmart’s vast customer base, making the most of what this powerful combination offers. Happy dropshipping!

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