With 265 million customers worldwide, Walmart is a powerful platform for drop-shipping. Dropshipping at Walmart is a great way to get your business up and running without investing too much money upfront. You’ll need to do some research to make sure that it’s the right choice for you, but if it is, Walmart can be a great platform to launch your business.
In this article, we’ll discuss what Walmart drop-shipping is, how it works, and whether or not it’s the right choice for you
What Is Walmart Dropshipping?
Walmart drop-shipping is the process of selling products from Walmart’s online store as a retailer. Instead of ordering in bulk and stocking your own inventory, you’ll source products from a third party and have them shipped directly to your customers. This eliminates the need for storage space, reduces risk and overhead costs, and makes it easier to scale.
Contrasting other online marketplaces like Amazon and eBay, there are a few key dissimilarities when drop-shipping on Walmart Marketplace. For one, Amazon drop-shipping generally has more fees—something that has led 39% of former Amazon merchants to consider selling their products on Walmart Marketplace instead.
Additionally, Walmart Marketplace’s design is more conducive to services and products in the higher-priced range—which means you may be able to sell items with more profit margin.
Overall, Walmart drop-shipping is a great way to get started in the eCommerce game without having to invest too much upfront. Of course, you should do your due diligence to make sure that it’s the right choice for you.
Ways You Can Start Dropshipping on Walmart
You can dropship from Walmart in three different ways:
1. Dropshipping on Walmart’s Platform
You can sell drop-shipped products to Walmart customers by using drop-shipping suppliers. Although it’s not allowed to drop ship products from Walmart directly to your customers, you are allowed to Drop-ship on the Walmart marketplace.
2. Becoming a Drop Ship Vendor (DSV)
The Walmart Marketplace has a supplier program for entrepreneurs. With this program, you can become a manufacturer or wholesaler that supplies goods to Walmart as either a DSV straight-to-customer delivery service or by shipping items to a warehouse.
3. Reselling Walmart Products
Traditional drop-shipping allows you to avoid stocking inventory, but with reselling Walmart products, you have to buy the items first and ship them yourself. This method is not as efficient as standard drop-shipping.
Overall, you’ll need to do some research on the Walmart Marketplace and find out which method fits best with your goals.
Benefits of Dropshipping with Walmart
Since Walmart is a well-known and trusted brand, you’ll benefit from its notoriety. Having a reputable seller account on the platform can help build customer trust and boost your sales. Drop-shipping at Walmart also offers additional benefits like:
1. No Upfront Costs
Dropshipping is famous for having low overhead and no upfront costs. Since you’re not stocking inventory, you don’t need to purchase products in bulk or pay for storage space.
And Walmart is no exception. With the Walmart Marketplace, you only pay a percentage of each sale you make. You don’t need to spend a dime on setup, monthly, or subscription fees with Walmart- meaning you can get started immediately.
2. Sell a Variety of Products
The Walmart Marketplace offers a range of products from 35 different categories like electronics, beauty and health, home & kitchen, and more. This gives you the opportunity to experiment with different products and find the one that works best for your store.
Once your business is off the ground, you can easily add more products to your store. Scalability is a key benefit of dropshipping with Walmart marketplace.
3. Real-Time Insight and Analytics
The Walmart Marketplace allows you to track your sales in real time, giving you a better idea of what’s working and what isn’t. You can use this information to make informed decisions about your store and optimize your product offerings.
4. Affordable Fees
Walmart doesn’t charge merchants for access; rather, a commission or referral fee is taken from each sale. This way, you only pay once you start making money. The percentage of referral fees varies depending on the product category, but they mostly fall between 8% and 15%. Also, Walmart automates payout deductions, and there’s no extra credit card processing fee.
Large Audience
By investing in its eCommerce website, Walmart has garnered the interest of up to 100 million online shoppers each month. This provides less pressure on other companies to drive traffic to their own sites since Walmart’s customers can now find them directly.
Not only do you get to tap into Walmart’s wide customer base, but you also have the added benefit of leveraging their trust and reputation. With their brand name, customers feel more secure making purchases from your store.
Speedy Shipping
By partnering with Walmart, your products can be shipped to customers immediately with a next-day delivery option. Satisfied customers are more likely to make repeat purchases so that that faster delivery times could mean more business for you in the long run.
Additionally, Walmart offers free two-day shipping on millions of eligible products and one-day delivery in select markets. This means you can ship to your customers quickly and with ease.
Final Thoughts
Dropshipping with Walmart is an appealing option for many eCommerce entrepreneurs. The marketplace offers some great benefits like fast shipping, no upfront costs, access to a large audience, and real-time analytics. All of these features make Walmart an attractive option for setting up your dropshipping business.
It’s important to remember that while the potential rewards of dropshipping with Walmart may be tempting, it’s not a get-rich-quick scheme. You’ll need to do the necessary research and due diligence to make sure that you’re ready to start selling.
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