Walmart e-commerce is rapidly becoming an excellent marketplace for retail sellers. Do you want to take advantage of this opportunity and start a business? If you do not have the space to store the inventory, dropshipping can help you achieve that goal. But does Walmart allow dropshipping? Even if it does, what are the benefits and risks of Walmart dropshipping business?
This article will walk you through the possibilities Walmart dropshipping offers. From here you can decide whether the business is suitable for you.
Does Walmart Allow Dropshipping?
Yes, absolutely! You can join Walmart Marketplace as a dropshipping supplier, seller, or both. However, Walmart does not permit dropshipping or reselling from their platform to other online marketplaces or customers.
Before we get into more details, first, let’s understand what dropshipping precisely means.
Traditional dropshipping refers to a business model where you buy inventory from third-party sellers, and they will deliver the products directly to customers when the order arrives. To put it more simply, you do not own any product. But you take direct orders from customers for a higher price and buy that product from a seller for a lower price. Then, the seller will pack and ship the products to a designated location.
Simple, right? Well, in practice, you have to generate enough orders to create a high-profitable business. Luckily, Walmart offers you that opportunity. Being one of the largest eCommerce platforms, Walmart provides a few different options for retailers. Let’s find out what these choices are.
Dropshipping on Walmart as a Supplier
Walmart allows you to buy inventory from a third-party seller like Alibaba.com or any manufacturer from China and then sell it to Walmart. This method is a part of Walmart’s Drop Ship Vendor (DSV) program. However, Walmart decides whether you should deliver the products to a warehouse or directly to the customers.
Dropshipping on Walmart as a Seller
In this method, you have to open a store on Walmart.com and list items with a decent profit margin. And when an order arrives, you buy the product from a different platform at a lower price. The third-party seller will then ship it to the customers. The same method applies to a dropship vendor as well.
Although Walmart doesn’t permit direct dropshipping from its platform, the retail arbitrage method does not count as a part of this rule.
As long as you do not violate any Walmart policies and standards, you can easily dropship on both Walmart’s marketplace.
Pros And Cons Of Walmart Dropshipping
Now that you are familiar with the possibilities let’s figure out why to choose a Walmart dropshipping store.
Here are the benefits and disadvantages of dropshipping on Walmart that can help you make that decision.
Walmart Dropshipping: Pros
- Walmart offers the Drop Ship Vendor (DVS) program that legalizes and highly benefits any dropshipping business on its platform.
- Dropship vendors and sellers have the freedom to select the product category and the quantity they can supply.
- Walmart offers a complete step-by-step guideline to join the marketplace as a seller.
- Walmart eCommerce is a cost-effective choice due to free delivery options within 1 to 3 days throughout the US.
- You can be a dropship retailer, or a store seller, or both at the same time.
- There is less competition in Walmart.com than Amazon or other platforms due to Walmart’s strict joining policy.
Last but not the least, Walmart also introduced its fulfillment process very recently. This service offers 2-day delivery without extra shipping costs and warehouses to store your inventory. Any drop ship vendor can take advantage of Walmart fulfillment as well.
Walmart Dropshipping: Cons
- Running Walmart dropshipping stores takes a lot of time, effort, and expertise. Otherwise, your business may expand slowly or not grow at all.
- Walmart reserves the right to ask where to deliver the dropshipped products- warehouses or to the customers in the DSV program.
- Dropshipping requires understanding the market demand, product research, customer service, and returns. All these repetitive tasks can get quite draining after a while.
Fortunately, Walmart Automation services can help you run an online dropshipping business seamlessly. These services will take care of all the repetitive tasks, onboarding process, product pricing and research, delivery, customer support- you name it! All you have to do is structure a business plan with a Walmart dropshipping automation agency, then invest and count the profits every two weeks.
Is Walmart Dropshipping Profitable?
Yes, dropshipping on Walmart can be profitable for merchants. As a matter of fact, the global dropshipping market is estimated to expand 28.8% within 2025. And Walmart itself has seen a 79% growth in e-commerce in the 2021 fiscal year. The growth of dropship relates to the rise of the e-commerce industry. And let’s face it, e-commerce is not seeing a downfall any time soon!
Moreover, dropshipping is an effective business model with low risks and is free of extra production, storage, and utility expenses. No matter if you’re a new entrepreneur or a veteran, dropshipping on Walmart ensures exposure more quickly than other business models.
However, profit and success depend on what products you are investing in and how. Therefore, you will need a proper business plan to ensure growth. Indeed it takes time, but the wait and effort are worthwhile when the profits start coming in.
Walmart marketplace is one of the fastest-growing eCommerce sites, and more and more people are looking for ways to join this success. Thanks to its Dropship Vendor program, entrepreneurs can now supply and sell their products on Walmart.com. Although it may seem that dropshipping on Walmart is highly profitable, it is not a get-rich-quick scheme. Growth and success depend on the time, money, and effort spent on the business, but automation services are there to help.