Walmart Dropshipping: How It Works and How To Get Started

Learn how to leverage Walmart’s vast customer base for your dropshipping business.

Starting a dropshipping business on Shopify is easy. Finding customers? That’s where the real challenge begins.

One way to grow your store’s customer base is by listing your products on Walmart’s website and app. By becoming a Walmart Marketplace seller, you’re accessing millions of online shoppers. 

Let’s look at what it means to dropship on Walmart, and how to make the process easy using Shopify.

What is Walmart dropshipping?

Walmart dropshipping is the process of selling products from third-party suppliers on Walmart.com and the Walmart mobile app. When a sale is made, a third-party supplier fulfills the order in line with Walmart’s supplier requirements.

By listing products on Walmart, dropshippers gain access to a massive audience of shoppers. Integrating platforms like Shopify can simplify the process, enabling sellers to publish and manage their stores’ products on Walmart and other marketplaces.

Why dropship on Walmart?

While Amazon dominates as the largest online retailer, Walmart holds a strong second position. In 2023, Walmart.com secured approximately 6.4% of the ecommerce market share and had over $605 billion in net sales. By dropshipping on Walmart, you can reach this vast audience, significantly increasing your visibility without the need to drive traffic to your own site.

The advantage of listing dropshipping products on Walmart’s marketplace is exposure to a high volume of potential buyers. This exposure reduces the pressure to attract customers independently.

How to start dropshipping on Walmart

1. Become a Walmart Marketplace seller

To begin selling on Walmart.com, you’ll need to register as a Walmart Marketplace seller. There’s no fee to become a seller, but you will pay a referral fee on each item sold, similar to the fees on Amazon and eBay.

Here’s what you need to sign up:

• Business tax ID or business license number
• Documents verifying your business name and address
• A sales history for your business
• Products with GTIN or UPC numbers

Ensure the products you plan to sell comply with Walmart’s Prohibited Products Policy. For example, you can’t list alcoholic beverages or cosmetics requiring refrigeration.

As part of the sign-up process, Walmart requires sellers fill out a lengthy application form. You’ll need to show that your dropshipping store can reliably ship products and process returns. This can be the most difficult part of the approval process for dropshipping businesses, as your suppliers will need to meet Walmart’s fulfillment requirements—something that you as a store can’t control.

New businesses can’t apply to become Walmart sellers. Walmart needs to confirm a history of sales and see established company credentials, such as a taxpayer identification number (TIN), tax classification, business address, customer service email, and customer service phone number.

Seller verification can take several days. If you’re based outside the US, you may need to provide additional verification information. 

2. Link your Shopify dropshipping store

Once you’ve successfully become a Walmart Marketplace seller, the next step is to upload your product catalog to the Walmart Marketplace. This will make your products visible to Shoppers on Walmart.com.

Here’s how to sync your inventory using Shopify:

• Download the Marketplace Connect app from the Shopify App Store. It’s designed to link your store with marketplaces like Walmart.
• Launch the app, choose Walmart from the home screen, and follow the on-screen instructions to connect your marketplace account.
• Provide your Walmart seller credentials to link your store and seller account.

Follow these instructions if you can’t find your seller credentials.

3. List your products on Walmart

Before you can list your products for sale on Walmart, you need to map your product identifiers to Marketplace Connect. Ensure that each product you plan to list on Walmart has an identifier such as a GTIN or UPC number.

If the product you wish to sell is already available on Walmart by another seller, list your product by submitting an “offer to sell.” An offer requires adding product details such as price, inventory count, and shipping terms. This information is integrated into Walmart’s existing listing under your seller profile.

On the other hand, if you are introducing a product that’s completely new to Walmart, submit additional information to create a fresh listing. A blue icon will appear during the offer creation process to signal when there is no existing product on Walmart. This is a great opportunity to introduce something unique to Walmart shoppers.

Dropshipping Walmart products

Some resources suggest using Walmart as a dropshipping supplier. In this method, you list Walmart products in your store, accept customer orders, then make equivalent orders with Walmart to have them fulfill your customers’ orders.

While it may be tempting to expand your product line by listing products from Walmart.com on your website, reselling Walmart products directly from the marketplace comes with risks.

First, if Walmart suspects you of buying items from its marketplace for the “purpose of engaging in a commercial sale of the same Product(s) to a third party,” it reserves the right to terminate your seller account.

Second, to generate a profit margin from this method, you’ll need to sell the products you’ve found on Walmart for a price that’s higher than the listing. Since customers could also buy the same product directly from Walmart, this method makes it challenging to maintain competitive pricing.

Successfully selling products for more than they are listed on Walmart may require justification. Better marketing and added convenience could play a role. However, consistently higher prices compared to other retailers can also lead to loss of customer trust and brand credibility.

Top tips for dropshipping on Walmart

Walmart is an increasingly competitive marketplace that presents plenty of opportunities for the right dropshipping entrepreneurs. Keep the following tips in mind if you pursue this route.

Delight customers with fast shipping

If your dropshipping store is able to offer expedited shipping, take advantage of Walmart’s fast shipping program. Qualifying for the program requires meeting consistently high fulfillment standards like an on-time delivery rate of more than 95%, an order cancellation rate of less than 1.5%, and offering free returns.

In return, Walmart rewards listings with Buy Box placements, Fast Shipping tags, and priority ranking in product search. Walmart claims that sellers in this program see between 30% and 50% average increases in conversions.

Partner with dropshipping suppliers that can meet the program demands to take advantage. 

Keep a close eye on your performance standards

As Walmart continues to raise the bar for sellers on its marketplace, maintaining high performance standards is crucial. Pay attention to Walmart’s five key performance metrics:

• Cancellation rate: The percentage of customer orders that you cancel must be less than 2%.
• On-time delivery rate: 95% or more orders must meet the delivery estimate.
• Refund rate: Less than 6% of orders refunded for reasons the seller is responsible for, such as a damaged item or incorrect item received.
• Valid tracking rate: 99% of orders should have valid tracking information provided.
• Seller response rate: You must respond to at least 95% of customer inquiries within 48 hours of receipt.

Monitoring these metrics can help maintain your standing on the marketplace, as Walmart prioritizes high-performing sellers for increased visibility and traffic.

You can view your performance data under the Performance section in the Walmart Seller Center, helping you stay informed and responsive to any needed improvements.

Optimize your product listings

Whether you import products to Walmart from your store, or upload listings manually, it’s important to optimize your product listings. Key tips to improve product descriptions include: 

• Using high-quality product photography
• Writing compelling product copy that focuses on benefits as well as features 
• Pricing products competitively (but not so low that you don’t make a profit)

Additionally, excellent customer service is critical. Satisfied customers are more likely to leave positive reviews, which can further enhance your reputation and appeal on Walmart’s marketplace.

Maximize your reach on Walmart Marketplace

Diversifying how and where you sell products is often a successful strategy for dropshippers. Exploring different sales channels can enhance your reach and growth.

Selling on the Walmart Marketplace is simple using Shopify. While dropshippers need to invest time in finding the right suppliers who can meet Walmart’s requirements, the potential rewards often justify the effort. Once approved as a seller, you introduce your product catalog to millions of potential customers on a trusted household platform.

Walmart dropshipping FAQ

Is Walmart dropshipping legal?

Dropshipping on Walmart is legal. Sellers approved by Walmart can list and sell items on the marketplace, with fulfillment managed by a third-party dropshipping supplier. It’s important to adhere to all marketplace guidelines to maintain seller status.

How does Walmart dropshipping compare to other marketplaces?

Dropshipping on Walmart offers several advantages. Referral fees for certain product categories may be lower than those on competing marketplaces like Amazon and eBay. With its broad reach via its website and app, along with a trusted brand name, Walmart provides a substantial market for sellers. However, as with all platforms, Walmart does take a commission on sales, which is worth considering when pricing products.

Can I dropship from Walmart to Shopify?

While technically possible, using a Shopify store to dropship products from Walmart involves risks. Walmart reserves the right to terminate accounts if it suspects purchases are made for the purpose of third-party sales. Sellers using this practice can also face challenges regarding price competition, as customers are able to find lower prices directly on Walmart.