Walmart offers an attractive option for dropshipping, given its massive selection of affordable merchandise and fast fulfillment capabilities. It has millions of products available with low wholesale costs, making it easier to set competitive prices and maintain profit margins.
So, let’s look at why and how you can get started with Walmart dropshipping.
Why Should You Get Into Walmart Dropshipping?
Walmart is one of the largest retailers in the world, so they have an enormous selection of products available for dropshipping. Here are some of the main pros of using Walmart for your dropshipping business:
- Access to a Large Customer Base: Walmart reaches millions of shoppers across various demographics, offering dropshippers the opportunity to tap into its extensive traffic and convert that into sales.
- No Setup Costs: There are no initial fees to set up your dropshipping account on Walmart, making it an excellent platform for new entrepreneurs who are looking to start with minimal upfront investment.
- No Monthly Fees: Walmart’s platform does not require a monthly subscription, which means you only pay for the sales you make, keeping your ongoing costs low.
- Rich Supplier Network: The diversity and range of suppliers on Walmart’s marketplace allow dropshippers to offer various products and easily manage their inventory.
- Trust and Credibility: Walmart’s brand recognition instills a sense of trust in consumers, which is then extended to dropshipping businesses on its platform.
- Fulfillment by Walmart: Select sellers can utilize Walmart’s fulfillment services, streamlining the operational aspects of your dropshipping business, including storage, shipping, and handling returns.
- Advertising Opportunities: Walmart provides various advertising channels to help you increase the visibility of your products, potentially boosting your sales.
Getting Started With Walmart Dropshipping
Here’s what you need to do to get started with Walmart dropshipping.
Set Up Your Store
Here’s a step-by-step guide to help you get started:
1. Research and Understand Walmart’s Marketplace Policies
Before applying, it’s important to familiarize yourself with Walmart’s requirements for sellers, including product quality standards, shipping, and customer service expectations. Walmart values a high level of customer satisfaction, so understanding these requirements is the first step to success.
2. Ensure You Meet the Prerequisites
To become a seller on Walmart, you generally need to have:
- A U.S. business tax ID (SSN is not accepted).
- W9 or W8 and Employer Identification Number (EIN) to verify your business address or location in the U.S.
- An address or place of operations in the U.S.
- A history of marketplace or eCommerce success (preferred, but not a must).
- A high-quality product catalog that adheres to Walmart’s prohibited products policy.
3. Apply to Become a Walmart Marketplace Seller
Once you’ve ensured you meet the prerequisites:
- Visit the Walmart Marketplace website and click on ‘Request to Sell’ to start your application process.
- Fill in all the requested details accurately. This includes your business information, tax details, and product categories you plan to sell in.
- Submit your application and wait for approval. This process may take a few weeks as Walmart evaluates your application to ensure it meets their standards.
4. Set Up Your Account
After receiving approval:
- Complete your registration by setting up your Partner Profile. Include comprehensive details about your business — this is important for appealing to Walmart customers.
- Agree to the “Retailer Agreement” to proceed.
5. Onboard Your Product Catalog
- Use Walmart’s Seller Center to upload your product listings. Ensure your product descriptions and images meet Walmart’s guidelines and are optimized for search.
- Set competitive prices and consider Walmart’s pricing rules.
6. Set Up Operations
- Establish how you will manage inventory and fulfill orders. Seamless operation is important to maintaining good standing on Walmart.
- Decide if you will fulfill orders yourself or use Walmart Fulfillment Services (WFS) to handle logistics.
7. Launch Your Store
- Once your products are live, monitor your performance closely. Use Walmart Analytics to track sales, customer behavior, and other metrics.
- Be proactive in managing customer service inquiries and ensuring speedy fulfillment.
8. Optimize and Grow
- Regularly review and optimize your product listings based on performance data.
- Take advantage of Walmart’s advertising tools to increase visibility.
- Focus on maintaining high customer satisfaction to build your reputation in the marketplace.
9. Stay Compliant
- Continuously ensure that you’re adhering to all of Walmart’s policies and updating your listings as needed to comply with changes.
Finding Profitable Products to Sell
When getting started with Walmart dropshipping, one of the most important steps is finding profitable products to sell in your store. There are a few key factors to consider when selecting products:
Use Product Research Tools
Product research tools like Ecomhunt and Dropship Scout are invaluable for finding profitable dropshipping products. These tools allow you to analyze market demand, competition, pricing, reviews, and more to identify products that are likely to sell well. Sort products by metrics like orders, revenue, or reviews to surface items that are already selling well.
Choose High-Demand Products
Look for products that have demonstrated buyer demand and existing sales, as these are more likely to sell well in your store too. Products like phone cases, beauty items, and fitness accessories tend to have consistent customer demand across stores.
Target High-Profit Margin Products
To maximize your profits, choose products with a healthy profit margin between your Walmart supplier cost and the retail price you’ll charge customers. Look for at least 2-3x markup from supplier to retail price. Supplements, cosmetics, and pet products often have high margins.
Perform Competitor Analysis
Research how competitors price and market similar products to get insight into what sells well and at what price points. This can help you identify opportunities to enter a profitable niche.
Setting Competitive Prices
Pricing is one of the most important elements of running a successful dropshipping business (link: How to Start Dropshipping for Free in 2024?). You need to price your products competitively but also factor in costs and desired profit margins. Here are some tips for setting optimal prices with Walmart dropshipping:
Research Competitor Prices
Conduct competitor research to see the price range for similar products. Search Walmart and other major retailers selling your product. You can also use browser extensions like Priceify to see product price histories and comparisons. This gives you an idea of competitive pricing.
Calculate Your Margins
Figure out your desired profit margin for each product, considering costs like:
- Product cost from Walmart;
- Advertising spending to generate sales;
- Walmart referral fees;
- Payment processing fees;
- Shipping costs;
- Any other overhead.
Factor these in when calculating your listing price. You want healthy margins but also competitive prices. Use a margin calculator to determine pricing.
Use Dynamic Pricing Tools
Tools like Pricing Assistant or Prisync allow you to analyze competitors and market data to optimize pricing. They use factors like demand forecasts, competitor actions, and conversion data to suggest profitable prices. This takes the guesswork out of pricing.
Test Different Prices
It can be beneficial to test different prices for a product and see how it affects conversion rates and profitability. Try incrementally lowering or raising prices to find the optimal cost that maximizes sales and revenue. Just stay competitive.
Offer Discounts Strategically
Running promotions with discounted pricing can help drive sales. Just ensure you still maintain decent margins after discounts. Time promotions around peak sales periods or to liquidate excess inventory.
Careful pricing is essential for dropshipping success. Do your homework to set prices that entice customers while earning you a reasonable profit. Adjust as needed based on market response and sales data.
Order Processing & Fulfillment
One of the keys to success with Walmart dropshipping is fast order processing and fulfillment. Here are some tips:
- Process orders quickly. The faster you can process and ship an order after it’s placed, the happier your customer will be. Aim to process and ship orders within 24-48 hours.
- Set accurate delivery timelines. Provide accurate estimates for order processing and shipping times in your listings. Underpromise and overdeliver.
- Use Walmart’s fulfillment services. Walmart offers fulfillment services that can pick, pack, and ship your orders for you quickly. This can save time compared to doing it yourself.
- Ship with fast carriers. Choose shipping carriers like UPS, FedEx, or USPS Priority Mail for fast, reliable delivery times. Avoid slow economy shipping.
- Send tracking info to customers. Be sure to send tracking numbers to customers as soon as possible so they can follow their package’s progress.
- Carefully pack shipments. Pack items securely to avoid damage. Use packing materials like bubble wrap and peanuts as needed.
- Inspect items before shipping. Double-check items for defects before shipping. Nothing disappoints a customer more than receiving a damaged product.
Fast order fulfillment leads to satisfied repeat customers and positive reviews. Make it a priority in your Walmart dropshipping business.
Providing Excellent Customer Service
Providing top-notch customer service is important for the success of any dropshipping business. When dropshipping with Walmart, you are essentially acting as the middleman between Walmart and your customers.
You want to ensure your buyers have a seamless, positive experience from start to finish. Here are some tips for managing customer expectations, communicating effectively, and resolving any issues that may arise:
Manage Customer Expectations
- Be upfront about shipping times. Let customers know it may take a couple of business days for their order to arrive since it is coming directly from Walmart.
- Set accurate delivery estimates. Underpromise and overdeliver.
- Notify customers as soon as their order ships and provide tracking information. This helps manage expectations.
- Have reasonable return policies clearly posted on your website.
Communication Tips
- Respond to customer inquiries as quickly as possible. 24 hours or less is ideal.
- Be friendly, patient, and empathetic in all communications. Put yourself in their shoes.
- If you cannot resolve an issue immediately, let the customer know you are looking into it. Follow up with a resolution.
- Thank customers when they make a purchase and follow up to ensure they are satisfied. This personal touch goes a long way.
Resolving Issues
- Take responsibility for issues and apologize for inconveniences. Don’t blame Walmart or other parties.
- Offer solutions, replacement products, or refunds promptly.
- Escalate unresolved issues to Walmart if needed. Leverage their customer service.
- Learn from any negative experiences. See what you could improve to prevent similar issues in the future.
Providing excellent customer service requires effort but pays off with happy, loyal repeat customers. The extra care you put into communicating with customers and resolving the occasional issue will help your dropshipping business thrive.
Marketing Your Walmart Dropshipping Store
Marketing is essential for getting your products (link: Find Your Dropshipping Niche: High Demand, Low Competition in 2024) in front of potential customers and driving sales. Here are some effective strategies to promote your Walmart dropshipping store:
SEO
- Research keywords that customers are searching for related to your products. Include these keywords naturally in your product descriptions and other website content.
- Write blog posts about your products and industry. Optimize these posts for SEO by including keywords, meta descriptions, alt text on images, etc.
- Get backlinks to your site by guest posting on relevant blogs or reaching out to industry websites. Quality backlinks will help improve your search engine rankings.
Social Media Marketing
- Create engaging social media content like photos, videos, polls, etc, that showcase your products. Post consistently.
- Run targeted Facebook and Instagram ads to reach interested buyers. Retarget people who visit your site but don’t purchase.
- Build relationships with followers by responding promptly to comments, questions, etc. Offer exclusive discounts just for social media followers.
Influencer Partnerships
- Identify influencers in your niche with engaged followings and reach out about sponsorships. Offer to send them free products to feature in posts.
- Negotiate affiliate marketing partnerships where influencers earn a commission for any sales driven by their content and links.
- Partner with micro-influencers who may have smaller, more targeted audiences that better match your ideal customers. Offer them personalized codes.
- Leverage user-generated content by reposting customers showcasing your products on social media.
Final Tips for Success
Dropshipping with Walmart can be a great way to start or grow an ecommerce business, but there are a few tips to keep in mind for success.
Follow All Policies
Make sure to carefully read Walmart’s dropshipping policies and follow them exactly. This includes properly identifying yourself as a dropshipper, providing accurate tracking information, meeting delivery timelines, and more. Stay compliant to avoid account suspensions or other issues.
Stay Organized
Manage your Walmart seller account and inventory efficiently. Use business management or accounting software to track orders, inventory, and finances. Process orders promptly and communicate with customers. Keep detailed records for taxes. Organization is key to a smooth operation.
Continue Your Education
Learn as much as possible about best practices in ecommerce, marketing, branding, and using Walmart’s platform. Read blogs, join communities, and stay on top of updates. The more you know, the better positioned you’ll be to optimize processes, boost sales, and avoid mistakes. Consider taking a course or getting a business mentor.
Shape Your Success with Dropship China Pro in Walmart Dropshipping
Experience the difference with Dropship China Pro as you start your Walmart dropshipping business. Here’s how our services can directly enhance your business:
- Streamlined Product Sourcing: Given Walmart’s vast and varied product range, we can expertly guide you to the most in-demand and profitable items. Our insights can help you choose products that not only capture market interest but also promise higher returns.
- Rigorous Quality Assurance: Ship with confidence, knowing that every product has passed our thorough quality checks. This means fewer returns, satisfied customers, and a reputation for reliability.
- Efficient Order Fulfillment: Leave the logistics to us. Our efficient fulfillment system ensures that your orders are processed swiftly and accurately, keeping pace with customer expectations and Walmart’s standards.
- Dedicated Support Team: If you’ve got a question or are facing a challenge,e our responsive support team can assist you every step of the way, ensuring you have all the help you need to succeed.
Dropship China Pro is here to simplify your path to success with Walmart dropshipping in 2024. Let us handle the details while you focus on scaling your business.
Wrap Up
Following these tips can help set your Walmart dropshipping business up for sustainable growth and success. With the right diligence, effort, and know-how, you can turn this into a great income stream.
Interested in boosting your Walmart dropshipping success? Get in touch with Dropship China Pro now for expert guidance and support.
I am Komo, a marketing specialist with a strong focus on dropshipping. Over the past two years, I have gained valuable experience and expertise in the dropshipping industry. I have successfully implemented various marketing strategies to drive traffic and optimize conversions for dropshipping businesses. My passion for the industry has allowed me to stay updated with the latest trends and best practices, ensuring effective results for the companies I work with.
