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does walmart allow dropshipping

Dropshipping is a very lucrative e-commerce model. Among all the suppliers and storefronts, Walmart can look like a very enticing option for both. So, it would be very natural for you to ask, “Does Walmart allow dropshipping?”.

The simple answer is, Yes. Walmart does allow both sourcing from them and selling stuff in their storefront. But there are certain cases where certain things might not be allowed. With a bit of caution, drop shipping from Walmart is completely possible.

In this article, I will try to explain the basics of each situation as simply as possible. It is advised that you read this thoroughly to understand the whole scenario better. This will surely help you a lot in your next e-commerce business venture.

Is It Actually Allowed?

Yes, both are allowed when done within their terms of service. Using Walmart as the storefront for selling your dropshipping products is even encouraged by them. On using them as a source, as long as the storefront you’ll be using allows it, it will be fine.

Often a lot of storefronts will not allow you to sell duplicate products available on other storefronts. So, that is the scenario where this might not be allowed. But if your storefront allows it you are free to use Walmart as your source.

On using Walmart’s storefront to sell your dropshipping products, it is even very encouraged by them. Walmart has a couple of systems to make selling easier for you. You could be a warehouse supplier or a drop-ship vendor on Walmart.

Check this article to learn more about How to become Walmart Warehouse Supplier or DSV (Drop Ship Vendor).

The former is required to ship products to Walmart warehouse and if you sign up for the latter then you are free to use whatever delivery method you have at your disposal.

Both these avenues offer a lot of flexibility and options for you. If you act tactfully and cautiously you can make a good profit in either direction you choose.

Does Walmart Allow Dropshipping

Drop shipping From Walmart

This is the first thing that comes to mind when I think of Walmart and dropshipping. Walmart is the biggest retailer in the world. They have everything from everyday items to technology, sold in all sorts of quantities from small packs to large wholesale quantities. If the online store you decide to sell allows it then it can prove to be an amazing option.

The large catalog of Walmart is very enticing for anyone looking for products for their e-commerce business. You can find almost anything you want to fill your catalog. Their shipping and customer service are also amazing so you do not have to worry about that. Let’s take a look at the pros and cons of dropshipping from Walmart.

Pros

  • Fast Delivery: Walmart often offers 2 days and even next day delivery on their products so deliveries will never be late.
  • Large Catalog: The catalog of Walmart is gargantuan. You can find almost anything you want to add to your catalog in Walmart.
  • Wholesale Goods: Walmart sells a ton of wholesale goods. If you can buy wholesale from them and sell at retail that too can provide you with some profit.

Cons

  • Huge Competition: As this is a very easy avenue of making revenue, a lot of people are doing it. Therefore, the competition is immense. You will need to be very competitive to make your business model work with this.
  • Complicated Customer Service: You will not be able to directly provide customer service for the products you sell. The customer will send it to you and you will have to deal with Walmart. This creates a bit of complication for sure.

Read our latest article which is about “Is eBay Dropshipping Profitable?”

Dropshipping On Walmart

This option can be even more lucrative for some people. If you have a supplier already and are looking for a storefront then Walmart can be an amazing option for you. Walmart offers you to sign up for either a warehouse supplier or a drop-ship vendor (or DSV for short).

If you sign up to be a warehouse supplier then you or your wholesale supplier would need to send all the items to the Walmart warehouse. But if you apply to be a drop-ship vendor then you have to take care of the deliveries yourself.

Dropship vendors usually have their deliveries done by their wholesale suppliers, as with most dropshipping business models. If you choose any of these two options your product is shown on the Walmart storefront as sold and shipped by Walmart. So, you will have no trouble gaining trust.

This avenue also has some pros and cons. Let us now take a look at those.

Pros

  • Easy Trust: As the customer will see the Walmart guarantee they will not hesitate before buying your product. This takes a lot of stress out of the “building brand loyalty” part of the business plan.
  • Massive Market: Walmart already has a huge demographic of customers. If you have your product on their storefront, you immediately have access to that vast customer base to which you can appeal to.
  • Easy To Handle: A lot of what you would need to do will be automatically handled by Walmart so you have less to worry about.

Cons

  • No Brand Recognition: If you sell on Walmart you can not have any sort of brand recognition as customers will only see Walmart. If your future goal is to build a brand then this might not be the way to go for you.
  • Low Profit Margin: Dropshipping profit margins are usually low but on Walmart because of their charges and everything it is even lower. You will have to sell a lot more in quantity to make enough profit.

Conclusion

Thank you for sticking with me and reading this article all the way. I hope I was able to explain both drop shipping to and from Walmart. I wish that you now have a better understanding of it all and that I was able to answer your question, “Does Walmart allow dropshipping?”.

I wish you all the best in your e-commerce adventures!

About the author 

Atik

Atik is a father, husband and an internet entrepreneur with more than 7+ years of experience in affiliate marketing. In 2012 Atik caught a dream of becoming an entrepreneur and create a lifestyle for himself and his family they truly deserve.

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