Dropshipping is a popular business model for budding entrepreneurs due to its low startup costs and simplicity. One of the largest online retail platforms, Walmart, provides an excellent opportunity for dropshippers to reach a broad audience. In this comprehensive guide, we’ll discuss how to dropship on Walmart, including finding profitable products, handling logistics, and overcoming challenges.
To dropship on Walmart, first create a Walmart seller account. Then, find reliable suppliers and profitable products, and list them on Walmart. When a customer makes a purchase, forward the order to your supplier, who ships the product directly to the customer. Your profit is the difference between the wholesale and retail price. Handle customer service, manage inventory, and stay updated on Walmart’s policies to successfully run your dropshipping business.
What is Dropshipping and How Does it Work on Walmart?
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer.
Walmart dropshipping operates similarly. As a merchant, you create a seller account on Walmart, source products from suppliers, and list them on the platform. When a customer makes a purchase, you forward the order to your supplier, who then ships the product directly to the customer. You don’t handle the product personally, and your profit is the difference between the wholesale and retail price.
Advantages of Dropshipping on Walmart
Dropshipping on Walmart comes with several benefits:
- Large customer base: Walmart is a leading ecommerce platform with millions of potential customers.
- Lower competition: Compared to platforms like Amazon, Walmart has fewer sellers, making it less competitive for new entrants.
- No upfront costs: With dropshipping, you don’t have to invest in inventory upfront, reducing the risk of unsold stock.
- Low overhead costs: Since you don’t have to manage inventory or shipping, overhead costs are significantly reduced.
Setting Up a Dropshipping Business on Walmart
Here are the steps to set up a dropshipping business on Walmart:
- Create a Walmart seller account: Register as a seller on Walmart Marketplace.
- Find reliable suppliers and products: Use platforms like Oberlo or directly work with manufacturers and wholesalers.
- List your products on Walmart: Create detailed product listings with accurate descriptions, images, and pricing.
- Manage orders and inventory: Keep track of your orders and update inventory levels accordingly.
- Fulfill orders: When a customer places an order, forward the order details to your supplier, who ships the product directly to the customer.
- Handle customer service: Respond promptly to customer inquiries, manage returns, and provide excellent customer service.
Finding Profitable Products to Dropship
Choosing the right products is crucial for your dropshipping business’s success. Here are some strategies to find profitable products:
- Research high-demand, low-competition products: Use product research tools like Zik Analytics, WalmartHunt, and AutoDS to identify such products.
- Analyze best-selling products: Products with a Best Seller Rank (BSR) of 300,000 or less on Amazon are usually high sellers.
- Monitor social media and online communities: Keep an eye on trending products to identify potential items to dropship.
Handling Logistics, Shipping, and Returns
Handling logistics, shipping, and returns in dropshipping involves working closely with your suppliers. It’s essential to choose reliable suppliers with good shipping practices and familiarize yourself with Walmart’s return policy.
Overcoming Challenges in Dropshipping on Walmart
Dropshipping on Walmart comes with its challenges, such as competition, order cancellations, and policy changes. However, with the right strategies, such as optimizing product listings, offering competitive pricing, and staying updated on policy changes, these challenges can be overcome.
Dropshipping on Walmart provides an excellent opportunity for businesses to reach a broad audience with minimal investment. By understanding the process, choosing the right products, and providing excellent customer service, you can successfully establish and grow your dropshipping business on Walmart.
Frequently Asked Questions
What are some good platforms to find reliable suppliers for dropshipping?
Some reputable platforms for finding reliable suppliers include Oberlo, SaleHoo, and Doba. These platforms provide a vast selection of products from various suppliers globally and offer tools to manage and automate your dropshipping business.
How can I handle customer service effectively in a dropshipping business?
Customer service in dropshipping involves responding to customer inquiries promptly, managing returns efficiently, and ensuring customers are satisfied with their purchase. Utilize customer service tools to streamline this process and consider outsourcing to a virtual assistant if the volume of inquiries is high.
What is Walmart’s return policy for dropshipped items?
Walmart allows customers to return items sold and shipped by third-party sellers within 30 days of receipt. The items must be in their original condition; unused, unaltered, and with all original packaging material, manuals, and accessories.
What are some strategies to optimize my product listings on Walmart?
To optimize your product listings, make sure to use high-quality images, provide detailed and accurate product descriptions, and use relevant keywords in your titles and descriptions. Regularly review and update your listings based on customer feedback and performance data.
How can I stay updated on policy changes on Walmart?
To stay updated on policy changes on Walmart, regularly check the Walmart Seller Help Center and subscribe to the Walmart Seller Newsletter. Additionally, join Walmart seller forums and communities to get insights from other sellers.