You might have heard of third-party selling, but have you heard of second-party shipping?
This is also called drop shipping, and Walmart, the world’s largest retailer, runs a program that allows sellers to take advantage of the practice.
But what is the Walmart Drop Ship Vendor program? Here is what I discovered!
What Is The Walmart DSV Program?
The Walmart Drop Ship Vendor program is aimed toward experienced e-commerce sellers who own and operate their warehouse space and can obtain large quantities of inventory. Walmart, in turn, buys the stock, sells it online, and covers the cost of shipping, while the original vendor performs the actual shipping under Walmart’s brand.
Keep reading to learn more about how the Walmart DSV program works, what it takes to get approved, and where you can sell your Walmart goods!
How Does The Walmart DSV Program Work?
Dropshipping is defined as an inventory fulfillment method where the retailer (in this case, Walmart) purchases stock from a third-party vendor at wholesale prices, then sells it at a profit.
The retailer provides the platform for sales; the third-party vendor performs the shipping. In this way, drop-ship is actually a hybrid of first-party and third-party selling.
However, Walmart runs its program slightly differently from other major retailers like Amazon.
For starters, they run a stringent application process.
Just like with their Marketplace seller registration, you will need a lot of documentation to prove you are a trustworthy and experienced seller they want to do business with (see more below).
Once you are approved, you will begin the onboarding process, where you will provide even more documentation about your warehouse.
Next, you will set up at least one item (unless you sell apparel, gift cards, services, or imports) using the Item 360 program.
When that is complete, you’ll receive an email notifying you that your inventory has gone live on the website. (For a more detailed look into onboarding, check out this page here.).
Once the sales start rolling in, you’ll get to work fulfilling and shipping those orders using Walmart packaging. And, of course, Walmart covers all shipping costs as part of DSV.
Here are a few things to consider to help you stand out:
- According to Zentail.com, offering two-day shipping is the way to go – even better if you offer it for free, because, after all, the shipping isn’t costing you anything
- While you don’t have as much control over your product descriptions as you would if you were a Marketplace seller, you will still want to watch how you upload your inventory.
- Make sure you list all the most important info (brand, model, etc.) first
- Take high-quality images
- Consider including demonstration videos
- While Walmart does its part to ensure traffic reaches your products, you should work your end to ensure your products get seen
How Do You Get Approved For Walmart DSV Program?
Walmart is notoriously choosy about who it lets onto its selling platform, and that is no different for the DSV program.
In most cases, you will need documents such as tax ID numbers, DUNS numbers, a non-P.O. Box business address, banking info, and much more.
More than that, you will have to show Walmart that you are an experienced seller that excels in quality products and exceptional customer service.
If you think you’re ready to begin the registration process, you can find the page here.
Is Dropshipping On Walmart Profitable?
If you are just starting to open a warehouse or sell large quantities of goods, then Walmart drop ship probably isn’t the right avenue for you to profit.
In order to make money doing Walmart DSV, you have to sell a lot of inventory to them.
This is because, despite Walmart paying for the shipping, the process will still use up valuable money and time resources.
Walmart DSV will most likely be the most profitable for larger, established warehouse vendors who can move products out across the country fast, with minimal errors.
Can You Drop Ship And Sell On Walmart’s Marketplace?
You can both take advantage of the DSV program and sell on Walmart’s Marketplace, and some vendors are ideally set up to do both.
However, per the Walmart Supplier Help FAQ, you cannot sell the same product on the Marketplace and as part of your DSV inventory.
Walmart’s DSV program is a great opportunity for established vendors with existing warehouse space.
By selling inventory to Walmart at wholesale prices and then keeping operational costs low, vendors can turn a tidy profit, while benefitting from Walmart’s exceptional online reach.