Thinking about dropshipping on Walmart Marketplace? You’re not alone. With over 150 million monthly visitors and fast-growing eCommerce infrastructure, Walmart has become one of the top platforms for online sellers looking to tap into a trusted, high-traffic marketplace.
But unlike Amazon or Shopify, Walmart has stricter requirements, and getting started isn’t as simple as uploading products. From account approval and product compliance to integrating inventory and order management, there’s a process to follow, and mistakes can cost you valuable time and sales.
In this guide, we’ll walk you through exactly how Walmart dropshipping works, who it’s best suited for, how to get approved, and what tools or suppliers can help you succeed, whether you’re just starting or expanding from other platforms like eBay or Shopify.
What is Walmart Dropshipping?
Walmart dropshipping is a retail fulfillment method where you list products for sale on the Walmart Marketplace, but you don’t keep those products in stock. Instead, when a customer places an order, a third-party supplier or manufacturer ships the product directly to the customer on your behalf.
You act as the seller, but without the hassle of warehousing, packaging, or shipping, making it a low-risk way to sell products to Walmart’s massive customer base.
The 3 Models of Walmart Dropshipping & Fulfillment Explained
Here is a detailed explanation of the three primary ways people engage with the Walmart platform for order fulfillment, along with source links to support the information.
1. Selling on Walmart Marketplace (The Approved Method)
This is the most common and legitimate way to dropship in partnership with Walmart. It involves becoming an approved third-party seller on Walmart and having your own supplier ship products directly to the end customer.
How It Works:
You are the owner of a virtual storefront on Walmart’s massive online marketplace. When a customer buys a product from your listing, you forward the order to your pre-arranged dropshipping supplier (who could be a manufacturer, wholesaler, or specialized dropshipping service). This supplier then ships the product to the customer on your behalf.
Key Policies and Requirements:
Walmart maintains strict standards to ensure customers have a good experience. According to its seller policies, you must:
- Be the “seller of record,” meaning all packing slips and customer-facing documents must identify you, not your supplier.
- Take full responsibility for shipping and delivery, meeting Walmart’s stringent performance metrics for on-time fulfillment.
- Process all customer returns yourself.
- Crucially, you cannot use another retailer or marketplace (like Amazon or eBay) to fulfill your orders. This is known as retail arbitrage and is a direct violation that can lead to account suspension.
Source Link:
- Walmart Seller Help – Dropshipping Policy: This official page details Walmart’s policy on dropshipping, clearly outlining the “Seller-fulfilled” model and explicitly prohibiting the practice of ordering from another retailer to fulfill an order.
- Walmart Seller Help
2. Dropshipping FROM Walmart (Against Policy)
This method involves using Walmart.com as your supplier. You list items from Walmart on other platforms (like Amazon, Facebook Marketplace, or your own Shopify store) and when you get a sale, you purchase the item from Walmart and have it shipped to your customer.
Why It’s Against Policy:
This practice, often called retail arbitrage, violates Walmart’s Terms of Use. These terms state that the site is for customers to purchase goods for personal, non-commercial use. Buying products with the explicit intent of reselling them for a profit is prohibited.
Risks Involved:
- Account Suspension: Walmart’s systems are designed to detect this type of activity. Shipping many orders to different addresses from a single account can be flagged, leading to order cancellations and your account being banned.
- Negative Customer Experience: The package arrives in Walmart-branded boxes, often with a Walmart receipt inside showing a lower price than what the customer paid you. This can lead to customer complaints, chargebacks, and damage to your reputation on the platform where you made the sale.
Source Link:
- Walmart Corporate – Terms of Use: Under the “Placing Your Order” and “Restrictions on Use” sections, Walmart’s terms imply that the service is for direct-to-consumer sales for personal use, not for commercial resale. While it doesn’t use the word “dropshipping,” the prohibition on commercial use and resale is the key clause that this model violates.
- Walmart Terms of Use
3. Using Walmart Fulfillment Services (WFS)
This model is often compared to Amazon’s FBA (Fulfillment by Amazon) and is not a form of dropshipping. Instead, it is a third-party logistics (3PL) service offered by Walmart to its marketplace sellers.
How It Works:
Instead of having a supplier ship products, you purchase inventory in bulk beforehand and send it to a Walmart fulfillment center. When a customer places an order for your product on Walmart, Walmart’s staff picks, packs, and ships the order for you. They also handle customer service and returns for these orders.
Key Differences from Dropshipping:
- Inventory Ownership: With WFS, you own the inventory and must invest capital in it upfront. In dropshipping, you don’t purchase the product until a sale is made.
- Fulfillment Handler: Walmart handles fulfillment with WFS. In dropshipping, your third-party supplier handles fulfillment.
- Branding & Speed: Using WFS gives your listings the “Fulfilled by Walmart” tag, which builds trust and gives you access to Walmart’s TwoDay delivery program, significantly boosting visibility and sales potential.
Source Link:
- Walmart Fulfillment Services (WFS) Main Page: This official page explains the entire WFS program, its benefits (like 2-day delivery), and how it works, clearly positioning it as a service for sellers who store their inventory with Walmart.
- Walmart Fulfillment Services
Difference – eCommerce & Dropshipping
Pros of Walmart Dropshipping
Less Competition
Compared to Amazon’s 1.5+ million active sellers, Walmart had just over 126,000, giving you a much higher chance to stand out and win the coveted Buy Box (the prominent Add to Cart button). Less competition often leads to better visibility and more sales.
No Upfront Costs
It’s free to register as a seller on Walmart. You only pay a referral fee per sale (usually 6–20%), which is often lower than Amazon’s. This makes it a low-risk entry for dropshippers.
Large Range of Product Categories
Walmart supports 24+ main product categories with dozens of subcategories. As long as you avoid prohibited items, you’ll likely find a suitable category for your niche.
Brand Reputation & Trust
Walmart is a trusted household name in the U.S. By selling on their platform, you benefit from built-in buyer trust, leading to higher conversion rates and fewer cart abandons.
Lower Competition on Price Wars
Fewer sellers also means you’re less likely to face aggressive price wars, giving you a bit more control over margins, especially compared to saturated platforms like Amazon.
No Need to Stock Inventory
Like any dropshipping model, you don’t need to buy or hold inventory. You only purchase products when you receive orders, keeping overhead costs low.
Tool Integrations Available
Platforms like AutoDS, CedCommerce, SkuGrid, and Inventory Source make managing listings, stock, and order fulfillment easier.
Cons of Walmart Dropshipping
Extended Application Process
Walmart doesn’t approve just anyone. You need a registered business, tax ID, and preferably prior eCommerce experience. The approval can take 2–4 weeks, and onboarding may take even longer.
Strict Seller Rules & Performance Metrics
Walmart has rigid requirements for order defect rate, shipping time, and pricing policies. Falling below standards can lead to account warnings or suspension.
Low-Profit Margins
Walmart enforces price parity rules, meaning your prices must match or beat those found on other platforms. This often squeezes profit margins, especially if you’re sourcing from general suppliers.
Limited Branding Opportunities
Since the order is shipped by your supplier, there’s no custom packaging, brand inserts, or unboxing experience, making it harder to build a branded business.
Not All Niches Are Allowed
Certain product categories are restricted or prohibited, especially in health, safety, or used/refurbished goods. You’ll need to carefully check Walmart’s seller policy guidelines.
How to Sell on Walmart from India
Walmart Marketplace is a curated community of professional sellers. For Indian businesses, it offers a significant opportunity to:
- Reach a Massive Audience: Gain access to millions of loyal Walmart customers in the U.S.
- Build Brand Credibility: Associate your brand with one of the most recognized and trusted retail names in the world.
- No Monthly Fees: Unlike some other platforms, Walmart does not charge monthly subscription or setup fees. You pay a referral fee only when you make a sale.
Now that you understand the opportunity, here’s a clear step-by-step breakdown for Indian sellers who want to start selling on Walmart U.S. Marketplace.
Step 1: Choose the Right Products to Sell
Before applying to Walmart Marketplace, carefully select products that align with Walmart’s quality expectations and compliance policies.
Where to start?
Focus on finding products that:
- Are in demand in the U.S. market
- Offer healthy profit margins
- Come from reliable suppliers with consistent quality and fulfillment records
Make sure your suppliers can handle international shipping, meet packaging standards, and offer products that won’t result in high return rates.
Important:
- Avoid products listed on Walmart’s Prohibited Products List
- Ensure your items have GS1-registered UPCs (Universal Product Codes)
Choosing the right products early on helps you maintain seller performance and build long-term success on the platform.
Step 2: Apply to Become a Walmart Seller
Once you’ve selected your product catalog, it’s time to register as a seller.
Go to: Walmart Marketplace – Request to Sell
You’ll be required to provide your eCommerce business information, including your business tax identification number, official registered address, and other relevant company details.
Next, you’ll be asked to provide information about the types of products you plan to sell and your average eCommerce sales revenue.
The final stage is to describe how you’ll manage shipping and deliveries.
You’ll need to submit:
- Indian business registration details (e.g., GSTIN, IEC code)
- Business address
- Product categories you plan to sell
- Average online revenue
- Shipping & return logistics (including a U.S. return address)
Step 3: Complete Onboarding
If approved, Walmart will send you a confirmation email with an onboarding link.
During onboarding, you’ll:
- Confirm business & tax info (foreign sellers submit W-8BEN-E form)
- Agree to Walmart Marketplace terms
- Connect your Payoneer or PingPong account to receive payments in INR
- Upload product listings with descriptions, images, and pricing
- Set up shipping methods and input your U.S. returns address
Don’t forget to build your Walmart Partner Profile:
- Brand name
- Logo
- Seller story
- Customer support details
Your profile builds trust with buyers and helps you stand out.
Step 4: Launch Your Store and Start Selling
Once your products are listed and your store is live, you’re ready to begin selling.
You’ll be responsible for:
- Managing inventory and fulfillment (via WFS or 3PL)
- Responding to customers
- Monitoring sales and delivery performance
- Staying compliant with Walmart’s seller metrics (on-time shipping, low cancellation rate, etc.)
Use the Walmart Seller Center Dashboard to track sales performance, identify top products, and make data-driven decisions.
Ready to go global?
By following this step-by-step approach, Indian sellers can successfully tap into Walmart U.S.’s massive marketplace and grow their brand internationally.
How to Dropship on Walmart: A Step-by-Step Guide
This guide is for becoming an official third-party seller on the Walmart Marketplace and using a dedicated dropshipping supplier. It is not for the prohibited practice of buying items from Walmart.com to ship to customers on other platforms. This process involves two main phases: setting up your business and supplier foundation, and then applying and operating on the Walmart Marketplace itself.
Phase 1: Business and Supplier Setup
Before you even think about applying to Walmart, you must have your business fundamentals in place. Walmart will not approve sellers who are not established businesses.
Step 1: Establish Your Business Legally
Walmart requires all sellers to be legitimate, registered businesses.
- Form a Legal Entity: Register your business as an LLC (Limited Liability Company) or another formal entity. This protects your personal assets.
- Get a U.S. EIN: You must have a U.S. Employer Identification Number (EIN) from the IRS. This is a federal tax ID for your business. You cannot use a personal Social Security Number.
- Secure a U.S. Business Address: You will need a physical U.S. address for your business registration and for the Walmart application. P.O. boxes are generally not accepted.
- Open a Business Bank Account: Keep your business finances separate from your personal funds.
Step 2: Find a Reliable Dropshipping Supplier
This is the most critical step for success. Your right supplier is the backbone of your business.
- Source from Wholesale Suppliers, Not Retailers: Your supplier must be a legitimate manufacturer, wholesaler, or specialized dropshipping fulfillment service. You cannot use other retailers like Amazon, eBay, or AliExpress to fulfill your Walmart orders.
- Look for U.S.-Based Warehouses: To meet Walmart’s strict shipping standards, your supplier must be able to ship products quickly from within the United States.
- Verify Integration Capabilities: The best suppliers can integrate with your systems via an API (Application Programming Interface). This automates the process of sending orders and receiving tracking numbers.
- Confirm “Blind” Shipping: Ensure your supplier will ship products with a “blind” packing slip that identifies you as the seller, not them. Any mention of a third-party supplier is a policy violation.
- Where to find suppliers: Use platforms like SaleHoo, Worldwide Brands, Spocket, or attend industry trade shows.
Step 3: Choose Your Products and Niche
Select the products you plan to sell.
- Research Profit Margins: Calculate your potential profit after accounting for the product cost, shipping, and Walmart’s referral fees (typically 8-15%).
- Analyze Competition: See who is already selling similar products on Walmart. Find a niche where you can compete effectively on price, quality, or selection.
Phase 2: Applying and Operating on Walmart Marketplace
Once your business and supplier are ready, you can apply to become a Walmart Marketplace seller.
Step 4: Apply to the Walmart Marketplace
Visit the official Walmart Marketplace website (marketplace.walmart.com) to begin your application. Have the following information ready:
- U.S. Business Tax ID (EIN)
- U.S. Business address
- Business bank account information
- A plan for integration (how you will upload products and manage orders)
- Proof of prior e-commerce success (e.g., your own website or other marketplace storefronts)
The vetting process is thorough and can take several weeks. Approval is not guaranteed.
Step 5: Complete Onboarding and Seller Setup
Once approved, you will gain access to the Walmart Seller Center. You must complete several setup steps:
- Business Verification: Complete a final verification of your business details.
- Set Up Payments: Link your business bank account through a payment partner like Payoneer or Hyperwallet.
- Configure Shipping Templates: Set up your shipping rates and transit times based on what your supplier can provide. You must be able to meet Walmart’s 2-day or 3-day shipping promises if you offer them.
- Complete Your Seller Profile: Fill out your public-facing profile with your business name, logo, and customer service policies.
Step 6: List Your Products
Now you can add products to your Walmart store.
- Choose a Method: You can list items individually through the Seller Center, use a bulk upload CSV file, or set up an API connection for seamless, real-time inventory updates from your supplier.
- Optimize Your Listings: Use high-quality images, SEO-rich titles, and detailed, accurate descriptions to attract buyers and improve your search ranking.
Trying to figure out how Etsy selling works?
Step 7: Manage Orders and Shipping
This is your core day-to-day operation.
- Order Notification: A customer places an order on Walmart.com, and you are notified in the Seller Center.
- Forward to Supplier: You immediately forward the order details to your dropshipping supplier.
- Supplier Fulfills: Your supplier picks, packs, and ships the order directly to the customer.
- Receive Tracking: Your supplier sends you the tracking number for the shipment.
- Upload to Walmart: You must upload this tracking number to the Walmart Seller Center promptly. This is critical for meeting your performance metrics.
Step 8: Handle Customer Service and Returns
You are the first point of contact for all customer issues.
- Answer Inquiries: Respond quickly to any customer questions about their order.
- Manage Returns: Process all return requests according to your stated return policy. You will need to coordinate with your supplier on where the customer should send the returned item.
Step 9: Monitor Performance and Stay Compliant
Constantly monitor your Seller Scorecard in the Seller Center. You must stay above the minimum thresholds to keep your account in good standing:
- Order Defect Rate: < 2%
- On-Time Shipment Rate: > 99%
- Valid Tracking Rate: > 99%
By following these steps carefully, you can build a legitimate and compliant dropshipping business on the Walmart Marketplace.
Mastering Walmart Dropshipping: Key Strategies for Success
Succeeding as a dropshipper on Walmart Marketplace requires more than just listing products; it demands excellence in strategy and execution. To stand out and build a sustainable business, focus on these five key areas.
1. Choose Your Products Strategically
While Walmart’s marketplace may have less seller saturation than Amazon’s, strategic product selection is the foundation of your success. Before investing time and effort into a product, you must verify customer demand and profit potential.
Validate Demand with Data:
Don’t guess what will sell. Use keyword research tools like Ahrefs or Semrush to check search volumes on Google and other online marketplaces. This data reveals how many people are looking for your product. For a free yet powerful alternative, use Google Trends to analyze search interest over time, helping you identify seasonal trends and avoid products with declining demand.Calculate Profitability First:
Given Walmart’s competitive pricing rules, you must calculate your potential profit margins upfront. Factor in your supplier’s cost, shipping fees, and Walmart’s referral fee (typically 8-15%) to ensure you can price competitively while still running a profitable business.
2. Master Product Listing Optimization
Walmart’s search algorithm, much like Google’s, determines which products get top visibility. Optimizing your listings is crucial for ranking high and winning the click.
Craft Compelling Product Titles:
Your title is your first impression. It must appeal to both shoppers and the algorithm within a 75-character limit. A proven formula is: Brand + Product Name/Model + Key Feature + Style/Color This structure provides essential details at a glance and effectively targets relevant keywords.
Use High-Impact Product Images:
Your main image is your digital handshake; it’s what makes a shopper click your listing over another.
- Invest in Quality: Use professional, high-resolution images that showcase your product clearly against a clean background.
- Show, Don’t Just Tell: Include “lifestyle” or “in-use” images that show the product in a real-world context. This helps customers visualize themselves using it and dramatically increases engagement.
- Create Unique Visuals: To stand out from competitors selling the same item, create custom graphics. Add simple text overlays highlighting key benefits or create an infographic-style image summarizing the product’s features.
Write Persuasive, Benefit-Driven Descriptions:
Once a shopper clicks, your description must close the sale.
- Lead with Benefits, Follow with Features: Start by explaining how the product solves a problem or improves the customer’s life. What will it help them do or achieve? After highlighting the benefits, provide a clean, bulleted list of the technical features and specifications for easy scanning.
- Weave in Keywords Naturally: Write for your customer first, but strategically include your primary and secondary keywords to improve search ranking and reach a wider audience.
3. Exceed Walmart's High Customer Service Standards
Walmart fiercely protects its brand reputation, which is built on fast shipping and excellent service. As a third-party seller, you are expected to uphold these same standards.
The Cardinal Rule: Test Your Products:
Customer complaints about poor product quality are one of the fastest ways to get your account suspended. Before listing a product from a new supplier, always order a sample. Test its quality, functionality, and packaging to ensure it aligns with what you promise in your listing.
Be Transparent About Shipping:
While aiming for speed, be upfront and honest about estimated delivery dates, especially if your dropshipping products have longer lead times. Managing expectations prevents customer frustration and negative reviews.
Know the Seller Standards:
Familiarize yourself with Walmart’s performance metrics on the official Knowledge Base. Understanding the rules on delivery times, refund rates, and cancellations is essential for compliance.
4. Diligently Track Your Seller Performance
Walmart provides the tools you need to monitor your business health—use them. Proactively managing your performance is key to long-term survival on the platform.
- Live in Your Seller Scorecard: This dashboard is your business’s health report. It displays the key metrics Walmart uses to judge your performance against their required standards.
- Monitor Key Metrics: Pay daily attention to your:
Walmart Seller Performance Standards (2025)
- Cancellation Rate: Less than 2%
- On-Time Delivery: Over 90% of orders delivered on time
- Valid Tracking: Over 99% of orders must have valid tracking info
- Refund Rate: Less than 6% due to seller-related issues
- Customer Response Time: Reply to 95% of messages within 48 hours
If you see a metric slipping, investigate the root cause immediately and take corrective action before it jeopardizes your account.
5. Diversify Beyond Walmart for Long-Term Stability
While Walmart is an excellent sales channel, relying on it exclusively is risky. The strict seller standards mean that your entire business could be suspended over a few infractions.
Build a Resilient Business, Not Just a Walmart Store:
Protect your livelihood by diversifying your revenue streams. A smart strategy is to run your Walmart store in parallel with your own standalone e-commerce site built on a platform like Shopify or WooCommerce.Leverage Other Marketplaces:
Consider expanding to other marketplaces like eBay or Facebook Marketplace to reach different customer demographics and reduce your dependency on a single platform. This makes your business model more robust and resilient to unexpected changes.
Critical Look at Dropshipping From Walmart (A High-Risk Method)
Disclaimer:
Not a Recommended Business Strategy The following method describes using Walmart.com as a supplier for dropshipping to other platforms like Shopify, eBay, or Amazon. This practice, often called retail arbitrage, is a direct violation of Walmart’s Terms of Use, which state that their products are for end-consumers, not for commercial resale. This guide is for informational purposes only and is not a recommendation, as it can lead to account suspensions and business failure.
While some online resources suggest using automation software to dropship products from Walmart, it’s crucial to understand that these tools do not make the practice legitimate. They simply automate the mechanics of a fundamentally flawed and risky business model.
The Significant Risks Involved
Before explaining the process, understand the consequences:
1. Violation of Walmart’s Terms:
Walmart’s systems are designed to detect reseller activity. Placing numerous orders to different shipping addresses can lead to the swift suspension or permanent ban of your Walmart account.
2. Poor Customer Experience:
Your customer will receive their order in Walmart-branded packaging, often with a receipt showing a price lower than what they paid you. This creates confusion and anger, leading to complaints, chargebacks, and damage to your brand’s reputation.
3. Violation of Selling Platform Policies:
Most major marketplaces, including Amazon and eBay, have policies against fulfilling orders by purchasing from another retailer and shipping directly to the customer. Doing so can get your seller account on those platforms suspended.
4. No Control Over Inventory:
An item can go out of stock on Walmart.com at any moment. If this happens after you’ve made a sale, you will have to cancel the order, which harms your seller metrics and reputation.
The Role of Automation Software (e.g., AutoDS)
Tools like AutoDS are designed to automate tasks for dropshippers. In this specific context, the software connects your online store (e.g., Shopify) to Walmart’s retail site. Its function is to:
- Import Products: Scrape product titles, images, and descriptions from Walmart.com to your store.
- Sync Price & Stock: Monitor the Walmart listing for changes in price or stock availability.
- Automate Ordering: When a sale occurs on your store, the tool automatically uses your Walmart account and payment information to purchase the item and input your customer’s address for shipping.
Crucially, the tool automates the process, but it does not eliminate the risks or make the practice compliant with Walmart’s policies.
The Process Explained (For Informational Purposes Only)
Those who engage in this high-risk method typically follow these steps:
- Choose a Selling Platform: They first set up a store on a platform where they intend to sell the products, such as Shopify, WooCommerce, or eBay.
- Subscribe to an Automation Tool: They sign up for a service like AutoDS, connecting it to their chosen selling platform. This requires a paid subscription.
- Import Products from Walmart: Using a browser extension provided by the automation tool, they visit Walmart.com and select products to import into their own store’s dashboard.
- Market and Sell: They then market these products. When a customer makes a purchase on their store, the process becomes automated.
- Automated Fulfillment (The Risky Part): The automation software detects the sale, logs into the user’s personal Walmart account, places an order for the product, and has it shipped directly to the customer’s address.
Verdict and Recommended Alternative
While technically possible through software, using Walmart as a dropshipping supplier is an unsustainable and unprofessional business model built on violating terms of service. The risks of account suspension and reputational damage far outweigh any short-term convenience.
For a legitimate, long-term business, the only recommended path is to become an approved seller on the Walmart Marketplace and use genuine wholesale suppliers, as detailed in official Walmart guidelines.
Conclusion: Is Walmart Dropshipping Right for You?
Walmart dropshipping offers a powerful opportunity for sellers looking to tap into a trusted, high-traffic marketplace without holding inventory. With lower competition than Amazon, no upfront costs, and the backing of a household name, Walmart can be an excellent platform for scaling your eCommerce business.
However, it’s not a plug-and-play model. From the lengthy approval process to strict seller metrics and pricing rules, success requires preparation, reliability, and a solid supplier network.
If you’re serious about building a sustainable dropshipping business, and willing to meet Walmart’s standards, the payoff can be well worth the effort.
Read More
- How dropshipping works for your online store?
- Top 10 Dropshipping Extensions to automate business
- 10 Profitable dropshipping business ideas to try
- Shopify Dropshipping: The Ultimate Guide To Sell Online
- AI Tools for Dropshipping: How to start and scale guide
- 15+ Trending Dropshipping products for high profit
Frequently Asked Questions
Can you sell on Walmart from India?
No, Walmart currently requires sellers to have a U.S. business address and tax ID. Indian sellers must partner with U.S.-based agents or fulfillment services.
Is it free to sell on Walmart?
Yes, there’s no setup or monthly fee. You only pay a referral fee (usually 6–20%) on each sale.
How much do Walmart sellers earn?
Earnings vary widely. Successful sellers can earn anywhere from a few thousand to over six figures per month, depending on product niche, pricing, and volume.
Does Walmart work with Shopify?
Yes, Walmart integrates with Shopify. You can sync products, manage orders, and sell directly on Walmart Marketplace using the Shopify Walmart app.
