Hello There! Let‘s Talk About Walmart‘s Drop Shipping Program

So you‘re interested in learning more about Walmart‘s Drop Ship Vendor program? Smart move! Leveraging Walmart‘s massive reach through drop shipping could be a game changer for your ecommerce business.

In this comprehensive guide, we‘ll explore everything you need to know about Walmart DSV, including:

• What is Walmart Drop Ship Vendor (DSV) and how does it work?
• DSV program requirements and approval process
• Is selling on Walmart DSV profitable? Pros and cons.
• Can you sell on both DSV and Walmart Marketplace?
• Tips and strategies to succeed as a Walmart drop shipper

By the end, you‘ll understand if applying for Walmart DSV is right for your business. Let‘s get started!

What Is The Walmart Drop Ship Vendor (DSV) Program?

The Walmart Drop Ship Vendor program allows qualified sellers to leverage Walmart‘s massive distribution network and customer reach to sell products, without having to handle aspects like storage, fulfillment, and shipping in-house.

Here is an overview of how Walmart DSV works:

• Sellers source and purchase inventory, often directly from manufacturers. They hold ownership of the products.
• Walmart buys the inventory from sellers at wholesale prices – usually 45-50% off MSRP. This transfers ownership to Walmart.
• Walmart lists the products on Walmart.com and sells to customers at a retail markup price.
• When an order is placed, Walmart sends the order details to the seller.
• The seller then packages and ships the order directly to the customer using Walmart branded packaging.
• Walmart covers the costs of shipping the order.

In short, Walmart provides the platform, brand name, and audience reach. Sellers handle sourcing, storing, and shipping products to customers.

This unique arrangement benefits both parties:

• Walmart can rapidly expand product selection without owning additional inventory.
• Sellers tap into Walmart‘s platform and audience without paying for fulfillment and shipping.

DSV differs from standard Walmart Marketplace selling in a few key aspects:

• DSV sellers handle fulfillment themselves. Marketplace sellers ship to Walmart.
• Walmart dictates wholesale pricing for DSV items. Marketplace sellers set pricing.
• Walmart takes ownership of DSV inventory after paying wholesale prices.
• The DSV application process is much more rigorous compared to Marketplace.

Now let‘s look at what it takes to get approved for Walmart DSV.

Walmart DSV Program Requirements

Gaining approval for Walmart‘s DSV program is no easy feat. They have strict standards to ensure only experienced, high-volume sellers are accepted.

Here are the primary criteria Walmart looks for in DSV applicants:

• Proven sales history: At least $1 million in online sales in the past 12 months.
• Ability to scale: You need to be able to sell thousands of units of a product per month.
• Warehouse capabilities: You must have facilities to store and process inventory. No dropshipping or 3PL.
• Order and logistics expertise: Proven ability to fulfill and ship orders timely.
• Customer service skills: Resources to handle issues, returns, and inquiries.
• Product sourcing abilities: Knowledge of your niche to provide relevant products.

Walmart also requires sellers provide documentation including:

• Business registration and tax info (EIN, DUNS, etc)
• Seller account credentials (Amazon, eBay, Shopify, etc)
• Banking and accounting details
• Inventory and order volume reports
• Customer service protocols
• Shipping workflows and capabilities

In addition, they expect DSV sellers to have dedicated account managers to handle the Walmart relationship.

As you can see, Walmart sets the bar high for DSV applicants. They want established sellers who can scale smoothly.

Next, let‘s explore the potential profits and downsides of selling through Walmart DSV.

Is Walmart‘s Drop Ship Program Profitable? Pros and Cons

The DSV program can be highly lucrative if you meet the requirements and capitalize on Walmart‘s huge customer base. However, there are also some potential downsides to consider.

Here are the key pros of selling through Walmart DSV:

• Massive reach – Instant access to Walmart‘s 100+ million unique monthly visitors.
• Built-in demand – Walmart has a trusted brand name and huge existing audience.
• Lower overhead – No need to pay for storage, shipping, or fulfillment. Walmart covers this.
• Hands-off selling – Walmart handles platform, marketing, and frontend sales.
• High order volumes – Ability to move thousands of units per month.
• Expansion opportunities – Chance to grow into other Walmart programs.

However, there are also some potential cons to keep in mind:

• Lower profit margins – Walmart buys inventory at 45-50% off MSRP, so your margin is reduced.
• Volume requirements – You need high sales volumes for decent profits due to lower margins.
• Inventory risks – You own all unsold stock. Excess inventory can quickly eat into ROI.
• Account management overhead – Staffing and managing the Walmart relationship adds costs.
• Program fees – Charges for inventory reconciliation, returns, etc. also impact net revenue.
• Changes in terms – Walmart may alter program terms down the line.

The key is strategically selecting high-margin products, keeping inventory levels in check, and streamlining operations to account for Walmart‘s discount pricing model.

For established sellers able to move serious volume, the benefits tend to outweigh the drawbacks. Walmart‘s platform reach is unmatched.

Now let‘s look at combining Walmart DSV with Walmart Marketplace.

Can You Sell On Both Walmart Marketplace And DSV?

Many experienced sellers are interested in leveraging both DSV and Marketplace to maximize Walmart sales.

The short answer is: yes, you can use both programs, but with some limitations:

• You cannot sell the exact same product through both DSV and Marketplace channels. Inventory must be unique.
• Pricing, inventory, fulfillment etc. must be managed completely separately for each program.
• You need distinct accounts and undergo separate application processes for each program.
• Managing two Walmart accounts requires considerably more overhead and staffing.

That said, for qualified sellers, having exposure across multiple Walmart platforms can be advantageous:

• Test new products on Marketplace first, then scale top performers to DSV.
• Use Marketplace for lower volume items, and DSV for your highest volume products.
• Switch underperforming DSV products to Marketplace to reduce risk.
• Diversify product selection across programs.

The key is keeping inventory, listings, and workflows 100% separate. Done right, utilizing both channels can help experienced sellers maximize Walmart opportunities.

Next, let‘s go over some tips and strategies for succeeding with Walmart DSV.

Tips For Success As A Walmart Drop Shipping Vendor

If you secure a coveted spot in Walmart‘s DSV program, here are some tips to help maximize your sales and profitability:

Select Products Carefully

• Focus on high-margin items aligned with Walmart‘s brand.
• Avoid super niche products. Seek items with mass appeal.
• Evergreen staples tend to sell well on Walmart.

Prepare For Volume

• Have redundant suppliers to avoid stockouts when demand surges.
• Secure agreements for suppliers to rapidly scale production if needed.
• Invest in automation to streamline processing high order volumes.

Optimize Inventory Management

• Use data and forecasting to predict demand and optimize restock timing.
• Find the ideal quantity to stock for each product to minimize excess inventory.
• Let sales data guide inventory decisions.

Refine Pricing Strategies

• Factor in Walmart‘s discounts plus all program and fulfillment fees accurately.
• Experiment with price laddering – offer a range of price points for each product type.
• Adjust prices gradually based on order velocity and profitability data.

Provide Exceptional Customer Service

• Build responsive support resources to resolve customer issues promptly.
• Align policies and practices with Walmart‘s standards.
• Monitor feedback and reviews closely. Continuously improve service quality.

Streamline Operational Processes

• Automate wherever possible, especially for high-volume repetitive tasks.
• Maintain organized systems and tight inventory control.
• Eliminate redundancies and wasted time across operations.

By taking these steps, you can maximize sales and make the most of selling through Walmart DSV.

The Bottom Line

Walmart‘s Drop Ship Vendor program offers approved sellers a compelling way to tap into Walmart‘s platform and massive reach.

However, getting accepted is no simple task. You need deep expertise across ecommerce operations, ample resources, and the capability to smoothly scale volumes.

For qualified sellers, DSV provides a unique opportunity despite lower margins. The sheer size of Walmart‘s audience outweighs the pricing model and overhead for most. And you can potentially combine DSV with a Marketplace presence to augment sales.

Overall, Walmart DSV is an invitation-only program reserved for experienced, high-volume merchants. But if you meet the stringent requirements and leverage Walmart‘s immense audience, it can take your business to exciting new heights.

I hope this overview gives you a helpful high-level look at Walmart‘s unique drop shipping program and assists you in determining if it‘s a fit for your business. Let me know if you have any other questions!