There are three different ways to start selling on Walmart: first-party (1P), third-party (3P) and DVS (dropship). Learn about their differences and how they can help your brand.
Being successful on Walmart Marketplace is so much more than just simply finding a product and setting up a listing. Sellers must be strategic and consider all their options carefully before even beginning sourcing products.
If you're one of those trying to be successful on Walmart dropshipping, then you need to learn everything there is to know. This article will answer all your questions about Walmart dropshipping and help you decide which selling model is best for your brand to start with.
Walmart Selling Options
1. 1P Selling or First Party
The first option is Walmart 1P Selling and is very similar to 1P selling on Amazon.
This selling option is done through Walmart Fulfillment Services. The supplier simply ships their products to a Walmart Fulfillment Center and Walmart takes care of everything else. Walmart also calls these sellers Warehouse Suppliers.
Walmart has control of everything about your product including listing, pricing, shipping, returns, and customer service.
Pros
Your items are sold under the Walmart name which is more recognizable
Walmart takes care of listing optimization
Walmart markets the product, ie. via sponsored ads
No more inventory responsibility
You make sales in bulk
Cons
You have no control over pricing
You must offer wholesale pricing
2. 3P Selling or Third Party
There are two types of 3P sellers on Walmart:
Walmart 3P selling through self-fulfillment
This is perfect for those who want to have more control over their listing and brand. With this, you are selling your product on Walmart’s site as a third-party seller but still, control your own inventory and listing.
Ideal for businesses with abundant resources or those that place a high value on how their brand is portrayed and priced.
3P Selling through Walmart Fulfillment Services
You can also be a 3P seller with the help of Walmart Fulfillment Services (WFS). Walmart can fulfill your orders while you control your own listing and pricing. Just ship your products to Walmart and they can do inventory and order fulfillment. Their listings will have a “Fulfilled by Walmart” badge which boosts their credibility.
Pros
Sell your items at retail price for larger profit margins
Have full control over your listings and marketing tactics
Benefit from the Walmart Free 2-Day Shipping nationwide
Cons
You don’t sell in bulk
You’re responsible for marketing and optimizing your own listings
3. DVS or The Walmart Drop Ship Vendor Program For DSV, you have the role of the manufacturer and you keep your products in your warehouse and list them on the website. When an order is placed, the seller ships it to the buyer with a Walmart packing slip. Walmart will pay for all shipping costs, including 2-day shipping. This gives you increased control in your brand just like 3P selling and all the convenience of 1P selling. Pros
You sell your product under Walmart’s recognizable brand
Walmart handles listing optimization
Walmart will take care of marketing
Walmart pays for shipping costs
Cons
You have to sell at wholesale prices
No bulk sales
You shoulder inventory risk
You don’t have control over your item’s pricing
Your items won’t be activated for 2-day shipping tags nationwide
How Is Walmart Dropshipping Different from the Others?
Other eCommerce sites like Amazon may offer discounted shipping rates, but for Walmart, they completely cover all shipping costs for their drop ship vendors for faster delivery. This makes the cost of selling in Walmart cheaper.
One more benefit is that customers can choose to pick up products from any of Walmart's 5,000 stores. Because of this, the vendors can ship their products to Walmart stores instead of directly to the customer.
Apply To Become a Walmart Drop Ship Vendor
Step 1: Prepare Everything Needed
Make sure you have everything Walmart needs before making the application. This supplier checklist outlines all the requirements for prospective suppliers. Here are just a few of the requirements needed:
Tax ID information
DUNS number
Banking information
Product information
Insurance
Global Location number
RFID onboarding
Step 2: Create an Account With Walmart
Step 3: Wait For Approval There is no standard amount of time for approval or rejection. Just have patience and keep watching for their email.
Conclusion
Clearly, there are a lot of advantages to listing items at Walmart.com and this is why a lot of merchants are now trying to get into the platform. Once approved, it’s important to choose a selling model that your brand can benefit from.
Setting up a drop shipping channel can be a time consuming and difficult to navigate process. If you need help, our Walmart experts will be happy to provide detailed assistance through our onboarding service. We will make sure your business is set up for success from the very beginning.
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