Drop shipping is a convenient way for entrepreneurs to access a wider consumer market by betting on the exposure afforded to them by already established marketplaces. The Walmart drop ship vendor (DSV) program allows one to sell their products under the Walmart brand, following its listing provisions. Walmart forwards orders of listed items to registered drop ship vendors and it is up to them to fulfill them. As a knock-on effect, vendors can only sell their products wholesale and not in bulk like other suppliers.
How to Become a DSV
To become a DSV, one is required to meet all the required stipulations set by Walmart on its supplier checklist. Some of the requirements are:
Tax ID informationDUNS numberProduct informationInsurance information
If all the conditions have been met, the next step is to make an online application at the Walmart marketplace website.
Benefits of the Walmart DSV Program
Employing the drop shipping method has some advantages over other methods like first party and third-party vending.
Free and Speedy Shipping
Walmart covers all shipping costs and can sometimes do it immediately in case of next day delivery requests, much to the customers’ delight and satisfaction. This aids in building brand loyalty.
Extensive Product Variety
Walmart has dozens of item categories and departments which ultimately gives aspiring vendors plenty of investment avenues as to which part of the marketplace to capitalize on.
No branding and Inventory Responsibilities
Items are sold under the Walmart brand which goes a long way in lending credence to the products, and not disregarding the marketing they do via sponsored ads as well.
Free Registration
While most other marketplace platforms charge fees to use them, Walmart marketplace platform is free; good news for those looking to really extend their profit margins.
Priority Buy Box
Items listed by drop ship vendors are first to be sold even when the same products are available in Walmart stores.
Expediency and Convenience
Most wholesalers and manufacturers find it advantageous to use the marketplace, since it takes away much of the drudgery required to get their businesses up and running and at a much lower cost timewise and monetarily.
Overall Utility
The convenience of drop shipping via Walmart facilitates a well-greased mechanism of operation for all beneficiaries. It is always a pleasant eventuality when everyone wins at the end of the day.
Drawbacks
High Application Standards Walmart carries out a rigorous and thorough review of all applications which can sometimes be lengthy, not forgetting the high standards that need to be maintained just to remain in the program. Pricing Limitations Manufacturers must ensure that the price of the goods they have listed in other platforms match the prices in the Walmart marketplace. This is further implicated by the propensity of Walmart to always look for the lowest possible prices for their customers. Walmart’s Autonomous Control Walmart will subjugate the vendors and dominate every decision pertaining the presentation of drop ship vendors’ products to the market, from the appearance of the listing to the shipping method used, all these in a way that best suits its agenda. Only Wholesale Prices Drop ship vendors are not able to sell products in bulk and can only sell wholesale. Generally, this is due to restrictions presented by drop shipping which prevent them from operating in the same way as other suppliers. Storage and Risk Vendors have to store their own products while at the same time taking on inventory risk until they get an order. The cost of warehousing accommodations and storage facilities, notably diminishes profitability. Stiff Competition With so many competitors in the Walmart marketplace, it requires a lot of grit and strategy to sharpen your competitive edge against the multitude of vendors. Some of the few things one can do are:
1.Use clear and specific product names2.Have succinct and precise product description3.Competitive pricing is important4.Providing quick and efficient services5.Collecting as many positive reviews as possible
Conclusion
It is preponderant for any interested parties and entrepreneurs to be fully versed in the workings of the Walmart drop ship vendor program before deciding whether or not to register as a DSV and start fulfilling orders for customers. There are always surprises for the unprepared. It is, after all, more emboldening to take a plunge into unknown waters after knowing their depths. Happy drop shipping. Does Walmart deliver to my home? Purchases do not have to be delivered to home addresses; they can sometimes be delivered to local Walmart stores for convenience. What is the difference between a Walmart DSV and 3P vendor? Walmart drop ship vendors store their items and ship them to customers under the Walmart brand whereas 3P vendors use Walmart as a channel to store and distribute their items through to the consumers. How does Walmart handle DSV returns? Online purchases can be returned to local Walmart stores. Consequently, the items are liquidated and a chargeback is sent to the vendor.
