How to Dropship on Amazon from Walmart: A Comprehensive Guide

Dropshipping has become a popular business model for entrepreneurs looking to sell products online without the need to maintain an inventory. One effective strategy is to source products from established retailers like Walmart and sell them on Amazon, leveraging the vast customer base and logistical prowess of the e-commerce giant. While the concept is simple, executing it successfully requires careful planning, attention to detail, and adherence to both Amazon’s and Walmart’s policies.

This comprehensive guide will walk you through the process how to dropship on Amazon from Walmart, covering everything from setting up your Amazon seller account to choosing the right products, managing orders, and ensuring customer satisfaction. Whether you’re a seasoned dropshipper or a complete beginner, this guide will provide you with the knowledge and tools you need to build a successful dropshipping business.

Understanding Dropshipping: The Basics

Before diving into the specifics of dropshipping on Amazon from Walmart, it’s important to have a clear understanding of what dropshipping entails. In a traditional retail model, sellers purchase products in bulk, store them in a warehouse, and fulfill orders as they come in. Dropshipping, on the other hand, eliminates the want for inventory. When a customer places an order, the seller buying the product from a third-party supplier (in this case, Walmart), who then ships the product directly to the customer.

Also read: How to Dropship on Amazon from AliExpress

Key Advantages of Dropshipping

1. Low Initial Investment: Since you don’t need to purchase inventory upfront, your initial costs are significantly lower. This makes dropshipping an attractive option for entrepreneurs with limited capital.
2. Flexibility: You can sell a wide range of products without worrying about storage space. As long as the product is available from your supplier, you can offer it to your customers.
3. Scalability: Dropshipping permit you to scale your business quickly. As you don’t have to manage inventory, you can easily expand your product offerings and reach a larger audience.

Potential Challenges

1. Lower Profit Margins: Since you’re buying products at retail prices, your profit margins may be slimmer compared to traditional retail models. Pricing your products competitively while confirm profitability is key.
2. Inventory Management: As a dropshipper, you’re reliant on your supplier’s inventory. If Walmart runs out of stock, you may have to cancel orders or source the product from another supplier.
3. Shipping Times and Costs: Shipping times and costs can vary depending on Walmart’s policies. You’ll need to communicate clearly with your customers and manage their expectations.

Step-by-Step Guide How to Dropship on Amazon from Walmart

Step 1: Setting Up Your Amazon business Account

The first step in starting your dropshipping business is to set up an Amazon Seller account. Amazon offers two types of seller accounts: Individual & Professional. The choice between the two depends on your business goals and expected sales volume.

Choosing the Right Seller Account

• Individual Seller Account: Best for those who are just starting out or plan to sell fewer than 40 items per month. There’s no monthly subscription fee, but you’ll pay a per-item fee of $0.99, plus referral fees and variable closing fees.
• Professional Seller Account: Ideal for those planning to sell more than 40 items per month. The account costs $39.99 per month, but you’ll save on per-item fees. Professional sellers also have access to advanced selling tools, such as inventory management, bulk listing, and the ability to create promotions.

Creating Your Account

1. Sign Up: Visit Amazon Seller Central and click on “Start Selling.” You’ll need to provide your name, email address, and a password to create an account.
2. Provide Business Information: Amazon will ask for details about your business, including your business name, address, and contact information. You’ll also need to provide a tax identification number (TIN) or social security number (SSN).
3. Set Up Payment Information: Amazon will require your bank account information to deposit payments from sales. Make sure you enter accurate details to avoid payment delays.
4. Verify Your Identity: Amazon may ask for identity verification, which could include submitting copies of identification documents, such as a passport or driver’s license.
5. Choose Your Product Categories: Depending on the products you plan to sell, you may need to apply for category approval. Some categories are restricted, and you’ll need to meet specific criteria to list products in these categories.

Step 2: Sourcing Products from Walmart

Once your Amazon Seller account is set up, the next step is to identify the products you want to sell. Walmart offers a vast array of products across multiple categories, making it an ideal source for dropshipping. However, not all products are suitable for dropshipping, so it’s important to choose carefully.

Criteria for Choosing the Right Products

1. Demand: Use tools like Amazon Best Sellers, Google Trends, and Jungle Scout to identify products with high demand. Focus on items that have consistent sales and are not overly saturated.
2. Profit Margin: Calculate the profit margin by subtracting the cost of the product (including shipping) from the price you plan to list it for on Amazon. Aim for a margin of at least 20-30% to cover fees and other expenses.
3. Competition: Avoid products with excessive competition, especially from large sellers or Amazon itself. Look for niches with fewer sellers where you can stand out.
4. Availability: Ensure that the products you choose are regularly available at Walmart. Avoid items that frequently go out of stock or are seasonal.
5. Brand Restrictions: Some brands may have restrictions on selling their products on Amazon. Research the brand’s policies before listing their items to avoid potential issues.

Finding Products on Walmart

1. Browse Categories: Start by browsing through Walmart’s categories to identify potential products. You can also use Walmart’s search bar to find specific items.
2. Check Pricing and Availability: Compare the prices of products on Walmart with their prices on Amazon. Make sure the difference is enough to cover your costs and leave room for profit.
3. Review Product Details: Pay attention to product details such as weight, dimensions, and shipping options. Ensure that the product meets Amazon’s listing requirements.
4. Consider Shipping Costs: Walmart offers free shipping on orders over a certain amount, which can help reduce costs. For smaller orders, consider using Walmart’s free in-store pickup option and then shipping the items yourself.

Step 3: Listing Products on Amazon

Once you’ve identified the products you want to sell, the next step is to list them on Amazon. Properly optimizing your product listings is crucial for attracting customers and driving sales.

Creating Your Product Listings

1. Title Optimization: Create a clear, concise, and keyword-rich title for your product. Include important details such as the brand, model, size, and color. Eliminate using all caps or special characters.
2. Product Descriptions: Write a detailed product description that highlights the key features and benefits of the product. Use bullet points for easy readability & include relevant keywords to improve search visibility.
3. Product Images: Use high-quality images that showcase the product from various angles. Ensure that the images meet Amazon’s requirements, such as having a white background and being at least 1000 pixels on the longest side.
4. Pricing Strategy: Set a competitive price that covers your costs and provides a reasonable profit margin. Consider using dynamic pricing tools to adjust your prices based on market conditions.
5. Fulfillment Method: Since you’re dropshipping, select the “Fulfilled by Merchant” (FBM) option. This means you’ll be responsible for shipping the product to the customer after purchasing it from Walmart.

Optimizing for SEO

1. Keyword Research: Use tools like Amazon Keyword Tool, Helium 10, and MerchantWords to identify relevant keywords for your product. Include these keywords in your title, description, and bullet points.
2. Backend Keywords: Amazon allows you to enter backend keywords that are not visible to customers but help improve search rankings. Use this space to include extra relevant keywords.
3. Product Reviews: Encourage customers to leave reviews by providing excellent service and following up after the sale. Positive reviews can improve your search rankings and increase sales.
4. A+ Content: If you’re a registered brand, take advantage of Amazon’s A+ Content feature to create visually appealing and informative product descriptions. This can help differentiate your product from rival.

Step 4: Managing Orders and Fulfillment

Once your product is listed on Amazon, you’ll start receiving orders. Managing these orders efficiently is key to maintaining a successful dropshipping business.

Order Processing

1. Receive the Order: When a customer places an order on Amazon, you’ll receive a notification in your Seller Central account. Review the order details to ensure everything is right.
2. Purchase the Product from Walmart: Go to Walmart’s website and purchase the product using the customer’s shipping address. Ensure that you choose the correct shipping option and enter the address accurately.
3. Enter Tracking Information: Once the order is shipped from Walmart, you’ll receive a tracking number. Enter this tracking number into your Amazon Seller Central account to keep the customer informed.

Customer Communication

1. Order Confirmation: Send the customer an order confirmation message, letting them know their order is being processed. Include an estimated delivery date.
2. Shipping Updates: Keep the customer informed about the shipping status, especially if there are any delays. Providing timely updates can help reduce customer complaints.
3. Handling Returns and Refunds: In case of returns, coordinate with Walmart to facilitate the return process. Ensure that the customer receives a refund or replacement promptly.

Managing Multiple Orders

As your business grows, you may start receiving multiple orders simultaneously. Consider using order management software like ShipStation or Ordoro to streamline the process and reduce manual work.

Step 5: Ensuring Compliance and Avoiding Pitfalls

To maintain a successful dropshipping business on Amazon, it’s crucial to comply with Amazon’s policies and avoid common pitfalls.

Amazon’s Dropshipping Policy

Amazon allows dropshipping as long as you adhere to their policies. Specifically, you must:

• Be the seller of evidence for your products.
• Identify yourself as the seller on all packing slips, invoices, and external packaging.
• Be responsible for accepting & processing customer returns.
• Ensure that the product packaging does not contain any information from Walmart or any other third-party supplier.

Failure to comply with these policies can turn in account suspension or termination.

Avoiding Out-of-Stock Situations

To avoid out-of-stock situations, monitor Walmart’s inventory regularly. Consider using inventory management tools that automatically update your Amazon listings based on Walmart’s stock levels.

Handling Negative Feedback

Negative feedback can harm your seller rating and search rankings. Address customer complaints promptly and professionally. If a mistake occurs, offer a refund or replacement to resolve the issue.

Staying Competitive

Stay ahead of the competition by regularly analyzing your market and adjusting your strategies accordingly. Keep an eye on competitors’ pricing, product offerings, and customer reviews.

Conclusion

Dropshipping on Amazon from Walmart can be a profitable business model when executed correctly. By following the steps outlined in this guide, you can build a successful dropshipping business that leverages the strengths of both Amazon and Walmart. Remember to stay compliant with Amazon’s policies, choose your products carefully, and focus on providing excellent customer service. With dedication and the right strategies, you can turn your dropshipping business into a reliable source of income.