How to Start Dropshipping on Walmart Marketplace in 2025 (Step-by-Step Guide)

Walmart increasingly draws experienced dropshippers as well as independent sellers, so fast becoming a strong rival in the eCommerce sector. Walmart Marketplace offers a special chance for company owners to access its large client base by using dropshipping as a low-risk business strategy by 2025.

Focusing on the newest tactics, technologies, and Walmart dropshipping automation systems that may save time and grow your company, this book will address what you need to know to begin dropshipping on Walmart Marketplace.

Why Choose Walmart for Dropshipping in 2025?

Walmart’s eCommerce arm has seen explosive growth in recent years. With over 150 million monthly visitors, the Marketplace has become a lucrative alternative to Amazon, eBay, and Shopify.

Here’s why sellers are choosing Walmart:

• Low competition compared to saturated platforms
• Higher profit margins due to less pricing pressure
• Fast approval process (if done correctly)
• Growing ecosystem of automation tools and fulfillment services

Step 1: Understand Walmart’s Dropshipping Policy

It's vital to realize, before getting started, that Walmart does not formally endorse conventional dropshipping (where purchases are delivered under your name by third-party providers). Rather, they want sellers to follow strict rules:

✅ Ship under your brand name or a neutral package

✅ Use reliable fulfillment services with fast delivery times

✅ Avoid selling from other marketplaces like Amazon or AliExpress

✅ Maintain full control over inventory and customer service

Failure to comply can lead to account suspension or delisting of products. This is why using vetted suppliers and Walmart automation services is critical to success.

Step 2: Apply for a Walmart Seller Account

To sell on Walmart, you’ll need to apply and get approved to become a Marketplace Seller. Here's what you'll need:

🔹 Basic Requirements:

• US Business Tax ID (EIN)
• DUNS number (optional but recommended)
• A professional email address
• Product categories and catalog info
• Previous marketplace experience (Amazon, Shopify, etc.)

💡 Tip: Emphasize your fulfillment capabilities and fast shipping times to improve your chances of approval.

Step 3: Choose the Right Dropshipping Model

There are three main dropshipping models for Walmart:

1. Direct-to-Consumer (DTC) via Suppliers

You list the products from a US-based supplier and they ship orders directly to your customers. This model works best when using Walmart-approved or private-label suppliers.

2. Private Label Dropshipping

You brand the products and work with white-label suppliers who allow you to use custom packaging and branding.

3. Using Walmart Dropshipping Automation Tools

You can connect your store to tools that automate inventory updates, order routing, and tracking.

Popular tools include:

• AutoDS
• Inventory Source
• Ecom Circles
• SkuGrid

Walmart automation services provided by managed ecommerce firms

Step 4: Find Reliable Suppliers

Choosing the right supplier is the foundation of a successful Walmart dropshipping business.

✅ Criteria for Ideal Walmart Dropshipping Suppliers:

• US-based with fast shipping (1-3 days)
• No branding or third-party materials
• Real-time inventory feeds
• Integration with automation tools
• Return-friendly policies

Some popular supplier platforms:

• SaleHoo
• Syncee
• Spocket
• CJ Dropshipping (US warehouse options)

Avoid using Amazon, eBay, or AliExpress as suppliers—Walmart actively checks for these violations.

Step 5: Automate Your Workflow

Manual dropshipping can quickly become overwhelming. That’s where Walmart dropshipping automation tools come into play.

Key Benefits of Automation:

• Automatic product uploads to Walmart Marketplace
• Real-time inventory sync to prevent overselling
• Auto-order fulfillment and tracking number updates
• Price monitoring and smart repricing
• Bulk editing of product listings

Top Walmart Automation Services:

AutoDS – End-to-end dropshipping tool with automation for Walmart

Inventory Source – Connects suppliers and syncs inventory

Stores Automation – A full-service Walmart automation agency

DSers + Shopify-Walmart Integrations – Ideal for hybrid stores

If you’re scaling, consider turnkey Walmart automation services, where agencies handle everything from account creation to supplier management.

Step 6: Optimize Your Product Listings

Walmart's algorithm (similar to Amazon’s A9) rewards high-quality listings. This is where on-page SEO and conversion optimization come in.

Best Practices:

• Use keyword-rich product titles (e.g., “Stainless Steel Water Bottle – BPA-Free, Leak-Proof”)
• Include bullet-pointed descriptions with key features
• Add high-resolution images and lifestyle photos
• Use keywords like eco-friendly, fast shipping, 2-day delivery, affordable, etc.
• Add accurate shipping & return policies

Make sure to test different titles and product attributes to improve CTR and conversion rates.

Step 7: Set Competitive Pricing & Fulfillment Policies

Walmart is a price-sensitive platform, so you must balance profitability with competitive pricing.

Use these strategies:

• Enable 2-day shipping if your supplier can support it
• Use dynamic repricing tools to stay competitive
• Monitor your Order Defect Rate (ODR) closely

Walmart favors sellers with fast shipping, low returns, and excellent customer service. Fulfilling these expectations leads to higher rankings and more visibility.

Step 8: Monitor Performance & Scale

Once your store is live, keep a close eye on your performance metrics:

• Shipping defect rate (must be below 2%)
• On-time delivery rate
• Customer response time
• Product reviews and feedback

When to Scale:

• You’ve automated 80% of order and inventory tasks
• You maintain a 99% order success rate
• You’ve validated at least 10+ winning products

At this stage, you can:

• Hire a virtual assistant
• Work with Walmart automation services providers
• Expand your product catalog
• Add new suppliers or private label SKUs

Common Mistakes to Avoid

🚫 Selling branded items without authorization

🚫 Using overseas suppliers with long shipping times

🚫 Ignoring Walmart’s packaging and branding guidelines

🚫 Neglecting customer service inquiries

🚫 Overpricing products to chase higher margins

Final Thoughts

Though only if you do it correctly, dropshipping on Walmart Marketplace in 2025 is more accessible than ever. You may create a scalable and successful online company by knowing the platform's particular policies, using Walmart dropshipping automation, and dealing with reliable suppliers.

Walmart provides a strong approach to stand out whether you are a seasoned Amazon seller trying to diversify or a young startup joining the eCommerce sector—if you are strategic, compliant, and consistent.