Walmart Dropshipping: Is It Right For You?

Michelle Thompson

June 10, 2021

Amazon may be the biggest shark in the ecommerce ocean, but it’s by no means the only one biting.

Walmart has proven itself to be a rapidly-growing competitor in the ecommerce industry, increasing its online sales by 79% in the 2021 fiscal year. As Walmart continues its dramatic growth, brands are quickly realizing the importance of selling on and many are joining Walmart’s ranks through the Walmart Drop Ship Vendor program.

We’re here to answer all your questions about Walmart dropshipping and help you decide which selling model is best for your brand to start (or continue) selling on

How is dropshipping different from other Walmart selling models?

To better understand Walmart dropshipping, it may be helpful to first explore the various selling options available to brands who sell on

1P Selling through Walmart Fulfillment Services

The first option is Walmart 1P. As is the case with 1P selling on Amazon, Walmart 1P simply requires you to ship your product to a Walmart Fulfillment Center, and Walmart takes care of the rest. As a first-party seller, Walmart controls everything about your product—your listing, pricing, shipping, returns, and customer service—making things easier for your ecommerce team and winning your product the instant credibility that comes with the Walmart name. Walmart also calls these sellers Warehouse Suppliers.

Walmart 3P selling through self-fulfillment

Walmart 3P sellers, on the other hand, sell their products on Walmart’s site as a third party and control their own Walmart listings and inventory. Both 3P models require more work on your end but in return give you significantly more control over your listing and brand.

Some 3P vendors sell on the Walmart marketplace, which means they’re completely in charge of content optimization, advertising, marketing, and customer service. This model is ideal for businesses with abundant resources that place a high value on how their brand is portrayed and priced across platforms. In this case, Walmart is a useful platform for brands to reach more customers but plays a minimal role in the promotion and fulfillment of the products.

3P Selling through Walmart Fulfillment Services

Other 3P vendors sell with the help of Walmart Fulfillment Services (WFS). These vendors control their own listings and pricing but aren’t responsible for fulfilling orders. Instead, they ship their products to Walmart, which then stores inventory and fulfills orders. While these vendors still have the increased control that comes with a 3P model, their products also boast a badge on their listing that states “Fulfilled by Walmart,” immediately boosting listing credibility. Additionally, sellers benefit from Walmart 2-shipping nationwide.

Walmart Dropshipping

Walmart dropshipping is a hybrid between the 1P and 3P models of selling. Walmart purchases your product from you at wholesale price and lists the product on its website. Walmart then handles the listing optimization, pricing, and anything else customers see on, just like it does for 1P sellers. But unlike the 1P model, you as the seller hold all your own inventory and are responsible for shipping orders made on, either directly to the customer or to a Walmart store.

Even though you’re responsible for shipping your products, Walmart will pay for all product shipping, including two-day shipping. You are simply responsible for getting the item out the door and Walmart handles the rest. Becoming a Walmart drop ship vendor—also known as a Walmart DSV—gives your brand both the increased control that typically accompanies a 3P model and the convenience that is the hallmark of a 1P model.

Pros and cons of Walmart dropshipping

As with every selling model, there are pros and cons to Walmart dropshipping. It’s important for each brand to weigh these considerations to decide which avenue will be the most profitable for their products. It’s worth noting that a vendor can sell some products through dropshipping and others as a marketplace seller, so you may need to evaluate whether specific products are better suited for one model over the other.

Pros of Walmart dropshipping

Let’s start by discussing the benefits of dropshipping. Selling your product under Walmart’s name instills consumer trust in your listings. Shoppers are more likely to buy a product shipped and sold by Walmart over a product sold by an unfamiliar brand.

Since Walmart handles the listing optimization, Walmart teams also take care of the listing content and ensure the listing is getting the highest organic search traffic possible. Products that Walmart sells and ships get an automatic boost on Walmart handles all product marketing, which further boosts dropshipping products to the highest rank possible, and makes it easier for your product to win the Buy Box.

Another perk of dropshipping is that Walmart pays to ship products to the consumers. This relieves a significant price burden for brands, especially because Walmart pays for 2-day shipping most of the time. If your product is expensive to ship, this benefit alone may be enough to make Walmart dropshipping worth it for your brand.

Cons of Walmart dropshipping

Even with all the benefits, dropshipping also comes with a few drawbacks. When you become a Walmart drop ship vendor, you sell your products at wholesale prices, so your margins aren’t as high as they would be if you cut out the middleman and sold your products directly on Walmart’s marketplace. You also can’t make sales in bulk—unlike a 1P model, in which Walmart buys your product in bulk from you, Walmart drop ship vendors sell their products only as quickly as consumers buy them.

How does Walmart dropshipping compare to dropshipping through other online marketplaces?

The basic idea of Walmart dropshipping mirrors the dropshipping we see on other sites, like Amazon—as a drop ship vendor, it’s up to you to directly ship your product to your consumers once an order has been placed online.

But there are a few distinctions unique to Walmart dropshipping that we don’t see elsewhere. For one, Walmart handles all listing optimization for its dropshipping vendors. Additionally, like we mentioned earlier, Walmart completely covers shipping costs for its drop ship vendors to ship items quickly. Other ecommerce sites, like Amazon, may offer discounted shipping rates for its dropshipping vendors, but it’s ultimately up to the brand to cover shipping prices. This makes the cost of selling on Amazon higher when selling through the dropshipping model.

Another benefit unique to Walmart dropshipping is that customers can choose to pick up the product from one of Walmart’s almost 5,000 U.S. stores. In this case, the vendor ships the product to the Walmart store instead of directly to the consumer’s home or mailbox. This option leverages Walmart’s extensive brick-and-mortar network and offers another convenient and appealing option that may improve customer experience.

How can I become a Walmart drop ship vendor?

If you’ve decided that the Walmart dropshipping program is the best choice for your brand moving forward, you must first meet the DSV program requirements and apply online to get started. Walmart’s website has detailed, step-by-step instructions to help make the onboarding process as smooth as possible.

Need help deciding how to choose the best Walmart selling model for your brand? Struggling to maximize your profits while selling on Pattern is here to help. Contact us for more information or set up a free consultation today!

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Amazon's Sponsored Product ads

What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

Utilizing Amazon sponsored ads can be a smart way for a brand to drive greater traffic to a product listing and start increasing sales. While many brands still struggle to manage their advertising strategies, 30% of Amazon brand sellers increased their advertising budgets in 2022. As ecommerce executives (or even on the nose with VPs of ecommerce?)  approve their 2023 advertising budgets, it may be worth it to take a look at Amazon’s advertising products and the benefit they may have on increasing conversions. 

​​Pattern is the premier ecommerce accelerator with all of the expertise, data-driven insights, and technology brands need to gain control on Amazon and maintain their competitive niche. We know the high value of and how to utilize Amazon’s advertising products to drive the most traffic and conversions to benefit and accelerate your brand.

Here are Amazon’s three main advertising products you should know about in order to drive listing traffic to your products and increase conversions: 

For a brand executive who is selling their product on Amazon, you may not already know the differences between campaign type, so we will walk you through the differences and uses for each of these three ad campaigns.

Sponsored Product Ads

Sponsored Products are a mid-funnel advertising strategy that gives visibility to products above the top organic listings (see example below). This strategy uses custom keywords to get products in front of the consumers who are searching for them, however it can be used to capture new audiences as well.These cost-per-click (CPC) ads require no additional copy or images, but usually receive the most interaction of the campaigns and need to be monitored closely.

As you can see, these ads look just like an organic listing, however they say, “Sponsored,” on them. These types of ads can be especially effective forms of advertising because they tend to blend in with the organic results around them. With Sponsored Products, you can get your products in front of qualified customers who are searching for your product in such a way that doesn’t make them feel like they are being served an advertisement.

Sponsored Brand Ads

Sponsored Brand Ads are a top-of-funnel brand awareness tool and function on keywords. This ad format helps show a customer what they may be in need of and where to get it.  Commonly used to promote product lines or best sellers, a Sponsored Brand ad shows up as a banner above the search results (see example below). This type of ad requires that the brand showcase at least three separate products.

Unlike other campaigns used on the Amazon platform, Sponsored Brand ads require ad copy and a unique logo. These ads also can take customers to a custom landing page, or a page on the brand store, that way they get a clear and overall picture about who your brand is, what other products you sell, and why they can trust your brand

Sponsored Display Ads

Sponsored Display ads can be a tactic for top, middle, or bottom of the advertising funnel due to its varying targeting abilities. Although most commonly found under the bullet points of a detail page, these ads can also show in emails, newsletters, and even more locations off platform.

Unlike the previous ad campaigns discussed, sponsored display ads can target shopping behaviors, like repeat purchasers, similar product purchasers, and even people who viewed the detail page but did not buy. Sponsored Display ads help customers discover your brand, drive awareness, and create loyalty. 

The example above shows just one of the many placements Sponsored Display has.

Accelerate Your Sponsored Products With Pattern 

Rather than competing with each other, each of the three sponsored ad products focus on a different section of the sales funnel, allowing you to target your customers and hit your sales numbers, all while edging out possible competitors. When brands use these advertising campaigns, they can better optimize their ad budget to improve ROAS and build revenue. 

At Pattern, we have all the resources to help your brand build successful advertising and digital marketing campaigns on Amazon so you can increase traffic and conversions, which will in turn increase your revenue

Global Ecommerce Weekly News: 27th September 2022

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters]( Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail]( --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News]( Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News]( --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail]( DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail]( The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](

Top 5 Ways to Prepare for Peak with Google Ads

Top 5 Ways to Prepare for Peak with Google Ads

Peak season is almost upon us and with all signs pointing to it starting earlier than ever, with Christmas gifting searches now ramping up in August and September, it’s time to start preparing for peak. In this article, we’re sharing our top five tips for planning and preparing for peak season with Google Ads and the strategies required to get your Paid Search ready so you can drive success over this crucial period.

1. Go Early

In 2021, gifting search terms started increasing in popularity in August. The general trend is that people are looking, researching and weighing their options early, so it’s best to start your Paid activity early to ensure that you’re capturing that early research traffic. This will help drive revenue alongside aiding those consumers who are in their research phase.

From 2020 to 2021, spend during Cyber Week actually only rose 2% but in the weeks leading up to it, it increased by 16%. However, Cyber Week is still the biggest period during the latter half of the year, accounting for 23% of all online spend by consumers over peak. Being prepared and starting early will help you to maximise your time during this period.

2. Get Ready for Privacy Changes

 According to Google, 48% of global consumers have stopped buying or using a service due to privacy concerns. Privacy is front of mind when consumers are shopping online and we know that Google is phasing out 3rd party cookies in 2023. This is going to make it much harder to track users online and it’s something that brands need to think about this now – waiting isn’t an option.

From a Google Ads point of view, you want to ensure you have set up the Google Ads tag across your site and have enabled ‘Enhanced Conversions’, which ensures all conversions are tracked and allows you to monitor other actions such as ‘Add to Cart.’ This is relatively easy to set up, especially if you use ‘Google Tag Manager’.

It’s also vitally important that you build up your first-party data during this time as this is data you own and it can be used when targeting consumers that have provided your brand with their email address. Pattern’s own experience shows that by segmenting and using first-party data, you can see a 10% improvement in revenue and ROI.

3. Ensure Consumers Can Discover your Brand

A full-funnel approach is now more important than ever as consumers become more discerning and have more choices than ever of where to shop.

Pattern has seen success with Google Ads’ ‘Discovery Campaigns’ (image-based ads that appear on Google platforms such as Gmail and the Google app), which have driven success both from a traffic and revenue perspective.

The performance of these campaigns is significantly enhanced by adopting a segmented and nuanced approach to first-party data and incorporating these into your campaigns. Other options for a full-funnel approach include YouTube and testing bidding on keywords that are more representative of the research phase. (e.g. ‘best baby clothes’ for a baby clothes brand)

4. Get Moving with Performance Max

Earlier this year, Google announced that they were moving away from Smart Shopping and launched Performance Max. This is a new campaign type that incorporates features and placements from Smart Shopping but expands them onto other platforms such as Gmail but also alternative creative options, such as images and videos.

Since Google has already started automatically upgrading Smart Shopping campaigns to Performance Max, expect to see some fluctuations in the first 2 weeks following the switch over but results generally seem positive. We recommend upgrading sooner rather than later to limit any potential impact to peak period.

5. Flight Budgets Accordingly

Peak period will be even more competitive than in 2021 and you’ll need your budgets to support this period, we recommend boosting budgets in October to start capturing that early peak traffic. As we enter November and the Cyber Period, start early and make sure you are capturing those consumers looking for early bargains, ensuring you are being nimble in your optimisations and reacting to the data that you are seeing.

Overall, peak period is vital to help drive your sales and by preparing early, you will see strong results and drive success for your brand. If you want to discuss how your brand can navigate this next peak period, contact us to discuss your options with our performance team now.