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Why Walmart dropshipping is NOT safe

Dropshipping is a distribution model where the retailer neither stocks nor ships customer orders directly. Instead, they work with suppliers that handle that side while they take care of the customer service. Since Walmart is the new kid on the block and offers lower competition, dropshippers have flocked to the platform.

Walmart.com provides sellers with a large, less crowded market than Amazon.com. Sellers can get started quickly and with no inventory requirements.

The report claims that by 2021, the eCommerce market in the United States, led by Walmart, will have grown by 8%. Amazon currently holds a large portion of those sales but Walmart is catching up quickly and has the infrastructure to do it. This year Walmart is expected to do 7.1% of all eCommerce sales.

Walmart Dropshipping

Dropshipping has always been a large piece of the Amazon ecosystem and is one of the largest selling strategies on Shopify so it was only natural that when Walmart opened its doors, sellers flocked there. As mentioned, dropshipping requires no inventory and you can backpack onto the millions of current Walmart users.

Advantages of Walmart Dropshipping:

  • Sell a big variety of products
  • Scale faster
  • Lower barrier to entry
  • No inventory

Is Walmart Dropshipping Safe?

For mostly everyone on the platform does it, no it is not and they are much more strict than Amazon when it comes down to it. Walmart allows dropshipping in three different ways:

  1. Become a Drop Ship vendor – Walmart has a program where you become the supplier of the company you operate. You are essentially the manufacturer or wholesaler to Walmart and supplying goods to them. You ship to their warehouse or deliver right to the customer
  2. Reselling Walmart products – Reselling Walmart products has you buying inventory upfront, shipped to you then send to your customers. This way doesn’t benefit you from the traditional way of dropshipping
  3. Sell dropshipped products – using approved dropship suppliers, you can sell on the marketplace. Using suppliers like Amazon or other similar companies is not permitted.

Essentially most dropshippers fall into the category that is not allowed and therefore get their account terminated. As mentioned, Walmart is much more aggressive in their dropshipping suspension than Amazon is so you need to be careful if you are violating their terms.

Walmart Dropshipping Automation

Every company that offers a Walmart Automation program is doing so against Walmart’s terms. Your account might not get suspended right away, but it’s only a matter of time until it does then you are stuck with all of your credit card bills.

Walmart also will hold all of your current sales volumes.

If you are looking to take advantage of Walmart while it is still smaller, you NEED to find a trusted company that has experience running Walmart stores that are NOT against their terms.

We are the only company that has this experience as others will leave your account at risk.

With us, you are able to take advantage of the benefits of dropshipping but you won’t need to constantly worry if your account is safe.

You get the best of both worlds!

If you would like to see how it works, visit us at www.lunarautomations.com