Walmart DSV Program (What It Is, Getting Approved, Drop Shipping + More)
You’ve probably heard of third-party sales, but have you heard of second-party shipping?
This is also known as drop shipping, and Walmart, the world’s largest retailer, has a program that allows sellers to take advantage of the practice.
But what is the Walmart Drop Ship Vendor program? Here’s what I found!
What is the Walmart DSV Program?
The Walmart Drop Ship Vendor program is for experienced eCommerce sellers who own and operate their own warehouse space and have access to a large inventory. In turn, Walmart buys the inventory, sells it online, and covers the shipping costs, while the original supplier does the actual shipping under the Walmart brand.
Read on to learn more about how the Walmart DSV program works, what it takes to get approved, and where you can sell on Walmart!
How does the Walmart DSV program work?
Dropshipping is defined as an inventory fulfillment method in which a retailer (in this case, Walmart) buys inventory from third-party suppliers at wholesale prices and sells it at a profit.
The retailer provides the sales platform; the third-party provider performs the shipping. In this way, drop-ship is effectively a hybrid of first-party and third-party sales.
However, Walmart runs its program a little differently than other major retailers like Amazon.
For starters, they run serious applications.
Just like their Marketplace seller registration, you will need a lot of documentation to prove that you are a trusted and experienced seller they want to do business with (see below).
Once you are approved, you will begin the onboarding process where you will provide more documentation about your warehouse.
Next, you’ll set up at least one item using the Item 360 program (unless you sell clothing, gift cards, services, or imports).
Once complete, you will receive an email notifying you that your inventory is live on the website. (For a more detailed look at onboarding, check out this page here.).
Once sales start, you’ll start using Walmart packaging to fulfill and ship those orders. Of course, as part of DSV, Walmart covers all shipping costs.
Here are some considerations to help you stand out:
- According to Zentail.com, offering two-day shipping is the way to go—even better if it’s free, since shipping won’t cost you anything after all
- While you don’t have as much control over your product descriptions as a Marketplace seller, you’ll still want to watch how you upload your inventory.
- Make sure to list all the most important information first (make, model, etc.)
- Capture high-quality images
- Consider including a demo video
- While Walmart does everything it can to ensure traffic reaches your product, you should work hard to ensure your product is seen
How do you get approved for the Walmart DSV program?
Walmart is notoriously picky about who it allows on its sales platform, and the DSV program is no exception.
In most cases, you will need documents such as tax ID number, DUNS number, non-PO Box business address, bank information, etc.
Not only that, but you have to show Walmart that you are an experienced seller who excels in quality products and excellent customer service.
If you think you are ready to start the registration process, you can find that page here.
Is Walmart’s dropshipping business profitable?
If you’re just starting out with a warehouse or selling a lot of merchandise, Walmart Dropshipping might not be the right path for you to turn a profit.
In order to make money with Walmart DSV, you have to sell them a lot of inventory.
That’s because, even though Walmart pays for shipping, the process still consumes valuable resources of money and time.
Walmart DSV is most likely to be the most profitable supplier to large, established warehouse suppliers that can quickly move product across the country with minimal errors.
Can you ditch shipping and sell on Walmart’s marketplace?
You can take advantage of the DSV program and sell on Walmart’s marketplace, and the ideal setup for some vendors is to be able to do both at the same time.
However, according to the Walmart Supplier Help FAQ, you cannot sell the same product on Marketplace as part of your DSV inventory.
To learn more about the Walmart program, you can also review our related guides on who Walmart uses for shipping, the Walmart Marketplace return policy, and the Walmart tax exemption program.
in conclusion
Walmart’s DSV program is a great opportunity for established suppliers with existing warehouse space.
By selling inventory to Walmart at wholesale prices, and then keeping operating costs low, suppliers can make healthy profits while benefiting from Walmart’s superior online presence.
