Dropshipping from Walmart: what's allowed and what isn't

Can you dropship on Walmart? Yes, but only one kind. Walmart's Marketplace packaging policy allows drop-shipping in manufacturer boxes or by the item's manufacturer, as long as the packaging follows its rules. What Walmart prohibits is buying the product from another retailer and having that retailer ship it straight to the Walmart customer. Dropshipping from Walmart breaks the same rule in reverse: Amazon and eBay don't allow you to order from Walmart.com and have it shipped to your buyer. So a lot of "Walmart dropshipping" advice online describes something the platforms ban. Here's what Walmart actually allows, what the other marketplaces say, and how to tell whether a dropshipped product can make money.

Does Walmart allow dropshipping?

Walmart's Marketplace packaging policy spells out what's allowed and what isn't:

In short, the Walmart dropshipping policy permits supplier dropshipping and bans retail-to-retail dropshipping. Your package can't show another retailer's name, box or receipt.

Why dropshipping from Walmart to Amazon breaks the rules

"Walmart to Amazon dropshipping" means listing an item on Amazon or eBay, then buying it on Walmart.com with the customer's address when it sells. Each part of that breaks a rule:

• Amazon's drop shipping policy requires you to be identified as the seller on every order. Buying from another online retailer, such as Walmart, and having it ship to your Amazon customer isn't allowed.
• eBay's drop shipping policy says listing an item and then buying it from another retailer or marketplace that ships directly to your customer isn't allowed.
• The buyer gets a Walmart box, Walmart packing slip or Walmart's receipt, which shows they could have paid less elsewhere. That leads to complaints, returns and account risk.

The reverse is also out: listing on Walmart Marketplace and fulfilling from Amazon or Target orders breaks Walmart's rule above.

Legitimate dropshipping on Walmart Marketplace

Real Walmart dropshipping is a supplier relationship. You list the product on Walmart, and a manufacturer or wholesale supplier ships the order for you in plain or manufacturer packaging. You stay the seller: you set the price, answer the customer and handle returns.

What a good Walmart dropshipping supplier needs to offer:

• Fast, reliable shipping. Walmart measures every seller on on-time delivery (90% or above), valid tracking (99% or above), cancellations (2% or below) and late shipments (5% or below). A slow supplier puts your account at risk.
• Real-time stock. Selling something your supplier can't ship leads to cancellations.
• Neutral packaging with no supplier promos, supplier invoices or branding.
• Authentic, authorized goods with invoices, since some brands are restricted on Walmart.
• Margin after fees. Supplier price plus shipping has to leave room for Walmart's referral fee. See Walmart seller fees.

Walmart also has a drop ship vendor (DSV) program. That one is for suppliers selling to Walmart itself: items show as sold by Walmart, and the supplier ships orders from its own warehouse. It's not a Marketplace seller program.

What is Walmart 2-step dropshipping?

Walmart 2-step dropshipping means buying the item from a retailer, having it shipped to you or a prep center, then repacking it and shipping it to your customer yourself. Because you're the shipper, it avoids the "another retailer ships to my customer" problem. It still has problems:

• Two shipping legs make on-time delivery hard to hit.
• You pay retail for each unit, which leaves little margin after fees.
• You still can't pass on another retailer's packaging, receipts or inserts.
• If the retailer runs out or raises its price after your sale, you cancel or take a loss.

At that point it's really online arbitrage without inventory, and buying stock up front, then sending it to WFS, is usually more reliable.

Is Walmart dropshipping profitable?

It can be with a real supplier and products that have room for the referral fee, shipping and returns. It rarely is when you're buying at retail. Check three things before listing a dropshipped item:

1. Profit at the current Buy Box price. You'll compete with sellers who hold stock and ship fast, often through WFS. Check the price with a Walmart profit calculator.
2. Who else sells it. If Walmart sells the item or several sellers have deep stock, the Buy Box will be hard to win.
3. How fast it sells. A sales estimate tells you whether the listing is worth the setup.

The Margenos Chrome extension shows all three on any Walmart.com product page: fees, profit and ROI at your cost, every competing seller with stock and WFS status, and sales estimates. You don't need a seller account to use it.

Sources: Walmart: Packaging policy · Walmart: Seller performance standards · eBay: Drop shipping policy · Jungle Scout: Amazon dropshipping policy summary · 8th & Walton: Walmart DSV. Walmart changes its rules; confirm in Seller Center.