There are a few types of Walmart suppliers: local, national, and E-Commerce. You can read about each of them on Walmart’s site. Below we will focus on Walmart E-Commerce suppliers with an emphasis on Walmart DSV (Drop Ship Vendors).
It is important to note that online suppliers utilize almost the same onboarding process as Walmart’s National Suppliers.
There are three ways to sell on Walmart.com:
- Ship to a Walmart warehouse (The Walmart Warehouse Supplier Program)
The supplier ships products to Walmart Fulfillment Center, Walmart houses the products and ships to the customers. This means sellers ship their products directly to Walmart warehouses before customer orders an item.
- Ship to Customer as a Walmart DSV (The Drop Ship Vendor program)
Sellers keep products in their warehouses and list them on Walmart.com.When a customer places the order, the seller ships it to the buyer with a Walmart packing slip. Walmart can also request that a seller ship it to Walmart’s retail location when a buyer chooses the “pick up in store” option. A big difference here between DSV and regular 3P marketplace sellers is that Walmart covers the cost of the shipping for DSV, so there is no shipping expense for Drop Ship Vendors.
- Ship to Customer as 3P (3rd Party Seller)
It is relatively easy to become a Walmart 3P merchant. You can apply to become one here. As a 3P Walmart seller, merchants ship products directly to buyers, sellers are responsible for their shipping costs, and when listings compete with Walmart, the seller’s listing always loses. Walmart’s offer will be displayed as the one winning the buy box.
DSV vs. 3P
There are several benefits of being a Walmart DSV Seller in comparison to 3P:
- Sold by Walmart
As a Walmart DSV seller, your products are listed as “Sold by Walmart,” which helps your product’s credibility.
- Free Shipping
Your products are eligible for Free Shipping and (even better!) Walmart covers all shipping charges.
- Ship to Store
Your products are eligible for “Ship to Store,” a popular option in which buyers can pick up their products from their local Walmart.
- Buy Box
If another 3P merchant is selling the same product, as a DSV seller your product takes priority and is more likely to get the Buy Box. This increases conversion and puts you in a winning position against 3P sellers.
DSV sellers have more credibility to request Walmart to update product page information, which is often a challenge.
To become a DSV seller, your company needs to pass various verification steps and have a proven track record of both great customer service and quality products. While 3P sellers are also required to keep high standards, it can be even more demanding for DSV merchants.
How to apply to become a Walmart DSV?
Before you begin, you need to know that completing the registration process for Walmart DSV or warehouse supplier does not guarantee approval.
A seller will need to provide the required information and documents to tell Walmart more about their company. This is the checklist with the information that domestic suppliers should be prepared to provide in order to become a fully qualified supplier of Walmart.