In recent years, Walmart dropshipping has exploded in popularity as a seemingly easy way to make money online. Entrepreneurs and side hustlers alike have rushed to platforms like Shopify and automation tools, hoping to tap into Walmart’s massive customer base. But is Walmart dropshipping really the golden opportunity it appears to be? Or are there hidden pitfalls that could leave you drowning in debt, bans, and frustration?
What Is Walmart Dropshipping?
Dropshipping is a business model where sellers list products for sale without actually holding inventory. When a customer places an order, the seller purchases the product from a supplier, who then ships it directly to the buyer.
Walmart allows third-party sellers to list products on its marketplace, similar to Amazon. However, Walmart has strict policies regarding dropshipping, and breaking these rules can get your account permanently banned.
There are two main methods people use to dropship on Walmart:
- Retail Arbitrage (Risky & Against Policy) – Buying items from Amazon, Target, or other retailers and reselling them on Walmart.
- Wholesale Dropshipping (More Legitimate) – Partnering with authorized suppliers and manufacturers to fulfill orders.
Why Walmart Hates Dropshipping (And Might Ban You)
Unlike Shopify or eBay, Walmart is not dropshipper-friendly. They are obsessed with customer experience and low prices, meaning they don’t tolerate unreliable sellers or inflated prices.
Here’s why Walmart might ban your dropshipping business:
1. Retail Arbitrage is Strictly Prohibited
Walmart’s seller policy explicitly states that items must be shipped directly from a warehouse or supplier—not another retailer. If you’re using Amazon, Home Depot, or another store to fulfill orders, you are violating Walmart’s policies.
Walmart actively scans orders to detect signs of retail arbitrage, and once they catch you, they will suspend or permanently ban your account.
2. Slow Shipping & Tracking Number Issues
Walmart expects fast and accurate shipping. Many retail-based dropshippers run into problems because:
- Their supplier takes too long to process orders.
- The tracking numbers don’t match Walmart’s required format.
- Walmart’s algorithm flags slow or inconsistent deliveries.
3. Customer Complaints & Returns Can Kill Your Store
Dropshipping often leads to poor product quality, mismatched descriptions, or long shipping times—which results in customer complaints.
Since Walmart prioritizes customer satisfaction, too many complaints can lead to account suspension. Even if you resolve them, your store’s performance metrics will take a hit.
4. Price Wars & Slim Profit Margins
Walmart’s algorithm automatically lowers prices to stay competitive. If you’re dropshipping from a retail store, your costs are already high—so when Walmart forces you to drop your price, your margins shrink to almost nothing.
The Dark Side of Walmart Dropshipping Automation
Many “gurus” and automation services promise hands-free Walmart dropshipping, claiming you can make thousands a month with minimal effort.
But here’s the ugly truth:
-
Most Automation Services Violate Walmart’s Policies
These services often use retail arbitrage, meaning your store is at risk of getting banned once Walmart catches on. -
They Charge Huge Fees
Automation agencies often charge $10,000+ upfront, along with monthly fees and revenue splits. If your store gets suspended, you’re left with nothing. -
You Lose Control Over Your Store
Many automation companies use their own supplier network, meaning you have zero control over product quality, pricing, or order fulfillment. -
High Risk of Lawsuits & Tax Issues
If an automation service uses fake business information or shady tax setups, you could face legal troubles. Walmart requires proper tax compliance, and if your store is flagged, you might owe thousands in unpaid sales tax.
How to (Legally) Dropship on Walmart Without Getting Banned
If you’re serious about making money on Walmart without risking account suspension, follow these steps:
1. Use Legitimate Suppliers (Not Retailers)
Instead of buying from Amazon or Target, work with authorized wholesalers or direct manufacturers. Some legit suppliers include:
- CJ Dropshipping
- Spocket
- Printful (for print-on-demand products)
By working with real suppliers, you avoid Walmart’s retail arbitrage banhammer.
2. Get a Business Tax ID & Proper Documentation
Walmart requires sellers to have a valid business entity and tax documentation. Without this, your account could get flagged.
3. Keep Shipping Fast & Reliable
Use suppliers that offer fast and consistent shipping (preferably under 3-5 days). Walmart’s algorithm favors quick deliveries, so slow shipping will hurt your performance.
4. Price Your Products Strategically
Since Walmart loves low prices, make sure your supplier offers wholesale pricing. Avoid marking up products too much, or you’ll lose to competitors.
5. Monitor Your Metrics & Avoid Complaints
Regularly check your seller dashboard for order defect rates, shipping issues, and return rates. If your metrics drop, fix issues immediately before Walmart takes action.
Is Walmart Dropshipping Worth It in 2024?
If you’re thinking of Walmart dropshipping as a quick and easy way to make money—think again. Walmart has zero tolerance for policy violations, and most dropshippers fail within months due to bans, low margins, and automation scams.
However, if you follow a legitimate wholesale model, keep your shipping fast, and maintain good seller performance, it is possible to build a successful Walmart store.
But let’s be honest—there are easier and less risky ways to make money online, like:
Starting an Amazon FBA business (Amazon is way more dropshipper-friendly)
Building a Shopify store with private-label products
Selling on eBay (which is more forgiving for dropshipping)
So before you dive into Walmart dropshipping, ask yourself: Is it worth the risk?
Final Verdict: Proceed With Caution
Walmart dropshipping can work, but it’s not for everyone. Most sellers who rely on retail arbitrage get banned, while automation services often scam people out of their money.
If you’re serious about it, follow Walmart’s rules, use real suppliers, and focus on long-term sustainability. Otherwise, you might find yourself wasting time, money, and effort on a failing store.
