How to Dropship on Walmart Without Getting Suspended
Dropshipping on Walmart Marketplace presents a powerful opportunity for ecommerce sellers to reach a wide customer base. However, unlike other platforms, Walmart holds its sellers to strict performance and policy standards. To succeed without risking suspension, it’s essential to follow best practices and fully understand the platform’s expectations.
Is Dropshipping Allowed on Walmart?
Yes, Walmart allows dropshipping as long as sellers maintain control over branding, fulfillment, and customer service. Walmart expects a consistent and professional experience for its shoppers, and will penalize sellers who fail to meet performance benchmarks.
Key Rules for Dropshipping on Walmart
- Be the Seller of Record
- Your name must appear on all invoices, packing slips, and customer communications.
- The end customer should never see your supplier’s name, logo, or contact details.
- Use Approved or Compliant Suppliers
- Partner with suppliers who provide plain packaging or allow your branding.
- Avoid dropshipping from other retailers (e.g., Amazon, Target, Home Depot).
- Meet Performance Standards
- Maintain on-time shipping rate above 95%.
- Keep order defect rate (ODR) below 2%.
- Maintain valid tracking rate above 99%.
- Provide Fast and Reliable Shipping
- Use 2-day or expedited shipping when possible.
- Ensure your suppliers ship from U.S.-based warehouses for quicker delivery.
- Handle Returns and Customer Service
- You must accept returns according to Walmart’s return policy.
- All support should be handled directly by you, not the supplier.
What Gets Sellers Suspended?
- Retail arbitrage (dropshipping from another retailer)
- Late shipments or frequent order cancellations
- Packages with third-party branding
- Poor customer service or unresolved complaints
- Failure to update tracking or order status
Walmart’s automated systems will flag and suspend underperforming accounts without warning.
Best Practices to Avoid Suspension
- Use Walmart-compliant automation tools to sync listings, track inventory, and update order status.
- Work with verified dropshipping suppliers that specialize in Walmart fulfillment.
- Audit packaging and shipping speeds before onboarding new vendors.
- Set realistic handling and shipping times to avoid missed SLA penalties.
- Monitor your Seller Scorecard regularly for any issues.
Final Thoughts
Walmart is a high-opportunity marketplace, but it’s also one of the most unforgiving. If you want to dropship successfully:
- Stay fully compliant
- Maintain excellent performance metrics
- Partner with reliable, white-label suppliers
By building a transparent, efficient operation, you can scale profitably on Walmart without risking account suspension.