Becoming a Walmart Drop Ship Vendor
Drop Ship Vendors (DSVs) ship products directly to Walmart customers from their own warehouses. No inventory stored at Walmart DCs.
How Walmart Drop Ship Works
- Customer orders on Walmart.com
- Order routed to DSV via EDI
- DSV picks, packs, and ships the order
- Customer receives product (Walmart-branded experience)
- DSV invoices Walmart for payment
DSV Requirements
| Requirement | Detail |
|---|---|
| EDI capability | EDI 850 (PO), 856 (ASN), 810 (Invoice) |
| Ship speed | 2-day delivery to lower 48 states |
| Packaging | Walmart-compliant, no third-party branding |
| Tracking | Real-time tracking via EDI 214 |
| Fill rate | 95%+ |
| On-time shipping | 98%+ within 24 hours of order |
Shipping Standards for DSVs
- Ship within 24 hours of receiving the PO
- 2-day delivery to the customer (or as specified)
- Walmart-branded packaging (or plain brown box)
- No marketing inserts from your brand
- Tracking number provided via EDI within 4 hours of ship
Carrier Selection for DSV
| Carrier | DSV Suitability | Notes |
|---|---|---|
| FedEx | Excellent | 2-day nationwide coverage |
| UPS | Excellent | 2-day nationwide coverage |
| USPS | Good | For lightweight items |
| Regional carriers | Moderate | Limited coverage |
DSV Compliance Metrics
Walmart monitors DSVs on:
- On-time ship rate: Must ship within SLA (typically 24 hours)
- Fill rate: % of orders fulfilled completely
- Cancel rate: % of orders cancelled by DSV (keep below 2%)
- Delivery defect rate: Late deliveries, wrong items, damage
DSV vs WFS vs 1P
| Factor | DSV | WFS | 1P (Wholesale) |
|---|---|---|---|
| Inventory location | Your warehouse | Walmart FC | Walmart DC |
| Shipping responsibility | You | Walmart | Walmart |
| Pricing control | You set | You set | Walmart sets |
| Investment required | High (logistics) | Medium (inventory) | Low |
| Customer service | You handle | Walmart handles | Walmart handles |
Need DSV Logistics Support?
Indray offers warehousing and distribution solutions optimized for Walmart DSV operations, including 2-day fulfillment capability. Contact us.
