Are Walmart Automation Stores Legit?


Passive income is the new talk of the town. Millennials are continually seeking opportunities to set up a business model that would fetch them some revenue but, more importantly, passively. This is where online businesses such as Amazon and Walmart Automation come into the picture!

Most people are familiar with selling products on Amazon and Walmart. But have you heard of the Walmart Automation business model? This model, if executed properly, can generate handsome revenues by outsourcing everything; at least, that’s what several individuals claim!

But we’re here to investigate such claims! If it were as legit as people claim to be, why are terms like ‘Walmart automation scam’ circulating in the market? So, are Walmart automation stores legit? The answer is a bit trickier and complicated than one would have expected. That said, we’ve tried to answer this question in a relatively straightforward manner in succeeding paragraphs, so keep reading!

What is Walmart Automation?

Walmart Automation is a “ready to move in” business model that removes the hassle of operating a seller store in Walmart’s online marketplace. Right after setting up an eCommerce store with your LLC and credentials, the managing part will be done by experts.

After successful registration to the program, a user gets a fully managed Walmart dropshipping store. After that, as the name suggests, automation allows users to earn passive income through automating the whole buying and selling process; there’s no hard work and blood & sweat-loss at your end per se. You just have to invest for initial registration and maintain a credit line, which we’ll discuss later.

Moreover, you don’t even have to find manufacturers, sellers, and delivery partners to run your business–the service provider manages all such aspects. And whenever you (or rather your business) sell a product, you get a percentage of the profits made. 

Understanding the Walmart Automation Model

The Walmart automation model sounds lucrative and profitable so far, or is it simply too good to be true? Before jumping to conclusions, it’s advisable to do in-depth research on the service provider. After all, businesses such as this do exist, but it all comes down to the individuals you’re dealing with. A thorough calculation will ensure that your hard-earned money doesn’t fall into the wrong hands. 

To truly understand whether Walmart automation is worth it, we need to break down the entire Walmart automation business model to get some clarity.

How Much Does Walmart Automation Cost?

A significant deterrent to getting started in this business is its joining costs, ranging from $10,000 to $30,000. Note that this cost mainly depends on the automation service provider you choose. 

Pro Tip: Don’t settle for the cheapest automation provider as they’re likely to be bogus.

The sum is indeed huge, especially for someone starting a new endeavor. But this also removes several, if not all, hurdles associated with and costs related to setting up your own business.

In addition to this, you’ll also need a revolving credit line of around $20,000 to place orders and earn from them. Furthermore, you also need to register your business.

How Does Walmart Automation Work?

There’s no need to maintain a physical inventory in the Walmart automation model, so one can say that it closely relates to retail arbitrage, where brokers earn margin from whatever they sell without actually owning any equity in the business. 

Here’s an example to better understand the model:

Suppose a fitness band is performing well and there’s a massive demand for its product. The automation experts identify such items for you. 

If the fitness band costs $100 in other marketplaces such as Amazon, you list the fitness band in Walmart Marketplace at a higher price, let’s say $120.

Whenever your system receives a buy order for the fitness band, it fulfills this order by placing an order for the same product from Amazon. Next, the order will be delivered directly to the client. Once the order cycle is complete, you make $20 minus commission. 

Walmart Automation Alliance will do all the math for you–from selecting the products to delivering them. They also take care of the customer support part to some extent. That said, you’ll remain in control of your seller account. 

How Much Money Can You Make Through Walmart Automation?

Having invested a hefty amount, failure to generate regular income will indeed be disappointing. Therefore, how much money I can make through Walmart Automation is a question that haunts users who want to give Walmart Automation a try. 

Now that we have the initial investment and credit limit insight, let’s calculate the potential return:

Generally, automation companies can double your credit limit. Therefore,

Credit limit = $20,000 x 2 = $40,000

@ 30% profit margin = $12,000 a month

Assuming a 50/50 split, you make $6,000!  

However, generating revenues in eCommerce is not a cakewalk; be prepared to face disputes arising from your shipped items. Furthermore, you also carry the risk of losing your capital. This takes us to our following discussion: are Walmart automation stores legit?

Is Walmart Automation Legit?

Walmart’s fraud alert page doesn’t speak of any Walmart automation scam. However, a list of other popular Walmart scams is readily available. The latter matter’s transparency leads us to believe that there are no dangers of any scam from Walmart’s end. 

It’s pertinent to mention here that this model isn’t promoted directly by Walmart or any of its subsidiaries–it’s an online business model or idea just like any other online business. 

The legality aspect remains intact unless you adhere to unfair business practices, such as fraud, cheating, patent violation, and false information.

But there is a red flag associated with Walmart automation that we’d like to highlight. As mentioned earlier, automation requires someone to handle your business needs and queries–the company or provider that promises automation and consistent revenues in exchange for a hefty fee. 

Are they legit and trustable? We’d advise you to trust a company only when you’ve gone through several rounds of research and background checks.

Therefore, like any other online business, Walmart automation’s reliability depends on the business practices of the individuals involved. But, it’s fair to label it as a high-risk game, considering the amount involved. Do not fall for false and big promises, and do your due diligence before investing.

Risk Factors Associated With Walmart Automation

Have you wondered what your next steps would look like in the event your registered seller account gets suspended on Walmart? In addition to this, several other risk factors tag along with Walmart automation, such as:

  • The whole business model fails if Walmart decides to compete with its counterparts by lowering its prices.
  • Delay in payouts will exhaust your revolving credit limit
  • Automation companies fail to oblige or perform as promised
  • Several automation companies handle several clients at once. This may reduce their output quality, thereby decreasing your profits.

Worst comes to worst; you may fall prey to a Walmart automation scam run by several fraud companies. It’s crucial you’re aware of all the “what ifs” and “buts” before committing to anything, let alone a business that demands $30,000 at the outset.

Pros of Walmart Automation

Walmart automation can provide you:

  • A regular source of passive income without much time investment.
  • Walmart dropshipping transforms the eCommerce model into a colossal platform with loads of customers. 
  • Complete assistance in finding and listing products.
  • Handling sales and customer service.

Perhaps the most significant positive that Walmart automation entails is that you don’t need to acquire an entirely new skill set, prepare a proper business plan, hire staff, or market your product–all you need to do is put forward the money. 

Cons of Walmart Automation

Walmart automation might be legit, but it definitely has some drawbacks. Some of the significant concerns about the Walmart Automation model are:

  • A substantial investment is needed to start the business.
  • Your business is outsourcing-based. Therefore, you don’t have any inventory or assets, which means you can’t sell it.
  • You’re not the one in control! A third party will make decisions. So, your business’s performance will depend upon someone else’s capability.
  • Each and every transaction will be done under your business name, and in case of any wrongdoings, you’ll be the one at default.
  • There’s no clear policy that gives you the option to bail out or get your money refunded.

Endnote

Walmart automation is legit as long as you understand what you’re stepping into. If you seek easy money or overnight success, you can quickly lose what you have. That said, several online business models, including eCommerce, provide an excellent opportunity for people willing to learn and earn. 

Walmart automation can prove to be a great passive income source, provided you have the patience, knowledge, and willingness to put in the necessary work to understand the business, its participants, and other nuances. After all, you’re in no position to judge the efficacy of the automation company you’re hiring if you’re a complete novice to the industry yourself. 

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