Is Walmart automation a scam? All you should know about it

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A cursory glance at YouTube or a quick Google search will bring up dozens of videos warning you that Walmart automation is a scam.

Many of these self-appointed gurus believe that every company offering automated dropshipping is trying to con you out of money.

But the key thing to remember is that these are just opinions, not expertise. Opinions are free, while expertise is not. 

And while it would be completely dishonest to claim that there are no cowboys out there that do the automated dropshipping industry a disservice by scamming people out of their hard-earned money, these scams are not as prevalent as many self-appointed clout-chasers would have you believe.

So in this blog, we sort facts from fiction to give you a breakdown of what Walmart automation is and how to avoid the cowboys that actually do scam people.


What is Walmart Automation?

Walmart automation is where an entrepreneur becomes the capital owner of a Walmart store but uses a third-party service like Nextgen to provide the workforce to systemize the business and run and scale it. So, for example, among many other things, we would:

  • Help you set up a business entity such as LLC or corporation
  • Our team would also help you get fully tax-exempt
  • Build your store 
  • Get your distribution connected

Distribution is particularly important because if you plan to sell on Walmart, you need to have a warehouse. Walmart is extremely strict with its standards, so it does not allow you to send out random return labels. That means, if you are selling products and you don’t have a warehouse, all the returns would come to your house. 

Once everything is connected, we go ahead and apply for your Walmart store to get it approved. Then start with product research, listing products, customer service, fulfilling the orders, processing the returns, and doing everything we can to ensure your store grows and is profitable. This is because, when you profit, we profit. So there is a big incentive for us to make you more profitable. 

Nextgen uses an automated dropshipping model. This means you do not have to buy anything upfront, so there is no risk when it comes to owning physical products. However, you do go through a wait of two or three weeks (depending on how old your store is) before you get reimbursed for the purchased products. 

You also need the funds that will be required to get all the paperwork sorted, set aside money for your product inventory, and pay a team of people that will do all of the heavy lifting for you. 


Benefits of Walmart Automation

There are many benefits to Walmart automation that you could miss out on if you were to believe all the horror stories floating around. We highlight just a selection of these below:

Generate a Passive Income

The biggest benefit of Walmart automation is the potential you have to make lucrative amounts of money and generate a sizeable passive income without any of the stress that would normally be associated with setting up a business.

When you use a third-party service such as Nextgen, our team becomes your team, and they will start to process any orders that come through and ship your products once they are sold. A few weeks later, Walmart will deposit the money into your account, so you never have to worry about collecting a check once a sale is made.

Saves Time

Another major benefit of automated dropshipping is that it saves you time. Rather than sit for hours a day sifting through mountains of tax forms, paperwork, and Walmart policy, you can leave all those tedious, non-revenue generating activities to us and refocus your time on tasks that are actually more profitable and interesting to you. 

Teamwork Makes The Dream Work

If you are a solopreneur or only have a few people on your team, it is almost impossible to find the time needed to get yourself established. This is why the vast majority of successful Walmart stores have an entire team of people. 

Now, if you are a billionaire that already has a multinational team of people to help you run the store, then perhaps this doesn’t apply to you. However, suppose you are a solo entrepreneur or a struggling small business. In that case, it will be a massive weight off your shoulders to know there is a highly skilled and professional team of multi-talented specialists who can take care of every aspect of the business for you.


When you open up your own Walmart dropshipping store, you also agree to send products directly to both customers or Walmart stores for easy pickup. This is a more attractive prospect for customers who may not always find it convenient to receive products at home and reduce the likelihood of missing orders.

You also have the comfort of knowing that help is only a phone call away because our team is always on hand to offer assistance in whatever aspect of automated dropshipping you need help with.


How to Avoid The Scammers

If you think all of this is too good to be true, it probably is because there is a catch: this requires capital. The more money you want to make, the more money you need because you have to be able to buy the products that your store is selling and hold them for a certain amount of time before you see a return on investment. 


Unfortunately, a tiny minority of unscrupulous companies may try to swindle customers out of money. Here are the top red flags to look out for:


Failing to Demonstrate Results

Some scammers will try to trick you by trying to get you to hand over a large sum of cash without showing you any evidence that they have been successful with other customers.


No History or Company Information

If a company cannot produce any information or history about themselves, then you should definitely be cautious about collaborating with them.


Unwilling to Answer Questions

Most scammers don’t like to be questioned because they simply do not have the expertise to support their claims. If they are hesitant or even aggressive when you ask them to show you evidence that they are able to manage and run your store, then think twice before signing up with them.


What to Look Out For When Selecting a Dropshipping Company

Below, we discuss what you should look for when searching for a Walmart automated dropshipping service. If a company fails to provide any of the things below, buyer beware.


Customer Testimonials 

The key thing to look for is whether your third-party provider has any customer testimonials to back up their claim. It is easy for any business to come along and claim that they will handle everything for you.


But what really counts is whether a business offers value from the customers’ perspective. 

Be wary of any company that cannot provide this. 


Case Studies

Similarly, you should also look for any case studies and thought-leadership pieces a company has produced. A case study will not only highlight the results you have gained for customers but also the processes you used to gain those results.


Anyone can write a testimonial – but a comprehensive breakdown of how you were actually able to achieve your objectives shows that a company actually does know what they are doing.


While it is easy for any company to claim that they are offering customers excellent service, you should always ask for proof. A genuine Walmart automation company should always be able to highlight the results they have gained on behalf of customers – and show you solid evidence of this.

For example, Nextgen has differentiated itself from other automated dropshipping companies by actually publicizing the results we have gained on behalf of our clients. 

Why Should You Trust Nextgen

We have decades of experience in both managing businesses and eCommerce, which is why we achieve proven results for our clients over and over again.  

But why take our word for it? All automation companies say that. So instead, simply check out our proven video testimonials and case studies for yourself. And if you’re ready to make the greatest investment you will ever make, feel free to get in touch via our Contact Us page.

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