The Walmart dropshipping drama has affected countless ecommerce store owners worldwide. There are many questions lying around on Reddit or youtube concerning this dilemma. Some queries are “Is Walmart killing small businesses?” or “Will being suspended lead to termination?” and the likes. It has caused mass hysteria and people worry about their e-commerce business that’s dealing with Walmart dropshipping. “If you’ve been dropshipping through Walmart these last few months, then you know it has not been pretty”, says Ryan Pineda.
Ryan Pineda is not afraid to admit if he’s wrong. In fact, he’s been wrong in so many things in the past and those mistakes have defined who he is today. One mistake that he’s made is thinking that wholesaling real estate is a scam. That he thought that you need money or credit to buy houses, but no, it doesn’t. And at the time he realized his mistake, he realized that it is legit, he began to try and went all in with it. Now he has established a company called Future Flippers.
Another thing that he’s wrong about is youtube. He’s been aware of youtube before but didn’t believe that it can be a lucrative career or something that pushes the business forward. Not until he saw guys like Graham Stefan and MeetKevin. He wondered how much Mr. Beast is making and even a 9-year old Ryan on Ryan’s Toy Review who’s making over $30M a year just by opening toys is just crazy. He stopped being skeptical and also went all-in on youtube, now has 237k subscribers and has helped him completely change his business.
And his last mistake that we’ll be discussing here is about his thoughts about amazon automation. After owning a store for about 5 months, he became a believer of the store automation business. He has made passive income during those 5 months and decided why not make it a business for people to also earn passive income? That’s the birth of Lunar Ecom together with his business partner, Tony Guzman, who is in fact the one who made his first amazon store. Sounds crazy, right?
So, Lunar Ecom started with Amazon. And he said in one of his videos that scaling with an Amazon automation store takes time, maybe at least a year to have a ton of conclusive data. That’s when they started to push people to Walmart automation which is a big thing and everyone wanted to do it for many different reasons. First is that you can scale it right away, and the next reason is that it has a higher profit margin because there is less competition in Walmart than in Amazon.
Walmart has only been allowing third party selling for about more than a year. And the third reason that Walmart is a better place than Amazon is that they have a lower suspension rate. And at that time, Ryan’s clients had their Walmart stores up, running and profiting at the same time. Not until Walmart started suspending stores. Not just of his clients, but also his friends that do Walmart automation have experienced it and it is not a good situation to be in.
Ryan and Lunar Ecom tried to fight to unsuspend the stores, and most of them were. But it won’t be able to remove the fear of those who experienced it, and they were also setback up to 2 months. The store suspensions didn’t just happen once, but twice. It’s not very convincing why Walmart’s doing this because the new list of stores that have been suspended were just newly established stores and haven’t even generated any money yet.
Baffled by the things happening inside Walmart, the company still tried to fight for removing suspensions from clients under their supervision. But instead of reinstating the stores, Walmart shut them all down. “It must have been better if it was just my company that has been suspended, at least we’ll try to find out what mistakes we have made and try to fix it, but no, it was companies all over”, Ryan exclaimed.
Even wondered where these clients are now? Who paid upfront $40k to open up an automated store in Walmart? Well, they’re not being ignored and forgotten. Ryan made it so that these Walmart store owners will be transitioned back to Amazon. Maybe in the future they’ll give Walmart another try but having these controversies all over e-commerce businesses, I wouldn’t want anything to do with them.
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