For e-commerce sellers, choosing the right marketplace can make a big difference in visibility, profitability, and long-term business growth. Among the biggest platforms, Amazon and Walmart Marketplace stand out as two of the most influential players in the online retail space. While Amazon has long dominated as a go-to marketplace for millions of shoppers, Walmart has rapidly expanded its digital footprint, offering new opportunities for sellers. But which platform is better for your business? Let’s break down the differences.
Audience Reach and Brand Power
One of Amazon’s biggest advantages is its massive customer base. With over 300 million active users globally, it provides an unparalleled level of exposure for sellers. Amazon’s Prime membership, which guarantees fast shipping and special deals, further cultivates a loyal user base that returns often for purchases.
On the other hand, Walmart’s e-commerce platform, while smaller, has grown significantly in recent years. With more than 150 million visitors each month and physical stores in nearly every U.S. community, Walmart benefits from seamless integration between online and offline retail. This gives Walmart sellers access to what could be considered a more diverse and engaged demographic.
Marketplace Requirements and Competition
Amazon is an open marketplace where virtually anyone can register and start selling, provided they follow Amazon’s extensive rules and guidelines. As a result, competition can be fierce, especially in popular categories. Product listings need to be finely tuned with keywords, optimized pricing, and excellent reviews in order to stand out.
Walmart takes a more selective approach. To sell on its marketplace, vendors must go through an application and approval process. This barrier to entry keeps marketplace quality in check and reduces direct competition compared to Amazon. If you’re an experienced seller looking to avoid a race to the bottom in pricing, Walmart might offer a more stable environment.
Fees and Profit Margins
Amazon uses a subscription model. Sellers can choose between an Individual Plan or a Professional Plan, each with different features and fee structures. In addition, Amazon charges referral fees which vary depending on the product category, often ranging between 6% and 45%.
Walmart does not charge a monthly fee to sell on its marketplace. Instead, it only collects a referral fee, typically ranging from 6% to 20%. Because of this, Walmart may offer sellers higher profit margins, especially those who are just starting out and looking to minimize recurring costs.
Fulfillment and Logistics
Amazon’s Fulfilled by Amazon (FBA) program is a major reason many sellers opt for the platform. It allows sellers to store inventory in Amazon’s warehouses, and Amazon handles shipping, customer service, and returns. This streamlines operations but also comes with additional storage and fulfillment fees.
Walmart has recently launched its Walmart Fulfillment Services (WFS) to compete with FBA. While still in its growth phase, WFS promises fast shipping and a trustworthy logistics network. However, it currently supports a limited product range compared to FBA, which could limit flexibility for some sellers.
Which One Should You Choose?
The right platform depends largely on your individual business goals, resources, and strategy. Here’s a quick breakdown:
- Choose Amazon if you want access to a global audience, advanced fulfillment options, and you’re prepared to handle high competition.
- Choose Walmart if you’re aiming for less crowded shelves, better profit margins, and want to tap into Walmart’s hybrid online and in-store shopping model.
- Consider Selling on Both if you can manage multi-platform listings, inventory, and logistics effectively. This strategy diversifies your income and maximizes your market reach.
FAQ
1. Can I sell the same product on both Amazon and Walmart?
Yes, many sellers successfully list the same product on both platforms. However, it’s important to manage inventory and pricing policies carefully to ensure compliance with both marketplaces.
2. Do I need a business license to sell on Walmart or Amazon?
Amazon doesn’t always require a business license for individual sellers, but Walmart does. Walmart typically vets applicants more thoroughly, including requesting a tax ID and formal business entity.
3. Which platform is better for a beginner?
Amazon is generally more beginner-friendly because it is open to most sellers and has a straightforward onboarding process. Walmart is more ideal for established businesses ready to scale.
4. What type of products sell best on Walmart compared to Amazon?
Walmart tends to favor household goods, appliances, and products with strong everyday appeal. Amazon is more suitable for niche products, tech gadgets, books, and international goods.
5. How long does the approval process take for Walmart Marketplace?
It can take anywhere from a few days to a few weeks for Walmart to review and approve an application, depending on your business credentials and product catalog.
Ultimately, succeeding on either platform requires dedication, research, and constant optimization. Sellers who understand the strengths and limitations of each can carve out a successful space in the increasingly competitive e-commerce world.
