Let’s cut through the noise about these retail behemoths. Everyone’s got an opinion about Amazon and Walmart – some swear by Prime’s two-day shipping magic, others champion Walmart’s everyday low prices. But here’s the thing: if you’re a seller trying to decide between these platforms (or wondering if you should be on both), the real story isn’t in the consumer experience – it’s in the nuts and bolts of what it takes to succeed on each platform.
I’ve spent years helping brands navigate these waters, and let me tell you – the differences between selling on Walmart vs Amazon aren’t just about market share or commission rates. It’s like comparing New York to Los Angeles – sure, they’re both major cities, but the culture, rules, and path to success in each one is dramatically different.
The Evolution of Two Retail Powerhouses: How We Got Here
Remember when Amazon just sold books? When Walmart was purely brick-and-mortar? Those days feel like ancient history now. Amazon has morphed into this all-consuming marketplace beast with a 37.6% share of US ecommerce (wild, right?), while Walmart’s been playing digital catch-up with the determination of a startup backed by big-box resources.
Amazon’s Marketplace Journey: From Books to Everything
Image Source: amazon.com
Amazon’s marketplace evolution is like watching a small bookstore transform into a digital Costco that sells literally everything. Beyond physical goods, sellers can also explore digital opportunities like Amazon KDP (Kindle Direct Publishing) to tap into the lucrative self-publishing market. They’ve mastered the art of “come for the Prime shipping, stay for the endless aisle” – and it works. Their third-party marketplace now accounts for over half of all units sold on Amazon, which is mind-blowing when you think about it.
What’s really interesting is how Amazon’s seller demographic has evolved. We’re not just talking about major brands anymore – you’ve got solo entrepreneurs, small businesses, and even traditional brick-and-mortar stores all mixing it up in the same space. The barrier to entry? Pretty low, actually. Basic Professional Seller accounts start at $39.99 monthly, though the real costs come later (more on that in a bit). If you’re wondering what can I sell on Amazon as a new seller, the answer varies by category, but focusing on low-competition, high-demand products can set you up for success.
Walmart’s Digital Transformation: The Sleeping Giant Awakens
Image Source: walmart.com
Walmart’s approach to ecommerce is fascinating – it’s like they watched Amazon’s playbook for years, took notes, and then decided to do things their own way. Their marketplace is more exclusive, more controlled, and honestly? That’s not necessarily a bad thing.
They’re leveraging their massive physical footprint (4,700+ stores in the US alone) in ways Amazon can’t match. Think about it – when Walmart launches a new online initiative, they’ve got built-in distribution centers across the country. Their seller vetting process is notably stricter than Amazon’s, which means less competition but also potentially higher quality standards.
Learn more about Walmart receipt processes and how they integrate with their ecommerce strategy.
Platform Comparison: Core Components
Let’s dive into the meat and potatoes of selling on Walmart vs Amazon. And trust me, having helped countless brands navigate both platforms, I’ve seen the good, the bad, and the “why didn’t anyone warn me about this?” moments.
Seller Registration and Onboarding
Remember that intern analogy I love using for AI? Well, if Amazon’s seller registration process is like an eager intern who asks a million questions, Walmart’s is more like a strict hiring manager who wants to see your resume, references, and probably your high school transcripts too.
Amazon’s approach is relatively straightforward – you’ll need basic business documentation, tax info, and about 30 minutes of your time. They’ll take pretty much anyone who can fog a mirror and has a legitimate business (though staying on the platform is another story entirely).
Walmart, on the other hand? They’re pickier than a toddler at dinner time. They want to see:
- U.S. Business Tax ID (sorry, international sellers)
- Proven ecommerce track record
- Integration capabilities with their API
- History of marketplace success (preferably on Amazon)
Fee Structures and Costs
Here’s where things get interesting – and by interesting, I mean potentially wallet-draining if you’re not paying attention. Both platforms have their own flavor of “death by a thousand cuts” when it comes to fees.
Amazon’s Fee Structure
Amazon’s referral fees typically range from 8% to 15% (with some categories hitting 45% – looking at you, Amazon Device Accessories). Then there’s the $39.99 monthly Professional seller fee, FBA fees if you’re using their fulfillment, storage fees, long-term storage fees… I could go on, but we’d be here all day.
A quick breakdown of Amazon’s main fees:
- Referral Fees: 8-45% depending on category
- FBA Fees: $2.70-$137.32 based on size/weight
- Monthly Subscription: $39.99
- Storage Fees: $0.75-$2.40 per cubic foot
Walmart’s Fee Structure
Walmart’s referral fees are generally lower, ranging from 6% to 15%. There’s no monthly fee (nice!), but their fulfillment service (WFS) costs are comparable to FBA. The real kicker? Their fee structure is simpler, which in my experience, means fewer surprise charges on your statement.
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Walmart’s fee breakdown:
- Referral Fees: 6-15%
- WFS Fees: Similar to FBA
- No Monthly Fee
- Storage Fees: Competitive with Amazon
Fulfillment Options
This is where the rubber meets the road for most sellers. Your fulfillment choice can make or break your profitability faster than a Prime Day flash deal.
Amazon FBA
Amazon’s FBA is like that overachieving friend who makes everyone else look bad. It’s efficient, widespread, and comes with the coveted Prime badge. But it’s not all sunshine and two-day shipping.
FBA Pros:
- Prime badge access
- Multi-channel fulfillment capabilities
- Handles returns and customer service
- Nationwide 2-day shipping network
FBA Cons:
- Higher costs during Q4
- Complex fee structure
- Inventory storage limits
- Commingled inventory risks
Walmart Fulfillment Services (WFS)
WFS is like FBA’s younger sibling – eager to prove itself but still working out some kinks. It’s growing fast and offers some compelling advantages, especially for sellers focused on the U.S. market.
WFS Pros:
- Generally lower costs
- Two-day delivery badge
- Simpler fee structure
- No monthly fees
WFS Cons:
- Limited international reach
- Smaller fulfillment network
- Less mature system
- Fewer integration options
The Platform Experience: Seller Central vs Seller Center
Working in Amazon’s Seller Central versus Walmart’s Seller Center is like comparing a Swiss Army knife to a basic pocket knife. Amazon’s platform is feature-rich but complex – you can do almost anything, but good luck finding where to do it. The learning curve is steep, and the interface feels like it was designed by engineers for engineers.
Walmart’s Seller Center is more streamlined, which is both good and bad. It’s easier to navigate and understand, but you might find yourself missing some of the advanced features Amazon sellers take for granted. The reporting isn’t as robust, and the automation options are more limited. If you’re looking to enhance your ecommerce strategy, consider using best ecommerce chatbots to improve customer interaction.
Operational Considerations
Inventory Management
Managing inventory across platforms is like trying to juggle while riding a unicycle – possible, but requiring serious focus and probably some specialized tools.
Amazon’s inventory management system is robust but can be overwhelming. Their restock limits can change faster than a cat video goes viral, and their storage fees during Q4 might make you consider renting a warehouse.
Walmart’s system is more straightforward but less feature-rich. They’re more lenient with stock-outs (though don’t push your luck), and their storage fees are more predictable. If you are planning a special event, consider ordering cakes from Walmart for a convenient and delicious option.
Product Listing Requirements
Both platforms have their own ideas about what makes a “good” listing, and they’re about as flexible on these requirements as a brick wall.
Amazon Listing Requirements:
- High-res images (2000×2000 pixels minimum)
- Detailed bullet points
- Keyword-rich titles (but not keyword-stuffed)
- Backend search terms
- A+ Content for brand registered sellers
Walmart Listing Requirements:
- Clear images (min 500×500 pixels)
- Structured data
- Category-specific attributes
- Rich media content options
Pricing Strategies
Here’s where things get spicy. Both platforms have their own pricing philosophies, and they enforce them with the enthusiasm of a hall monitor with a new whistle.
Amazon’s pricing strategy is all about the Buy Box. Their algorithm considers price, fulfillment method, seller metrics, and probably your zodiac sign (kidding, mostly). They’re notorious for their price parity requirements – try to sell cheaper elsewhere, and they’ll bury your listing faster than a squirrel with a prized acorn. If you find yourself in trouble with Amazon, read about what to do if you’re banned from Amazon.
Walmart takes a different approach with their “Everyday Low Price” strategy. They’re less aggressive about price matching but still want to be competitive. The good news? Their Buy Box algorithm seems more straightforward, focusing primarily on price and fulfillment speed.
Performance Metrics and Analytics
Both platforms offer analytics tools that would make a data scientist drool, but they focus on different metrics and have different thresholds for success.
Amazon Seller Central Analytics
Amazon’s analytics are like having a microscope trained on your business – you can see everything, sometimes more than you want to. They track:
- Order Defect Rate (keep it under 1% or else)
- Late Shipment Rate (under 4% or start sweating)
- Valid Tracking Rate (95% or better)
- Customer Response Time (24 hours or less)
- Inventory Performance Index (the mysterious IPI score)
Walmart Seller Center Metrics
Walmart’s metrics are more focused on the basics:
- On-Time Shipping Rate (95% target)
- Valid Tracking Rate (95% minimum)
- Cancellation Rate (under 2%)
- Return Rate (category-dependent)
Here’s the thing about these metrics – they’re not just numbers on a screen. They’re the vital signs of your business on these platforms. Ignore them, and you might find yourself in the equivalent of marketplace intensive care.
Success Strategies for Selling on Walmart vs Amazon
Look, I’ve helped hundreds of brands navigate both platforms, and here’s the truth: success on either marketplace isn’t about picking the “better” platform – it’s about understanding their unique ecosystems and adapting your strategy accordingly.
Platform-Specific Best Practices That Actually Work
Let’s cut through the noise. On Amazon, the game is all about optimization and visibility. Their A9 algorithm is like that picky friend who needs everything just so – from your title structure to your backend keywords. I’ve seen sellers triple their visibility just by properly optimizing their listings with the right keyword density and placement.
Walmart, on the other hand? They’re more like that straight-shooting cousin who values consistency above all. Their algorithm puts heavy emphasis on two things: competitive pricing and solid fulfillment metrics. I had a client who maintained a 98% on-time delivery rate and saw their listings consistently win the buy box, even against larger competitors.
Risk Management and Growth Planning
Here’s something most guides won’t tell you: diversification isn’t just about having presence on both platforms – it’s about understanding how to leverage each platform’s unique advantages. Think of it like your investment portfolio – you wouldn’t put all your money in one stock, right?
- Amazon excels at new product launches and brand building
- Walmart has lower competition in certain categories
- Cross-platform presence can protect against account issues
- Each platform provides different customer insights
The Future of Selling on Walmart vs Amazon
The landscape is shifting faster than an AI trying to draw hands (sorry, couldn’t resist that one). Amazon’s pushing hard into AI-powered advertising and personalization, while Walmart’s leveraging its physical stores for omnichannel experiences. It’s not about who’s bigger anymore – it’s about who can provide the most seamless shopping experience.
Market Trends and Predictions
Based on current trajectories and my experience working with both platforms, here’s what I see coming:
- AI-driven inventory management becoming standard
- Enhanced cross-platform analytics tools
- More sophisticated pricing algorithms
- Increased focus on sustainable and local sourcing
The gap between Amazon and Walmart is narrowing, but in interesting ways. While Amazon still dominates in terms of market share (37.6% vs Walmart’s growing piece of the pie), Walmart’s making serious moves in areas where they have natural advantages – like grocery and local fulfillment. Smart sellers leverage competitor intelligence software to analyze pricing trends and optimize their strategy across both platforms. Discover more about AI in ecommerce and its impact on these platforms.
Strategic Recommendations for 2024 and Beyond
If you’re selling on both platforms (or planning to), here’s your action plan:
- Start with Amazon for brand building and market testing
- Expand to Walmart once you have solid operational processes
- Use platform-specific pricing strategies (dynamic for Amazon, consistent for Walmart)
- Invest in automation tools for cross-platform management
Making the Final Decision: Amazon vs Walmart
Let’s be real – this isn’t a zero-sum game. The question isn’t “is Walmart bigger than Amazon” or even “is Walmart better than Amazon.” It’s about understanding where your products fit best and how to leverage each platform’s strengths.
Platform Selection Framework
Consider these factors when choosing your primary platform:
- Product category and competition level
- Pricing strategy flexibility
- Fulfillment capabilities
- Target customer demographics
- Marketing budget and resources
Resource Allocation Strategy
Here’s a practical framework for resource allocation:
| Resource | Amazon Focus | Walmart Focus |
|---|---|---|
| Marketing Budget | 60-70% | 30-40% |
| Inventory | 50-60% | 40-50% |
| Customer Service | Equal | Equal |
Final Thoughts on Walmart vs Amazon Selling
After working with countless brands across both platforms, I’ve learned that success isn’t about choosing sides in the Amazon vs Walmart competitive analysis – it’s about understanding how to make both platforms work for your business.
The reality is that while Amazon might be the bigger player (and yes, Amazon is bigger than Walmart in e-commerce), Walmart’s rapid growth and omnichannel advantages make it an increasingly attractive option. The key is to stop thinking in terms of “either/or” and start thinking “both/and.”
Remember: these platforms aren’t just sales channels – they’re data goldmines. Every sale, every customer interaction, every review provides insights that can help you refine your overall e-commerce strategy. Use them wisely, and you might find that the question isn’t “is Walmart or Amazon cheaper” but rather “how can I maximize my presence on both?”
Next Steps for Sellers
- Audit your current operations and identify gaps
- Develop platform-specific strategies based on your strengths
- Invest in the right tools for cross-platform management
- Start small, test thoroughly, and scale what works
The e-commerce landscape is evolving faster than ever, with AI and automation reshaping how we sell online. Whether you choose Amazon, Walmart, or both, success will come down to your ability to adapt, optimize, and leverage each platform’s unique advantages. To enhance your product images, learn how to replace background in a photo for a more appealing presentation.
And hey, if you’re feeling overwhelmed by all this – remember that every successful seller started somewhere. The key is to take that first step, whether it’s optimizing your Amazon listings or applying for Walmart Marketplace approval. The future of e-commerce is multi-channel, and there’s never been a better time to get started. For insights on selling in different markets, explore how to sell on Shein and expand your reach.
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Frequently Asked Questions
Who makes more money: Walmart or Amazon?
Amazon generally generates more revenue than Walmart due to its vast e-commerce platform and diversified business model, which includes services like AWS. However, Walmart remains a formidable competitor with its extensive brick-and-mortar presence and growing online sales.
Who is more profitable Walmart or Amazon?
Amazon tends to have higher profit margins, largely due to its cloud computing division, Amazon Web Services (AWS), which contributes significantly to its profitability. Walmart has lower margins as it primarily relies on retail sales, which are generally less profitable compared to technology and service-driven revenue.
Is Walmart good to sell on?
Walmart can be a good platform to sell on, especially for those looking to tap into its large customer base and growing online marketplace. Sellers often appreciate the lower competition compared to Amazon, but it is important to meet Walmart’s stringent requirements and standards for sellers.
Does Walmart sell like Amazon?
While both Walmart and Amazon offer online marketplaces, Amazon is primarily an e-commerce platform whereas Walmart combines online sales with its extensive network of physical stores. This allows Walmart to provide services like in-store pick-up and returns, offering a different shopping experience from Amazon’s primarily online model.
Can I sell on both Amazon and Walmart?
Yes, you can sell on both Amazon and Walmart, and many businesses choose to do so to maximize their reach and sales opportunities. However, it’s important to manage inventory and customer service efficiently across both platforms to maintain positive seller ratings.
About the Author
Vijay Jacob is the founder and chief contributing writer for ProductScope AI focused on storytelling in AI and tech. You can follow him on X and LinkedIn, and ProductScope AI on X and on LinkedIn.
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