Trying to decide between selling on Walmart vs Amazon? You’re not the only one since both platforms have major pros, but choosing the wrong one can waste your time and kill your margins.
Walmart and Amazon are two of the biggest names in e-commerce, attracting millions of online shoppers every day. That kind of traffic makes both platforms a tempting choice for sellers.
But choosing between the two can get confusing, especially if you don’t fully understand how they compare in terms of fees, competition, tools, and buyer behavior. Each platform has its own advantages and drawbacks.
This blog compares Walmart and Amazon across 10 key areas, from fees and competition to fulfillment and seller support. If you’re unsure which platform to sell on, this guide helps you weigh the pros and cons of each.
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What to Know About Selling on Walmart Marketplace
Walmart has over 5,000 stores across the U.S., making it one of the largest and most trusted retail chains in the country. With that kind of retail footprint, it’s no surprise that Walmart expanded into e-commerce by launching its own marketplace for third-party sellers.
Through the Walmart Marketplace, approved sellers can list their own products alongside Walmart’s in-stock inventory. The platform may have less traffic than Amazon, but sellers benefit from lower competition and a growing online customer base.
Benefits of Selling on Walmart Marketplace
Some might think that selling on Walmart isn’t a smart move since most people still associate it with physical stores. However, the truth is, there are several advantages to selling through Walmart Marketplace that many sellers overlook.
- No monthly subscription fees, so you can sell without extra overhead.
- Lower competition compared to Amazon, making it easier for your products to get seen.
- Access to a unique customer base that values Walmart’s pricing and in-store pickup options.
- A fast, user-friendly checkout experience that increases conversion rates and reduces cart abandonment.
- Growing ad tools and seller support, giving you more ways to scale and optimize your listings.
Drawbacks of Selling on Walmart Marketplace
However, just like any e-commerce platform, there are also some drawbacks to selling on Walmart Marketplace. By knowing about these, you’ll be able to weigh whether the benefits outweigh the challenges that might come with them.
- Walmart requires highly competitive pricing, which can cut into your profit margins.
- Your listings can get unpublished if your prices are higher than those on other platforms.
- Walmart’s site traffic is smaller than Amazon’s, so you may see fewer sales.
- Walmart Fulfillment Services (WFS) isn’t as advanced or accessible as Amazon FBA.
- Getting approved as a seller is tougher, especially for newer or dropshipping-based businesses.
What It’s Like Selling on Amazon Marketplace
Amazon is one of, if not the, biggest e-commerce platform in the world, with 89% of online shoppers preferring it over other websites when making a purchase. That’s why many sellers jump on Amazon first because it gives instant access to a massive pool of ready-to-buy customers.
Selling on Amazon means you’re stepping into a marketplace built for both small businesses and enterprise brands. With powerful fulfillment options, a strong ad platform, and tools for growth, Amazon gives sellers the infrastructure to scale fast.
Benefits of Selling on Amazon Marketplace
Amazon gives sellers massive visibility thanks to its reputation and global customer base. Below are the benefits of selling on Amazon Marketplace:
- Access to millions of active buyers makes it easier to generate consistent sales.
- FBA takes care of storage, shipping, and customer service, saving you time and boosting efficiency.
- Products enrolled in Prime get better visibility and conversion rates.
- Amazon provides strong advertising tools like Sponsored Products, Lightning Deals, and more to grow sales.
- Sellers have the potential for higher profit margins, depending on the product category and pricing strategy.
Drawbacks of Selling on Amazon Marketplace
With how massive Amazon is, it’s no surprise that there are around 1.9 million active sellers on the platform, but that also means fierce competition. Here are the disadvantages of selling on Amazon:
- Amazon’s selling fees are higher compared to other platforms and can eat into your profit margins.
- The high volume of sellers makes it harder for new or small brands to stand out.
- You’ll likely need to invest heavily in ads to stay visible and competitive.
- Seller support can be slow and difficult to navigate when issues arise.
- Order management can get complicated due to multiple fulfillment methods and strict performance standards.
Key Differences Between Selling on Walmart vs Amazon
Now that you know the pros and cons of selling on Walmart vs Amazon, understanding their key differences will give you a clearer picture of which platform fits your business best. So we put together this breakdown to help you compare the most important factors that impact sellers.
| Factor | Walmart | Amazon |
|---|---|---|
|
Selling Fees |
No monthly fee, 6–20% referral fee |
$39.99 monthly fee + referral, FBA, and closing fees |
|
Profit Potential |
Lower fees, less traffic, less competition |
Higher fees, massive traffic, heavy competition |
|
Advertising Options |
Sponsored Products, Sponsored Brands, Display Ads (Walmart Connect) |
Sponsored Products, Sponsored Brands, Sponsored Display, Video Ads |
|
Ease of Use |
Clean UI but stricter onboarding, fewer tools |
Rich features, but a complex dashboard and a steep learning curve |
|
Onboarding Process |
Manual approval, documentation required, stricter review |
Fast, mostly automated, and easy for new sellers |
|
Pricing & Buy Box |
Enforces price parity, no repricing tools allowed |
Dynamic pricing, tools available, Buy Box favors Prime and FBA |
|
Fulfillment |
WFS is available but limited; many sellers use 3PL |
FBA is robust, Prime eligible, and well-integrated |
|
Performance Standards |
Tracks ODR, On-Time Rate, Tracking Rate, and offers leniency |
Tracks ODR, Late Shipment, Cancel Rate, and strict penalties |
|
Seller Support |
Slow response, inconsistent help
|
Multiple contact options, but often unhelpful responses |
|
Market Reach |
Growing traffic, strong retail reputation |
Highest e-com traffic, biggest buyer base, global reach |
1. Selling Fees
Selling fees are one of the most critical factors when choosing a platform. They directly impact your profitability and determine how much you actually keep from each sale.
Walmart does not charge any monthly subscription fees to sellers. Instead, it takes a referral fee on each sale, ranging from 6% to 20% depending on the product category.
Amazon, on the other hand, charges sellers a monthly fee for a professional account plus various additional fees. These include referral fees, fulfillment fees (if using FBA), and closing fees for certain categories.
2. Profit Potential
Profit potential reflects how much money you can realistically make on a platform. It depends on fees, customer base, competition, and average order volume.
Walmart offers lower fees and a growing market share, but with less traffic than Amazon. Sellers may find higher margins here if their product category isn’t too saturated.
Amazon offers greater exposure with its massive customer base, capturing nearly 40% of U.S. e-commerce sales. However, the fierce competition and higher fees can narrow profit margins for some sellers.
3. Advertising Options
Advertising is crucial to get your products seen. Both platforms offer advertising tools but vary in features, reach, and costs.
Walmart offers Sponsored Products, Sponsored Brands, and Display Ads through Walmart Connect. While options are fewer than Amazon, the competition is also lower, allowing for cost-effective campaigns.
Amazon provides a wider array of advertising campaign types, including Sponsored Products, Sponsored Brands, Sponsored Display, and video ads. However, due to the high seller density, ad costs can be significantly higher.
4. Ease of Use
Ease of use affects how quickly you can list, manage, and scale your product offerings. A simpler, more intuitive platform helps sellers save time and reduce errors.
Walmart requires a rigorous application process and product compliance checks, which can delay onboarding. However, once approved, its Seller Center provides a clean interface with reliable performance insights.
Amazon allows virtually anyone to sign up and start selling quickly. But its Seller Central dashboard can be overwhelming due to the sheer number of features and constant policy updates.
5. Onboarding and Approval Process
Getting started on a marketplace can range from simple to highly selective. This impacts how fast you can launch your online store.
Walmart uses a selective approval process requiring business documentation, prior selling history, and product details. Approval can take weeks, and many sellers are rejected.
Amazon has a fast and automated onboarding process. Sellers can open an account, verify details, and start listing products within hours.
6. Pricing Strategy and Buy Box
Winning the Buy Box helps drive conversions, and your pricing strategy plays a major role. Both platforms have different rules and tools related to pricing.
Walmart enforces strict pricing parity and leadership rules. Sellers can’t list items cheaper elsewhere, and there are no automatic repricing tools allowed.
Amazon encourages competitive pricing and offers built-in and third-party repricing tools. The Buy Box is highly dynamic and competitive, often favoring Fulfilled by Amazon listings.
7. Shipping and Fulfillment
Shipping options impact customer satisfaction and logistics management. Each platform offers fulfillment services with varying rules and coverage.
Walmart has Walmart Fulfillment Services for eligible sellers, but most still use third-party fulfillment partners or ship manually. Two-day shipping is rewarded but not always required.
Amazon’s Fulfilled by Amazon service is robust and well-integrated. It enables fast shipping and Prime eligibility but comes with complex and sometimes high fulfillment fees.
8. Performance Standards
Performance metrics influence your account standing and visibility. Each platform sets benchmarks that sellers must meet to maintain good status.
Walmart tracks Order Defect Rate, On-Time Shipment Rate, and Valid Tracking Rate. It tends to offer more leniency and allows sellers to recover with clear action plans.
Amazon monitors Order Defect Rate, Late Shipment Rate, and Pre-Fulfillment Cancel Rate. Sellers face strict penalties and quick suspensions for repeated violations.
9. Seller Support Quality
Even if you’re an expert at using a selling platform, there will always be problems you can’t solve alone. That’s when responsive and reliable seller support becomes a lifeline.
Walmart’s seller support is known for being slow and inconsistent, especially when dealing with technical issues or urgent listing problems. You might end up waiting days for a response that doesn’t fully address your concern.
Amazon offers more ways to reach support through chat, email, and phone, but that doesn’t always mean better results. Many sellers get copy-paste replies that don’t solve anything, leaving them frustrated and stuck.
10. Market Reach and Exposure
Finally, your product’s visibility and potential sales volume depend heavily on a platform’s reach. This is a key factor in overall sales growth.
Walmart is steadily growing in online market share and has strong appeal in groceries and household essentials. However, it still lags behind in total traffic compared to Amazon.
Amazon dominates online retail in the U.S., attracting 2 billion site visits per month. The exposure is unmatched, but so is the level of competition.
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How to Choose Between Selling on Walmart vs Amazon
Even if you already know the difference between selling on Walmart vs Amazon, it might still be difficult to choose between the two. So we made a quick quiz you can take that can help you determine whether you’re more suitable for Walmart or Amazon selling.
FAQs About Selling on Walmart vs Amazon
Walmart vs Amazon: Picking the Right Platform for Your Brand
Choosing the right platform for your business can make or break the success of your operations and long-term growth. That’s why understanding your options and how each one fits your brand’s needs is essential.
Walmart has lower fees and less competition but grows more slowly, while Amazon offers more traffic and tools but is more competitive. Choose based on how fast you want to scale, your budget, and how much control you need.
Need help getting started on Walmart or Amazon? Reach out to our full-service Amazon agency and let our experts guide you through every step.
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