With rising fulfillment fees on Amazon’s Fulfillment by Amazon (FBA) program, many ecommerce sellers are exploring alternative marketplaces to expand their reach and potentially increase profitability. This has led many to the question, “Should I be selling on Walmart vs Amazon”?
“Walmart’s online marketplace, Walmart.com, has been expanding its selection of third-party sellers in recent years. While previously focused primarily on local suppliers in the United States and Canada, they have been opening their platform to a wider range of international sellers.”, says Forceget CEO, Burak Yolga.
Selling on Amazon
Amazon provides exceptional exposure for your products.
Years of experience have made Amazon a well known platform in which sellers benefit from robust infrastructure and seller tools that simplify operations.
Selling on Walmart
Walmart Marketplace vs Amazon is essentially a digital extension of their physical stores, offering a curated selection of products from various sellers.
They cater to customers who prioritize price, ideal for sellers offering competitively priced products.
“While Walmart.com offers a marketplace for sellers, there might be limitations on what you can sell. While their fees can be lower than FBA for some products, it’s necessary to compare both platforms before deciding which is right for you. Walmart also offer automate pricing which automatically adjusts your product prices on Walmart.com.”
Pros and Cons of Selling on Amazon
Pros
Amazon boasts a staggering number of active users, offering sellers immense potential for exposure and sales.
As a pioneer in online retail, Amazon offers a well developed infrastructure and robust seller tools.
Prime members, known for their frequent purchases, are a highly desirable customer segment readily accessible on Amazon.
Selling on Amazon leverages the platform’s high brand recognition, potentially boosting customer trust in your products.
Cons
The sheer number of sellers on Amazon can make it challenging to stand out, especially for new sellers.
Amazon selling fees structure can be intricate, with various costs including FBA Fees, Referral fees, and closing fees.
Meeting Amazon’s stringent product listing and fulfillment guidelines can be demanding for some sellers. Amazon’s platform prioritizes its own branding, potentially reducing your ability to fully control your brand experience.
Pros and Cons of Selling on Walmart
Pros
Walmart seller fees are generally simpler and often less expensive than Amazon’s, potentially improving your profit margins.
The number of sellers on Walmart Marketplace is significantly lower compared to Amazon, offering a potentially easier path to product visibility.
Walmart caters to a cost-conscious audience, which could be ideal for sellers offering competitively priced products.
Walmart Marketplace is experiencing rapid growth, presenting an opportunity to get in on the ground floor of a promising platform.
Cons
Walmart’s active user base is currently smaller than Amazon’s. Potentially limiting your overall sales volume.
Walmart Marketplace is still under development compared to Amazon’s mature platform, and some features might be lacking.
Similar to Amazon, Walmart has strict requirements for sellers, including product quality standards and brand authorization.
Currently, there is no direct integration between Amazon FBA fees and Walmart Marketplace, requiring sellers to manage separate fulfillment processes.
Selling on Walmart vs. Amazon Compared
| Factor | Amazon | Walmart |
| Customer Base | Massive, millions of active users | Growing, but currently smaller than Amazon |
| Target Audience | Diverse range of shoppers | Value-conscious shoppers seeking competitive prices |
| Fees | Complex structure with FBA fees, referral fees, closing fees | Generally simpler and potentially lower fees |
| Competition | Intense competition from a large number of sellers | Less competition, potentially easier to gain product visibility |
| Platform Maturity | Established and well-developed infrastructure | Newer platform, still under development |
| FBA Integration | Seamless integration with Amazon’s fulfillment service | No direct FBA integration, requires separate fulfillment for Walmart |
| Brand Control | Limited control due to prioritization of Amazon’s branding | More control over brand experience |
Differences between Selling on Amazon & Selling on Walmart
Selling on Walmart generally offers lower seller fees compared to Amazon’s complex structure. Walmart offers less competition for sellers, potentially leading to greater product visibility.
Amazon boasts a larger customer base, but Walmart caters to a value-conscious audience.
Amazon is a well-established platform with more features, while Walmart Marketplace is still under development. Amazon offers seamless FBA integration, while Walmart requires separate fulfillment processes.
Similarities between Selling on Amazon & Selling on Walmart
Both platforms require sellers to meet high standards for product quality and brand authorization.
Both platforms prioritize customer satisfaction and have established performance metrics sellers need to maintain. Both, selling on Amazon vs Walmart provide sellers with valuable sales data and insights to optimize their listings and strategies.
Why Selling on Walmart in 2024 is Smart?
With ecommerce constantly evolving, as well as the rise of Amazon FBA fees, sellers are looking for alternative marketplaces. In 2024, Walmart Marketplace presents a compelling opportunity for several reasons:
- Lower Fees: Walmart selling fees structure can potentially increase your profit margins compared to Amazon.
- Less Competition: The smaller pool of sellers on Walmart offers a chance to stand out and gain product visibility more easily.
- Growing Customer Base: Walmart’s rapidly growing user base presents an opportunity to tap into a new and expanding market.
- Value Focus: If your products cater to a cost-conscious audience, Walmart’s customer base could be a perfect fit.
“Some reports suggest Walmart fulfillment centers are becoming increasingly competitive with Amazon in terms of speed, in terms of checking times.”
2 Ways to Ship from FBA to Walmart
Walmart vs Amazon are distinct platforms with their own fulfillment systems. FBA is designed specifically for Amazon orders, and Walmart Marketplace has its own fulfillment options for sellers.
FBA manages your inventory within Amazon’s fulfillment centers. To sell on Walmart Marketplace, you would need to store separate inventory or transfer inventory from FBA to a separate fulfillment location for Walmart orders.
Manage Separate Inventory
This approach involves storing separate inventory for Walmart Marketplace vs Amazon. You would need to manage stock levels for each platform independently.
Simpler setup, avoids complexities of transferring inventory between platforms. However, it requires more storage space and potentially higher inventory management costs.
Fulfillment by Merchant (FBM) with Inventory Management
This option involves fulfilling orders for both platforms yourself (FBM) and using a fulfillment service with multi-channel capabilities. These services can store your inventory in one location and fulfill orders from both Amazon vs Walmart Marketplace.
FBM reduces storage needs and streamlines inventory management, yet requires finding a reliable fulfillment service with multi-channel support, which might lead to additional fees.
