Walmart Marketplace vs Amazon Explained: A Comprehensive 2025 Comparison

Ecommerce in this day and age is about choosing the right platform. As the digital field continues to evolve and grow, Amazon may no longer be the default answer for every seller. Walmart has made major investments in its online marketplace and it’s quickly gaining traction with both new and experienced merchants. For brands and entrepreneurs trying to navigate where to sell, both Walmart Marketplace vs Amazon now offer compelling, but very different, opportunities. 

Walmart Marketplace vs Amazon: Which Marketplace is the Best?

In 2025, ecommerce sellers are increasingly asking a key question: Walmart Marketplace vs Amazon, which one offers better long-term value and opportunity? And who is Walmart’s biggest competitor?

While Amazon continues to dominate as the leading ecommerce platform globally, Walmart has aggressively expanded its digital footprint and fulfillment capabilities. For brands and sellers, choosing where to focus resources is about understanding audience fit, competition, fulfilment models, and growth potential. 

Amazon FBA: The Giant in the Room

For more than two decades, Amazon has dominated the global e-commerce field. As of 2025, it maintains its leadership with over 2 million active third-party sellers globally, of which over 73% use Fulfillment by Amazon FBA. 

This service allows sellers to store inventory in Amazon’s warehouses, while the platform takes care of storage, packing, shipping, and customer service. It’s an infrastructure unmatched in scale and reliability.

Advantages of Selling on Amazon FBA

Market Size and Reach 

Amazon’s marketplace spans more than 20 countries, with the US, Canada, UK, and Germany being the largest revenue drivers. 

Its global gross merchandise volume or GMV was estimated to exceed $700 billion in 2024. This sheer reach gives sellers unprecedented access to international buyers and multichannel fulfillment capabilities through Amazon Global Selling. 

Amazon’s user base exceeds 310 million active customers, making it one of the most valuable ecosystems for e-commerce entrepreneurs. 

Advanced PPC Tools 

Amazon Advertising continues to be one of the most robust paid media platforms for e-commerce sellers. 

Its pay-per-click tools, including Sponsored Products, Sponsored Brands, and DSP Demand Side Platform offer targeted visibility, behavioral segmentation, and retargeting capabilities. 

In fact, Amazon has quietly become the third-largest digital advertising platform after Google and Meta, with sellers spending more than $30 billion on ads in 2024. 

Easier Entry 

While competition is intense, Amazon remains accessible to new sellers. The platform provides step-by-step onboarding, seller university tutorials, and simplified integrations with e-commerce tools. 

With services like Amazon launchpad and Amazon Brand Registry, new brands can build their footprint relatively quickly with the right product p-market fit. 

Disadvantages of Selling on Amazon FBA

High Competition 

Amazon’s strength is also its challenge. The sheer number of sellers means that almost every category is saturated. 

In 2025, more than 400,000 new sellers joined Amazon globally. Product differentiation, pricing, and customer experience have become battlegrounds where only the most agile survive. 

Higher Fees 

Amazon prices vs Walmart structure includes referral fees, storage fees, fulfillment charges, and optional advertising costs. 

On average, Amazon sellers report giving up 25% to 30% of their revenue. For low-margin products, this creates real profitability challenges. 

Seller Support Issues 

Despite continuous investment, Amazon still receives criticism for its seller support system. 

Automated enforcement of policies, slow appeal processes, and abrupt account suspensions remain pain points. Sellers often report difficulties in resolving account issues promptly, especially during peak seasons. 

Walmart Marketplace vs Amazon: Tapping Untapped Potential

Walmart’s e-commerce ambitions have surged in recent years, with Walmart Marketplace becoming an increasingly appealing platform for sellers. 

With over 150 million monthly visitors and more than 100,000 third-party sellers in 2025, the marketplace still has room for growth compared to Amazon. 

Advantages of Selling on Walmart Marketplace vs Amazon

Growing Platform 

Walmart’s e-commerce division has over $120 billion in revenue in 2024. 

Backed by extensive in-store distribution networks and strategic investments in technology, Walmart’s online business is scaling quickly, making it a serious contender in the Amazon-dominated e-commerce field 

Lower Competition 

Fewer sellers mean better visibility for listings. Many categories are still underrepresented compared to Amazon, offering new entrants a chance to capture market share with less PPC pressure. 

No Monthly Subscription Fee

Unlike Amazon’s $39.99/month Professional Plan, Walmart marketplace vs Amazon does not charge sellers a monthly fee to list on its marketplace, reducing overhead, especially for small and seasonal sellers. 

Walmart Fulfillment Services 

Walmart’s equivalent of FBA, Walmart Fulfillment Services, has improved dramatically in recent years. 

Walmart WFS vs Amazon FBA handles inventory, storage, shipping, and returns. The integration is seamless with Walmart.com, enabling sellers to achieve 2-day delivery in the US and boost their Buy Box win rates. 

Better Seller Support 

Walmart provides dedicated account managers for high-performing sellers and offers faster dispute resolutions. 

It has fewer policy enforcement issues compared to Amazon, according to recent seller satisfaction surveys published by Pattern and JungleScout. 

Disadvantages of Selling on Walmart Marketplace vs Amazon

U.S.-Only Market 

Walmart’s e-commerce operations are primarily US based. International sellers can apply, but access is restricted, and expansion to forgoing markets is limited compared to Amazon’s global reach. 

No Drop Shipping 

Walmart has strict policies against drop shipping unless the seller owns the inventory. This limits flexible fulfillment models that are still viable on Amazon. 

Smaller Audience 

Walmart’s online traffic is growing, but it still trails far behind Amazon in total e-commerce revenue. According to reports from JungleScout, Amazon captured 38% of US ecommerce market share in 2024, while Walmart held about 8.6%. 

Selling on Walmart Marketplace vs Amazon: Pricing and Buy Box

Amazon uses a dynamic pricing engine and a competitive Buy Box algorithm that considers fulfillment speed, price, seller rating, and stock levels. 

Walmart’s Buy Box is more straightforward and easier to win for new sellers, especially those using WFS. 

However, pricing strategy remains critical on both platforms. Amazon prices vs Walmart are often comparable, but Walmart has fewer seller promotions, which can impact conversion. 

At the same time, Walmart.com marketplace returns are more transparent and integrated with in-store options, giving customers a frictionless experience. 

Final Thoughts

If global expansion, deep analytics, and scalability are priorities, Amazon FBZ remains the gold standard. However, if you’re looking for lower fees, less competition, and a fast-growing US customer base, Walmart’s marketplace offers real advantages. 

Both platforms can complement each other. Many sellers use Walmart to Amazon to diversify away from Amazon’s strict policies while still using FBA for international sales.