When it comes to leading e-commerce in 2024, Walmart and Amazon are two major players shaping how businesses reach their customers. Amazon leads the industry with an impressive 37.6% share of the U.S. e-commerce market, thanks to its vast audience, efficient fulfillment systems, and powerful advertising tools. Walmart, however, is quickly gaining ground as the second-largest player, holding a 6.4% share by using its trusted brand, growing online presence, and integration with physical stores.
For sellers, picking the right platform can make a huge difference. Amazon offers access to a massive global audience, but it also means more competition and higher fees. Walmart offers a less crowded marketplace with a selective approval process, which can make it appealing for sellers who want their products to stand out. Each platform serves different types of customers — Amazon attracts convenience-focused and tech-savvy shoppers, while Walmart appeals to budget-conscious families and value-seekers.
To succeed, sellers need to understand the strengths of both marketplaces. Key factors to consider include fulfillment options, fees, buyer preferences, and growth opportunities. This article guides you through a detailed comparison of selling on Walmart vs Amazon in 2024, helping you choose the platform that aligns best with your business needs.
Walmart’s Selective Seller Onboarding vs Amazon’s Open Registration
Amazon’s Open Onboarding Approach
Amazon has long been the go-to platform for new and experienced sellers due to its open onboarding process. Signing up is straightforward, allowing nearly anyone to join its seller ecosystem.
The steps include creating an Amazon Seller Central account, submitting basic personal or business information, and completing tax verification. Sellers can choose between two plans — Individual or Professional — based on their volume and business needs.
Amazon’s openness has led to an enormous seller base, with over two million active sellers worldwide as of 2024. While this broad access allows small businesses and entrepreneurs to enter the market without significant hurdles, it also means intense competition. Amazon enforces strict guidelines to ensure compliance, such as performance metrics, policies for product listings, and adherence to intellectual property laws.
Walmart’s Selective Seller Approval Process
Unlike Amazon, Walmart operates a selective onboarding and approval system to maintain high-quality offerings on its platform. Before selling, applicants must first pass a rigorous approval process. Sellers are required to provide details on their business, including tax forms, product selection, and performance history on other platforms.
Businesses that demonstrate strong operational capabilities, excellent customer service, and competitive pricing are more likely to gain approval.
This selective approach results in a less saturated marketplace, allowing sellers to enjoy higher visibility and lower competition than on Amazon.
However, for new sellers, the approval process can be a challenge. Walmart prioritizes experienced businesses with a proven track record, making it essential to present a professional and well-prepared application.
Which Platform Has Better Fulfillment Options — Amazon FBA or Walmart WFS?
Amazon FBA (Fulfillment by Amazon)
Amazon FBA has set the benchmark for fulfillment services by offering sellers access to its vast logistics network. Under this system, sellers ship their products to Amazon’s fulfillment centers, and Amazon handles everything from storage and packing to shipping, returns, and customer service.
- Strengths of FBA
1. Prime Badge Advantage:
FBA-fulfilled items automatically qualify for Amazon’s coveted Prime badge, which promises fast, free delivery.
2. Lightning-Fast Delivery:
FBA leverages Amazon’s extensive logistics network to offer reliable 1–2 day delivery for Prime members.
3. Global Reach:
Sellers can use Amazon’s infrastructure to expand into international markets with minimal effort. FBA handles cross-border logistics, simplifying the complexities of global e-commerce.
- Weaknesses of FBA
1. High Costs:
FBA’s fee structure can be expensive, especially for heavy or bulky items. Additional costs for storage, particularly during peak seasons, can eat into profit margins.
2. Reduced Control:
Sellers must adhere to Amazon’s rules and standards, which can be restrictive. They also forfeit control over how products are handled, packaged, and shipped.
3. Costly Returns:
While FBA simplifies return management, sellers bear the costs of processing and restocking returns, which can add up for high-return categories like apparel.
Walmart Fulfillment Services (WFS)
Walmart WFS is a newer player in the fulfillment game but has quickly gained traction. Like FBA, it allows sellers to ship inventory to Walmart’s fulfillment centers where Walmart takes care of the rest.
- Strengths of WFS
1. Lower Competition for Visibility:
WFS-enabled products gain higher prominence in Walmart search results. The platform’s curated marketplace ensures less competition, giving sellers a chance to shine.
2. Simplified Cost Structure:
WFS fees are more predictable compared to FBA, with fewer seasonal surcharges. For example, storage fees are flat at $0.75 per cubic foot for most of the year, with only moderate increases during the holiday season.
3. Fast Shipping Standards:
Similar to Amazon Prime, products fulfilled by WFS are eligible for Walmart’s free two-day shipping, meeting customer expectations for speed without requiring sellers to manage logistics.
4. Transparent Return Policies:
WFS includes return processing fees in its standard rates, simplifying cost management for sellers.
- Weaknesses of WFS
1. Limited to the U.S.:
Unlike FBA, Walmart WFS primarily serves the U.S. market, limiting opportunities for sellers seeking global expansion.
2. Strict Compliance Requirements:
Walmart enforces stringent labeling and packaging rules. Non-compliance can result in delays, penalties, or additional fees.
3. No Badge Incentive:
Unlike Amazon’s Prime badge, Walmart does not offer a similar visual marker for WFS-fulfilled products, potentially reducing customer trust when comparing products online.
Cost of Amazon FBA vs Walmart WFS
Amazon FBA Costs:
✔ Storage fees spike during peak months (October–December), with long-term storage costs potentially hitting $6.90 per cubic foot.
✔ Fulfillment fees for small items start as low as $2.92 per unit but increase for heavier or oversized products during peak seasons.
WFS Costs:
✔ Storage fees are flat at $0.75 per cubic foot for January–September, rising to $2.25 during the holidays.
✔ Fulfillment fees start at $3.45 for items under 1 lb but remain relatively stable across categories.
How Much Does It Cost To Sell on Walmart vs Amazon?
Amazon Fees and Costs
1. Listing Fees:
Sellers on Amazon must subscribe to the Professional plan, which costs $39.99 per month. There is an Individual plan without a subscription, but it charges $0.99 per item sold—unsuitable for higher volumes.
2. Returns and Handling Fees:
Sellers bear the cost of customer returns if the item falls within Amazon’s return policy. For FBA, this includes any required restocking or repackaging costs.
Learn more about Amazon’s Reimbursement ↪
3. Referral Fees:
Amazon charges referral fees as a percentage of the item’s sale price, ranging from 6% (e.g., personal computers) to 45% for certain media items. Most categories average 8–15%. The table outlines the referral fee percentages applicable to each Amazon category:
| Product Category | Referral Fee Percentage |
|---|---|
| Amazon Device Accessories | 45% |
| Appliances – Compact | 15% for portion of total sales price up to $300, and 8% for any portion of total sales greater than $300 |
| Appliances – Full-size | 8% |
| Automotive and Powersports | 12% |
| Base Equipment Power Tools | 12% |
| Baby Products | 8% for products with a total sales price of $10.00 or less, and 15% for products with a total sales price greater than $10.00 |
| Backpacks, Handbags, and Luggage | 15% |
| Beauty, Health, and Personal Care | 8% for products with a total sales price of $10.00 or less, and 15% for items with a total sales price greater than $10.00 |
| Business, Industrial, and Scientific Supplies | 12% |
| Clothing and Accessories | 17% |
| Computers | 8% |
| Consumer Electronics* | 8% |
| Electronics Accessories ** | 15% for the portion of the total sales price up to $100.00, and 8% for any portion greater than $100 |
| Eyewear | 15% |
| Fine Art | 20% for the portion of Sales Proceeds up to $100 (with a minimum Referral Fee of $1.00); 15% for any portion of Sales Proceeds greater than $100 up to $1,000; 10% for any portion of Sales Proceeds greater than $1,000 up to $5,000; and 5% for any portion of Sales Proceeds greater than $5,000 |
| Footwear | 15% |
| Furniture | 15% for portion of total sales price up to $200 and 10% for any portion greater than $200 |
| Gift Cards | 20% |
| Grocery and Gourmet | 8% for products with a total sales price of $15 or less and 15% for products with total sales price greater than $15 |
| Home and Kitchen | 15% |
| Jewelry | 20% for the portion of total sales price up to $250 and 5% for portion greater than $250 |
| Lawn and Garden | 15% |
| Lawn Mowers and Snow Throwers | 15% for products with a total sales price of up to $500 and 8% for products with a total sales price greater than $500 |
| Media – Books, DVD, Music, Software, Video | 15% |
| Musical Instruments and AV Production | 15% |
| Office Products | 15% |
| Pet Supplies | 15%, except 22% for veterinary diets |
| Sports and Outdoors | 15% |
| Tires | 10% |
| Tools and Home Improvement | 15% |
| Toys and Games | 15% |
| Video Games and Gaming Accessories | 15% |
| Video Game Consoles | 8% |
| Watches | 16% for the portion of total sales price up to $1,5000 and 3% for any portion greater than $1,5000 |
| Everything Else *** | 15% |
Walmart Fees and Costs
1. Listing Fees:
Walmart does not charge a monthly subscription fee for listing products, making it accessible for new sellers.
2. Returns and Handling Fees:
Returns processing fees are generally included in the fulfillment fees but may have additional costs for specific product types like apparel. Sellers also pay removal fees for unsold or damaged inventory ( $0.15 to $0.50 per unit).
3. Referral Fees:
A percentage-based referral fee is charged on each sale, varying by product category (e.g., 8% for Consumer Electronics, 15% for Decor). Here’s the full list of Walmart Marketplace referral fees:
| Product Category | Referral Fee Percentage |
|---|---|
| Apparel & Accessories | 5% for items with a total sales price of $15 or less; 10% for items with a total sales price between $15 – $20; 15% for items with a total sales price greater than $20; 15% for backpacks |
| Automotive & Powersports | 12% |
| Automotive Electronics | 8% |
| Baby | 8% for items with a total sales price of $10 or less; 15% for items with a total sales price greater than $10 |
| Beauty | 8% for items with a total sales price of $10 or less; 15% for items with a total sales price greater than $10 |
| Books | 15% |
| Camera & Photo | 8% |
| Cell Phones | 8% |
| Consumer Electronics | 8% |
| Compact Appliances | 12% for the first $300; 8% for the portion above $300 |
| Electronics Accessories | 15% for the portion of the total sales price up to $100; 8% for the portion of the total sales price greater than $100 |
| Decor | 15% |
| Gourmet Food | 15% |
| Grocery | 8% for items with a total sales price of $15 or less; 15% for items with a total sales price greater than $15 |
| Health & Personal Care | 8% for items with a total sales price of $10 or less; 15% for items with a total sales price greater than $10 |
| Home & Garden | 15% |
| Indoor & Outdoor Furniture | 15% on the first $200; 10% on amounts over $200 |
| Industrial & Scientific | 12% |
| Jewelry | 20% for the portion of the total sales price up to $250; 5% for the portion of the total sales price greater than $250 |
| Kitchen | 15% |
| Luggage & Travel Accessories | 15% |
| Major Appliances | 8% |
| Music | 15% |
| Musical Instruments | 12% |
| Office Products | 15% except 8% for Calculators and 12% for Printer Cartridges |
| Outdoor Power Tools | 15% for items with a total sales price ≤ $500; 8% for items with a total sales price > $500 |
| Outdoors | 15% except 8% for Hunting Trail Monitors, Binoculars, Telescopes, Spotting Scopes, and Night Vision Goggles |
| Personal Computers | 6% |
| Pet Supplies | 15% |
| Plumbing, Heating, Cooling & Ventilation | 10% |
| Shoes, Handbags & Sunglasses | 15% |
| Software & Computer Video Games | 15% |
| Sporting Goods | 15% |
| Tires & Wheels | 10% |
| Tools & Home Improvement | 15%, except 12% for Base Power Tools |
| Toys & Games | 15% |
| Video & DVD | 15% |
| Video Game Consoles | 8% |
| Video Games | 15% |
| Watches | 15% for the portion of the total sales price up to $1,500; 3% for the portion of the total sales price greater than $1,500 |
| Everything Else | 15% |
Advertising Options on Walmart vs. Amazon
Amazon boasts a highly developed ecosystem featuring Sponsored Products, Sponsored Brands, and Sponsored Display Ads, along with advanced programmatic options via Amazon DSP.
With precise targeting capabilities — including keyword bidding, demographic filtering, and retargeting — Amazon helps sellers tap into a massive audience. It’s highly effective for driving conversions, but the high competition across most categories means sellers may face expensive ad costs, especially during peak seasons.
Amazon’s platform also has a learning curve, particularly for new sellers navigating its complex ad console.
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Walmart, on the other hand, offers a growing advertising platform. Key options include Sponsored Products, Sponsored Brands, and Display Ads, with programmatic ad buying available through its partnership with The Trade Desk.
Walmart ads rely on CPC-based bidding and are generally more budget-friendly, making them a great fit for sellers with tighter budgets.
The key difference lies in reach and sophistication. Amazon’s larger customer base and advanced ad tools cater to sellers needing worldwide exposure. Walmart’s simpler, cost-effective model provides an edge for sellers targeting domestic audiences or entering the e-commerce space.
Walmart vs. Amazon Seller Policies
Amazon Policies
Amazon’s seller policies are detailed and rigorous, requiring strict adherence to guidelines on product listings, pricing strategies, customer service, and more. Policies include specific rules surrounding product condition descriptions, restricted product categories, and intellectual property rights.
Additionally, Amazon enforces high-performance standards for sellers, which include:
✔ Order defect rate: Less than 1%
✔ Pre-fulfillment cancellation rate: Less than 2.5%
✔ Late shipment rate: Less than 4%
Failure to meet these benchmarks can result in penalties, including account suspension. However, Amazon equips merchants with various seller tools and resources to help them improve their performance and achieve success on the platform.
Walmart Policies
Walmart offers a similarly comprehensive yet more straightforward approach to seller policies. The platform places significant emphasis on competitive pricing and ensures its sellers meet performance goals, such as:
✔ 90-day order defect rate: Between 0–2%
✔ On-time shipment rate: Greater than 99%
✔ Valid tracking rate: Greater than 95%
Unlike Amazon, Walmart tends to take a more accommodating approach if sellers encounter performance issues. The platform often collaborates with merchants to resolve challenges instead of imposing immediate penalties.
Pros of Selling on Walmart
1. Less Gating:
Walmart has significantly less brand/category gating compared to Amazon, making it easier to list products.
2. Screening Process:
Walmart has a screening process for sellers, which reduces competition.
3. Reach:
Walmart.com attracts over 410 million unique visitors each month, providing sellers with access to a vast customer base. This reach is second only to Amazon, making it a significant platform for expanding market presence.
4. Customer Service:
While similar to Amazon’s, Walmart’s customer service is faster in response.
5. Fewer Account Risks:
Walmart doesn’t have as many arbitrary rules or account risks as Amazon, reducing the fear of sudden account suspension.
6. Dropshipping:
Walmart allows dropshipping with certain restrictions, offering more flexibility than Amazon’s stricter policies. One thing to notice here, Walmart expressly prohibits dropshipping from competitors, with a specific focus on Amazon, as evidenced by their ban on tracking numbers beginning with “TBA”.
7. Buy Box and Pro Seller Rating:
Easier to obtain compared to Amazon, due to less competition and a simpler algorithm compared to Amazon’s.
8. No Subscription Fee:
Walmart does not charge monthly subscription fees, unlike Amazon’s Professional Seller plan. Sellers only pay referral fees when they make a sale.
Cons of Selling on Walmart
1. Seller Platform:
Managing the Walmart seller interface can be tricky. Many sellers have reported system bugs and a heavy reliance on manual processes, such as using spreadsheets. These challenges often result in added complexity when handling listings and inventory.
2. Shipping
Unlike Amazon, Walmart does not offer a “Buy Shipping” equivalent. This means sellers cannot access built-in claims coverage or significant shipping discounts. Instead, they must independently manage shipping logistics, which can add time and cost to their operations.
3. Seller Support
While Walmart provides seller support, it can sometimes fall short in addressing specific issues. The limited number of support categories occasionally leaves sellers without clear answers to their concerns.
4. Inventory System
Some sellers experience problems with inventory visibility and pricing, which can directly impact sales performance. These issues require sellers to closely monitor and manage their inventory for accuracy.
5. International Sales
Walmart’s marketplace primarily focuses on the U.S., which limits opportunities for international sales. Compared to Amazon’s expansive global reach, Walmart offers fewer options for sellers looking to access international markets.
Which Platform Should You Choose?
When to Choose Amazon
Amazon is the go-to platform for sellers who prioritize scaling quickly and accessing a global customer base. Here are key scenarios where Amazon might be the better choice for your business:
✔ You Aim for Global Reach: Amazon’s extensive international presence allows sellers to expand beyond the U.S. market with relative ease, supported by Fulfillment by Amazon (FBA) for cross-border logistics.
✔ You Sell Discretionary or Premium Products: With a vast marketplace and customer base, Amazon attracts shoppers who value convenience and variety over price sensitivity, making it perfect for categories like electronics, home goods, and apparel.
✔ You Value Fast Shipping Solutions: The Amazon Prime badge ensures higher customer trust and prioritizes FBA products in search rankings, boosting visibility and conversion rates. If speedy delivery is critical to your business strategy, Amazon delivers.
✔ You’re Prepared for Competition: While Amazon’s customer base is enormous, so is the competition. For seasoned sellers who understand how to optimize listings and invest in ads, this crowded marketplace offers significant growth potential.
When to Choose Walmart
Walmart caters to a more cost-conscious, U.S.-centered audience. It’s an excellent choice if your business prioritizes affordability and operates within specific niches. Consider Walmart in the following cases:
✔ You are U.S. – Focused: Walmart dominates the domestic retail sector, particularly in groceries and essential goods. If your products cater to this audience, Walmart’s strong reputation and presence will benefit you.
✔ You’re Looking for Lower Competition: Walmart Marketplace has fewer active sellers compared to Amazon, making it easier to gain visibility and stand out, especially if your listings comply with Walmart’s high standards.
✔ You Want Transparent Costs: Walmart Fulfillment Services (WFS) offers predictable fee structures, with lower storage costs outside of Q4, making it a straightforward and budget-friendly option for small and medium-sized businesses.
✔ Your Brand is Essential-Focused: Walmart’s customer base values everyday essentials and practical products over discretionary items, making it ideal for categories like household goods, groceries, and consumer staples.
Which Platform Should You Choose?
Selling on Walmart offers notable benefits, but brands should be prepared for a more involved onboarding process compared to Amazon. Walmart’s seller application process is stricter, and they carefully select which brands are allowed to join their marketplace. Additionally, Walmart’s Seller Center, being a newer platform, can be more complex to use compared to Amazon’s Seller Central.
It’s also worth noting that Walmart is still refining its platform, which means dealing with occasional bugs and inefficiencies. Another point to consider is the upfront requirement for every product to have a UPC, which is not mandatory on Amazon.
Given these differences, how should your brand approach selling on Walmart and Amazon? The simple answer is to utilize both. Amazon remains the leading ecommerce platform in the U.S., making it an essential tool for most businesses. On the other hand, while Walmart may currently contribute a smaller portion of total online revenue, its rapid growth trajectory means it offers significant potential for future sales expansion.
Some products or brands may perform better on one platform over the other, but there’s a clear advantage in leveraging both the largest and fastest-growing ecommerce platforms available today.
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