The Numbers
| Metric | Amazon | Walmart Marketplace |
|---|---|---|
| US monthly unique visitors | ~2.7 billion visits/month | ~500 million visits/month |
| Third-party sellers | ~2 million active | ~150,000+ active |
| US e-commerce market share | ~38% | ~6% |
| Annual marketplace GMV (est.) | ~$700 billion | ~$75-100 billion |
| Average conversion rate | 9-13% | 4-6% (estimated) |
| Fulfillment service | FBA (mature, extensive) | WFS (growing, improving) |
| Advertising platform | Amazon Ads (advanced) | Walmart Connect (developing) |
| Customer demographic | Broad, skews Prime-loyal, urban/suburban | Price-sensitive, suburban/rural, family-oriented |
The headline: Amazon has 5-7x Walmart’s e-commerce traffic and a far more mature ecosystem. But Walmart’s marketplace is growing faster in percentage terms, competition is significantly lower, and the demographic reach extends to shoppers who don’t use Amazon.
Fee Comparison
| Fee Type | Amazon | Walmart |
|---|---|---|
| Monthly subscription | $39.99/month (Professional) | $0 (no subscription fee) |
| Referral fee | 8-45% (typically 15%) | 6-20% (typically 8-15%, varies by category) |
| Fulfillment fee (FBA/WFS) | $3.06-$10+ per unit | $3.45-$8+ per unit (similar to FBA) |
| Storage fee | $0.56-$2.40/cu ft/month | $0.75/cu ft/month (standard) |
| Advertising CPC | $0.50-$4.00 (category dependent) | $0.30-$2.50 (typically 20-40% lower than Amazon) |
| Return processing | Included in FBA for most categories | Seller-managed or WFS-managed |
Fee advantage: Walmart’s referral fees are generally 2-5% lower than Amazon’s in the same category. No monthly subscription fee saves $480/year. WFS fees are comparable to FBA. And Walmart Connect CPCs are meaningfully lower — giving you more reach per advertising dollar.
But: Amazon’s higher fees include access to 5-7x more traffic and 2x higher conversion rates. Per-conversion cost is often lower on Amazon despite higher fees because the volume and conversion premium more than compensate.
Competition Comparison
| Metric | Amazon | Walmart |
|---|---|---|
| Active sellers | ~2 million | ~150,000 |
| Average reviews (top listings) | 500-50,000 | 50-5,000 |
| Saturation level | High (most categories) | Low-moderate (many white spaces) |
| New seller acceptance | Automatic (with Professional account) | Application-based (curated) |
| Amazon/Walmart private label threat | Amazon Basics + Essentials | Walmart’s Great Value + own brands |
The competition advantage is Walmart’s biggest draw. A product that needs 500+ reviews to be competitive on Amazon might need only 50-100 reviews to rank on Walmart. New entrants face a lower barrier to visibility.
Walmart’s application-based seller acceptance also limits the flood of low-quality sellers that saturates many Amazon categories. This curation creates a higher-quality seller pool — which means less race-to-the-bottom pricing competition.
Fulfillment Comparison
Amazon FBA (Mature)
- Hundreds of fulfillment centers across the US
- 1-2 day Prime delivery to 95%+ of US population
- Handles customer service and returns
- Multi-Channel Fulfillment available (fulfill Shopify/Walmart orders from FBA)
- Mature, reliable, predictable
Walmart Fulfillment Services (Growing)
- Fewer fulfillment centers (expanding)
- 2-3 day delivery (improving, Walmart+ members get faster delivery)
- Handles customer service and returns for WFS orders
- WFS provides the “W+” badge — Walmart’s equivalent of Prime badge
- Less mature than FBA but improving rapidly quarter over quarter
Practical comparison: FBA is currently more reliable and faster. WFS is catching up and is sufficient for most product categories. The key WFS benefit: products enrolled in WFS receive preferred search placement on Walmart.com, similar to how FBA products get preferred treatment on Amazon.
Recommendation: If you sell on both platforms, use FBA for Amazon and WFS for Walmart. Don’t try to use FBA’s Multi-Channel Fulfillment for Walmart orders — the Amazon-branded packaging confuses Walmart customers.
Advertising Comparison
Amazon Advertising
Maturity: Fully developed. Sponsored Products, Sponsored Brands, Sponsored Display, DSP, AMC. Advanced targeting, measurement, and optimization tools.
Typical CPC: $0.50-$4.00 depending on category.
Strengths: High-intent traffic, sophisticated targeting, proven ROI models, extensive data and analytics.
Limitation: Competition has driven CPCs up 30-50% over the past 3 years in most categories.
Walmart Connect
Maturity: Developing. Sponsored Products (keyword and auto targeting), Sponsored Brands (limited rollout), Display ads (programmatic), and in-store advertising integration.
Typical CPC: $0.30-$2.50 — typically 20-40% lower than Amazon for equivalent keywords.
Strengths: Lower competition = lower CPCs = lower cost per acquisition. Unique in-store + online advertising synergy (Walmart’s physical store footprint creates omnichannel reach no other platform offers). Growing faster than Amazon’s ad platform in percentage terms.
Limitation: Less sophisticated targeting, fewer ad types, less mature measurement and attribution. Search term reports are improving but not yet at Amazon’s level of granularity.
Bottom line: Amazon advertising is more powerful but more expensive. Walmart advertising is less sophisticated but more affordable. For brands entering Walmart, the lower CPC creates an opportunity to build market share more cost-effectively than on Amazon.
Seller Experience Comparison
| Dimension | Amazon | Walmart |
|---|---|---|
| Listing creation | Straightforward (Seller Central) | Similar (Seller Center) but less intuitive |
| Content quality tools | A+ Content, Brand Story, Stores | Rich Media (similar to A+ but less mature) |
| Analytics | Brand Analytics, Search Query Performance | Growing but less comprehensive |
| Customer reviews | Extensive review ecosystem | Reviews exist but lower volume per product |
| Brand protection | Brand Registry, Project Zero, Transparency | Brand Portal (developing) |
| Seller support | Massive but inconsistent quality | Smaller team, often more responsive |
| API and integrations | Mature API, extensive third-party tools | Growing API, fewer integrations |
The Decision Framework
Start with Amazon If:
- You’re launching a new product or brand (Amazon’s traffic provides fastest validation)
- Your category is search-driven (shoppers actively searching for your product type)
- You want FBA’s mature fulfillment infrastructure
- You plan to invest in advertising as a growth lever (Amazon’s ad platform is more powerful)
- You need Brand Registry features (A+ Content, Sponsored Brands, Brand Analytics)
Add Walmart When:
- Your Amazon operations are stable and profitable (at least 6+ months of consistent performance)
- You have the inventory capacity to supply a second marketplace
- Your product data can be adapted for Walmart’s format without major rework
- You want to reach Walmart’s demographic (price-sensitive, suburban/rural, family-oriented)
- You’re looking for lower-competition, lower-CPC growth
Consider Walmart First If (Rare):
- Your product specifically targets Walmart’s core demographic
- Your product is in a category where Walmart has disproportionately strong demand (household essentials, grocery, family basics)
- You sell at price points that align with Walmart’s value positioning
- You already have a relationship with Walmart’s retail/buying team
Skip Walmart If:
- Your Amazon operations aren’t yet profitable (fix the foundation first)
- You’re selling luxury, premium, or niche products that don’t align with Walmart’s mass-market positioning
- You don’t have the operational capacity for a second marketplace
- Your product category has very low demand on Walmart.com (check Walmart search volume before committing)
Walmart Marketplace Onboarding
Application Process
Unlike Amazon (where anyone with a Professional account can sell), Walmart requires an application:
- Apply at marketplace.walmart.com
- Provide: business registration, EIN, product catalog information, and existing marketplace references (Amazon performance data helps)
- Wait for approval: 2-8 weeks (Walmart reviews applications for quality and fit)
- Complete onboarding: set up Seller Center, integrate product feed, configure shipping, and enroll in WFS
Approval tips: Having strong Amazon seller metrics (good ratings, established sales history) significantly improves your Walmart application odds. Include your Amazon performance data in the application.
Listing Optimization for Walmart
Don’t copy-paste Amazon listings. Walmart’s search algorithm and shopper expectations differ:
Titles: Walmart recommends shorter, cleaner titles than Amazon. Avoid keyword stuffing — Walmart’s algorithm weights relevance and click-through rate more heavily than keyword density.
Content: Walmart’s Rich Media Content (their A+ equivalent) supports images, comparison charts, and videos. Invest in Rich Media for your top products — most sellers don’t, which means those who do stand out.
Pricing: Walmart shoppers are more price-sensitive than Amazon shoppers on average. Monitor competitor pricing on Walmart closely and price competitively. Walmart’s algorithm explicitly factors in pricing competitiveness for search ranking.
Frequently Asked Questions
Does selling on Walmart cannibalize Amazon sales?
Minimal cannibalization. Research indicates that Amazon and Walmart shoppers have distinct but overlapping demographics. Most brands see 80-90% of Walmart revenue as incremental — new sales from customers who wouldn’t have purchased on Amazon. The 10-20% overlap is offset by the total revenue increase from the additional channel.
Is Walmart Marketplace growing?
Yes. Walmart’s third-party marketplace revenue has been growing rapidly year over year. The number of sellers, product selection, and advertising capabilities are all expanding. Walmart is actively investing in seller tools, fulfillment infrastructure, and advertising technology to close the gap with Amazon.
Do I need a US business to sell on Walmart?
Walmart requires a US business entity (LLC, Corporation, or Sole Proprietorship with SSN) to sell on the US marketplace. International sellers need to form a US entity. This is more restrictive than Amazon, which accepts foreign business registrations.
Can I use the same product content for Amazon and Walmart?
You can use the same product descriptions and images as a starting point, but optimize for each platform separately. Walmart titles should be shorter and cleaner. Walmart search ranking factors differ from Amazon’s COSMO algorithm. And Walmart’s shopper expectations around pricing and presentation may require adjustments.
How much does it cost to start on Walmart?
No subscription fee (free to sell). WFS enrollment is free. Initial advertising budget: $500-$2,000/month to establish visibility. Product photography and listing creation: use your Amazon assets as a starting point. Total incremental cost to launch on Walmart if you’re already on Amazon: $1,000-$5,000.
Next Steps
Already on Amazon and considering Walmart? Our Growth plan manages Amazon plus one additional marketplace. Get your free audit → and we’ll evaluate the Walmart opportunity for your specific products.
Keep reading:
- eBay vs Amazon: Which Marketplace Is Right? →
- Multi-Marketplace Strategy: Amazon + Shopify + Walmart →
- Shopify vs Amazon: Where to Sell First? →
Last Updated: March 2026