Amazon vs Walmart Marketplace: A Data-Driven Comparison

By GigaCommerce
on February 9, 2026

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.

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Last Updated: March 2026