Deciding between Walmart and Amazon as your selling platform can shape the success of your e-commerce business. 

Amazon dominates with its global reach, capturing nearly 50% of all U.S. online sales, making it ideal for sellers seeking a vast, diverse audience. In contrast, Walmart excels with its value-driven customer base and less crowded marketplace, offering higher visibility and better opportunities for smaller or niche sellers.

Today, we’ll break down the key differences, including fees, competition, customer base, and fulfillment options, to help you make an informed choice tailored to your business goals.

Marketplace Overview: Walmart and Amazon in Context

Amazon’s influence in the e-commerce world is undeniable. With 2.3 billion monthly US visits and nearly 48% of all US online sales, it has become the go-to platform for millions of customers and sellers. Its global reach, vast product categories, and logistical efficiency make it a powerhouse in online retail.

On the other hand, Walmart maintains its position as the largest retailer by revenue, surpassing Amazon in total earnings. While its 400 million monthly US visits may pale in comparison to Amazon, Walmart capitalizes on a loyal customer base looking for value and convenience. Its integration of online and in-store shopping offers a unique hybrid experience, particularly attractive for sellers targeting both digital and physical markets.

Both platforms show strong growth potential. Walmart’s online presence is steadily increasing, driven by strategic investments in e-commerce. Meanwhile, Amazon continues to expand its Prime ecosystem, cementing customer loyalty through unmatched convenience and benefits.

Understanding the Customer Base

The type of customer each platform attracts can influence your decision significantly.

Amazon’s customer base skews towards convenience-oriented shoppers who value speed and variety. Many of these customers are Prime members, willing to pay a premium for perks like two-day shipping. They are often tech-savvy and shop across diverse categories, from electronics to household goods.

Walmart’s customer base, in contrast, is largely value-driven. Many are budget-conscious families seeking everyday essentials at competitive prices. Walmart’s strong foothold in categories like groceries, home goods, and apparel reflects this preference.

When selecting a platform, understanding these differences is crucial. If your product appeals to high-income professionals or niche markets, Amazon’s audience may be better suited. Conversely, if affordability and practicality define your offerings, Walmart’s customer base aligns more closely.

Competitiveness: Standing Out as a Seller

Competition is a double-edged sword on these platforms. Amazon’s marketplace hosts over 2 million active sellers, making it fiercely competitive. Standing out requires strategic advertising, optimized product listings, and competitive pricing. Sellers must also navigate the complexities of Amazon’s A9 algorithm, which determines product visibility.

Walmart, with approximately 150,000 active sellers, offers a less saturated marketplace. For new sellers, this means more visibility and fewer competitors vying for the same audience. Walmart’s Buy Box dynamics are also less complex, providing a level playing field for sellers offering quality products at reasonable prices.

However, Walmart’s smaller pool of buyers compared to Amazon means less potential traffic. For sellers with niche or unique products, this could be a limiting factor.

Fees and Costs: Breaking Down the Numbers

Selling fees can significantly impact profitability. Here’s how the two platforms compare:

Amazon’s Fulfillment by Amazon (FBA) program offers logistical convenience but comes at a cost. Storage fees can spike during peak seasons, and sellers must carefully manage inventory to avoid unnecessary charges.

Walmart’s Walmart Fulfillment Services (WFS) mirrors FBA in many ways but remains less comprehensive. While WFS fees are comparable, its smaller scale means limited availability in some regions.

Both platforms offer free shipping perks for customers using their fulfillment services, making these programs attractive for boosting sales.

Product Types and Restrictions

Amazon’s sheer diversity of categories gives it an edge for sellers with varied inventories. Whether it’s electronics, fashion, or books, Amazon allows nearly all legal products to be sold, barring a few restricted categories.

Walmart’s product focus is more selective. Popular categories include home goods, apparel, accessories, and groceries. Sellers looking to offer niche or unique products may find Walmart less accommodating, though this exclusivity can work in favor of sellers targeting Walmart’s specific audience.

Knowing what sells best on each platform is essential. For example, sellers of tech gadgets and luxury items may thrive on Amazon, while those dealing in household essentials or affordable apparel might perform better on Walmart.

Shipping and Fulfillment Services

Amazon’s Fulfillment by Amazon (FBA) is often considered the gold standard in e-commerce logistics. It provides seamless inventory management, access to Prime customers, and fast delivery options. However, these benefits come at a price, with fulfillment fees varying based on product size and weight.

Walmart’s Walmart Fulfillment Services (WFS) offers similar benefits, including free two-day shipping. While WFS is gaining traction, its smaller scale means fewer warehouses and potentially slower delivery times for certain regions.

Here’s how they compare:

Both platforms also allow sellers to use third-party logistics (3PL) solutions or handle fulfillment independently, though this may limit access to premium shipping benefits.

Branding and Advertising

Building a brand on Amazon requires significant investment in advertising. The platform offers tools like Sponsored Products, Sponsored Brands, and Display Ads, enabling sellers to increase visibility. However, the sheer volume of competitors means higher costs for clicks and impressions.

Walmart, in comparison, offers a less crowded advertising space. Its Walmart Connect platform is improving, though it lacks the sophistication of Amazon’s advertising tools. For smaller sellers, Walmart may offer a more cost-effective branding environment.

Case studies of successful sellers demonstrate that while Amazon’s advertising delivers massive reach, Walmart’s focused audience can yield high ROI for specific categories.

Seller Policies and Support

Amazon’s policies are known for their complexity and rigidity. Sellers must adhere to strict guidelines on product listings, pricing, and customer service. Non-compliance can result in account suspension, often with little warning.

Walmart’s policies are simpler and more transparent. While still comprehensive, Walmart’s approach is perceived as more lenient, particularly for new sellers. However, Walmart’s seller tools and technology lag behind Amazon’s, which may frustrate sellers accustomed to more advanced systems.

Overall Seller Satisfaction

Both platforms have their strengths and weaknesses when it comes to seller satisfaction. Amazon provides advanced tools and resources but is frequently criticized for unresponsive seller support and stringent policies. Walmart, on the other hand, is praised for its seller-friendly environment but falls short in terms of technological innovation.

Survey data and real-world examples suggest that sellers with large-scale operations or diverse product offerings may favor Amazon, while small-to-medium businesses seeking lower competition and simpler processes might lean towards Walmart.

Key Takeaways: Which Platform Should You Choose?

If you want to tap into a massive global audience and dominate sales volume, Amazon is your best choice. However, be prepared for intense competition, higher fees, and the need for aggressive advertising to stand out.

On the other hand, if you’re looking for a less crowded marketplace with greater visibility and lower upfront costs, Walmart is the smarter option. It’s especially beneficial for sellers with niche or value-focused products.

Ultimately, choose Amazon for scale and Walmart for targeted growth with fewer barriers to success.