Amazon and Walmart are two of the world’s largest retailers, and both offer opportunities for third-party sellers. If you’re looking to reach as large an audience as possible and want to sell internationally, Amazon may be your best choice. If, on the other hand, you are an experienced seller looking to reach a new audience, Walmart may be your best option.
In this article, we’ll look at the main differences between selling on the Walmart and Amazon marketplace and help you decide which platform is right for you.
What is Amazon?
Amazon is an American multinational company specializing in e-commerce. Its other businesses include cloud computing, online advertising, digital streaming and artificial intelligence. It is one of the “Big Five” US information technology companies, along with Google, Apple, Microsoft and Meta.
Amazon is one of the world’s largest online retailers. According to e-commerce market share statistics, it holds 13% of the global online market by gross merchandise volume. In the US, it ranks first with a market share of 37.8%. Amazon is known for its wide selection of products, competitive prices, fast shipping, Amazon Prime program and innovative services.
Amazon is a major e-commerce player that has had a significant impact on the way people shop. It is a fast-growing company that will likely continue to have a significant impact on the global economy in the coming years.
What is Walmart?
Walmart is an American retail corporation that operates a chain of hypermarkets, discount and grocery stores. Walmart is the world’s largest company by revenue, with annual revenues of approximately $600 billion.
Most of Walmart’s sales come from brick-and-mortar stores. Walmart has been investing heavily in e-commerce in recent years and currently has a 6.3% market share. It is the second largest e-commerce marketplace in the US after Amazon.
Walmart is known for its competitive prices and wide range of products. It sells various categories of products including food, electronics, home goods, apparel, and toys. Walmart is also known for its convenience, as many of its stores are open 24 hours a day and 7 days a week.
Pros and cons of selling on Amazon
Selling on Amazon has its advantages and disadvantages for e-commerce sellers. Here is a description of its strengths and weaknesses.
Pros
Wider customer base
Amazon is one of the world’s largest online retailers and has a huge global customer base. This means that more potential customers shop on Amazon than on other platforms.
Amazon Fulfillment
FBA allows sellers to utilize Amazon’s extensive logistics network for storage, shipping, and customer service, making it easier to manage orders and get items to customers quickly.
International reach
Amazon operates multiple online marketplaces, allowing sellers to reach international markets.
Easy onboarding
The signup process is simple enough that many sellers can get up and running quickly.
Cons
Higher seller commissions
Amazon’s merchant fees are higher than Walmart’s. Amazon charges various commissions, including referral fees and Amazon FBA fulfillment fees, which can lead to lower profits.
More competition
There is more competition on Amazon than Walmart. Because of its popularity, many sellers compete on Amazon, which can lead to price wars. This can also make it harder for sellers to stand out and attract customers.
Tougher requirements for sellers
Amazon has stricter requirements for sellers than Walmart. This includes aspects such as seller performance metrics, product reviews, and seller ratings.
Policy change
Amazon has quite complex policies and changes them frequently. This can be frustrating and time-consuming for sellers who must constantly adapt to new rules and regulations. It can affect sellers’ commissions, product restrictions, fulfillment requirements, etc.
Pros and cons of selling at Walmart
Walmart is a retail giant, but its share of online sales is more negligible than Amazon’s. Nevertheless, it offers its specific sales opportunities with its own pros and cons.
Pros
Less competition
Walmart’s online marketplace has less competition than Amazon’s. This makes it easier for sellers to stand out.
Lower seller commissions
Walmart’s seller fees are lower than Amazon’s. There is no monthly subscription fee, only a fee per sale. In addition, the fee structure for fulfillment is clearer. This can be a significant savings for sellers, especially those who want to sell on both Amazon and Walmart.
Integration with marketplaces
Walmart has a solid physical retail presence, and some sellers can use this advantage to integrate their online and offline sales strategies. They can also utilize Walmart’s self-checkout option.
Walmart+ customer base
Walmart+ is a paid subscription service similar to Amazon Prime. The subscription has its own loyal customer base, different from Amazon’s. It offers additional outreach potential. Walmart+ members tend to spend more money than non-members.
Cons
Smaller customer base
Walmart’s online customer base is smaller and mostly concentrated in the United States. This means that fewer potential customers shop at Walmart than at Amazon. The narrower customer base limits the overall and international reach.
Selective commissioning
At Walmart, the seller approval process is more selective and lengthy. In addition, sellers must have a U.S. registered business. This can make it difficult for some companies to operate on the platform.
Less flexible fulfillment
Walmart offers fewer fulfillment options than Amazon. Walmart Fulfillment Services (WFS) provides fulfillment options similar to FBA. However, it does not have as many fulfillment centers as Amazon.
Less developed platform
Walmart is a lesser known and trusted shopping platform than Amazon. This means that customers are less likely to buy from Walmart than from Amazon sellers.