While Amazon is often the first marketplace that comes to mind in e-commerce, Walmart is a formidable competitor striving to make its mark. Both platforms provide opportunities for third-party sellers and brands to reach customers, but they operate with distinct approaches and features. In this blog post, we will explore the key differences between Walmart and Amazon’s marketplaces to help you determine which platform best suits your needs.

Reputation

Amazon and Walmart have established themselves as industry giants with distinct customer perceptions. Amazon is widely recognized as a pioneer and leader in the e-commerce space, known for its vast selection, convenient shopping experience, and fast delivery services. It has built a reputation for customer-centricity and innovation, continually pushing the boundaries of what is possible in online retail.

Walmart, on the other hand, is known for its extensive physical store network and competitive pricing. It has a long-standing reputation as a brick-and-mortar retailer but has made significant strides in e-commerce. Walmart is often associated with affordability and accessibility, catering to price-conscious customers. Both companies have loyal customer bases, but their reputations stem from their different approaches to retail and the unique experiences they offer shoppers.

Becoming A Seller

Walmart’s marketplace offers a more curated and selective approach to product listings compared to Amazon. Walmart focuses on partnering with established brands and sellers with proven e-commerce success. While there may be less competition on Walmart’s platform, getting approved as a seller can be more challenging. The onboarding process involves rigorous vetting to ensure only reputable sellers with high-quality products gain access.

In contrast, Amazon has a more open marketplace, allowing both established and new sellers to list their products. This results in increased competition but provides a larger customer base and the potential for higher sales volume. Amazon has a straightforward registration process, allowing sellers to start quickly, but requires maintaining high seller performance metrics and adhering to Amazon’s policies and guidelines.

Seller Fees

Walmart Marketplace offers a straightforward and transparent fee structure. Unlike some other online marketplaces, Walmart does not charge monthly subscription fees. Instead, sellers are required to pay referral fees, which are a percentage of the item’s sale price, ranging from 6% to 20% depending on the category. The referral fees cover the costs of operating the marketplace and providing access to Walmart’s vast customer base. Additionally, Walmart Marketplace does not charge listing fees, allowing sellers to list products without upfront costs. This fee structure allows sellers to have better control over their expenses and potentially maximize their profits.

As for Amazon, they offer two types of selling plans: Individual and Professional. The Professional plan is designed for sellers with a higher sales volume and requires a monthly flat subscription fee (currently $39.99 as of July 2024.) This plan provides access to advanced selling features, including bulk listing, inventory management tools, promotions, and advertising. In addition to the subscription fee, sellers using the Professional plan are also subject to referral fees, which vary based on the product category.

Fulfillment Services

Both Amazon and Walmart offer robust options for sellers. Walmart’s fulfillment services are still developing and expanding. Walmart offers multiple fulfillment options, including Seller Fulfillment and Walmart Fulfillment Services (WFS), similar to Amazon’s FBA. With WFS, sellers store their inventory in Walmart’s fulfillment centers, and Walmart takes care of the packing, shipping, and customer service. While WFS provides advantages such as access to Walmart’s customer base and the potential for faster delivery. Walmart is actively working on expanding its fulfillment capabilities to provide more options and support for sellers. The WFS fees are straightforward depending on the category and size of products.

Amazon’s fulfillment service, known as Fulfillment by Amazon (FBA), is widely regarded as one of the most comprehensive and efficient in the industry. With FBA, sellers can store their products in Amazon’s fulfillment centers, and Amazon takes care of inventory management, packing, shipping, and customer service. FBA also offers additional perks such as Prime eligibility, allowing sellers to reach Amazon’s loyal Prime customer base. While FBA provides convenience and access to a vast customer base, sellers are responsible for FBA fees, which are based on the size and category of the products.