Finding the right marketplace as an online retailer is key for growth and expantion. Among all e-commerce marketplaces in the US, Amazon and Walmart represent the two largest, each with unique advantages and challenges for retailers.

The following statistics demonstrate the vast opportunity that these marketplaces represent for any size retailer:

  • Approximately 61% of 2024 unit sales on Amazon are from independent sellers, with over 350 million items listed on the marketplace.
  • As of August 2024, Walmart’s Marketplace features over 420 million products listed by more than 100,000 active sellers.

Let’s look at the key factors that can help you decide which marketplace aligns better with your goals.

1. Target Audience

  • Amazon has a massive customer base that represents nearly every demographic and is especially popular for high-value items. With this wide audience, Amazon lets you reach broad ranges of shoppers, making it an excellent choice if you’re selling premium or niche goods.
  • Walmart shoppers, by contrast, tend to be price-conscious buyers looking for daily essentials and budget-friendly options. If your products align with value pricing or cater to a broad consumer base at competitive prices, Walmart might be the ideal fit.

2. Product Competition

  • Amazon has a large number of sellers across product categories, resulting in high competition, especially for popular products. However, if you offer unique or specialized products, Amazon can still provide broad exposure despite the high competition.
  • Walmart is not as selective with its third-party sellers but is still a younger and smaller marketplace, which often results in less competition. A retailer might find product competition with Walmarts products than with a third party seller. However, if you have a unique product you might find it beneficial to list your catalog on Walmart marketplace.

3. Customer Expectations

  • Amazon Through it’s Prime membership standards Amazon shoppers now expect fast, often free shipping and hassle-free returns. The platform also offers 24/7 customer support by chat or phone, ensuring quick resolutions to any issues. To maintain this high standard, Amazon holds its Marketplace sellers to strict performance criteria, with potential account suspensions for frequent or significant service lapses. Expect higher efforts to maintain customer satisfaction with Amazon.
  • Walmart Walmart’s customer service expectations are rooted in its strong brick-and-mortar history, where reliability and value are key. Walmart shoppers typically expect affordability and practical service, both online and in-store, rather than premium benefits. While Walmart’s e-commerce platform is growing, it emphasizes accessible, budget-friendly options and practical shipping times over ultra-fast delivery. Customer service is still valued, but the overall expectations differ, focusing more on straightforward service and pricing advantages than on premium features.

4. Pricing Structure

  • Amazon charges monthly fees for sellers on its professional plan, along with referral fees that vary by product category. This setup works well for established sellers or businesses with consistent sales volume.
  • Walmart doesn’t charge monthly fees for third-party vendors but applies a referral fee per sale. For new or smaller businesses, Walmart’s pricing model can be more budget-friendly, allowing you to list products without upfront costs.

5. Fulfillment Options

  • Amazon FBA (Fulfilled by Amazon) offers robust solutions, with perks like Amazon Prime eligibility, which can boost visibility and customer trust. However, FBA includes storage and fulfillment fees, making it best suited for high-volume products. Amazon FBA also comes with hidden costs where often times inventory goes missing and depending on the type of product some sellers have complained on relatively high rate of returns. This is typically suited for larger retailers with well automated back end systems.
  • Walmart Fulfillment Services (WFS) is Walmart’s response to FBA, offering similar support, including free two-day shipping options. As a newer, potentially less crowded option, WFS is ideal for sellers seeking a quick start on Walmart. While we have not heard of any complaints on returns, WFS will still require the seller to have a back end system in place to manage inventory and fulfill orders.

Syncing Your Listings on Both Marketplaces

Armed with this information, you may see that Amazon and Walmart offer two distinct opportunities to capture audiences. With our service, if you want to expand your reach across both platforms, we can handle product catalog sync, real-time inventory updates, and order management on both Amazon and Walmart from one place. Our seamless integration lets you focus on growing your business while we handle the complexities of multichannel selling. Our platform also allows you to start with one channel and expand to the other as your business grows or whenever you are ready to explore the other marketplace.

Ready to level up your business? Contact us today and let us show you how we’re helping retailers sell on marketplaces like Amazon and Walmart.