Third-Party Sellers on Walmart: Key Statistics, Insights, and Factors Contributing to Growth in 2025

In recent years, Walmart Marketplace has rapidly evolved into one of the most lucrative platforms for third-party (3P) ecommerce sellers. Once overshadowed by Amazon, Walmart has invested heavily in its digital transformation, offering sellers a fast-growing customer base, streamlined logistics through Walmart Fulfillment Services (WFS), and sophisticated retail media tools through Walmart Connect. As of 2025, this momentum shows no signs of slowing down.

This article explores the latest statistics, seller insights, and the primary factors contributing to Walmart Marketplace's growth and success for third-party sellers in 2025.

The Rise of Third-Party Sellers on Walmart

Walmart Marketplace officially launched in 2009, but the platform gained significant traction post-2020 as more brands and sellers sought to diversify beyond Amazon. Today, Walmart Marketplace is home to over 200,000 active sellers, a number that has more than tripled since 2021. Walmart third-party sellers now account for a significant and growing share of Walmart’s online assortment, helping the retailer compete more aggressively in ecommerce. Industry estimates suggest that third-party sellers contribute roughly one-third of Walmart’s online sales, reflecting the marketplace’s growing role in the broader e-commerce ecosystem.

Key 2025 Statistics:

• Average monthly traffic to Walmart.com: 430 million visits
• Walmart Marketplace sellers: 200,000+ (up 30% YoY)
• Number of international sellers: Over 20,000, mainly from China, Canada, and the UK
• Over 420 million products available on Walmart.com – 95% from Marketplace sellers
• Categories with highest 3P growth: Home & Kitchen, Health & Personal Care, Electronics, Apparel, and Pet Supplies
• Walmart Fulfillment Services (WFS): 66% of Walmart Marketplace sellers use WFS
• Delivery speed is a priority: Walmart is committed to deliver to 95% of the U.S. population within three hours.

What’s Driving the Growth of Walmart’s Marketplace in 2025?

Several strategic investments and market trends have propelled the growth of Walmart’s third-party marketplace:

1. Walmart Fulfillment Services (WFS)

Walmart Fulfillment Services (WFS) continues to be a game-changer for 3P sellers. It offers a reliable and cost-effective way to store, pick, pack, and ship products through Walmart’s logistics network. Sellers enrolled in WFS enjoy faster shipping, low-cost fulfillment, improved Buy Box win rates, and higher visibility in search results.

Key Benefits of WFS:

• Two-day delivery with Walmart badge
• Increased conversion rates
• Reduced logistics complexity
• Improved customer satisfaction metrics
• WFS rates average 15% less than other marketplace fulfillment providers.

Walmart continues to expand WFS warehouse capacity, enabling even more third-party sellers to qualify for the service.

2. Omnichannel Reach and Pickup Capabilities

Walmart’s brick-and-mortar presence remains a powerful differentiator. Many 3P sellers are now leveraging Walmart’s ship-to-store and pickup services to meet customer expectations for convenience.

• 90% of the U.S. population lives within 10 miles of a Walmart store
• Walmart is integrating 3P inventory into in-store pickup in select pilot programs

This convergence of online and offline channels enhances the value proposition for Walmart third-party sellers.

3. Retail Media Through Walmart Connect

Walmart Connect, the company’s advertising platform, has empowered sellers to reach customers through behavioral targeting, search advertising, onsite display, and sponsored video ads.

Sellers using Walmart Connect have reported:

• Up to 4x increase in product visibility
• 28% higher return on ad spend (ROAS) when working with Walmart-approved ad partners

4. International Expansion

Walmart is aggressively recruiting third-party sellers from outside the U.S., especially from China, India, the UK, and Canada. Streamlined onboarding, currency support, and global logistics capabilities have made it easier for international merchants to thrive.

In 2025, Walmart launched multilingual seller support and faster import processing to help global sellers scale more quickly.

5. Simplified Seller Tools and Onboarding

Walmart has significantly improved the seller experience in 2025:

• Enhanced reports and UI in Seller Center
• AI-powered listing suggestions and error corrections
• One-click integration with tools like Shopify, Deliverr, and Feedonomics
• Dedicated onboarding specialists for new third-party sellers

These enhancements reduce friction and shorten the time to profitability for Walmart third-party sellers.

Seller Insights: Why Brands Are Choosing Walmart Marketplace in 2025

Sellers cite several key reasons for joining and expanding on Walmart Marketplace:

"Less Competition Than Amazon"

Many sellers feel that Walmart’s lower saturation level presents more opportunity, particularly for niche products or emerging brands.

"Fast Growth Potential"

With Walmart’s increasing traffic and continued investment in Marketplace tools, sellers report faster sales ramp-up compared to other platforms.

"Trust in the Walmart Brand"

Customers trust Walmart for value and reliability, and that trust translates into higher conversions for sellers.

"High ROI on Advertising"

Compared to Amazon and Meta ads, Walmart Connect often yields a better ROAS for sellers willing to invest in advertising.

Challenges Third-Party Sellers Still Face on Walmart Marketplace

While the growth story is strong, sellers do face hurdles:

1. Stricter Listing Requirements

Walmart has raised the bar for listing quality, and sellers must meet strict guidelines for titles, descriptions, and backend attributes to achieve visibility.

2. Buy Box Competition

Winning the Buy Box requires competitive pricing, strong fulfillment, and top-notch seller metrics. Walmart repricing tools and automation are critical to success.

3. Customer Expectations and Reviews

Walmart shoppers expect fast, accurate delivery and responsive customer service. Poor reviews can hurt listing performance and eligibility for promotional programs.

Tools Helping Walmart Sellers Succeed

A growing ecosystem of software tools has emerged to help sellers manage, optimize, and scale on Walmart:

• Aura: Automated repricing to win the Buy Box
• ConnectBooks: Profit analytics, inventory alerts, and accounting
• Deliverr: Fulfillment support and 2-day delivery enablement
• Feedonomics: Catalog optimization and multichannel syndication
• Sellegr8: Walmart keyword research and listing optimization
• SellCord: Ad automation and performance insights for Walmart Connect

These tools play a critical role in helping sellers compete effectively and scale faster.

Predictions for the Future of Walmart Marketplace

Walmart’s marketplace trajectory looks bright, with several growth vectors expected to accelerate in the coming years:

• AI-Driven Listing Optimization: Expect more AI tools to help sellers write high-converting titles and descriptions.
• Expanded Global Reach: Walmart will continue expanding seller recruitment across Europe, Asia, and Latin America.
• Third-Party Private Label Growth: As in Amazon’s early days, many 3P sellers are launching successful private-label brands exclusively for Walmart.
• Increased Automation and Integration: With growing partnerships and API improvements, seller operations will become increasingly hands-off.

Final Thoughts

For third-party sellers, 2025 represents a golden opportunity on Walmart Marketplace. With its vast customer base, continued investment in fulfillment and advertising, and growing ecosystem of seller tools, Walmart is quickly becoming the second-most important sales channel for ecommerce businesses.

While challenges exist, the rewards are significant for sellers who take the time to optimize their product listings, leverage Walmart’s tools, and stay competitive. As Walmart continues to blur the lines between physical and digital retail, third-party sellers who align with its vision stand to benefit the most in the years ahead.