Walmart Marketplace vs. Amazon: Key Differences

Selling products online has become one of the most lucrative opportunities for businesses today. Two of the most dominant platforms in the eCommerce industry are the Walmart Marketplace and Amazon. Both platforms offer vast customer bases, fulfillment options, and tools for sellers to grow their businesses. However, there are key differences between the two platforms that every seller should consider before deciding where to list their products.

This article covers the critical differences between the Walmart Marketplace and Amazon, including requirements, fees, competition, fulfillment options, and overall selling experience.

1. Market Share and Penetration

When it comes to online retail, market share and penetration are critical indicators of a platform’s dominance and growth potential. Amazon and Walmart are the two largest online retailers in the U.S., but their market shares and growth trajectories differ significantly.

Amazon commands a substantial portion of the online sales market, capturing nearly 40% of all online sales in the U.S. This dominance is reflected in Amazon’s impressive growth rate, with sales increasing by 20-30% year-over-year. In contrast, Walmart’s market share in the U.S. retail market is around 10-15%. While this is significantly lower than Amazon’s, Walmart’s eCommerce sales have been growing steadily, with a year-over-year growth rate of around 5-10%.

In terms of online penetration, Amazon has historically led the way. In 2018, Amazon’s online penetration was at a staggering 77.2%. However, by the end of 2023, this figure had slightly decreased to 71.7%. On the other hand, Walmart has made significant strides in increasing its online penetration. From a modest 4.9% in 2018, Walmart’s online penetration reached an all-time high of 15.4% by the end of 2023. This growth highlights Walmart’s commitment to expanding its online retail presence and capturing a larger share of the eCommerce market.

These figures underscore the competitive landscape of online retail, with Amazon maintaining a dominant position but Walmart making notable gains. For sellers, understanding these market dynamics is crucial for making informed decisions about where to list their products and how to strategize for maximum visibility and sales.

2. Seller Requirements and Approval Process

Amazon Seller Account

Amazon operates an open marketplace, meaning they allow virtually anyone to register as a seller by setting up a Seller Central account. This is a crucial first step for new sellers, providing a pathway for both startups and established brands to access a vast customer base on the marketplace. Depending on the business model, sellers can choose between two account types:

• Individual Seller Account: For sellers who plan to sell fewer than 40 items per month.
• Professional Seller Account: For those selling more than 40 items per month, and includes access to additional tools and features.

While registration is relatively easy, Amazon has strict policies regarding product quality, customer service, and compliance. Certain categories require approval, and new sellers may face restrictions on selling branded or high-demand products.

Walmart Marketplace Seller Account

Unlike Amazon, getting started on the Walmart Marketplace has a more selective approval process. Sellers must apply, and Walmart evaluates applications based on business legitimacy, sales history, fulfillment capabilities, and product assortment. Walmart prioritizes reputable sellers with proven track records, making it more challenging for new sellers to gain access.

3. Marketplace Competition

How Many Sellers are on Amazon?

Amazon dominates the eCommerce industry with over 300 million active customer accounts worldwide. As of 2025, there are 9.7 million sellers on Amazon globally, with 1.9 million actively selling. This large volume of sellers results in intense competition. Many categories are saturated, and new sellers may struggle to compete against well-established brands, third-party sellers, and even Amazon’s private-label products.

How Many Sellers are on Walmart?

Walmart.com boasts an estimated 120 million monthly visitors in the U.S. While this is significantly lower than Amazon’s traffic, Walmart’s marketplace has fewer third-party sellers, with only 150,000 active sellers. The lower competition on the Walmart Marketplace can make it easier for new sellers to establish themselves and gain visibility without having to rely heavily on paid advertising.

4. Fulfillment Options: FBA vs. WFS

Fulfillment by Amazon (FBA)

Amazon’s FBA program is one of its biggest advantages for sellers. FBA sellers get access to Amazon's free two-day shipping for Amazon Prime Members, which meets modern consumer expectations for fast and cost-effective delivery, which directly impacts seller visibility and customer satisfaction.

Through FBA, Amazon handles storage, packing, and shipping, as well as customer service and returns. This makes it easier for sellers to scale their businesses, qualify for Prime shipping, and improve their chances of winning the Buy Box.

However, FBA fees can be expensive, and monthly storage fees, along with long-term storage fees, can quickly add up, impacting sellers' costs. Additionally, Amazon has strict inventory management rules, which can sometimes lead to unexpected costs for sellers.

Walmart Fulfillment Services (WFS)

Walmart launched WFS to compete with Amazon’s FBA. Like FBA, WFS allows sellers to store products in Walmart’s warehouses, and Walmart takes care of packing, shipping, and customer service. However, WFS is still relatively new and not as widely used as FBA.

One key advantage of WFS is that Walmart prioritizes WFS products in search results, which can improve visibility. Additionally, WFS fees are often lower than FBA fees, making it an attractive alternative for sellers who qualify.

Seller-Fulfilled

Sellers on both platforms have the option to manage their own inventory. Walmart allows sellers to store and ship their own inventory. Similarly, Amazon offers the Fulfilled by Merchant (FBM) program, where sellers can handle their own inventory and shipping. Sellers need to keep in mind their warehouse costs and shipping fees when choosing their fulfillment options.

5. Fees and Cost Structure

Amazon Fees

Amazon has multiple fees associated with selling on its platform:

• Subscription Fee: Professional sellers pay a monthly fee of $39.99, while individual sellers pay $0.99 per item sold.
• Referral Fees: Amazon takes a percentage of each sale, usually between 8% and 15%, depending on the category.
• FBA Fees: If using Fulfillment by Amazon, sellers may pay a variety of fees such as inbound placement service fees, storage, shipping and handling, low-inventory-level fee and returns processing fees.
• Peak Season: Amazon has higher fulfillment fees, typically from mid-October until mid-January, due to the holiday shopping season.

Walmart Fees

Walmart does not charge a subscription fee, which can be a significant advantage for sellers. For sellers using Walmart Fulfillment Services, there are fulfillment fees, similar to FBA.

• Referral Fees: Typically range between 6% and 15% per sale, depending on the category.
• Fulfilment Fees: If using Walmart Fulfillment Services, sellers may pay a variety of fees such as storage, shipping and handling, problem inventory fees, and returns processing fees.
• Peak Holiday Time Period: Walmart also has higher storage fees during the holiday season, typically from October through December.

FBA Fees vs. Walmart Fulfillment Service Fees

It is important for sellers to look closely at the fulfillment fees for their specific categories, as well as the product size and weight, as it varies by platform. One of the differences between FBA fees and WFS fees is the inventory fulfillment fees. For instance, Walmart charges a base fulfillment fee for standard items starting at $3.45 per unit for items less than 1 lb. Amazon FBA has fulfillment fees starting with smaller size tiers of 2 oz. or less, where the base fulfillment fee is $3.06 per unit. 

The returns processing fees are based on shipping weight for both platforms, but they vary, especially for apparel and items with a high return rate. Amazon’s base fee for returns less than 4 oz starts at $1.78 per unit. Walmart’s standard return fees start at $4.70 per returned unit less than 1 lb. Amazon charges a lower returns processing fee for apparel and shoes, compared to other categories, with apparel returns fees starting at $1.65 per unit. Walmart, on the other hand, charges additional fees for returns in the apparel category.

Another difference is in the prep costs and services. Walmart charges $0.45 - $0.80 for poly bagging and item labeling. Amazon charges $0.55 - $2.55, depending on the category, but offers more prep services such as bubble wrap and opaque bagging, in addition to labeling.

6. Buy Box and Pricing Strategies

Amazon’s Buy Box

The Amazon Buy Box, also known as the Featured Offer, is the prominently displayed “Add to Cart” button found on product pages. Winning the Buy Box is essential for maximizing sales. To determine Buy Box eligibility, Amazon uses a complex algorithm which includes factors such as:

• Price competitiveness
• Fulfillment method (FBA sellers have an advantage)
• Shipping speed
• Customer feedback and seller rating

Because pricing is a key factor for winning the Buy Box, some sellers engage in aggressive price competition, often leading to lower profit margins. The most successful sellers avoid the race to the bottom by using a smart Amazon repricing tool that allows them to maintain competitive prices automatically while maximizing profitability.

Walmart’s Buy Box

Walmart's marketplace also has a Buy Box which is positioned above the “Add to Cart” button on the item page. The Buy Box is where the majority of purchases take place, and it is typically awarded to the listing that provides the best overall value to the customer, considering their geographic location. Walmart’s marketplace impacts seller competition by having fewer sellers compared to Amazon, leading to less competition for the Buy Box but requiring constant pricing adjustments due to rigid pricing policies. Key factors in Walmart’s algorithm include:

• Pricing and value
• Shipping fees for the customer
• Delivery speed
• Seller performance metrics

Since Walmart heavily favors lower prices, sellers must keep prices competitive to win the Buy Box.

Competitive Pricing

Amazon and Walmart both have competitive pricing rules that can make it complicated for sellers who are selling on both platforms. There is a lot of risk and reward that comes along with pricing your products correctly.

Amazon sets a competitive price threshold (CPT) for each product, which is based on prices of the same product from other online retailers. If your product has the lowest price on Amazon, but another retailer has the product priced lower (factoring in both the product price and shipping cost), then Amazon may suppress the Buy Box, making it harder for customers to find and buy your product.

Walmart also has price parity requirements, and does not allow sellers to list lower prices on Amazon or other platforms. If Walmart detects a lower price elsewhere, it may suppress a seller’s listing as well.

Whether you are selling on one or both platforms, it is highly recommended for sellers to have an automated pricing strategy in place to maintain competitive prices so you can maximize sales and profit, and minimize the risk of missing out on sales from suppressed listings.

7. Advertising and Marketing Tools

Amazon Advertising

Amazon’s advertising costs have increased over the years due to high competition, making it necessary for sellers to have a strong marketing strategy to succeed. Amazon offers robust advertising options, including:

• Sponsored Products: pay-per-click ads in search results
• Sponsored Brands: pay-per-click ads featuring brand logos and multiple products
• Sponsored Display Ads: retargeting ads that appear on and off Amazon
• Sponsored TV: ads on streaming services like Prime Video and Twitch
• Amazon DSP: display and video advertising for broader brand awareness

Over 50% of U.S. households hold an Amazon Prime membership, significantly impacting Amazon's net sales and market share. This membership is a key factor in Amazon's success. Advertising to Prime members can be particularly beneficial due to their higher engagement and spending on the platform.

Walmart Connect

Walmart’s advertising platform, Walmart Connect, offers similar PPC options but is not as developed as Amazon’s ad network. Since competition is lower, CPC (cost per click) is generally cheaper than Amazon, allowing sellers to get more visibility for less money.

• Sponsored Search: cost-per-click ads in search results
• Sponsored Brands: cost-per-click ads featuring a logo and headline
• Sponsored Videos: cost-per-click videos in search results
• Onsite Display: retargeting ads that appear in the Walmart app and Walmart Marketplace
• Search Engine Marketing: promote products through Google Shopping Ads

8. Performance Standards and Metrics

Performance standards and metrics are essential for marketplace sellers to understand and meet, as they directly impact seller account health and customer satisfaction. Both Amazon and Walmart have specific performance metrics that they use to assess sellers, but Amazon’s standards are generally higher and more stringent.

Performance Metrics for Amazon

Amazon evaluates its marketplace sellers based on several key performance metrics:

• Order Defect Rate (ODR): This metric measures the percentage of orders that have defects, such as incorrect or damaged items. A low ODR is crucial for maintaining a good seller rating.
• Cancellation Rate: This measures the percentage of orders that are canceled by either the seller or the buyer. High cancellation rates can negatively impact a seller’s account health.
• Late Shipment Rate: This metric tracks the percentage of orders that are shipped late. Timely shipping is critical for maintaining customer satisfaction and avoiding penalties.
• Return Rate: This measures the percentage of orders that are returned by buyers. A high return rate can indicate issues with product quality or descriptions.
• Seller Feedback and Ratings: Amazon uses a feedback system where customers can rate their experience with sellers. Positive feedback and high ratings are essential for building trust and credibility.

Amazon holds its marketplace sellers to high standards to ensure a consistent and positive customer experience. Sellers who fail to meet these standards may face account suspensions or other penalties, making it imperative for sellers to closely monitor and manage their performance metrics.

9. Walmart Brand Portal vs. Amazon Brand Registry

Amazon and Walmart both offer a program for sellers to manage their brands and intellectual property rights. Brand owners with registered trademarks are eligible to apply and get access to exclusive features and protection in each of these programs. The are similar in several ways:

• Walmart’s Brand Portal was designed to enable rights owners to better manage and protect their intellectual property rights. In addition, approved brands get access to premium advertising on Walmart Connect, as well as the Brand Portfolio which is a centralized dashboard for tracking and managing your brand’s presence on the marketplace. 
• Amazon’s Brand Registry provides tools to build and protect your brand on Amazon. It enables trademark registration via the IP Accelerator program, and safeguards brands from counterfeit with the Amazon Transparency program. Brand Registry also includes access to Amazon Advertising solutions, the Brand Dashboard, Amazon Brand Analytics, enhanced brand content and other exclusive features.

While Walmart’s Brand Portal and Amazon’s Brand Registry both aim to uphold brand security, and provide access to exclusive features on their marketplace, they also differ in a few ways.

• Walmart’s Brand Portal is only available for U.S. sellers. Amazon’s Brand Registry program is available in the U.S., Australia, Brazil, Canada, France, Germany, India, Italy, Japan, Mexico, Spain, U.K., U.A.E., Turkey, Singapore, Netherlands, Saudi Arabia, Egypt, Sweden, Poland, and Belgium.
• Walmart and Amazon both allow brand owners to assign authorized resellers to represent your brand’s content on products, however, Amazon has more sophisticated tools that can assign users specific permissions, allowing the brand owner even more control over their listings.
• Amazon’s Brand Registry offers a wider range of tools and programs for building and monitoring your brand on Amazon.

10. Customer Service and Returns

Amazon Customer Service

Amazon provides 24/7 customer service and has a lenient return policy. If using FBA, Amazon handles all customer service and returns on behalf of sellers. However, sellers who handle their own fulfillment must comply with Amazon’s strict return policies, which often favor customers.

Walmart Customer Service

Walmart also emphasizes customer satisfaction but has stricter return policies compared to Amazon. Walmart requires free 90-day returns, but sellers have more control over the process if they handle fulfillment themselves. Walmart Fulfillment Services (WFS) also manages returns for WFS sellers.

Conclusion: Which Platform is Best for You?

Choosing between selling on the Walmart Marketplace or Amazon depends on your business goals, resources, and experience level.

• Amazon is ideal for sellers looking to access a massive audience, use FBA for streamlined logistics, and leverage Amazon’s powerful advertising tools. However, the competition and fees are higher.
• Walmart is better suited for sellers seeking less competition, lower fees, and an opportunity to dominate categories with fewer third-party sellers. However, the application process is more selective, and Walmart’s fulfillment network is not as established as Amazon’s FBA.

For some sellers, a multi-channel strategy that includes both Walmart and Amazon can maximize profits and reach a broader customer base. By understanding the differences between these platforms, sellers can make informed decisions and build a successful eCommerce business.