Selling on Walmart vs Amazon: Navigating the eCommerce Titans
Choosing between selling on Walmart vs Amazon is a pivotal decision for merchants. Walmart is inching closer to the long-standing marketplace king, as each platform competes with unique opportunities to benefit online sellers.
This article will cover multiple marketplace factors, including its user base, fulfillment types, and platform fees, to help pick the best option for your business.
Key Takeaways
- Customer Base and Products: Walmart appeals to cost-conscious US buyers, while Amazon attracts a more global audience with a diverse range of products. Both platforms have similar top-selling categories.
- Seller Requirements and Fees: Walmart demands higher seller standards and product quality with a straightforward fee structure, whereas Amazon offers easier business entry for sellers but a more complex fee system.
- Fulfillment Options: Walmart offers Walmart Fulfillment Services (WFS) for US-centric logistics. Amazon provides various global fulfillment solutions, including Fulfillment by Amazon (FBA) and Seller Fulfilled Prime.
- Branding and Marketing Tools: Both platforms allow sellers to customize their storefronts, but Amazon offers more extensive marketing tools and ad formats, while Walmart continues to enhance its advertising options.
- Analytics and Customer Support: Amazon leads with in-depth analytics and strong customer support through Seller Central; Walmart offers performance analytics and prioritizes exceptional customer satisfaction.
Table of Contents
- Walmart vs Amazon: Quick Overview
- Walmart vs Amazon: Which Is Better?
- Can You Sell on Both Walmart and Amazon?
- Why Sell on Online Marketplaces?
- Why Sell on Marketplaces With Print on Demand?
- How to Start Selling on Walmart With Printify
- How to Start Selling on Amazon With POD
- Tips for Selling on Amazon and Walmart
- Walmart Versus Amazon: Final Thoughts
Walmart vs Amazon: Quick Overview
Walmart and Amazon each offer unique features, cater to specific audiences, and support third-party sellers. Let’s take a look at the pros and cons of both sales channels:
Amazon Pros and Cons
Amazon is the largest online marketplace worldwide. Its consolidated net sales reached nearly $575 billion in 2023, a 12% increase from the previous year.
The majority, 61%, of sales come from North America, while 23% are from international sellers, making it the go-to for vendors aiming for global reach.
Pros:
- Independent Seller Community: Small and medium-sized businesses account for 60% of all Amazon sales.
- High Average Revenue: Independent Amazon sellers averaged over $230,000 in annual revenue.
- Extensive Customer Reach: Amazon recorded over 6.1 billion visits in 2023, firmly establishing its traffic dominance.
- Exclusive Industry Services: Over 200 million Amazon Prime members, offering sellers competitive two-day shipping and Amazon fulfillment.
Cons:
- High Overall Competition: With millions of active sellers, standing out requires significant effort.
- Stringent Platform Fees: Exclusive services come at a noticeable subscription cost.
- Strict Seller Policies: Seller performance measures and policies require strict compliance and quality control.
Walmart Pros and Cons
While its eCommerce sales contribute only 0.7% of its total net sales revenue of $605 billion, selling on Walmart online is becoming increasingly profitable.
Walmart’s online delivery and in-store pick-up eCommerce services are evolving and currently reach North and Central America, Africa, Chile, India, and China.
Pros:
- Selective Seller Base: With over 150,000 specifically curated sellers, Walmart makes it easier to stand out.
- Strong Brand Loyalty: With 93% brand awareness, businesses can quickly grow their visibility and prestige.
- Physical and Online Integration: Over 8,100 pickup and 7,000 delivery locations globally.
- Growing Online Presence: Walmart’s online sales are rapidly growing, with a 12% increase over 2022 figures.
Cons:
- Limited Global Reach: Predominantly focused on the US market, offering limited international opportunities.
- Challenging Entry for New Sellers: Strict seller approval can be a barrier for new entrants.
- Fewer Seller Services: Lacks some tools and services for sellers compared to Amazon.
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Walmart vs Amazon: Which Is Better?
Before we detail all the features Walmart and Amazon offer, here’s a quick checklist to see all the important distinctions you might want to consider.
| Walmart vs Amazon | Walmart | Amazon |
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| Customer Base | Popular among all demographics – focus on middle-aged to elderly shoppers. | Popular among all demographics – focus on younger tech-savvy consumers. |
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| Walmart | Popular among all demographics – focus on middle-aged to elderly shoppers. |
| Amazon | Popular among all demographics – focus on younger tech-savvy consumers. |
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Customer Base
Walmart is an expansive brand with near unparalleled popularity in the United States. In 2023, Walmart’s US eCommerce sales amounted to $53.4 billion.
The Walmart customer base predominantly consists of a mature audience. Given this demographic, it’s an excellent platform for sellers offering value-driven products at low prices.
Amazon is a fiercely profitable platform for sellers with a wide range of products across international markets, from everyday essentials to high-end luxury items.
The Amazon customer base includes tech-savvy millennials, Gen Z, and affluent consumers. It has an incredible base of over 200 million Prime members globally.
Seller Requirements
Walmart maintains high standards for its sellers. To apply to sell on Walmart Marketplace, you need to meet several requirements:
- Have a business tax ID(s) or business license number.
- Provide supporting documents verifying your business address and name.
- Present proof of previous eCommerce or marketplace success.
- Offer products that align with Walmart’s policy and have GTIN/ unique product code (UPC) GS1 company prefix numbers.
- Be a user of Walmart Fulfillment Services (WFS) or any other B2C US-based fulfillment center with the ability to accept returns.
Amazon sets similarly high standards for its sellers but doesn’t request prior eCommerce success. This is what you’ll need:
- A business name, bank account number, address, phone number, and contact information.
- Bank account information where Amazon can send sales proceeds.
- An internationally chargeable credit card.
- Tax identity information.
- An Amazon seller account.
Note
Selling on Amazon requires maintaining excellent performance metrics, including low order defect rates, good customer feedback, and timely shipping.
Product Categories
Given Walmart’s demographic of cost-conscious shoppers, the product categories listed on Walmart’s best-selling page include:
- Baby supplies
- Beauty products
- Apparel items
- Home goods
- Electronics
- Outdoor equipment
- Toys
Sellers offering value-for-money products in these categories may find success at Walmart. However, high quality remains a predominant selling point for all items.
Amazon’s top-selling categories include:
- Health products
- Personal care products
- Home goods
- Beauty products
- Groceries
- Apparel items
On Amazon, virtually anything goes. Amazon’s vast customer base has diverse needs and wants, from books and electronics to clothing and gourmet food.
Seller Fees
Walmart is subscription-free but charges sellers a referral fee:
- Walmart referral fees – typically range from 5% to 15% of the total sale price.
Walmart’s Fulfillment Service (WFS) sellers are subject to:
- Fulfillment fees – vary based on the weight and size of each item.
- Monthly storage fees – $0.75 per cubic foot ($2.25 if held for more than 30 days during October-December).
- Long-term storage fees – $7.50 per cubic foot for items stored longer than 12 months.
Estimate Walmart Fulfillment Service costs by using the WFS calculator.
Amazon requires payment for one of two subscription types:
- Individual plan – $0.99 per item sold.
- Professional plan – $39.99 monthly subscription fee.
Like Walmart, Amazon also charges a referral fee:
- Amazon referral fees – typically range from 8% to 15% of the total price.
Sellers using Fulfillment by Amazon (FBA) are subject to:
- Fulfillment fees – vary based on the weight and size of each item.
- Monthly storage fees – $0.78 per cubic foot and $2.40 in Q4 (discount for large bulky or extra large items).
- Long-term storage fees – aged inventory surcharges calculated by sold-item statistics and length of stock duration.
Find more information on specialized fees for media and refunds on the Amazon Pricing page.
Getting Started
Walmart applicants must undergo a comprehensive trust and safety review, which assesses their previous marketplace experience, professionalism, and qualifications.
After being accepted as a Walmart seller, you’ll receive a launch checklist to register your company. You can create product listings by:
- Manual creation. Adding products manually via an Excel spreadsheet.
- API integration. Using an application programming interface (API).
- Integration partners. Connect products through a software provider.
Walmart requires a valid universal product code (UPC) and a European article number (EAN) for each listing. If a product doesn’t have one, you may need to acquire one or request an exemption.
Note: For more details, visit our UPC exemption guide. Also, familiarize yourself with lag time exemptions.
Amazon services require a monthly or per-sale subscription. Setting up your Seller Central account is straightforward, and you’ll be able to create your initial listings:
- Manual creation. Use Seller Central to create individual product listings.
- Bulk upload. Utilize Amazon’s inventory file templates to upload multiple product listings at once.
- Integration partners. Collaborate with integration partners like Printify to automatically format and categorize your listings.
Amazon categories require products to have a standard identification code, such as a Global Trade Item Number (GTIN). You may be able to request an exemption.
Fulfillment and Shipping Options
Walmart offers WFS to its sellers, which handles storing, packing, and shipping products, as well as customer service and returns.
Walmart sellers can use third-party fulfillment, allowing them to choose to handle their own shipping or use other services. This way, Walmart marketplace sellers can work with a POD dropshipping model like Printify’s Walmart integration.
Amazon offers FBA, where Amazon warehouses take care of storage, packaging, shipping, customer service, and returns.
Amazon sellers can also use the Fulfilled by Merchant and Seller Fulfilled Prime program, which gives you the Amazon Prime badge. Amazon marketplace also supports dropshipping, POD, and handmade items through specific programs.
Analytics Tools
Walmart Seller Center provides sellers with analytics tools. These include sales performance dashboards, buy box metrics, and customer rating data.
Sellers can use these tools to track sales, monitor customer satisfaction, and optimize their operations.
Amazon Seller Central offers a wide range of analytics tools. These include business reports, payment reports, and Amazon retail analytics for professional sellers, providing insights into sales trends, traffic, and conversion rates.
Sellers can use these tools to monitor their performance, track product rankings, and make informed business decisions.
Branding and Marketing Tools
Walmart and Amazon allow storefront customization and product listing enhancement, including business names, logos, banners, and product images.
Walmart marketing offers the Walmart Sponsored Products Program, where sellers can pay for their products to be highlighted in search results.
Amazon marketing offers several tools, including sponsored products, brands, and displays. These tools help increase product visibility and improve the chances of securing a sale.
Customer Support
Walmart provides dedicated support to its eCommerce sellers. They can contact Walmart through the Seller Help Center or request a call-back from a support representative. WFS also handles customer service for sellers using the service.
Amazon offers comprehensive support to its online sellers. They can access assistance through Seller Central, where they can get help via email, phone, or chat. Similarly, Amazon also handles customer service for their FBA sellers.
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Can You Sell on Both Walmart and Amazon?
Absolutely. You can sell on both Amazon and Walmart, which many sellers do to maximize their reach. However, Walmart requires fulfillment through their approved methods, which do not include Amazon’s Multi-Channel Fulfillment (MCF) program.
Printify’s integration with Walmart’s marketplace and methods of selling POD products on Amazon simplifies managing your business across multiple channels.
Why Sell on Online Marketplaces?
Selling on marketplaces like Amazon and Walmart has numerous benefits.
These platforms offer significant traffic and are exceptionally customer-centric. Coupled with decent prices, secure payment, efficient delivery methods, and low shipping costs, eCommerce marketplaces emphasize user-friendly shopping.
However, selling on these platforms also has some downsides.
Over-saturation is a key issue, with high competition making it harder to stand out. Marketplaces also charge service fees, which can eat into your profits. This ready-made infrastructure can limit your flexibility in pricing and order logistics.
Why Sell on Marketplaces With Print on Demand?
Selling on Amazon and Walmart with the POD dropshipping model offers several advantages, especially for new sellers in the eCommerce business.
- Low startup costs. No need for a large initial investment, making it an ideal choice for budding sellers.
- No inventory requirements. Avoid the financial risk and logistical challenges of purchasing inventory and dealing with storage fees.
- Product diversity. With Printify’s vast product Catalog, you can experiment with and offer the widest range of custom products in the POD industry.
- Streamlined integrations. Printify offers partnered integrations with top eCommerce marketplaces, simplifying the listing process.
- Quality design software. Make each product stand out with our streamlined design customization tools via the Printify Product Creator.
How to Start Selling on Walmart With Printify
Step 1: Create your store
Create a free Printify account where you can create and name your new or existing Printify store.
Step 2: Request to sell on Walmart
Apply to join the Walmart Marketplace seller community. After approval, you’ll receive an email invitation to set up your account.
Note
You need to provide the necessary documentation, and the approval process can take about a month.
Step 3: Integrate Walmart and Printify
Go to the Stores section in your Printify dashboard and click Add. Choose Walmart from the list of platforms and follow the on-screen instructions.
Step 4: Add products
Begin adding products to your Printify store. Check our Catalog and find what suits your business.
To create products – upload, adjust, and save your design in our beginner-friendly Product Creator. You can also add product descriptions and prices at this stage.
Step 5: Sync products with Walmart
After adding your products to your Printify store, you’ll need to sync them with your Walmart store. This can easily be done in your Printify account dashboard.
Step 6: Set up shipping
Walmart requires your shipping rates. As Printify integrates with Walmart’s shipping settings, your customers will be charged for this at checkout.
Step 7: Complete your seller profile
Before you start selling, complete your seller profile in the Walmart Seller Center, including company details, customer service, returns, taxes, and payment details.
Step 8: Understand Walmart's selling requirements
Familiarize yourself with details like the UPC requirements and lag time policies. Since Printify products are printed on demand, apply for a UPC exemption and request the maximum possible lag time of five business days.
Step 9: Start selling
Once everything is set up, you’re ready to start selling your custom products on Walmart. Monitor your sales and adjust your strategy as necessary.
How to Start Selling on Amazon With POD
Step 1: Choose a POD service
Decide on a POD service to partner with. Options include Printify and Merch by Amazon to design, customize, and list custom products in an online storefront.
Step 2: Create and list your products
Design your products using the tools provided by your chosen POD service. List them on your Amazon store, and ensure quality product descriptions and images.
Step 3: Manage your orders
When customers purchase your products, the order is sent to your POD provider. They’ll print the customized designs, package the merchandise, and handle shipping. This means you don’t need to worry about inventory management.
Step 4: Monitor and optimize
It’s important to monitor your sales and product performance regularly. Make adjustments as needed, such as tweaking product designs and marketing.
Tips for Selling on Amazon and Walmart
Maximizing your success on Amazon and Walmart requires a blend of strategy and adaptability. Each platform offers unique benefits that you would lose out on without utilizing their full extent. See our key tips for optimization:
Amazon Tips
- Enhance Listings With A+ Content: Utilize A+ Content for a more visually appealing presentation of your products to increase conversion rates.
- Leverage Amazon’s Global Reach: Use Amazon Global Selling to expand your market with Amazon’s extensive international logistics network.
- Experiment With Amazon Advertising: Invest in Amazon’s advertising solutions to increase product visibility beyond organic search results.
- Stay Ahead With Amazon Analytics: Utilize Amazon’s detailed analytics tools to track product performance, optimize listings, and adjust pricing.
Walmart Tips
- Capitalize on Walmart’s SEO: Optimize your product listings with Walmart-specific keywords to improve visibility on search results.
- Highlight Competitive Pricing: Utilize Walmart’s Repricer tool to competitively adjust your prices and win the Buy Box highlight.
- Take Advantage of Local Fulfillment: Offer in-store pickup and local delivery options with Walmart’s vast network of physical stores.
- Focus on Exclusive Product Lines: Differentiate your inventory with exclusive products or bundles that are only available at Walmart.
Walmart Versus Amazon: Final Thoughts
Selling on the Walmart marketplace vs Amazon can seem daunting. Both offer massive customer bases, robust infrastructure, and tools to support sellers.
While Amazon offers a broader customer base and product range, Walmart Marketplace offers lower fees, higher expectations, and less seller competition. You can absolutely combine Walmart and Amazon channels to expand your reach.
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Written by
Zane Bratuskina
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