Walmart Marketplace vs Amazon: Which One Maximizes Your Profits?

E-commerce is booming, with U.S. online sales projected to hit $1.8 trillion by 2029. That’s a whole lot of online shopping carts getting filled! If you’re an eCommerce seller, you’re probably wondering: Where should I sell to make the most money?

Amazon has dominated online retail for years, but now, Walmart Marketplace is also making big moves.  So, if you’re looking to maximize profit, then you are at the right place.

In this blog, we’ll break down Walmart Marketplace vs Amazon in key areas like seller fees, competition, customer base, fulfillment, advertising, and ease of selling. By the end, you’ll know exactly which platform fits your business goals best—or if you should just sell on both!

Walmart Marketplace vs Amazon: A Quick Overview

Before we get into the details, let’s do a quick side-by-side comparison between Walmart and Amazon Marketplace.

Amazon
Amazon is a giant in the eCommerce world. With over 9.7 million sellers, you might think it’s overcrowded, but only about 1.8 million are actively selling. That means there’s still plenty of room to carve out your niche. If you’re aiming to be a high-volume seller or want to build a private label brand, Amazon is definitely a powerhouse you’ll want to tap into.

Walmart Marketplace
Walmart may have joined the eCommerce scene later in 2009, but it’s quickly picking up speed. While it’s not as massive as Amazon yet, the good news is that competition is significantly lower—only about 150,000 sellers are on the platform. With 120 million monthly visitors and climbing, Walmart Marketplace is a great choice for brands that want to stand out without battling millions of competitors.

Now, let’s get into the nitty-gritty details of selling on Walmart vs Amazon.

Sell on Walmart vs Amazon: Which Platform Takes a Bigger Cut?

Seller fees are an important consideration when choosing a marketplace, as they directly impact your profit margins. Amazon charges referral fees from 8% to 45%, with most categories sitting at around 15%. Additionally, professional sellers must pay a $39.99 monthly subscription fee. Fulfillment fees for Amazon’s FBA service also add to the cost, with charges for storage, picking, and packing.

Walmart Marketplace, however, does not charge a monthly subscription fee, making it a more economical option for sellers. Referral fees range between 6% and 15%, and fulfillment costs through Walmart Fulfillment Services (WFS) tend to be lower than Amazon’s. For sellers focused on maximizing their margins, Walmart may be the better choice.

Competition: Is It Easier to Stand Out?
Amazon’s vast marketplace is both an opportunity and a challenge. With millions of sellers, competition is fierce, especially in popular categories. High advertising costs and the dominance of FBA products in organic rankings make it difficult for new sellers to gain visibility.

Walmart, in contrast, has far fewer sellers, which means there’s less competition. This makes it easier for new entrants to gain traction. However, Walmart’s customer base is also smaller, so while standing out may be easier, the overall sales potential is lower than Amazon’s.

Walmart Marketplace vs Amazon: Which Platform Offers More Sales Potential?

If you’re selling online, Amazon puts you in front of over 200 million Prime members. This global reach gives sellers access to a massive audience, increasing sales opportunities.

Walmart, while growing steadily, has a much smaller customer base. It primarily targets U.S. shoppers, with around 120 million monthly visitors. Although Walmart+ is gaining traction, it still has a long way to go before it can rival Amazon Prime’s membership base. If you’re deciding where to sell, consider whether you want the broad international reach of Amazon or the more curated, U.S.-focused audience of Walmart. Your decision could make all the difference in how fast and how far your business grows.

Fulfillment and Shipping: Which Platform Is More Cost-effective?
Amazon’s Fulfilled by Amazon (FBA) service is a major draw for sellers. Products get the Prime badge, which boosts conversions, and Amazon’s huge fulfillment network ensures fast delivery. But there’s a downside—higher storage fees and strict inventory limits.

Walmart’s WFS is more affordable, with lower storage fees than FBA. But it comes with limitations. Not all products qualify, and since Walmart has fewer fulfillment centers, shipping times can be longer. If speed matters more than cost, Amazon is the better bet. If you’re looking to save on fulfillment, Walmart takes the lead.

Selling on Amazon vs Walmart: Advertising and Marketing

Amazon’s ad platform is powerful. With Sponsored Products, Display Ads, and Video Ads, you have plenty of ways to promote your listings. But it’s also expensive—cost-per-click (CPC) averages around $0.89.

Walmart Connect, Walmart’s advertising platform, is still growing. CPC is lower (about $0.40 per click), and competition for ad space isn’t as fierce. While Walmart’s ad options aren’t as advanced as Amazon’s, they’re more budget-friendly.

Ease of Selling: Who Makes It Simpler?
Amazon’s seller approval process is straightforward, making it easy to start. However, the platform has strict policies, and account suspensions happen often. One bad review or policy violation, and you could be in trouble.

Walmart is more selective about who they let in. The approval process is tougher, but once you’re in, you face less competition. Walmart also doesn’t charge monthly fees, which is a plus. However, if you’re looking for global reach, Amazon is the better option since Walmart is mostly U.S. based.

Final Verdict: Walmart Marketplace vs Amazon

Lets do a quick overview of the difference between Walmart and Amazon.

Amazon or Walmart: Which is Better?

It depends on your business goals. If you want massive reach and can handle the competition, Amazon is unbeatable. But if you’re looking for lower fees and less crowded space, Walmart Marketplace is a fantastic choice.

Honestly, the smartest move would be to sell on both platforms. This way, you can expand your audience while balancing costs and leveraging the strengths of each marketplace.

Looking to optimize your eCommerce strategy for both Amazon and Walmart? You can contact AdLift, and our team of experts will help increase your visibility and sales on both platforms.