As Walmart continues growing its marketplace, many US eCommerce brands start wondering: What is the best marketplace to sell? Amazon or Walmart? Both retail giants are coming head to head as Amazon grows faster than ever. Walmart, a brick and mortar giant, generates $559 billion annual revenue. While Amazon only generates $386 billion, it is adding over $100 billion in sales year by year. With a fierce new online retail giant as a competitor, Walmart has also been rolling out its own online marketplace incentives to catch up.
So which is the best place to sell in 2025, Amazon, or Walmart? In this article we’ll lay out the key differences between them, in fulfillment, fees, profitability and level of competition on each platform.
Selling on Amazon is very easy, sellers simply sign up for a Professional plan which costs around $40 per month. Anyone can become an Amazon seller, even someone with no experience running a business. All Amazon needs is some pertinent details such as seller identity, business address, business licence, tax information and so on. After this, sellers can choose to sell on Amazon through FBA, FBM or both.
Sellers can add their products quite easily to their online store, and add product details & photos. Once it’s approved, and you have shipped inventory to an Amazon Fulfillment Center, you’re officially selling on Amazon! You can send inventory via direct shipping, dropshipping, or a 3PL, all options are open to Amazon Sellers. However, you can only dropship from your manufacturer or supplier, not another retailer.
Sellers also get access to Amazon Advertising, where they can pay for ads on a pay-per-click basis to promote their products on Amazon.
Benefits of Selling on Walmart
Selling on Walmart has one key difference, you first need approval before you can sell on the Walmart Marketplace. Walmart will email an “Invitation to Sign Up” for approved sellers, and only then can they create a Seller Account on Walmart Seller Central. Unlike Amazon, Walmart has no monthly fee or charges to maintain a seller account on its marketplace. Sellers are only charged a referral fee per product. After signing up, sellers simply upload items and fulfill their orders.
Becoming an approved Walmart seller is not as easy as becoming an Amazon seller. Walmart is more selective, and it prioritizes sellers with established businesses & e-commerce experience.
One thing to note is that Walmart will not allow Marketplace Sellers to dropship their inventory. Only dropship vendors can do this on Walmart.
Amazon vs Walmart: Fulfillment
Fulfillment by Amazon
When it comes to fulfillment, Amazon has a well-established and robust fulfillment network available to all Amazon Sellers worldwide – FBA. FBA (Fulfillment by Amazon) essentially takes over most of the tasks new sellers struggle with. Selling your products using FBA means Amazon will store, pick, pack, ship and even handle returns for your products. FBA is incredibly convenient and comes with fairly reasonable FBA fees, which depends on your product category and size.
Sellers can also choose FBM, which is Fulfillment by Merchant, if they sell large-size products that they’d get better rates for using a 3PL. Sellers can even use a mix of both FBA and FBM, so fulfillment on Amazon is very flexible.
Walmart Fulfillment Services
In 2020, Walmart launched its own fulfillment network called WFS – Walmart Fulfillment Services. WFS was introduced in direct competition to Amazon FBA, because it offers the same inventory management services. However, one way in which WFS falls short compared to Amazon is that WFS only allows shipments to its fulfillment centers from within the US.
In contrast, Amazon FBA allows you to ship products from anywhere in the world.
Logistics: Key Differences
Some of the key differences between Amazon & Walmart’s fulfillment service requirements:
Marketplace Fees: Amazon vs Walmart
Amazon and Walmart both have 3 types of fees – referral fees for products, fulfillment fees and storage fees.
Referral Fee Comparison
Amazon has varying product referral fees based on the product category you sell in, as does Walmart.
Amazon’s referral fees range from anywhere between 6% to 45% depending on the item type and product category. Amazon also has some other selling fees, like rental book service fees for books, or closing fees of $1.80 per item for products in categories like Books, DVD, Music, Software & Computer, Video Game Consoles & Accessories.
Walmart’s referral fees range from 6 to 20% depending on item type and product category, and it has no other selling fees.
It’s clear that when it comes to referral fees that Walmart is the better option. Walmart’s referral fees cap out at 20%, but this is also because some product types that can’t be sold on Walmart, can be sold on Amazon. One example of this is Custom Products. Amazon allows you to sell custom content in apparel, home decor, accessories etc., but Walmart does not.
It will take a closer look at your product and the types of fees that will apply to see which service is really better for you.
FBA vs WFS: Fulfillment Fee Comparison
Both FBA and WFS have fulfillment and storage fees, and they vary based on product size or dimension tier. The first key difference is Amazon’s storage and fulfillment fees vary based on weight & dimensions of each product. Meanwhile, Walmart has fixed storage and fulfillment fees which are based on the shipping weight of the product.
Fulfillment Fee Comparison
Amazon calculates FBA fulfillment fees based on the weight tier a product falls in. Meanwhile, Walmart considers the total dimensional weight of a product. In this case, this means that Walmart’s fees are much lower for certain products compared to Amazon. However, for many products, the fees are nearly the same for both.
In order to see fufillment fee breakdowns, you need to have a Seller account on Amazon and Walmart. Thankfully, a comparison made by Helium10 clarified these key differences, through 3 ‘example’ packages:
In this case, we can see that WFS fees are much cheaper for example package #1, but basically on par with FBA for example packages #2 and #3. The main reason for this discrepancy is because example package #1 is an “oversize item” according to the FBA fee structure. Oversize items on Amazon have very high fulfillment fees due to the weight tier fee structure. In comparison, because WFS looks at the dimensional weight only, the fees are lower.
Naturally, these 3 examples aren’t a sure indicator of which will be cheaper for you as a seller. For this reason we recommend reading Helium10’s article, which provides the cost structure for both FBA and WFS for each product size tier.
Storage Fee Comparison
As for storage fees, Walmart charges essentially the same storage fees as Amazon. The only difference in storage fees occurs in Q4, where Amazon charges noticeably higher storage fees.
WFS storage fees are $0.75 per cubic foot per month year-round, except in Q4 if a product is stored longer than 30 days, there is an additional $1.50 per cubic foot per month.
FBA storage fees have varying amounts depending on product size tier.
As seen above, fees in Q4 for Amazon are significantly higher than Walmart, but only if your product is stored less than 30 days. Once you pass that 30 day storage mark, Walmart’s storage fees in Q4 get more expensive than Amazon.
Please note, Amazon also has long-term storage fees that are expensive per-unit fees based on product tier, but this is in cases where inventory has been stored for 180-365 days or more.
Walmart Advertising & Walmart Connect Strategy
Most US eCommerce operators are familiar with how Amazon ads work (if not, check out our blog posts on How to advertise on Walmart marketplace). Things are different with Walmart Advertising. As Walmart continues to evolve into a digital-first retail powerhouse, one of its most significant advancements for eCommerce brands is Walmart Connect—its rapidly expanding retail media network. Just as Amazon Advertising has become essential for sellers on Amazon, mastering Walmart Connect is crucial for brands aiming to win visibility and sales on Walmart.com.
What Is Walmart Connect?
Walmart Connect is Walmart’s advertising platform. It’s basically the Walmart equivalent to Amazon ads (with one important difference!). It allows third-party sellers and brands to run highly targeted ads on:
In-store displays (smart screens and self-checkout screens in Walmart stores)
Offsite digital placements via Walmart DSP (powered by The Trade Desk)
Unlike Amazon’s ecosystem, which by now is quite mature, Walmart’s platform is still relatively young. But this is also an opportunity. As there are less sellers on the platform and less resources available, advertising costs are often also lower as compared to Amazon ads. Lower competition, more affordable CPCs, and untapped audiences make Walmart Connect a high-ROI channel for early adopters. And also, in contrast to Amazon ads brands can even run ads in Walmart stores via Walmart in-store display ads. A big difference from Amazon ads and a great opportunity to build brand awareness.
Ad Types Available on Walmart Connect
Walmart Connect offers a growing range of ad formats that closely mirror those available on Amazon.com: Sponsored Products Ads, Sponsored Brands (aka Sponsored Search Brand Amplifier) Ads, Display Ads and In-Store Media (Omnichannel Advertising) Ads.
Higher average CPCs ($0.60–$2.00) due to saturation
Lower average CPCs ($0.30–$1.00) due to lower competition
Platform Maturity
Highly advanced targeting, reporting, automation
Rapidly evolving, newer interface, fewer tools
DSP Capabilities
Amazon DSP for off-Amazon ads
Walmart DSP powered by The Trade Desk
Targeting Options
Keywords, ASINs, categories, audiences
Keywords, categories, demographics, geo-based
On-Site + In-Store Media
On-Amazon only
True omnichannel: web + app + physical stores
Product Restrictions
Some gated categories
Stricter ad eligibility, esp. for new sellers
Advertising Performance Comparison: Walmart vs Amazon Advertising
While results can vary by category and budget, on average we have seen strong performance across many categories that we have worked on. ROAS (return on ad spend) is often higher than that on Amazon. Here are some benchmarks:
Sponsored Products ROAS: 4–8× in low-competition categories
Sponsored Brands ROAS: 2–5× when paired with top-of-search keywords
Display Ads: Effective for retargeting campaigns at scale
In-Store Media: Strong offline attribution, especially in CPG categories
Compared to Amazon, Walmart’s ad platform rewards efficiency and early mover strategy, with lower CPCs and more “white space” for challenger brands.
Amazon vs Walmart: Competitive Environment
Amazon has a far bigger online marketplace than Walmart. According to Marketplace Pulse’s latest data, Amazon hosts 1.6 million active sellers, meanwhile Walmart only has about 92,000.
Amazon’s market share in the e-commerce market of the US is absolutely massive. According to eMarketer, Amazon controls 38.7% of the retail e-commerce sales share in the US, whereas Walmart has only 5.3%, even though it has the 2nd largest share in the US after Amazon.
Of course, in terms of competition, this has upsides and downsides. Amazon’s gigantic marketplace means sellers get more visibility for their products and a higher potential for conversions to sales. Amazon had 200 million unique visitors to its site in 2019, in the same year, Walmart had 138 million. Unfortunately, a bigger marketplace also means Amazon is saturated with sellers, and it is harder to climb to the top.
In comparison, Walmart is less competitive. There are fewer sellers to compete with and so it’s easier to climb. However, recall that Walmart is very selective in choosing sellers, which means that most of your competitors are well-established businesses with good business acumen.
Profitability: Amazon.com vs Walmart.com
Profitability is what sets Amazon apart from Walmart, due to one important difference. On Amazon, sellers have the freedom to change their product prices to as low or as high as they want without any issues with Amazon TOS. In contrast, Walmart has some price-related rules that must not be broken.
Firstly, Walmart automatically unpublishes products if the same product can be purchased for cheaper on another website hosted by the same seller. Second, products that are priced higher in a way that purchasing that same product on a competing website would be cheaper (regardless of seller) will also be unpublished. Both these rules include shipping costs.
In this case, Walmart’s focus on low prices means less freedom for sellers when it comes to pricing their products. On Amazon, if your product is unique and you have built brand loyalty, you can increase the price above your competitors to make more than you were previously. Undoubtedly, Amazon Sellers have more control over their profit margins than Walmart Sellers do.
Of course, this is a double-edged sword, because your competitors have the same freedom. There will also be instances where competitors price their products so low it’s a price you simply cannot beat, so in this case, Walmart may offer some security.
When to Sell on Amazon vs. Walmart: Which Platform Fits Your Brand Best?
Choosing between Amazon and Walmart isn’t just about comparing platform size, logistics and difficulty of setting up. It’s also about strategic fit. Each marketplace offers unique advantages and depending on your product type, pricing strategy, operational capabilities, and target audience one platform may be more suitable than the other.
We go through some scenarios to provide you with a blueprint for prioritizing one over the other.
When It Makes More Sense to Sell on Amazon
Scenario 1: You’re Launching a New or Unknown Brand
Amazon is much bigger than Walmart.com and despite the huge number of sellers on the platform it is, relatively speaking, easier to break into the marketplace.That is because you will find sufficient scale even in highly specialized product categories and niches. Also keep in mind that starting out on Walmart without an established brand is difficult due to its more complex registration process. So, thanks to its robust search traffic, mature advertising tools, and high-intent shoppers in tons of niches, Amazon has much lower barriers to entry for challenger brands — even for brands with no brand equity.
Use Case: A startup launching a new supplement or fitness gear line can gain traction through Sponsored Products, brand storefronts, and influencer-led affiliate traffic.
Scenario 2: You Have a Wide Product Catalog Across Multiple Categories
As the more mature platform Amazon supports diverse catalogs with powerful tools for managing large SKU counts, variations, and cross-category placements. Even pushing complexing product catalogs onto the platform is a relatively straightforward task. So, overall., it’s better suited to brands with a broad product mix.
Use Case: A home goods brand offering 100+ SKUs (e.g., kitchen, bath, lighting) can streamline operations using Amazon’s category-specific listing tools and FBA network.
Scenario 3: You Rely Heavily on Advertising and Keyword-Based Targeting
If advertising is core to your growth, Amazon offers a superior ad platform. Even not yet as robust as Google Ads, Amazon ads has made impressive progress over the last few years. It now features robust keyword targeting for Sponsored Products Ads and efficient audience segmentation options for Sponsored Display and Sponsored Brands ads.
Use Case: A brand scaling via Amazon Sponsored Brands Ads and leverage Amazon’s deep targeting capabilities to drive full-funnel growth.
Scenario 4: You Want Global Expansion Options
Amazon’s Global Selling program allows brands to enter international markets (Canada, EU, Japan, etc.) with relative ease. Walmart, by contrast, is primarily US-focused and has no presence in many overseas markets. Also, if you prefer to directly manage Amazon marketplaces in other countries, you will be able to use the same tools and approaches that you are used to managing your Amazon US business.
Use Case: A US-based electronics brand planning to expand into the UK or Germany would benefit from Amazon’s international FBA and multi-market listings.
Scenario 5: You Want More Control Over Pricing
Amazon’s dynamic pricing environment is complex but flexible. Sellers can use repricing tools, create product bundles, and leverage Lightning Deals or coupons. Walmart enforces strict price parity policies that may restrict your ability to discount elsewhere.
Use Case: A brand running frequent flash sales or offering exclusive Amazon bundles would have more freedom on Amazon.
When It Makes More Sense to Sell on Walmart
Scenario 1: You Sell Everyday Essentials or CPG Products
Walmart’s core audience is derived from its brick-and-mortar brand positioning: value-driven shoppers who are buying everyday essentials. As a result, online Walmart.com also skews toward groceries, cleaning supplies, household staples, and baby products. These categories tend to perform better on Walmart than on Amazon.
Use Case: A brand selling eco-friendly dish soap or snack bars may get higher conversion rates with Walmart’s shopper base and in-store pickup integration.
Scenario 2: You Want Lower Competition and Ad Costs
As Walmart is more selective with regards to who can sell on its website, the marketplace is also less crowded. In terms of marketing cost, this often translates to lower CPCs for Walmart ads as there is less aggressive competition. Compared to Amazon, Walmart is still in a more nascent stage, which means cheaper ads, more organic visibility, and better shelf space for new entrants.
Use Case: A mid-size apparel brand struggling to gain traction on Amazon could see more ROI with less ad spend on Walmart Connect.
Scenario 3: You Already Sell in Walmart Physical Stores
Selling on Walmart.com allows for deeper brand integration across physical and digital channels. This is of strategic importance to brands with a presence in physical Walmart stores. Not only can they leverage in-store media, local inventory ads, and drive cross-channel sales, but more importantly they can make sure that loyal Walmart shoppers who are switching to digital channels can still find the product they are used to buying.
Use Case: A brand with shelf presence in Walmart stores can run in-store display ads and drive online traffic via in-store QR codes or signage.
Scenario 4: You Want Higher Margins on Low-Ticket Items
If you are selling low priced items, succeeding on Amazon gets tougher every year. Average CPCs are rising and organic competition is intense. As a result, brands that sell low priced items need to have a high level of brand awareness and sell huge quantities to grow or sometimes just sustain their business. Walmart’s lower referral fees, no monthly seller subscription, lower cost of advertising and simpler WFS fees make it a better platform for low-priced items where margins are razor thin.Use Case: A brand selling $10 phone accessories or kitchen tools might earn better profits on Walmart than on Amazon, once fees are factored in.
Recap: Pros & Cons of Amazon and Walmart
A quick summary of the pros & cons of selling on Amazon vs Walmart:
Amazon – Pros & Cons
*Note– As mentioned before, dropshipping is only allowed directly from your manufacturer or supplier. Dropshipping from a retailer is not allowed.
Walmart – Pros & Cons
Which Marketplace is Better?
Overall, looking at the pros & cons for each marketplace, there are scenarios where both marketplaces are a good strategic fit. For most sellers, and especially those starting out new however, Walmart certainly has more cons than pros. Personally, we recommend Amazon FBA for new sellers. If you’re a seller with an established business and years of experience managing it, then Walmart is perfect for you. If you have a presence in Walmart physical stores, Waltmart.com is a channel you should definitely venture into. Walmart is a good way to shift a successful brick & mortar business to an online one. Meanwhile, Amazon FBA is perfect for someone new to e-commerce, because it allows more freedom and leeway.
