Amazon vs Walmart For Sellers - Which Is Right for You?

The rapid growth of e-commerce has transformed traditional retail, creating a competitive marketplace where sellers can thrive. Amazon and Walmart stand out as two dominant platforms, each offering distinct advantages. As a seller, selecting the right platform is pivotal for your business’s success. This toe to toe comparison of Amazon and Walmart will explore various aspects, from market reach to customer support, to help you choose the best fit for your business needs.

1. Background Information

Amazon: A Marketplace Powerhouse

Amazon, founded by Jeff Bezos in 1994, started as an online bookstore and has since evolved into the world’s largest online marketplace. With its vast product range, sophisticated logistics network, and a customer-centric approach, Amazon has become the go-to platform for millions of sellers and buyers worldwide. Key milestones in Amazon’s history include the launch of Amazon Prime in 2005, the introduction of Amazon Web Services (AWS) in 2006, and the expansion into global markets.

Walmart: From Retail Giant to E-commerce Contender

Walmart, founded by Sam Walton in 1962, is renowned for its extensive network of brick-and-mortar stores. Recognizing the shift towards online shopping, Walmart has made significant strides in e-commerce. The acquisition of Jet.com in 2016 marked a pivotal moment, enhancing Walmart’s digital presence. Today, Walmart’s online marketplace is a growing platform for sellers, leveraging its established brand and customer base.

2. Market Reach and Audience

Amazon’s Global Dominance

Amazon’s reach is truly global, with operations in over 100 countries and a customer base exceeding 300 million active users. The platform’s diverse audience spans various demographics, with Amazon Prime members representing a significant portion of its loyal customer base. Prime membership, offering benefits like free shipping and exclusive deals, enhances customer retention and spending.

Walmart’s Expanding Online Presence

Walmart, while traditionally focused on the U.S. market, has rapidly expanded its online presence. Walmart.com attracts millions of visitors, with a significant portion being loyal Walmart shoppers who appreciate the brand’s reputation for value and convenience. The introduction of Walmart+ membership, offering benefits similar to Amazon Prime, aims to bolster customer loyalty and increase online sales.

Comparative Analysis

While Amazon boasts a larger global reach, Walmart’s strong U.S. presence and brand loyalty provide a solid foundation for sellers targeting the American market. Sellers must consider their target audience and market reach when choosing between these platforms.

3. Seller Requirements and Onboarding

Amazon’s Seller Registration Process

Amazon offers two types of seller accounts: Individual and Professional. The Individual account is suitable for those selling fewer than 40 items per month, while the Professional account caters to high-volume sellers. The registration process involves providing personal or business information, bank account details, and tax information. Verification can take a few days, during which Amazon reviews the provided documentation.

Walmart’s Seller Registration Process

Walmart’s onboarding process is more selective, aimed at ensuring a high-quality marketplace. Sellers must meet specific requirements, including a U.S. business address and tax ID, a history of marketplace or e-commerce success, and quality product listings. The registration process includes an application review, and once approved, sellers provide business details, bank account information, and agree to Walmart’s seller terms.

Comparative Analysis

Amazon’s relatively straightforward registration process makes it accessible for new and small-scale sellers, while Walmart’s selective criteria ensure a curated marketplace. Sellers must weigh the ease of entry against the potential benefits of a more exclusive selling environment.

4. Fees and Pricing Structure

Amazon’s Fee Structure

Amazon charges various fees, depending on the type of account and services used. Key fees include:

Referral Fees: A percentage of the sale price, varying by category.
Fulfillment Fees (FBA): Charges for storage, packing, and shipping through Amazon’s Fulfillment by Amazon service.
Subscription Fees: Professional sellers pay a monthly fee of $39.99, while Individual sellers are charged $0.99 per item sold.

Walmart’s Fee Structure

Walmart’s fee structure is somewhat simpler, with primary fees including:

Referral Fees: A percentage of the sale price, varying by category.
Fulfillment Fees (WFS): Charges for storage, packing, and shipping through Walmart Fulfillment Services.
Subscription Fees: Walmart does not charge a subscription fee, making it potentially more cost-effective for some sellers.

Comparative Analysis

While both platforms charge referral and fulfillment fees, Amazon’s subscription fee for Professional accounts can add to costs for high-volume sellers. Walmart’s lack of a subscription fee may be appealing, though the specific referral and fulfillment fees should be compared based on the seller’s product categories.

5. Fulfillment and Logistics

Amazon’s Fulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA) is a comprehensive service where Amazon handles storage, packing, and shipping. Benefits include:

Prime Eligibility: Products are eligible for Amazon Prime, attracting Prime members.
Fast Shipping: Amazon’s extensive logistics network ensures quick delivery.
Customer Service: Amazon handles customer service and returns.

However, FBA fees can be substantial, and sellers must adhere to Amazon’s strict inventory requirements.

Walmart Fulfillment Services (WFS)

Walmart Fulfillment Services (WFS) offers similar benefits, including:

Walmart+ Eligibility: Products are eligible for Walmart+, enhancing visibility.
Fast Shipping: Walmart’s logistics network ensures reliable delivery.
Customer Service: Walmart manages customer service and returns.

WFS fees are competitive, and Walmart’s focus on quality control benefits sellers who meet their standards.

Comparative Analysis

Both FBA and WFS provide robust fulfillment options, but Amazon’s more extensive logistics network may offer an edge in shipping speed and reliability. Sellers should consider the costs and benefits of each service relative to their business needs.

6. Listing and Product Visibility

Amazon’s Product Listing Process

Amazon’s listing process allows for detailed product descriptions, images, and keywords. Key tips for optimization include:

High-Quality Images: Multiple images from different angles.
Detailed Descriptions: Clear and concise product information.
Keywords: Strategic use of relevant keywords to improve search visibility.

Amazon offers various advertising options, including Sponsored Products and Sponsored Brands, to boost visibility.

Walmart’s Product Listing Process

Walmart’s listing process emphasizes accurate product information and quality images. Optimization tips include:

Clear Titles: Descriptive and keyword-rich product titles.
Quality Images: High-resolution images showing product details.
Detailed Descriptions: Comprehensive product descriptions to inform customers.

Walmart also offers advertising options through Walmart Connect, including Sponsored Products and Display Ads.

Comparative Analysis

Both platforms provide tools for optimizing product listings and advertising, but Amazon’s more extensive advertising network may offer greater visibility opportunities. Sellers should leverage the available tools on each platform to enhance their product visibility.

7. Customer Support and Returns

Amazon’s Customer Service Policies

Amazon is known for its customer-centric approach, offering support and return policies:

Return Process: Streamlined and often free returns for customers.
Seller Support: Access to Seller Central for support and resources.

Amazon’s rigorous customer service standards can be challenging for sellers but benefit customer satisfaction.

Walmart’s Customer Service Policies

Walmart also prioritizes customer service, with robust support and return processes:

Return Process: Convenient returns through Walmart stores or online.
Seller Support: Access to Seller Center for support and resources.

Walmart’s focus on quality control makes sure a positive customer experience, benefiting sellers who meet these standards.

Comparative Analysis

Both Amazon and Walmart offer strong customer support and return policies, but Amazon’s extensive customer service network may provide a slight edge. Sellers must adhere to high standards on both platforms to maintain positive customer relations.

8. Seller Tools and Analytics

Amazon’s Seller Tools and Resources

Analytics and Reporting: Detailed sales and performance data.
Inventory Management: Tools to track and manage inventory levels.
Marketing Tools: Access to advertising and promotional tools.

Walmart’s Seller Tools and Resources

Analytics and Reporting: Insights into sales and performance.
Inventory Management: Tools to manage inventory and stock levels.
Marketing Tools: Access to advertising options through Walmart Connect.

Comparative Analysis

Both platforms provide robust tools for managing and growing a business, but Amazon’s more extensive suite of seller tools may offer better flexibility and insights. Sellers should explore and utilize the available tools on each platform to maximize their potential.

9. Marketing and Promotional Opportunities

Amazon’s Marketing Options

Amazon Advertising: Sponsored Products, Sponsored Brands, and Sponsored Display ads.
Deals and Promotions: Lightning Deals, Coupons, and Prime Day promotions.

Walmart’s Marketing Options

Sponsored Products: Ads that appear in search results and product pages.
Display Ads: Banner ads on Walmart’s website and partner sites.
Deals and Promotions: Special offers and promotional campaigns.

Comparative Analysis

Amazon’s more extensive advertising network and promotional events like Prime Day may offer greater marketing opportunities. However, Walmart’s growing advertising options provide valuable visibility for sellers targeting Walmart’s customer base.

10. Seller Reviews and Reputation Management

Amazon’s Review System

Amazon’s review system is critical for product visibility and customer trust:

Importance of Reviews: Positive reviews boost search rankings and conversions.
Handling Negative Feedback: Strategies for addressing negative reviews and maintaining a positive reputation.

Walmart’s Review System

Walmart also emphasizes customer reviews and ratings:

Importance of Reviews: High-quality reviews enhance product credibility.
Handling Negative Feedback: Effective approaches to manage and respond to customer feedback.

Comparative Analysis

Both platforms place significant importance on customer reviews, but Amazon’s extensive review system may have a more substantial impact on product visibility. Sellers must actively manage their reputation on both platforms to succeed.

11. Scalability and Growth Potential

Opportunities for Scaling on Amazon

Amazon offers numerous opportunities for scaling a business:

International Expansion: Reach global markets through Amazon’s international sites.
Product Diversification: Expand product lines to attract a broader audience.

Opportunities for Scaling on Walmart

Walmart provides growth opportunities for sellers:

Market Penetration: Leverage Walmart’s extensive U.S. customer base.
Product Diversification: Expand product offerings to meet diverse customer needs.

12. Revenue Analysis

Comparative Analysis

Both platforms offer significant growth potential, but Amazon’s global reach may provide more substantial opportunities for international expansion. Sellers should consider their long-term goals and scalability when choosing a platform.

Comparative Analysis

Both platforms present unique challenges, but sellers can succeed by understanding and addressing these obstacles. Consider the specific challenges and potential solutions when choosing between Amazon and Walmart.

Success Stories and Case Studies

Success Stories from Amazon Sellers

Case Study 1: Small Business Scaling to International Markets

Jane, owner of a small business of handmade jewelry, started off by selling on Amazon in 2015. Initially, she focused on the US market, but as her brand was gaining traction, she saw an opportunity to expand globally. Utilizing Amazon's international selling program. Jane started listing her products on various international Amazon marketplaces, including the UK, Germany, and japan. By adapting her Amazon listings to local preferences and languages, and leveraging Amazon's global logistics network. Jane increased her sales by 150% within just 2 years. Her success strategy included:

Localized Listings: Translating product descriptions and using relevant keywords for each market.
Prime Eligibility: Making sure all products were eligible for Amazon Prime to attract more buyers.
Targeted Advertising: Running Amazon Sponsored Products ads tailored to each market.

Case Study 2: Leveraging FBA to Streamline Operations and Grow Sales

Mike started his electronics accessories business as a side project on Amazon. As demand grew, managing storage, packing and shipping became overwhelming. Mike then decided to use Fulfillment by Amazon FBA ro get help handling logistics. THis step allowed him to focus on scaling his business, knowing that Amazon would take care of storage, customer support

His strategic steps included:

Inventory Management: Using Amazon's inventory tools to optimize stock levels and reduce storage fees.
Product Bundling: Creating bundles of popular items to increase average order value.
Enhanced Branding: Using Amazon's Brand Registry to protect his brand and create A+ content for listings.

13. Success Stories from Walmart Sellers

Case Study 1: Brand Expanding Its Reach through Walmart’s Platform

Sarah's organic skincare brand had a loyal following on her website and a few smaller ecommerce platforms. And to reach a bigger audience, she made a decision to list all her products on Walmart. Walmart's reputation for value and quality perfectly aligned with her brand. By maintaining high standards and making use of Walmarts advertising options, Sarah saw a drastic 60% boost in her sales just within the first 6 months.

High-Quality Listings: Ensuring detailed product descriptions and high-resolution images to attract customers.
Walmart Connect Advertising: Running targeted ads to increase visibility and drive traffic to her listings.
Competitive Pricing: Offering competitive prices while maintaining quality to attract price-sensitive Walmart shoppers.

Case Study 2: Customer Satisfaction with Walmart Fulfillment Services (WFS)

John operated a home goods shop and had a lot of challenges with managing logistics and making sure timely deliveries. By switching to Walmart Fulfillment Services (WFS), he could offer faster shipping and better customer services, which significantly boosted his client satisfaction scores. This transition allowed him to focus on expanding all his products and marketing strategies. His success strategy involved:

Reliable Fulfillment: Utilizing WFS to ensure prompt and accurate order fulfillment.
Customer Feedback: Actively seeking and responding to customer feedback to improve product offerings.
Promotions and Deals: Participating in Walmart’s promotional events to increase exposure and sales.