If you already sell on Amazon, then you’re probably wondering if you should sell on Walmart, and if it’s an online marketplace worth exploring. In a nutshell, yes, it is, and this article will go deep into the intricacies of being a Walmart marketplace seller, to help you make your own judgments.
Suffice it to say that being an eCommerce entrepreneur in 2024 isn’t as easy as it used to be. Diversifying your sales channels is critical to staying ahead, and let’s face it, Fulfillment by Amazon doesn’t come cheap. Turning a profit is getting tougher and tougher, so varying your revenue stream is a really good idea.
The Walmart marketplace is a fast-growing marketplace, and welcomes millions of customers on a regular basis. In fact, Forbes reported that Walmart earned $559.15 bn in 2022 vs. Amazon, which brought in $514 bn in the same year. In 2023, Walmart’s stock price was at $150, while Amazon stock price was at $114. So, yes, to keep it short, learn more about Walmart and evaluate if selling on the Walmart marketplace fits your goals and business objectives.
Let’s get started!
Walmart.com is only available in the USA for now, so if you’re more interested in expanding across Europe, take a peek at the Top 10 European Marketplaces.
Walmart Marketplace Overview
Walmart.com allows third party sellers to list their own products alongside Walmart’s own inventory. In this sense, it’s a lot like Amazon. Walmart.com is an eCommerce platform that reaches a vast audience, while benefiting from Walmart’s trusted brand reputation.
Although the eCommerce portal is only available in the USA for now, Walmart itself is massive, and operates under different names worldwide. It’s called Walmart in the US and Canada, Walmart de México y Centroamérica in Mexico and Central America, and Flipkart Wholesale in India. It has wholly owned operations in Chile and a majority stake in Massmart in South Africa. In Brazil, Walmart reduced its ownership in Grupo Big to 20% in 2018 before fully divesting to Carrefour in 2022 for R$7 billion.
According to Demand Sage, there are 10,616 physical Walmart stores worldwide, with 4,615 stores in the USA alone. Texas has the highest number of Walmart stores in the USA. It serves approximately 37 million customers every day. To provide contrast, MobiLoud reports that in 2022, Amazon received 230 unique visitors per month worldwide.
Walmart sells more than 75 million products, vs. the 353+ million products on Amazon. Walmart sales are driven mostly by grocery items, although SellerApp reported early this year that baby care, personal care, cleaning supplies, laundry supplies, women’s clothing, pet supplies, kitchenware, fitness accessories, healthcare, and bedding and linens also do very well.
Simplilearn reported that Walmart’s target audience are usually low to middle-class rural families, who actively look for price and discounts. eCommercedb agrees, and continues that 26% shop for a 2-person household, while 23% shop for a 4-person household, and 22% shop for a 3-person household. Only 17% shop for a 1-person household.
So, if you’re aiming for a more affluent customer base, then perhaps becoming a Walmart seller isn’t for you. On the other hand, if you’re ready to provide essential items at bargain prices, then explore listing your products on walmart.com.
Why Should You Consider Selling on the Walmart Marketplace?
So, given that we have a better idea now of who’s shopping on Walmart.com, let’s explore the advantages of selling on Walmart.
Less Competition on the Online Marketplace
Amazon has over 6 million sellers globally, with almost 2 million active sellers, and offers a ton of products. Walmart on the other hand only has 150,000 sellers, with only 70+ million products. So, the chances of you standing out are much higher on Walmart.com.
Lower Selling Costs for the Walmart Marketplace Seller
With or without FBA, Amazon sellers pay a monthly fee of $39.99 for a professional account, or $0.99 for each item sold. Walmart meanwhile doesn’t charge a monthly subscription fee, and there are no listing fees or hidden charges. You just pay a referral fee of 6% to 15%, depending on the category.
Walmart Fulfillment Services (WFS)
Similar to FBA, Walmart can handle the logistics and shipping for you, but WFS isn’t as sophisticated as FBA (yet). Here are the pros and cons of using Walmart Fulfillment Services:
Pros:
- Walmart+ Two-Day Free Shipping: Products are eligible for fast delivery within the contiguous U.S., increasing customer satisfaction and sales.
- Streamlined Inventory Management: Sellers ship inventory to Walmart’s fulfillment centers, where products are ready to ship within two days of receipt.
- Order Fulfillment by Walmart: WFS handles picking, packing, and shipping, allowing sellers to focus on other aspects of their business.
- Enhanced Product Visibility: WFS-tagged products display TwoDay Delivery and Fulfilled by Walmart labels, boosting sales by an average of 50%.
- Customer Trust: Walmart’s strong brand recognition and wide physical store presence build customer confidence.
- Walmart-Branded Packaging: Adds credibility and aligns with customer expectations.
- Customer Service Support: Walmart handles customer issues and complaints for WFS orders.
- Dedicated Seller Support: WFS provides seller support to help optimize business growth.
Cons:
- Limited to Walmart.com Orders: WFS cannot fulfill orders for other marketplaces or websites, unlike Amazon FBA.
- No International Shipping: WFS only ships to U.S. addresses and territories.
- Customer-Friendly Returns: Customers can return items to fulfillment centers or Walmart stores, which may increase return rates.
- Product Restrictions: Strict requirements for WFS products, including no perishable or regulated items, maximum weight of 150 lbs., and specific size limits.
Start Selling on Walmart Itself
When you sell on walmart.com, and you do well, you open the doors for selling in its physical stores. That’s a massive reach, and saves you the cost of having to put up your own brick and mortar stores.
Now it’s time to explore the differences between Walmart and Amazon.
Key Differences Between Amazon FBA and Walmart.com
Before we explore the challenges of selling on Walmart Marketplace, let’s compare and contrast Amazon and Walmart.
| Aspect | Walmart | Amazon |
|---|---|---|
| Registration Process | Stricter vetting ensures higher seller quality but requires more effort. | Easier and quicker to register with fewer requirements. |
| Requires a U.S. business or equivalent international registration. | International sellers allowed with basic personal details. | |
| Seller Competition | Fewer sellers, leading to more exposure for each product. | Highly competitive with millions of active sellers. |
| Fulfillment Options | WFS focuses on U.S.-based shipping. | FBA supports global shipping and fulfillment. |
| Audience Demographics | Walmart’s shoppers often differ in income level and preferences; less reliant on Prime. | Amazon’s audience is Prime-heavy with a higher spend propensity. |
| Fees | Transparent referral fees with no monthly subscription. | Monthly subscription fees plus FBA costs and other charges. |
So, what does all of this mean? Walmart has built a solid reputation for itself. Amazon charges sellers more, and there’s considerably more competition on the Amazon marketplace, but success on Walmart may come faster. It’s easier to start selling on Walmart marketplace, in spite of the stricter vetting of Walmart, but given there are more sellers on Amazon, you face less competition on Walmart. Plus, it’s really great that you won’t be charged for every product listing you put up, so you can publish as many as you like.
So, perhaps the question shouldn’t be Amazon or Walmart, but rather, Amazon plus another marketplace – including Walmart, and perhaps global expansion, as well.
Remember, diversification brings success and profits closer to your doorstep.
Disadvantages of Selling on Walmart.com
Now that you know the benefits of selling on Walmart’s marketplace, let’s understand the challenges that many sellers face.
1. Strict Onboarding Process
Walmart maintains a rigorous onboarding process to ensure the quality and reliability of its third-party sellers. Not just anybody can become a seller. To gain approval, applicants must provide detailed documentation, such as a U.S. business tax ID or equivalent international registration, a verified W9 or W8 form, and evidence of previous online selling success (in other words, it’s not for beginners; they want to be sure that you’re already a seller elsewhere). Walmart specifically looks for sellers with a strong track record, whether through established e-commerce platforms or other online marketplaces. This isn’t a bad thing; it ensures that only capable, reputable sellers gain access to the marketplace, but it can make the application process more demanding and time-consuming compared to platforms like Amazon, SHEIN or Temu.
2. Product Restrictions
Walmart has specific restrictions on the types of products allowed on its marketplace. Certain categories, such as luxury goods, fragrances, and cell phones, require pre-approval. Sellers may need to provide additional documentation to demonstrate compliance with Walmart’s standards. These restrictions may limit some sellers’ product offerings but serve to maintain a high standard for the marketplace. You’ll need to jump through a couple of hoops to get approved to sell on Walmart Marketplace.
3. Less Robust Marketplace Compared to Amazon
Although Walmart Marketplace has seen significant growth, it still lags behind Amazon in terms of tools, resources, and infrastructure for sellers. Amazon offers a more comprehensive ecosystem with features like Brand Registry, A+ Content, and extensive advertising tools. Walmart, by comparison, is rapidly improving its platform but currently offers fewer advanced seller tools. This means that sellers transitioning from Amazon may need to adjust their strategies to compensate for Walmart’s limitations while taking advantage of its unique strengths, such as fewer competitors and lower fees. Many people who sell on the marketplace express frustration of the lack of resources – but they’re pretty happy that Walmart only charges a referral fee per product sold, and there’s much less competition as opposed to Amazon and eBay.
Walmart Marketplace Success Tips for Amazon Marketplace Sellers
Any potential seller on Walmart Marketplace should employ a strategic approach in order to maximize potential. Here are some tips to help you do well:
1. Optimize Listings
To stand out on Walmart Marketplace, ensure your product listings are optimized for Walmart’s SEO. Use relevant keywords strategically in your titles, descriptions, and bullet points to improve search visibility. High-quality images are crucial—include multiple angles, detailed views, and lifestyle shots where possible. Clear and concise descriptions highlighting key product features and benefits will not only attract customers but also reduce the risk of returns. (PS – Helium 10 offers Walmart SEO!)
2. Leverage Walmart Fulfillment Services (WFS)
By using Walmart Fulfillment Services, your products gain access to Walmart’s coveted TwoDay Delivery tags, which significantly boost visibility and customer trust. WFS handles the picking, packing, and shipping, allowing you to focus on growing your business while increasing your products’ chances of winning the Buy Box.
3. Stay Competitive on Price
Walmart shoppers, much like those on Amazon, are highly price-sensitive. To remain competitive, research your competitors and offer pricing that aligns with customer expectations while maintaining profitability. Factor in Walmart’s transparent referral fees and, if using WFS, the fulfillment costs when setting your prices.
How you price a product on Amazon can also reflect on how you price a product on Walmart, but be sure to consider your customers each and every time!
4. Advertise Strategically
Use Walmart Connect to create sponsored product ads and increase your product visibility. These ads appear in premium positions on Walmart.com, helping drive traffic and conversions. Focus on promoting high-margin or best-selling products to get the best return on your advertising investment. Granted, you may not have fun things like an A+, or leverage the benefits of Amazon Prime, but Walmart does have Walmart+, which has a cheaper subscription and allows customers savings on fuel.
5. Monitor Performance
Regularly review Walmart’s Listing Quality Dashboard, a powerful tool that provides insights into your product discoverability, customer ratings, and post-purchase quality (think Amazon Seller Central but Walmart). Use the data and recommendations to fine-tune your listings and address any issues affecting sales. Continuous improvement in these areas will help maximize your revenue and maintain a strong presence on Walmart Marketplace.
So, in short, Walmart Marketplace’s best practices are the same best practices you’d employ on any online marketplace or eCommerce site. Just be sure to tailor your approach to Walmart itself. Not all marketplaces at the same, as we’re positive you know.
Should You Start Selling on Walmart Marketplace?
Now that you understand more about Walmart.com, it’s time for you to answer the question we proposed in the beginning: should you sell on Walmart Marketplace?
There are a few key questions you’ll need to ask yourself:
- Do You Have the Resources to Manage Multiple Sales Channels?
Expanding to Walmart Marketplace requires time, effort, and potentially new tools to streamline operations across platforms. Can your team, systems, and budget can handle the added complexity? - Is Your Product Lineup Compatible with Walmart’s Audience?
Walmart shoppers prioritize products that are affordable and provide value, so check what you’re selling to see if your products align with these preferences. Research whether your target audience is active on Walmart and if your offerings fit their buying habits. - Are You Prepared for Walmart’s Stricter Approval Process?
Note that Walmart has a rigorous application process that requires documentation, proof of selling success, and adherence to specific product and operational standards. Make sure your business meets these criteria before applying.
Frankly, being an Amazon seller will give you a leg up on Walmart Marketplace. Walmart doesn’t accept applications from newbie sellers without any previous eCommerce experience, so if you’ve got a strong track record on Amazon (or any other marketplace, but Amazon is of course #1), you’re likely to get accepted.
We’re blue in the face repeating this line, but it’s so important it simply must be reiterated: diversifying your revenue streams is a great way to reduce dependence on Amazon. Walmart offers a less saturated marketplace, with significant potential.
Let’s say you begin selling in 2025 – it’ll be fun to see your success grow as the platform grows as well. Walmart may not be as sophisticated as Amazon just yet, but we’re pretty sure it’ll catch up in due time.
After all, the numbers don’t lie.
Now You Understand the Benefits of Selling on Walmart.com…
Should you start selling on Walmart, or stick to Amazon?
Navigating Walmart Marketplace represents not just an opportunity, but a strategic move toward diversification in a rapidly evolving eCommerce landscape. Sure, Walmart may not yet be as robust as Amazon, but it’ll be really fun to watch it grow. The lower competition, transparent fees, and strong brand trust make it a compelling platform for growth. For experienced sellers, Walmart Marketplace can serve as a complementary revenue stream, helping you reduce reliance on Amazon, and tap into a new demographic. It’s definitely an online marketplace worth studying.
Keep in mind, at YLT Translations, we specialize in supporting Amazon sellers as they expand globally, but our expertise doesn’t stop there. We provide valuable insights on marketplaces across the world, such as Walmart, SHEIN, Temu, and other online marketplaces across Asia, Europe, and even South Africa.
Make sure you stay tuned to this blog to help you stay above the curve in eCommerce – because success isn’t just about selling more; it’s about selling smarter. Follow Jana on LinkedIn for some amazing case studies about Amazon localization!
See you there!
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