Amazon vs Walmart Marketplace: where should new sellers start?
Amazon is the biggest marketplace in the US. Walmart is smaller but growing, with less competition in many categories. Here is how they compare for a seller launching their first products.
Both marketplaces give you access to millions of shoppers who are already searching for products. They differ in how easy they are to join, what they cost and how crowded they are.
At a glance
| Amazon | Walmart Marketplace | |
|---|---|---|
| Getting in | Open to most sellers, with identity verification | Application and approval, usually with US business details and marketplace history |
| Monthly fee | Individual plan pays per item sold; Professional plan has a monthly fee | No monthly subscription |
| Commission | Referral fee per sale, varies by category | Referral fee per sale, varies by category |
| Fulfillment | Fulfillment by Amazon (FBA) or your own | Walmart Fulfillment Services (WFS) or your own |
| Competition | Very high in most categories | Lower in many categories |
| Advertising | Mature, many ad types | Sponsored Products and growing options |
Fees change, so always check each marketplace’s current fee pages before you price your products.
Why start with Amazon
- The largest audience of shoppers ready to buy.
- FBA handles storage, shipping, returns and customer service, and gives you the Prime badge.
- Brand Registry protects your brand and unlocks better listings and ads.
The trade-off is competition and fees. Popular categories are crowded, and advertising is often needed to get noticed.
Why start with Walmart
- Fewer sellers in many categories, so good listings can stand out.
- No monthly subscription fee.
- Customers who trust the Walmart name.
The trade-off is the approval process and a smaller audience. Walmart prefers sellers with a track record, so it can be easier to get approved once you have sales elsewhere.
Do the math first
Before you choose, work out your margin for one product on each marketplace:
- Selling price
- Minus product cost and shipping to the warehouse
- Minus referral fee
- Minus fulfillment fee
- Minus an estimate for ads and returns
Our recommendation
Most new sellers start on Amazon for the reach, or on both if they qualify for Walmart. If your category is very crowded on Amazon, Walmart can be a smart place to build early sales. Whichever you choose, keep listings, stock and pricing in sync, and make sure every seller account stays in your own name.
Common mistakes to avoid
- Choosing products without checking the numbers. A product that looks popular may leave no profit after fees and ads. Work out the margin before you order stock.
- Weak photos and listings. Shoppers cannot touch your product. Clear photos and detailed, honest listings do the selling.
- Running out of stock. Stock-outs can hurt your ranking and momentum. Track inventory and reorder early, especially before busy seasons.
- Ignoring account health. Late shipments, cancellations and policy warnings can lead to suspension. Check account health regularly.
- Handing over your accounts. Keep your seller accounts, logins and payouts in your own name, and give helpers limited user access instead.
Frequently asked questions
Can I sell on Amazon and Walmart at the same time?
Yes, many sellers do. Keep your stock in sync across both so you never sell something you do not have.
Do I need a registered business to sell?
Amazon lets individuals sell, but you will need identity and tax details. Walmart Marketplace generally asks for a registered business and a US business tax ID. Check the current requirements on each site.
Is FBA worth it?
For many products, yes. FBA handles storage, shipping and returns, and the Prime badge can increase sales. For large, heavy or slow-moving products, the fees can outweigh the benefits.
How long until I make my first sale?
It varies by product and category. Some sellers see sales within days of launch, while others need ads and reviews over several weeks to gain traction.
Planning to sell on Amazon or Walmart?
We set up and manage seller accounts in your name, from listings to fulfillment and ads.
OKS Technologies is a web and marketing studio in Buffalo Grove, Illinois. We build websites, run SEO and marketing, and automate the busywork for small businesses across the US.