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Key Differences Between Selling on Amazon and Walmart Marketplace

blog
July 16, 2025

As e-commerce continues to dominate the retail landscape, businesses are faced with a crucial decision: which platform should they choose to maximize their sales?

Amazon and Walmart Marketplace stand out as two of the largest online retail giants, each offering unique benefits and challenges. Whether you’re a seasoned seller or a newcomer to the e-commerce world, the choice between these platforms can be overwhelming.

After all, both Amazon and Walmart have distinct audiences, pricing structures, and seller tools that can either propel your business to success or leave you grappling with operational headaches.

Let’s break down the key differences between selling on Amazon and Walmart Marketplace to give you a clearer picture of what each platform offers and which one might work best for your products.

1. Platform Structure and Reach

Amazon

Amazon is the largest online marketplace in the world, boasting over 300 million active customers globally. Its platform is incredibly diverse, selling everything from electronics and clothing to groceries and books. Because of this extensive reach, Amazon is often the go-to marketplace for many sellers looking to maximize their exposure.

  • Product Listings: Amazon’s product listings are highly standardized, with detailed descriptions, reviews, and multiple media types (images, videos, etc.). Listings are integrated into the Amazon ecosystem, which includes features like “Buy Box” placement and “Prime” eligibility.
  • Prime Membership: A major selling point on Amazon is the Amazon Prime program, which has over 200 million members worldwide. Products that qualify for Prime status are often favored in terms of visibility, customer trust, and sales. Sellers on Amazon can use the Fulfillment by Amazon (FBA) program to offer Prime shipping on their products.

Walmart Marketplace

While Walmart is the largest retailer in the U.S., its online marketplace is relatively smaller than Amazon’s, but it’s rapidly growing. As of 2023, Walmart’s marketplace had over 120 million monthly visitors, which presents a significant audience for sellers looking to target U.S.-based consumers.

  • Product Listings: Walmart’s marketplace has a more simplistic and user-friendly interface compared to Amazon’s. Listings on Walmart Marketplace have fewer features and may not have the same extensive options for media as Amazon’s, but they do include important details such as product reviews and ratings.
  • Marketplace Integration: Walmart Marketplace is tightly integrated into Walmart’s broader retail ecosystem, which means products are showcased alongside Walmart’s own inventory. This can give sellers access to a large customer base familiar with Walmart’s brand, making it a solid choice for businesses that want to target a more price-sensitive, value-driven audience.

2. Fee Structures and Costs

Amazon

Amazon’s fee structure is often seen as complex, with different fees applying depending on the product category, whether you’re using FBA or self-fulfillment, and whether you have a Professional or Individual seller account. Here are the key fees sellers can expect:

  • Subscription Fees: Amazon charges a monthly subscription fee of $39.99 for Professional accounts. Individual sellers don’t have to pay a subscription fee but incur a per-item fee of $0.99.
  • Referral Fees: Amazon charges a percentage of the sale price for each product sold. This percentage varies by category, typically ranging from 6% to 45%. Categories like electronics tend to have lower referral fees (around 8%), while fashion and luxury goods can carry higher fees (up to 20%).
  • Fulfillment Fees: If you use FBA, you’ll also have to pay fulfillment fees for Amazon to store, pack, and ship your products. These fees depend on the size and weight of your product. For example, a standard-size item could incur fees between $2 and $5 per unit for storage and shipping.

Walmart Marketplace

Walmart’s fees are simpler compared to Amazon’s, but they can still add up depending on the type of products you sell.

  • Subscription Fees: Walmart doesn’t charge a monthly subscription fee to sell on its platform. Instead, they charge a referral fee, which is similar to Amazon’s referral fees. However, Walmart does not offer a free tier; sellers must pay a fee on every sale made.
  • Referral Fees: Walmart charges a referral fee on each sale, which generally ranges from 6% to 20%, depending on the product category. Some categories, like apparel, can have referral fees as low as 6%, while others like consumer electronics could go higher.
  • Payment Processing Fees: Walmart also deducts a payment processing fee, which is typically around 2.9% + $0.30 per transaction. This can add up for businesses with high-volume sales.

3. Fulfillment and Logistics

Amazon

Amazon’s Fulfillment by Amazon (FBA) program is one of the most powerful tools for sellers. With FBA, Amazon handles all the logistics, from storing inventory in Amazon’s warehouses to packing, shipping, and customer service.

  • Amazon’s Warehouses: FBA gives sellers access to Amazon’s extensive fulfillment network, enabling quick and reliable shipping, especially for Prime members. Products fulfilled by Amazon are eligible for Amazon Prime, which can significantly boost sales and visibility.
  • Returns Handling: Amazon also handles returns through FBA, taking the burden off sellers. However, this comes at a cost, as FBA fees are based on the size and weight of the product.

Walmart Marketplace

While Walmart does not have a fulfillment program as extensive as Amazon’s FBA, they do have a program called Walmart Fulfillment Services (WFS), which is growing and allows sellers to store their products in Walmart’s warehouses.

  • WFS: With WFS, Walmart manages the storage, packing, and shipping of products. Sellers who use WFS are also eligible for the “2-Day Shipping” badge, increasing their chances of winning the Buy Box and improving customer trust.
  • Self-Fulfillment: Many sellers on Walmart Marketplace choose to self-fulfill orders, either by shipping directly to customers or through third-party logistics providers. However, this may limit your ability to take advantage of features like 2-day shipping.

4. Marketing and Advertising

Amazon

Amazon offers a comprehensive suite of advertising options for sellers, including:

  • Sponsored Products: These are pay-per-click (PPC) ads that promote individual products within search results and on product detail pages. Sponsored Products are one of the most effective ways to increase product visibility and sales on Amazon.
  • Amazon DSP: The Demand-Side Platform (DSP) allows sellers to run display ads across Amazon’s website and third-party sites to increase brand awareness and reach new customers.
  • Coupons and Deals: Amazon allows sellers to offer coupons, promotions, and lightning deals, which can help boost sales during key shopping periods like Prime Day, Black Friday, and Cyber Monday.

Walmart Marketplace

Walmart Marketplace has a smaller suite of advertising tools but still provides some useful options to promote products.

  • Sponsored Products: Similar to Amazon, Walmart also offers Sponsored Products ads, allowing sellers to target customers searching for specific products or browsing related categories.
  • Walmart’s Search and Discovery: Unlike Amazon, Walmart doesn’t offer display ads or external ad network integrations, which limits how far sellers can push their marketing efforts. However, Walmart’s search algorithm is often more straightforward, focusing on relevancy and price.
  • Deals and Discounts: Walmart also offers features like Rollbacks and Daily Deals, where sellers can apply temporary discounts to boost sales during major shopping events.

5. Customer Base and Demographics

Amazon

Amazon has a massive global customer base, including highly loyal Prime members who are more likely to purchase products from the platform. The demographics on Amazon are diverse, including tech-savvy millennials, busy professionals, and families. People shop on Amazon because of its ease of use, fast shipping, and wide variety of products.

  • Affluent Shoppers: A significant portion of Amazon’s shoppers are middle to upper-class consumers, willing to spend on convenience and quality products.

Walmart Marketplace

Walmart’s customer base is more U.S.-centric, with a large portion of its shoppers seeking value and low-cost options. While the platform’s audience is growing, Walmart Marketplace still lags behind Amazon in terms of global reach.

  • Price-Conscious Shoppers: Walmart’s shoppers are often motivated by low prices, making it an ideal marketplace for businesses targeting budget-conscious consumers. However, the platform is also gaining traction among affluent customers, particularly those looking for a one-stop shop.

6. Seller Support and Tools

Amazon

Amazon provides a wealth of seller tools and resources, but navigating them can sometimes feel overwhelming. Amazon Seller Central is the hub where you manage your products, orders, and advertising campaigns.

  • Amazon Seller Support: Seller support can be inconsistent, with some sellers reporting long response times and generic solutions. However, Amazon provides an extensive knowledge base and a seller forum to help troubleshoot issues.

Walmart Marketplace

Walmart’s Seller Center is more intuitive than Amazon’s, making it easier for new sellers to get started. Walmart also offers seller support, but it’s more streamlined than Amazon’s.

  • Walmart Seller Support: Walmart’s seller support is often praised for being more responsive and approachable than Amazon’s. However, because Walmart Marketplace is still developing, there are fewer third-party tools and resources available for sellers compared to Amazon.

Conclusion

In choosing between Amazon and Walmart Marketplace, sellers must consider their business needs, product types, and customer demographics. Amazon offers unmatched global reach and a robust set of tools, but it comes with a complex fee structure. On the other hand, Walmart Marketplace presents a growing U.S.-based customer base and simpler fee models, which might appeal to those looking for a more straightforward approach. Each platform has its unique strengths, and the best choice depends on the seller’s specific goals and resources.

However, no matter which marketplace you choose, efficient inventory management and fulfillment are crucial. That’s where FlexHub steps in. With their comprehensive logistics solutions, including 3PL, warehousing, fulfillment, and distribution services, FlexHub ensures that your inventory is managed seamlessly across various platforms. This allows you to focus on growing your business without worrying about operational hurdles. Whether you’re selling on Amazon or Walmart, FlexHub’s end-to-end inventory management helps streamline your operations, reduce costs, and improve overall efficiency—ensuring you stay competitive in the fast-paced e-commerce landscape.

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