In the world of e-commerce, few rivalries are as heated—and impactful—as Amazon vs. Walmart. As of 2025, Amazon remains the undisputed e-commerce king, capturing nearly 40% of all online sales in the U.S. But quietly and steadily, Walmart is emerging as a formidable digital challenger, transforming its legendary brick-and-mortar dominance into a rapidly growing online empire.
For years, most online sellers put all their chips on Amazon, and for good reason. The massive audience, robust fulfillment network, and powerful seller tools made it the gold standard for online sales. But here’s the truth: Amazon is no longer the only game in town.
If you’re an Amazon seller looking to diversify income streams, scale your brand, and reduce dependency on a single platform, expanding to Walmart Marketplace in 2025 could be one of the smartest moves you make.
Here’s why.
1. Walmart Is Now the #2 Online Marketplace in the U.S.
Walmart has quietly become America’s second-largest online retailer, with its U.S. e-commerce market share rising from 5.4% in 2019 to 6.4% in 2023—and it’s still climbing in 2025.
A major catalyst for this growth? Walmart’s massive physical footprint. With over 7,000 locations across the country, Walmart has created a hybrid shopping experience that Amazon simply can’t match—offering curbside pickup, same-day grocery delivery, and a network of local stores acting as mini-fulfillment centers.
For sellers, this translates to access to millions of Walmart customers who trust the brand and are now embracing its digital platform. If Amazon owns the digital-native shopper, Walmart owns the family-first, value-driven shopper—and increasingly, those two audiences are overlapping.
2. Lower Fees = Higher Margins
Let’s talk money. Amazon may offer unmatched reach, but it comes at a cost.
Here’s a breakdown of what sellers typically pay on Amazon:
- Monthly subscription: $39.99 (Professional account)
- Referral fees: 8–20% depending on category
- FBA fees: Pick & pack, storage, weight handling, removal fees, etc.
- Extra charges: For coupons, advertising, brand registry, premium content, etc.
Compare that to Walmart:
- No monthly subscription fee
- Referral fees only (typically 6–20%)
- Optional fulfillment via Walmart Fulfillment Services (WFS), with competitive storage and handling rates
Walmart offers a leaner fee structure, which can significantly improve margins, especially for sellers in tight-margin categories like groceries, household goods, or electronics.
In short: less overhead, more profit potential.
3. Less Competition, More Visibility
Amazon has over 2 million active sellers, with thousands more joining every month. The fight for the Buy Box is fierce, and product pages are often crowded with competing offers, aggressive pricing wars, and counterfeit concerns.
Walmart, on the other hand, has a much smaller and more curated seller pool—meaning less competition for eyeballs and higher odds of standing out.
Here’s what that means for you:
- Your listings have more visibility
- Buy Box competition is less brutal
- Pricing parity rules level the playing field
- More room for brand-building
If you’re frustrated by Amazon’s race to the bottom, Walmart’s more controlled ecosystem offers a breath of fresh air—and a chance to build a loyal customer base without slashing your prices to the bone.
4. Expanding De-Risks Your Business
Putting all your eggs in one basket is never a good idea—especially when that basket is controlled by algorithms.
Ask any long-time Amazon seller, and they’ll tell you horror stories of:
- Sudden account suspensions
- Listing removals with no explanation
- Policy changes that wiped out entire product lines
- Algorithm shifts killing visibility overnight
By expanding to Walmart, you’re diversifying your revenue stream, insulating your business from Amazon’s unpredictable changes, and giving yourself more stability in the long run.
Plus, you’re future-proofing your brand. As Walmart continues to grow its online share, early adopters will have a competitive advantage.
5. Easier Entry for Brands With Proven Amazon Performance
While Walmart’s application process is more rigorous than Amazon’s, sellers who can demonstrate strong performance on other platforms (like Amazon) are fast-tracked through the approval process.
That means:
- If you’ve built a solid Amazon business
- Have good customer reviews
- Consistent sales
- Legitimate suppliers
…then you already have most of what Walmart is looking for.
Bonus: Walmart often assigns dedicated account reps to new sellers, helping with onboarding, catalog setup, and growth strategy—something many Amazon sellers only dream of.
6. Walmart Fulfillment Services (WFS) Is a Rising Powerhouse
If you’ve used Fulfillment by Amazon (FBA), you know how powerful it is—but also how expensive and competitive it can be.
Walmart launched Walmart Fulfillment Services (WFS) to directly compete, and it’s gaining serious traction in 2025. Benefits include:
- 2-day delivery across the U.S.
- Storage, pick/pack, and customer service included
- Integration with Walmart.com’s Buy Box
- Affordable rates vs. FBA, especially for heavy or oversized items
For sellers frustrated by Amazon’s rising storage fees and restrictions, WFS offers a cost-effective, reliable alternative that meets growing customer expectations for fast, free shipping.
7. Walmart Appeals to a Broader Range of Shoppers
Amazon’s customer base is strong in urban and tech-savvy segments, while Walmart dominates rural, suburban, and budget-conscious consumers—many of whom shop both in-store and online.
By listing your products on Walmart.com, you’re tapping into a new demographic segment—one that trusts Walmart, often shops in bulk, and seeks out essentials, groceries, and home goods online.
If your product lineup includes:
- Household goods
- Groceries
- Apparel
- Electronics
- Seasonal items
…you’ll likely find strong traction on Walmart.com.
8. Walmart Is Investing Heavily in E-commerce Growth
In recent years, Walmart has pumped billions into digital transformation—acquiring startups, upgrading technology, and optimizing its logistics network. In 2025, it’s doubling down even further with:
- AI-driven personalization and search tools
- Marketplace expansion in Canada, Mexico, and beyond
- Improved mobile app experience
- Enhanced ad platform (Walmart Connect) for sponsored products and brand discovery
Translation? More traffic. Better tools. Greater support.
Sellers who get in early and establish a strong Walmart presence now will be best positioned to reap the benefits as the platform grows in size, sophistication, and shopper trust.
9. Brand Control and Transparency
Amazon’s open marketplace has many benefits—but it’s also notoriously chaotic. Brand hijacking, unauthorized sellers, and duplicate listings are rampant, forcing many sellers to play whack-a-mole with rogue competitors.
Walmart’s more controlled and curated environment helps preserve brand integrity. Key benefits include:
- UPC enforcement helps prevent listing duplication
- Stricter seller vetting reduces counterfeit risk
- Brand content tools (like Rich Media and Item Setup by Match) improve shopper trust
- Dedicated seller support to resolve issues quickly
If you value brand reputation and want more control over how your products appear and are sold, Walmart is the place to be.
Amazon vs Walmart — Why Not Both?
Here’s the thing: this isn’t an “either-or” decision.
Amazon and Walmart each offer powerful advantages—and sellers who leverage both marketplaces strategically are better positioned to dominate in 2025 and beyond.
Amazon provides enormous reach, access to Prime members, and advanced tools supported by global infrastructure. On the other hand, Walmart offers better margins, less competition, more brand control, and a growing loyal customer base.
Together, these platforms create a powerful one-two punch—giving you greater reach, better customer diversity, and reduced risk.
2025 is shaping up to be a breakout year for Walmart Marketplace—and smart Amazon sellers should take notice. With lower fees, less competition, new customer reach, and growing platform support, Walmart presents one of the best growth opportunities in today’s e-commerce landscape.
So don’t just be an Amazon seller.
Be a smart seller. Diversify. Expand. Win bigger.
And while you’re diversifying your marketplace strategy, let FlexHub handle your logistics needs.
With advanced tools, expert management, and end-to-end inventory lifecycle solutions, FlexHub is the perfect partner to support your growing business on both platforms. From warehousing and fulfillment to distribution and retail access, we ensure that your supply chain is optimized for success. Partner with FlexHub today and focus on growing your business—let us take care of the logistics.