In this post, you\u2019ll discover how Walmart and Amazon differ from each other and how you, as an online retailer, can benefit from selling on both.<\/p>\n\n\n<\/a> We all know Amazon is the most visited shopping website in the US. But how many of us know that Walmart is ranked number two<\/a>?<\/p>\n\n\n The Walmart Marketplace is still pretty new to eCommerce. Several years ago, it acquired an eCommerce start-up Jet.com for $3 billion in cash, as well as Shoes.com, Moosejaw.com, and a few other online retailers. And there remains much to be seen about what Walmart does with its eCommerce platforms moving forward. <\/p>\n\n\n\n Also, with more than 100 million<\/a> unique visitors a month and 207% growth<\/a> in its eCommerce customer base between 2017 and 2019, it\u2019s safe to say that selling on Walmart might be a good option for eCommerce sellers in 2021.<\/p>\n\n\n\n Even though Walmart can\u2019t yet beat Amazon in the size of its customer base, it already surpasses this behemoth marketplace in online grocery share<\/a>. <\/p>\n\n\n<\/a> Below you\u2019ll discover some of the disadvantages of selling on Walmart marketplace compared to Amazon, including the poor selection of resources for sellers and a steep barrier to entry. There are also a couple of Amazon cons.<\/p>\n\n\n Walmart\u2019s barrier to entry is extremely high. This is the most obvious difference between the two platforms, and this is why launching a Walmart store may be a bit problematic for small sellers. <\/p>\n\n\n\n Walmart marketplace sellers should be a good fit for this platform, i.e., have an order defect rate below 2% and on-time shipment rate above 99%. They also have to provide correct tracking info for shipments at least 99% of the time. In other words, you should have impeccable seller feedback to start selling on Walmart.<\/p>\n\n\n Having an immaculate seller profile is only part of the story. There\u2019s more to it than that.<\/p>\n\n\n\n Sellers have to be invited to sell on the Walmart Marketplace, which can take anywhere from two to four weeks. But once sellers have been approved, getting started<\/a> is fairly easy.<\/p>\n\n\n\n This may be a complete letdown to many online retailers, but it\u2019s actually a good thing. Why? Because Walmart wants sellers who have an excellent reputation on Amazon and eBay.<\/p>\n\n\n If you\u2019re looking to take your brand and reputation on Amazon to the next level, then you need automated Buyer-Seller messaging. Save time, build your brand, and improve your reputation with Seller Labs PRO<\/a> powered by Feedback Genius. <\/p>\n\n<\/div>\n\n When it comes to offline retail, Walmart is a king. <\/p>\n\n\n\n Even though Amazon has a physical presence with its grocery stores in Chicago, New York, San Francisco, and many other locations across the US, it will continue to lag behind Walmart in the Brick-and-Mortar space.<\/p>\n\n\n\n With 11,500 retail stores in 26 countries all over the world, Walmart is currently the largest brick-and-mortar retailer in the world.\u00a0<\/p>\n\n\n Being relatively new to eCommerce, Walmart lacks the expertise necessary to execute digital strategies. Amazon, in its turn, can deservedly be called a trendsetter. <\/p>\n\n\n\n For instance, the Walmart Buy Box is based on whoever is selling their product at the lowest price. Whereas Amazon\u2019s Buy Box takes into account a seller\u2019s performance, price, sales, fulfillment, order defect rate, and a whole slew of factors. <\/p>\n\n\n\n Will the Walmart Buy Box become more sophisticated, who knows? But Walmart wants shoppers to get the absolute lowest price anywhere. <\/p>\n\n\n Compared to Walmart with a few thousands of sellers, Amazon hosts as many as 2 million merchants<\/a> from all over the globe, still reigning supreme in online shopping. Therefore, sellers have to be more creative to stand the competition on Amazon \u2014 either through building your reputation with messaging optimization or just by offering melt-your-face customer service.<\/p>\n\n\n If you need ANY assistance edging out your Amazon competitors the legit way, our solution advisors from Seller Labs are here to have your back. Fee free to schedule a 20-minute demo<\/a> with them.<\/p>\n\n<\/div>\n\n<\/a> Both Walmart and Amazon seller marketplaces have a lot of room for improvement, but staying optimistic about the benefits of the platforms will help you sell on Amazon and Walmart more efficiently. <\/p>\n\n\n As a result of the steep barrier to entry, there is less competition on the Walmart Marketplace, which means sellers who get in will have a great chance of standing out. <\/p>\n\n\n\n It\u2019s estimated that Walmart has approximately 50,000 third-party sellers<\/a> \u2014 with hundreds of new sellers added monthly. This is a drop in the bucket compared to Amazon\u2019s 2.4 million<\/a> third-party sellers. But fewer sellers means a greater chance at winning the Buy Box. <\/p>\n\n\n In contrast to Walmart, Amazon\u2019s sign-up process is rather straightforward. Merchants can register as Individual Sellers and pay $0.99 per each unit sold plus a per-item referral fee. Or they can become Professional Sellers \u2014 in this case, you\u2019ll be charged a monthly fee of $39.99. <\/p>\n\n\n\n You don\u2019t have to be a super seller, and there\u2019s no need to undergo an approval process to start selling on Amazon.<\/p>\n\n\n If you need help discovering new product opportunities and maximizing your sales on Amazon, sign up for Seller Labs PRO<\/a>.<\/p>\n\n<\/div>\n\n With Prime Wardrobe<\/a>, Amazon shoppers can try before they buy eligible clothing, shoes, and accessory items from across different product categories. The best thing about it is that you have as many as 7 days to send back the items you don’t want to keep.<\/p>\n\n\n Walmart currently offers 75 million SKUs<\/a> available on its marketplace, but it\u2019s adding a million more each month. Compare that to Amazon\u2019s bulging 350 million SKUs<\/a>, and it\u2019s not hard to see why Amazon is called \u201cThe Everything Store.\u201d <\/p>\n\n\n\n But sellers shouldn\u2019t write off Walmart because of its current product offering. Quite the opposite, this just means that you can be the first to jump on the train \u2014 without feeling the intense pressure of having competition breathing down your neck. <\/p>\n\n\n\n Walmart is already one of the most recognizable brands in the world and has ample space to grow. I think it\u2019s safe to assume there will be more than 100 million SKUs available soon. <\/p>\n\n\n Similar to Fulfillment by Amazon<\/a>, Walmart is adopting a similar process to pick, pack, and ship products to customers. The main difference between FBA and FBW is Walmart has multiple ways to fulfill orders.<\/p>\n\n\n\n Walmart uses its fulfillment centers, store distribution centers, 4,500 stores, and the company\u2019s world-class transportation fleet to ship online orders. Whereas Amazon fulfills orders from its Fulfillment Centers, the Merchant Fulfillment Network (MFN), and Seller-Fulfilled Prime. <\/p>\n\n\n\n Walmart is using its diverse infrastructure to meet the demands of its shoppers. It may not be as optimized as Amazon\u2019s, but I wouldn\u2019t discredit Walmart\u2019s ability to delight customers. <\/p>\n\n\n<\/a> According to Marketplace Pulse<\/a>, Walmart surpassed 50,000 sellers last year. If we imagine that all Walmart sellers are also selling on Amazon (which is too good to be true!<\/em>), it will bring us to the conclusion that only 2% of Amazon sellers are on Walmart. <\/p>\n\n\n After browsing around Walmart.com and looking at the shipping options, it\u2019s easy to see that it offers free two-day delivery<\/a> without any membership fee. And if you think that two-day shipping may cost Walmart shoppers, think again. Compared to Amazon\u2019s free shipping, with delivery in 5-8 business days, selling products on Walmart should be a good idea.<\/p>\n\n\n\n Walmart also offers a free Store Pickup<\/a> option, but it\u2019s currently not available to Marketplace sellers.<\/p>\n\n\n If a shopper isn\u2019t happy with the free snail mail option, they have an option to subscribe to Walmart\u2019s paid shipping<\/a> and delivery services.<\/p>\n\n\n\n Walmart\u2019s NextDay delivery option, which allows shoppers to receive their items the next day, costs $5.99 for a pack of Matcha green tea powder \u2014 that\u2019s almost half of what both Amazon Prime members and Walmart Plus subscribers would pay monthly. But if your order is over $35, shipping will be free!<\/p>\n\n\n During the COVID-19 pandemic, Walmart tapped into the $900 billion US food market and launched a new same-day grocery delivery service, called Express Delivery<\/a>, which delivered orders to customers\u2019 doors in a matter of a few hours or even faster. <\/p>\n\n\n\n To make their service even more eCommerce-oriented, Walmart introduced Walmart Plus<\/a> \u2014 a new fast delivery subscription program for groceries and other products. It costs $98 a year, which, to the record, is $19 lower than Amazon Prime<\/a> membership.<\/p>\n\n\n Both Amazon and Walmart take commissions on sales. Walmart charges a referral fee that ranges from 6% to 20% and is based on your selling price and product category. If you register as an Amazon individual seller, you\u2019ll pay $0.99 for each item sold, or $39.99 per month if you go for a Pro Seller Account. Plus, additional fees may apply.<\/p>\n\n\n\n I. How the Walmart Marketplace Differs from Amazon [Statistics] <\/h2>\n\n\n\n
![\"Selling](\"https:\/\/www.x-cart.com\/img\/26559\/amazon-vs-walmart.webp)
<\/picture> \n II. Selling on Walmart vs. Amazon: Cons <\/h2>\n\n\n\n
\n Walmart Has a Steep Barrier to Entry <\/h3>\n\n\n\n
\n Getting Your Products in Walmart Marketplace Is Troublesome <\/h3>\n\n\n\n
\n Amazon Still Has a Limited Reach at Brick-and-Mortar Locations <\/h3>\n\n\n\n
\n Less Seller-Friendly Strategy For Product Placement on Walmart <\/h3>\n\n\n\n
\n Amazon Has Stiff Competition <\/h3>\n\n\n\n
\n III. Selling on Walmart vs. Amazon: Pros <\/h2>\n\n\n\n
\n Less Competition for the Buy Box and Ad Placements on Walmart <\/h3>\n\n\n\n
\n Becoming an Amazon Seller is Pretty Easy <\/h3>\n\n\n\n
\n Amazon Dominates in the Apparel Space <\/h3>\n\n\n\n
\n Walmart Is Much Larger Than Amazon by Revenue <\/h3>\n\n\n\n
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\n Walmart Has a Smaller Product Selection <\/h3>\n\n\n\n
\n Walmart Offers Versatile Fulfillment Services <\/h3>\n\n\n\n
\n IV. Selling on Walmart Marketplace vs. Amazon [FAQ] <\/h2>\n\n\n
\n How Many Amazon Sellers Are on Walmart? <\/h3>\n\n\n\n
\n Does Walmart Have Free Shipping? <\/h3>\n\n\n\n
\n How Does Walmart\u2019s Paid Shipping Differ From the One Offered by Amazon? <\/h3>\n\n\n\n
\n Does Walmart Offer a Service Similar to Amazon Prime? <\/h3>\n\n\n\n
\n How Much Is Walmart’s Seller Fee? <\/h3>\n\n\n\n
\n How to Get Approved to Sell on Walmart? <\/h3>\n\n\n\n