Amazon vs Walmart Marketplace: Where Should Small Retailers Sell?
For small online retailers in 2025, the choice between Amazon and Walmart Marketplace directly affects profitability, fees, and long-term growth. Amazon remains unmatched for global reach, brand visibility, and Prime logistics, while Walmart offers lower costs, simpler onboarding for U.S. sellers, and a fast-growing omnichannel ecosystem. The ideal choice depends on your pricing strategy, product type, and operational goals.
- Audience fit: Amazon attracts brand-conscious buyers worldwide; Walmart reaches 255M+ weekly U.S. shoppers focused on affordability and essentials.
- Costs: Amazon fees average ~30% per sale (with FBA), while Walmart’s are closer to 20%, with no monthly subscription cost.
- Seller access: Amazon onboarding is easier but competitive; Walmart’s selective approval yields less saturated listings and steadier margins.
- Product fit: Amazon favors branded or premium goods ($25–$500 range); Walmart rewards value-driven items under $100 with high turnover.
- Best strategy for 2025: Use Amazon for global scale, Walmart for cost efficiency, and maintain a DTC channel (e.g., Shopify) to own your customer relationships.
For small online retailers, choosing the right marketplace in 2025 can shape profitability, brand reach, and long-term growth. While Amazon remains the leading platform for online sellers, Walmart Marketplace has grown into a strong alternative, offering lower fees, no monthly seller costs, and less competition. This guide compares both marketplaces across essential factors, fees, fulfillment, competition, and audience reach, so you can choose the platform that best aligns with your business goals.
Understanding Your Business Type
Before choosing a platform, it’s essential to understand your business structure.
- Manufacturers or producers create products in-house, ranging from handmade items to private-label goods—and often benefit from strong brand control.
- Resellers or retailers purchase inventory at wholesale prices and resell for profit, thriving on product variety and competitive pricing.
- High-volume wholesalers operate on scale, focusing on large inventory capacity and fast turnover, ideal for bulk-oriented marketplaces.
- Brand builders center their strategy on identity, customer loyalty, and long-term brand equity.
Your business type plays a major role in selecting the right marketplace. In 2025, both Amazon and Walmart Marketplace have refined their seller ecosystems to serve distinct needs, Amazon emphasizing global reach and brand programs like FBA and Brand Registry, while Walmart focuses on lower fees, faster payouts, and growing omnichannel visibility for U.S. sellers.
Market Size and Customer Base
Amazon remains the global leader with over 310 million active users worldwide. Its shoppers value fast shipping, easy returns, and trusted quality, often paying a slight premium for convenience and reliability. The marketplace performs best for products typically priced between $25 and $500, where brand reputation and customer trust are decisive factors.
Meanwhile, Walmart Marketplace continues to grow rapidly, powered by its vast retail network and omnichannel integration. The platform attracts value-driven consumers focused on affordability and essentials, often purchasing items under $100. Walmart benefits from 255 million weekly store and online visits, providing sellers access to one of the world’s largest value-oriented customer bases.
Key takeaway: Amazon appeals to premium, brand-conscious buyers, while Walmart draws practical, cost-focused consumers seeking dependable value.
Onboarding and Seller Requirements
Amazon offers two primary selling plans: the Individual plan at $0.99 per item sold and the Professional plan at $39.99 per month. Sellers must provide business, tax, and bank details during registration, and certain restricted categories require approval or invoices. Performance metrics such as order defect rate, on-time delivery, and customer feedback are closely monitored. Amazon’s onboarding process is straightforward, allowing most verified businesses to join, but maintaining consistent quality is essential to stay active.
Walmart Marketplace has stricter entry standards. Applicants need a registered U.S. business, a valid EIN, and either a U.S.-based warehouse or enrollment in Walmart Fulfillment Services. Product listings must include GS1-registered UPCs, and sellers aiming for higher visibility should qualify for Walmart’s two-day shipping program. The approval process is more selective, but successful sellers benefit from no monthly subscription fees, lower fixed costs, and less saturated competition.
Key takeaway: Amazon’s onboarding is faster and more accessible, while Walmart’s selective approach ensures a curated, high-quality seller network.
Fee Structure: The True Cost Comparison
| Platform | Fee Type | Details (2025) | Example on $30 Product | Key Takeaway |
|---|---|---|---|---|
| Amazon | Selling Plans | Individual plan costs $0.99 per item sold; Professional plan is $39.99 per month. | — | Suitable for both small and high-volume sellers. |
| Referral Fees | Typically 15% of the total sale price, including shipping. | ≈ $4.50 | Standard across most categories. | |
| Fulfillment by Amazon (FBA) | Standard-size fulfillment averages $3.06–$5.00 depending on size and weight. Storage ranges from $0.78 to $2.40 per cubic foot per month. | ≈ $4.00–$5.00 | Provides fast Prime delivery and trusted logistics. | |
| Total Estimated Cost | Around 30% of sale value after all fees. | ≈ $9 total | Higher fees offset by reach and reliability. | |
| Walmart Marketplace | Monthly Fees | No monthly subscription fee required. | — | Low entry barrier for new sellers. |
| Referral Fees | Range from 8% to 15%, with most categories like apparel, home, and electronics near 15%. | ≈ $3.00–$4.50 | Slightly lower than Amazon’s average rates. | |
| Walmart Fulfillment Services (WFS) | Fulfillment starts around $3.45 for small items (≤1 lb). Storage averages $0.75 per cubic foot per month. | ≈ $2.50 | Lower storage and shipping expenses. | |
| Total Estimated Cost | Around 20% of sale value after all fees. | ≈ $5–$6 total | Best for price-sensitive and value-driven sellers. |
Key takeaway: Amazon offers unmatched scale, reliability, and Prime access, ideal for established brands prioritizing growth and logistics. Walmart, on the other hand, provides lower fixed costs and simpler operations, making it a strong choice for cost-conscious sellers focused on maintaining healthy margins.
Pricing Strategy and Product Fit
Amazon’s marketplace favors competitive yet brand-driven pricing. Buyers value fast delivery, trusted reviews, and strong packaging, making it ideal for private-label or high-quality products that can justify moderate-to-premium price points. However, pricing remains sensitive under Amazon’s Fair Pricing Policy, so differentiation and customer trust are key to maintaining healthy margins.
Walmart’s pricing strategy centers on its Everyday Low Price model. Shoppers expect affordability, and sellers are encouraged to keep offers competitive across platforms. Products that perform best include home essentials, small electronics, accessories, and consumables typically under $50, categories where value and volume drive success through Walmart’s pricing guidance.
Key takeaway: Amazon rewards differentiation and brand value, while Walmart favors sellers who can sustain volume through consistent, low-cost pricing.
Customer Relationship and Data Access
Both Amazon and Walmart Marketplace retain ownership of customer data, but the degree of seller access differs.
On Amazon, sellers cannot directly access customer email addresses or market outside the platform. Communication is restricted to order and support messages handled through Amazon’s Buyer-Seller Messaging system. However, registered brands can enhance visibility and credibility using A+ Content, Brand Registry, and Amazon Stores, which allow limited brand storytelling within the ecosystem.
On Walmart Marketplace, seller access is even more restricted. The platform controls most aspects of merchandising, ranking, and customer interaction. Messages and returns are managed entirely through Walmart’s internal system, limiting post-purchase engagement and remarketing opportunities.
Key takeaway: Both marketplaces limit direct customer relationships to protect buyer privacy. To build long-term brand equity and own your customer data, developing a direct-to-consumer (DTC) store on Shopify or a similar platform remains essential.
Operational Demands and Control
Amazon requires sellers to meet rigorous performance standards. Late shipments, low ratings, or inventory shortages can result in penalties or account suspension. Using Fulfillment by Amazon (FBA) streamlines logistics, returns, and customer service but adds carrying costs and potential storage fees if items remain unsold. Sellers have considerable control over product listings, A+ Content, and pricing, yet competition for the Buy Box is highly algorithm-driven and dynamic.
Walmart Marketplace also maintains strict seller metrics but offers more predictable fulfillment expenses through Walmart Fulfillment Services (WFS). Sellers can self-fulfill orders or work with approved third-party logistics providers. However, Walmart’s search algorithm prioritizes listings with 2-day or faster shipping and high reliability. Customization options for product pages are limited, and Walmart enforces strong content and quality compliance to ensure consistency across its platform.
Key takeaway: Amazon gives sellers greater branding and listing flexibility but requires exceptional operational precision. Walmart, meanwhile, rewards cost-efficient sellers who can maintain fast shipping speeds and strict compliance at scale.
Geographic Reach and Expansion
Amazon operates in over 20 countries, including the U.S., U.K., Japan, and key EU markets. Its FBA Global Exportprogram lets sellers reach international buyers but adds tax and customs complexity.
Walmart Marketplace remains focused on the U.S., with gradual expansion into Canada and parts of Latin America. For U.S. retailers, Walmart offers simpler domestic logistics that are often more cost-effective than Amazon’s global setup.
Key takeaway: Amazon is ideal for global expansion. Walmart supports domestic, value-driven growth with streamlined logistics.
Pros and Cons Summary
| Factor | Amazon | Walmart Marketplace |
|---|---|---|
| Market Reach | Global, 310M+ active users | U.S.-focused, expanding into Canada & Mexico |
| Fees | Higher (8–20% + FBA/storage) | Lower (6–20%, no monthly fee) |
| Logistics | FBA network, Prime delivery | WFS or self-fulfillment |
| Product Fit | Branded, private-label, premium items | Value-priced, everyday goods |
| Seller Entry | Easier setup, strict performance rules | Harder entry, curated sellers |
| Customer Access | Limited, brand tools via A+ and Registry | Very limited, controlled presentation |
| Geographic Scope | International | Primarily domestic |
| Best For | Brand builders, global sellers | Price-competitive, volume retailers |
Which Platform Fits Your Business?
Choose Amazon if you:
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Sell branded, private-label, or differentiated products with margins typically above 25–30%.
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Prioritize global scalability and exposure to Prime customers.
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Can manage Fulfillment by Amazon (FBA) fees and maintain strong performance metrics (on-time delivery, customer feedback, inventory health).
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Aim to build long-term brand credibility and accumulate verified customer reviews.
Choose Walmart Marketplace if you:
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Sell value-driven, replenishable, or high-volume essentials priced under $100.
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Have U.S.-based warehousing or use Walmart Fulfillment Services (WFS) for 2-day delivery compliance.
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Prefer lower overhead and more predictable logistics costs.
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Target mainstream American consumers seeking affordability and convenience.
Key takeaway: Amazon is ideal for brand-builders and global expansion, while Walmart suits cost-efficient, volume-focused sellerswith a strong U.S. logistics base.
The Hybrid Approach
Many small retailers now operate on both Amazon and Walmart Marketplace. Branded or premium items often perform better on Amazon, while value or bulk goods move efficiently through Walmart. This dual setup diversifies revenue and reduces dependence on one platform’s algorithm.
Alongside marketplaces, keeping a direct-to-consumer (DTC) channel through Shopify helps retain customer data, control branding, and build long-term loyalty. Marketplaces drive reach, but your own site secures resilience and customer relationships.
Final Thoughts
In 2025, the best marketplace depends on your products, pricing model, and long-term goals rather than which platform is “better.”Amazon remains the top choice for brands focused on global reach, customer trust, and scalable fulfillment through Prime. Walmart Marketplace stands out for lower fees, strong U.S. demand, and steady sales for competitively priced essentials.
For most sellers, a hybrid strategy, using Amazon for brand visibility, Walmart for value-driven volume, and a DTC store for customer retention, offers the most resilient path forward. The right mix ensures not just higher sales, but lasting brand control and sustainable growth.
