Amazon has long dominated the e-commerce landscape, but Walmart Marketplace is rising fast. With fewer sellers, lower fees, and Walmart’s massive retail presence, many Amazon sellers are wondering:
Is Walmart a better opportunity than Amazon in 2025? Which marketplace offers more profit potential?
Let’s break down the key differences to help you decide where your business can make the most money.
1. Seller Competition: Less Crowded on Walmart
- Amazon: With 9.7 million total sellers and over 2 million active ones, competition is intense. Ranking on Page 1 often requires strong branding, aggressive PPC, and external traffic.
- Walmart: Just over 150,000 sellers means significantly less competition, making it easier to get noticed.
If you’re struggling to gain visibility on Amazon, Walmart could offer a less saturated marketplace to grow in.
2. Selling Fees: Which Platform Takes a Bigger Cut?
Selling fees are a huge factor in profitability. Here’s how Amazon and Walmart compare:
| Amazon | Walmart | |
|---|---|---|
| Referral Fees | 8%–15% | 8%–15% |
| Subscription Fee | $39.99/month | $0/month (No subscription fee) |
| Fulfillment (FBA vs. WFS) | Varies by size/weight | Lower storage & fulfillment fees |
| Storage Fees | Higher, plus new low-inventory fees | Lower than Amazon |
Walmart’s zero monthly fee and lower storage/fulfillment costs give it an advantage for sellers looking to cut expenses.
3. Fulfillment: FBA vs. WFS (Walmart Fulfillment Services)
Both Amazon and Walmart offer fulfillment services to handle storage, packing, and shipping.
- Amazon FBA: Offers fast shipping and massive infrastructure, but rising storage costs and strict inventory limits are pain points.
- Walmart WFS: Growing rapidly, offering competitive rates and access to Walmart+ customers (similar to Amazon Prime).
If you’re already using FBA, trying WFS could reduce your costs—though Amazon still leads globally in logistics.
4. Customer Base: Who’s Buying on Each Platform?
Understanding your audience is key. Here’s how the buyer demographics compare:
- Amazon shoppers are Prime-loyal, tech-savvy, and value convenience—even at higher prices.
- Walmart shoppers are typically price-sensitive, deal-seeking, and focused on essentials like groceries, cleaning supplies, and household goods.
If you’re selling branded, premium products, Amazon is still better. But if you offer affordable, everyday essentials, Walmart may be more profitable.
5. Advertising: Which Marketplace is More Cost-Effective?
Advertising is crucial, but ad costs differ:
- Amazon Ads: High competition equals high CPC. Many sellers spend 20 to 40 percent of revenue just to stay visible.
- Walmart Ads: Still developing, with lower CPCs and less competition—making it a more affordable option.
If Amazon PPC is burning your margins, Walmart may offer a cheaper route to customer acquisition.
Pro Tip Tools like Seller Labs’ Advertising Center can help you manage your Amazon PPC more effectively, letting you focus your budget where it matters most.
6. Seller Support & Policies: Stricter on Walmart
Amazon has its challenges, but Walmart has even stricter seller requirements:
- Walmart requires approval to sell, whereas anyone can sign up for Amazon.
- Walmart has stricter performance metrics (slow shipping or poor reviews can get you suspended quickly).
- Amazon offers more tools, like Brand Registry, A+ Content, and automated customer service.
If you’re a new seller, Amazon is easier to get started on. But if you’re an established seller with good metrics, Walmart could be a profitable second marketplace.
Where Can You Make More Money?
It depends on your products, strategy, and competition level:
✅ Amazon is better if you have a strong brand, use FBA, and can afford rising PPC costs.
✅ Walmart is better if you sell lower-cost, everyday items and want less competition & lower fees.
Best strategy? Sell on both. Diversifying reduces risk and taps into two massive customer bases.
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