Amazon vs. Walmart Marketplace: Which Is More Profitable for Sellers in 2025?

Savannah A Author

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

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.

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:

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:

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:

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.

Whether you’re scaling on Amazon or growing your product portfolio, make sure your ads, reviews, and product performance are managed efficiently. Seller Labs helps you monitor and optimize your Amazon performance all in one place.

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