Walmart Marketplace’s 2025 Growth Surge: Why Amazon Sellers Are Expanding Now

Why Amazon Sellers Should Pay Attention

In 2025, Walmart Marketplace isn’t just playing catch-up—it’s accelerating fast. From major platform updates to rising third-party seller adoption, Walmart has emerged as a serious channel worth watching.

If you’re an Amazon seller feeling squeezed by rising fees, storage restrictions, and unpredictable catalog issues, it might be time to think bigger—not by leaving Amazon, but by diversifying your footprint.

Here’s what Walmart’s growth means for you—and how to decide if expansion makes sense.

Walmart Marketplace by the Numbers in 2025

• Over 160,000 active third-party sellers, up 40% year-over-year
• Walmart Fulfillment Services (WFS) has doubled warehouse capacity since 2023
• Advertising tools now include video, retargeting, and improved keyword reporting
• Seller onboarding time is under 2 weeks for most U.S.-based businesses

While Amazon still dominates in traffic and product breadth, Walmart is closing the gap in key areas like logistics, advertising, and consumer trust.

What’s Changed—and Why It Matters

Onboarding Is Easier Than Ever

Walmart has removed old barriers like invite-only approval and long manual verifications. Most U.S.-based sellers can apply and get set up quickly.

Fulfillment Has Become Competitive

Walmart Fulfillment Services now offers two-day shipping, nationwide reach, and pricing that rivals Amazon’s FBA. With fewer inventory penalties and no IPI score to worry about, sellers have more control over their logistics.

Ads Are Smarter and More Accessible

Walmart Connect now supports video ads, improved keyword targeting, and more robust analytics. It’s not as mature as Amazon Ads, but the cost-per-click is lower, and competition is lighter.

Why Amazon Sellers Are Expanding (Not Jumping Ship)

Amazon is still essential, but Walmart has become a strong secondary channel for sellers looking to protect their margins and diversify operations.

1. Lower Competition, Higher Visibility

Walmart has fewer sellers in most categories. This creates opportunities for early-mover advantage, particularly for established SKUs that may be struggling to stand out on Amazon.

2. Operational Flexibility

Sellers can mix Walmart Fulfillment Services with FBM or 3PL logistics to manage costs without the stress of restock limits or IPI thresholds.

3. Better Margins on Specific Products

Oversized, commodity, and branded items often perform better on Walmart due to lower fulfillment fees and less ad competition.

Is Walmart Marketplace Right for You?

Use this quick seller checklist:

✅ Do you have a few proven SKUs with strong reviews and stable supply?
✅ Are your margins getting squeezed by FBA fees or IPI restrictions?
✅ Do you already run FBM or use a 3PL?
✅ Can your product pages be adapted quickly for Walmart’s listing standards?

If you checked 2 or more, it might be time to test the waters.

Tips to Get Started

• Optimize listings: Include core keywords in titles and bullet points. Walmart’s SEO requires direct matching.
• Mobile-first images: Use square formats and text overlays to stand out in Walmart’s search results.
• Use multichannel tools: Platforms like CedCommerce, Listing Mirror, and Zentail can simplify cross-listing and inventory syncing.
• Test with top SKUs: Don’t migrate your entire catalog—start with 3–5 products and track performance.

Final Thoughts

Walmart Marketplace is no longer a backup plan—it’s a viable revenue channel for Amazon sellers who want to scale sustainably.

In 2025, smart sellers are using Walmart to future-proof their businesses, expand market reach, and stay agile in a fast-changing ecommerce landscape.

If you’re ready to explore the opportunity, start small, test often, and treat it like the business expansion it is.