Selling on Amazon vs. Walmart: Who Reigns Supreme?

In the pulsing heart of the eCommerce cosmos, two giants—Amazon and Walmart—cast vast shadows. For online business owners, these platforms are not just marketplaces; they are arenas where the relentless battle for consumer attention is fought. The choice between these titans is not trivial; it's strategic, demanding a careful consideration of each platform's unique landscape.

Amazon: The Undisputed Leader in Volume and Visibility

Amazon, the colossus of eCommerce, commands nearly 40% of online sales. A virtual cornucopia of goods, it offers third-party sellers an unmatched reach to a global customer base. The sheer scale of Amazon’s operations, with over 12 million products sold annually, makes it clear why a digital storefront on this platform is considered essential. Its robust infrastructure and advanced seller tools have made Amazon a bastion for sellers looking for volume and visibility, albeit within an intensely competitive and demanding environment.

Walmart: The Trustworthy Traditionalist Turned Digital

Walmart, on the other hand, with its sprawling physical footprint, translates its retail might into its online marketplace. Though its digital presence is often perceived as under the looming shadow of Amazon, Walmart Marketplace is a burgeoning field with its own set of advantages. Sellers here are vetted through a rigorous application process, ensuring a level of quality and safety for the platform's customers. With Walmart, brands are not just another storefront; they stand alongside a legacy of retail trust and consumer familiarity.

Differences Between Selling on Walmart vs Amazon

In the competitive world of online marketplaces, understanding the nuanced differences between selling on giants like Walmart and Amazon can be the deciding factor for success.

1. Seller-to-Traffic Ratio: When comparing the volume of traffic to the number of sellers, Walmart presents a striking opportunity. With about 120 million monthly visitors and only 100,000 sellers, the platform offers a lower barrier to visibility than Amazon, where approximately 1.9 million sellers vie for the attention of 200 million visitors. This disparity suggests a more favorable ground on Walmart for sellers to capture a larger share of the customer base.

2. Competition and Market Maturity: Walmart's online marketplace can feel like a breath of fresh air to sellers who are accustomed to Amazon's saturated and cutthroat environment. Reminiscent of Amazon’s earlier days, Walmart's currently lower competition levels and more affordable PPC advertising create a fertile landscape for both new entrants and established sellers looking to expand their dominance without the high cost of visibility associated with Amazon's matured marketplace.

3. Unique Advantages of Walmart: Walmart's ability to offer in-store pickup taps into the convenience-driven segment of the market, leveraging their vast physical presence to satisfy instant-gratification shoppers. Moreover, successful online sellers on Walmart may receive invitations to place their products on the shelves of Walmart stores nationwide, a gateway to exponential growth and brand visibility that Amazon, lacking a brick-and-mortar network, cannot provide.

4. Seller Requirements and Access: Walmart’s gates are more closely guarded, seeking sellers with an established brand and consistent sales history, hence potentially elevating the quality and reliability of its marketplace offerings. Conversely, Amazon’s doors are wide open, inviting sellers of all scales and experiences, which, while democratizing, also means a more diverse and unpredictable market.

5. Fee Structure: Financially, Walmart entices sellers with the absence of a monthly fee, charging solely upon the completion of a sale, while Amazon mandates a monthly subscription fee, adding a fixed cost to the seller's budget.

Similarities in Selling on Walmart and Amazon

While differences are critical, the similarities between these marketplaces outline a standardized blueprint for online retail success:

1. Customer Focus: A relentless dedication to customer satisfaction defines both Walmart and Amazon. Their algorithms favor sellers who not only provide top-quality products but also exceptional customer service, reflecting in seller ratings and platform standing. This commitment to the customer experience is designed to reduce return rates and increase overall marketplace credibility.

2. Fulfillment Services: Both marketplaces provide robust fulfillment services, FBA for Amazon and WFS for Walmart, relieving sellers from the logistics of storage, packaging, and shipping. Their respective membership programs mimic each other, offering free expedited shipping, much like the standard set by Amazon Prime, to loyal customers, with the additional perk of free shipping thresholds for non-member customers.

3. Conversion and Ranking: The holy grail of online selling, conversion rate, stands as a cornerstone for both Amazon and Walmart. A product's ability to convert browsers into buyers directly influences its organic ranking and visibility on both platforms, making the optimization of listings a critical task for sellers.

4. Listing Optimization: The art of crafting compelling listings transcends the platform. Both Amazon and Walmart sellers must hone their use of vivid product imagery, infographics, and size measurements, coupled with strategic keyword integration for SEO, to appeal to customers who increasingly rely on visual cues for purchasing decisions.

5. Marketplace Traffic: The sheer volume of visitors navigating Walmart and Amazon represents a goldmine for sellers. With the traffic already present, sellers must masterfully utilize organic and paid strategies to capture and convert this audience into a loyal customer base.

Branding Battles: Walmart vs. Amazon

Branding and advertising on these platforms follow different philosophies. On Walmart, less marketplace saturation means less clamor to be heard, giving sellers more space to make an impact. This, coupled with a stricter seller selection process, can lead to a stronger brand presence and fewer worries about IP infringement. In Amazon's world, the high seller density means that standing out requires savvy branding and advertising investment, along with an unwavering commitment to performance standards to stay in good standing.

Platform Evolution and Innovation

• Technological Edge: Amazon continually invests in artificial intelligence and machine learning to enhance the shopping experience, something sellers can leverage with Amazon's dynamic pricing and recommendation engines. Walmart, while more conservative in technology adoption, is ramping up its investments to compete, offering opportunities for sellers to be part of an evolving platform.

• Marketplace Integration Tools: Both platforms are expanding their API offerings, allowing for seamless integration of various business tools and software that aid in inventory management, repricing, and analytics.

Seller Satisfaction: A Tale of Two Experiences

Seller satisfaction on these platforms can vary as widely as their operating ethos. Amazon, with its comprehensive Seller Central, offers a rich suite of tools designed to streamline the selling process, albeit in a hyper-competitive ecosystem where vigilance is a prerequisite. Meanwhile, Walmart's Seller Center, though criticized for its less intuitive interface and functionalities, is undergoing continuous improvements and often, sellers find it worth navigating these growing pains for the lower competition and potential return on investment.

In conclusion, the narrative isn’t about Amazon versus Walmart, but rather about how each can serve different facets of a seller's business model. Amazon is the behemoth, offering unparalleled traffic and a mature platform, while Walmart is the burgeoning marketplace, offering growth and an alternative customer base. It’s not about exclusivity, but diversity. As the digital market continues to evolve, the smart move isn't to pledge allegiance to one but to harness the strengths of both. Diversification in the world of eCommerce is not just recommended; it's essential for resilience and growth. So, spread your wings—your business doesn’t have to be rooted in a single soil when it can flourish across an entire ecosystem. We hope this blog post helps you decide which platform to sell on, or possibly take advantage of both!

Thank you,

Commerce Canal Team

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