Selling online today means choosing the right marketplace as much as choosing the right product. For many sellers, the decision often comes down to two giants: Amazon and Walmart. Both platforms offer massive reach, established trust, and powerful infrastructure—but they operate very differently and suit different types of businesses.

Amazon is known for its global scale, advanced fulfillment network, and intense competition, while Walmart is growing fast with a more selective marketplace, lower competition in many categories, and strong omnichannel presence. Choosing the wrong platform can impact your margins, visibility, and long-term growth.

In this blog, we’ll break down the key differences between Amazon and Walmart from a seller’s perspective, including fees, competition, fulfillment options, audience behavior, and growth potential. By the end, you’ll have a clear understanding of which marketplace aligns best with your business goals and selling strategy.

At a Glance: Main Differences

What Sellers Care About?

Fees & profit

Sellers want to know how much they keep after fees. Walmart usually charges lower referral fees and doesn’t force a monthly subscription, while Amazon has multiple fees (referral + FBA (Fulfillment by Amazon) + storage + subscription). That affects your profit from day one.

In many fee breakdowns for sellers, even a $100–$200 difference per order can completely change profitability. In several cases, sellers who were losing money on Amazon became profitable after moving the same SKU to Walmart, largely because Walmart Fulfillment Services (WFS) fees were lower.

Competition & visibility

Amazon has many sellers fighting for the same keywords. That means you may need to spend on ads to rank. Walmart has fewer sellers in many categories, so you can get visibility faster without burning your ad budget.

How the Marketplaces Show Products?

Amazon’s search system

Amazon’s search is built to sell — it looks at keywords, how well your product converts, recent sales, price, fulfillment method (FBA helps), reviews, and stock. If your product doesn’t sell, it won’t rank. That’s why ads are often needed to kickstart sales. Learn more about how Amazon’s ranking works here.

Walmart’s ranking

Walmart focuses on price, product availability, fast shipping, and seller performance. Because there are fewer sellers, good listings with right price + WFS can move up quickly.

Buy Box basics

Buy Box = where shoppers click Add to cart. Amazon’s Buy Box is fiercely competitive and depends on price, fulfillment, and seller health. Walmart’s Buy Box is easier to capture because fewer sellers compete on each SKU (Stock Keeping Unit).

Fulfillment: FBA vs WFS

• FBA (Fulfillment by Amazon): Great reach and customer trust. More fees and more rules (storage/surcharges).

• WFS (Walmart Fulfillment Services): Cheaper per unit in many cases, good 2-day delivery benefits, and fewer extra fees.

If your product is low margin, WFS often keeps profits healthier. If you want international scale and won’t mind costs, FBA helps you scale faster.

Advertising

Amazon Ads give big reach through formats like Sponsored Products and DSP (Demand-Side Platform), but CPCs (Cost Per Click) is higher because many sellers bid on the same keywords. You must watch your ACoS (Advertising Cost of Sales) and profit margins closely.

Walmart Connect has lower CPCs and can give higher ROI (Return on Investment) early on, especially for sellers who don’t have a huge ad budget.

Listing & conversion basics sellers must do

• Title with main keywords and benefit.

• 5 product bullets that answer “Why buy?”

• 5–7 high-quality images + 1 short demo video.

• Backend search terms (Amazon) and complete attribute fields (Walmart).

• Stay competitive with pricing, but safeguard your margins. Any automated pricing should have a firm minimum limit so your price never goes too low.

• Get early reviews the right way—request them through Amazon’s or Walmart’s official tools only. Never incentivize or influence reviews. Follow each platform’s review guidelines to avoid penalties.

Risks every seller must know

• Account suspensions and listing suppression (both platforms).

• Return abuse and refunds.

• Inventory limits (FBA) if you don’t manage IPI/stock.

• Strict onboarding or documentation requests (Walmart).

Quick seller scenarios

• Low-margin, fast-moving goods (e.g., household consumables) → Start with Walmart for better margins.

• Niche products with high perceived value → Amazon can reach more relevant buyers.

• Small budget for ads → Walmart gives better ROI early.

• Brand that plans global expansion → Amazon has more options to scale.

Final Thoughts

Choosing between Amazon and Walmart isn’t about which marketplace is “better”; it’s about which one fits your product, margins, and growth stage.

If you want healthier margins and lower ad spend, starting with Walmart Marketplace often makes sense. If your goal is high volume, international reach, and stronger brand-building tools, Amazon remains the better option.

The safest approach is to begin where your product performs best based on category fit and unit economics, then expand to the other marketplace once you have a proven SKU, stable operations, and predictable demand.

No matter which platform you choose, focus first on the fundamentals: listing quality, inventory planning, and clear unit economics. These consistently outperform shortcuts, hacks, or quick-win tactics.

To stay profitable and in control, track these metrics weekly:

• Sessions

• Conversion rate

• Buy Box percentage

• Ad spend (ACoS)

• Margin per order

Strong data, not assumptions, is what turns marketplace selling into a scalable business.