Amazon has long been the dominant marketplace for third-party sellers. Millions of businesses have built their brands and revenues through Amazon FBA, and the platform continues to grow. But over the past few years, Walmart has quietly built a competing fulfillment program called Walmart Fulfillment Services, and the conversation around which platform deserves your inventory and attention has become a lot more interesting.
Both programs offer sellers a way to store inventory in a major retailer’s warehouses and have orders fulfilled on their behalf. On the surface, they sound similar. But when you look at the details, the differences are meaningful and worth understanding before you decide where to put your energy and money.
This guide breaks down both programs side by side so you can make an informed decision based on your specific business situation.
Understanding Amazon FBA
Amazon FBA allows sellers to send their products to Amazon’s network of fulfillment centers across the country. Once your inventory arrives, Amazon handles all storage, picking, packing, and shipping. Your products become eligible for Amazon Prime, which gives customers the expectation of fast, free shipping. Amazon also manages returns and customer inquiries related to delivery.
The program is built for scale. Amazon has one of the most sophisticated logistics networks in the world, and sellers who tap into it benefit from fast delivery speeds and the trust that comes with Prime. The tradeoff is a complex fee structure and a fiercely competitive marketplace where differentiation requires deliberate effort.
Who Uses Amazon FBA?
Amazon FBA is used by a wide range of sellers, from solo entrepreneurs testing their first private label product to established brands doing millions in annual revenue. The size of Amazon’s customer base is a major draw. There are hundreds of millions of active Amazon shoppers, and that built-in audience is something no other marketplace can match right now.
Understanding Walmart WFS
Walmart Fulfillment Services launched in 2020 and has expanded significantly since then. The model mirrors FBA in many ways. Sellers send inventory to Walmart’s fulfillment centers, and Walmart handles storage, packing, shipping, and returns. Products fulfilled through WFS earn a TwoDay Delivery badge, which functions similarly to Prime in terms of signaling fast and reliable delivery to shoppers.
Walmart’s marketplace is growing quickly. The company has invested heavily in its e-commerce infrastructure and is actively recruiting sellers, especially those with quality products that are not already available on Walmart.com. The result is a platform that is less saturated than Amazon, which creates real opportunity for sellers who can get in now.
Who Should Consider Walmart WFS?
Walmart WFS makes the most sense for sellers who already have an established brand and product line. Because Walmart’s marketplace is still growing, the traffic numbers are lower than Amazon’s, but the competition in many categories is far lighter. Sellers who already sell on Amazon and want to diversify can find WFS to be a natural next step without a steep learning curve.
Fee Structure Comparison
Amazon FBA Fees
Amazon charges sellers in several ways. There are referral fees, which are a percentage of each sale, typically ranging from 6% to 45% depending on the product category, with most categories falling around 15%. On top of referral fees, there are fulfillment fees based on the size and weight of the item, and storage fees based on how long and how much inventory you store.
Amazon also charges additional fees for aged inventory, return processing for some categories, and optional services like labeling and prep. When you add everything up, sellers typically find that Amazon takes 25% to 35% of their revenue in fees before any advertising spend is factored in.
Walmart WFS Fees
Walmart’s fee structure is generally simpler. Like Amazon, Walmart charges a referral fee per sale, which varies by category but is often comparable to or slightly lower than Amazon’s. WFS charges fulfillment fees based on item weight and size. Storage fees are charged monthly and are straightforward.
One notable difference is that Walmart does not charge a monthly subscription fee to use the marketplace. Amazon charges sellers $39.99 per month for a Professional account. For sellers just getting started or running a lean operation, that difference adds up.
Sellers who have compared both platforms often report that WFS fees are slightly lower overall, though the margin difference varies by product type. It is not dramatic, but for high-volume sellers, even a small fee reduction per unit makes a real impact over time.
Traffic and Customer Base
This is where Amazon wins clearly and by a large margin. Amazon has over 300 million active customer accounts globally. In the United States alone, a large majority of households have Amazon Prime memberships, meaning they are primed to buy from Amazon with fast, free shipping built into their expectations.
Walmart.com attracts hundreds of millions of visits per month, making it one of the most visited retail websites in the country. But the e-commerce habit of Walmart shoppers is still developing compared to Amazon loyalists. Amazon shoppers search Amazon the way people search Google. Many consumers go to Amazon with purchase intent from the very start of their shopping journey.
That said, Walmart’s traffic is not insignificant. And because the marketplace is less competitive in many categories, sellers can achieve strong rankings and visibility without fighting through hundreds of competitors for the same position.
Seller Competition and Market Saturation
On Amazon, you are competing against millions of sellers. Many popular product categories are crowded with near-identical offerings, and winning requires excellent listings, strong reviews, solid PPC campaigns, and sometimes aggressive pricing. Standing out is doable, but it takes sustained effort.
Walmart’s marketplace has far fewer sellers at the moment. That means less direct competition, easier pathways to appearing on the first page of search results, and more opportunity to establish yourself in a category before it fills up. Early movers often have a real advantage, and right now Walmart is still in that relatively open phase for many niches.
Brand Registry and Intellectual Property Protection
Amazon’s Brand Registry program is one of the most developed tools available to sellers for protecting their intellectual property. Once enrolled, brand owners gain access to tools that help remove counterfeit listings, protect their brand name, and create enhanced marketing content like A-plus content and brand stores.
Walmart is developing similar protections but is not at the same level as Amazon in this area. Sellers with strong brand equity and concerns about counterfeiting may find Amazon’s protections more reassuring, particularly if their product is in a category that tends to attract copycats.
Advertising Options
Amazon’s advertising platform is powerful and mature. Sponsored Products, Sponsored Brands, Sponsored Display, and video ads give sellers a range of options to drive traffic. Many sellers treat Amazon PPC as a central part of their growth strategy, and the data and targeting options available are sophisticated.
Walmart Connect, the advertising arm of Walmart’s marketplace, is growing but has not reached the same level of sophistication. The targeting options and campaign structures are improving, and advertising on Walmart tends to be less expensive because there is less competition for ad placements. For sellers who are fighting hard for ad space on Amazon, Walmart’s less crowded ad ecosystem can offer better return on ad spend.
Product Eligibility and Approval Requirements
Getting started on Amazon is relatively accessible. Most categories are open to sellers, and while some require approval, the process is generally straightforward for established products.
Walmart has historically been more selective about which sellers are approved to join the marketplace. They look for sellers with a track record, good reviews, and products that meet quality standards. This selectivity has actually worked in favor of approved sellers because it helps maintain a higher quality buyer experience on the platform.
Which Platform Is Better for You?
There is no universal answer. The best platform depends on your product, your goals, and where your customers are shopping.
Amazon FBA makes more sense if:
- You are just starting out and need maximum exposure from day one
- Your product category has proven demand on Amazon
- You want access to the broadest possible customer base
- You are willing to invest in PPC to compete in a crowded market
- You want the most developed brand protection tools available
Walmart WFS makes more sense if:
- You already have an established product line and want to expand your reach
- Your Amazon category is oversaturated and margins are being squeezed
- You want to diversify your revenue away from Amazon dependency
- Your products are a natural fit for Walmart’s customer demographic
- You want to capture early-mover advantage before the platform fills up
Most experienced sellers ultimately land on the same conclusion: you do not have to choose just one. Using both platforms simultaneously gives you more revenue channels, reduces your dependence on any single platform, and positions you to capture customers wherever they prefer to shop.
Practical Tips for Sellers Using Both Platforms
If you decide to sell on both Amazon and Walmart, there are a few things worth keeping in mind. First, keep your pricing consistent across platforms, as both Amazon and Walmart have rules about price parity. Second, treat each platform’s listings separately. Optimize your Amazon listings for Amazon’s search algorithm and your Walmart listings for Walmart’s, because they are not identical.
Third, monitor your inventory carefully. Running out of stock on either platform hurts your ranking and costs you sales during restocking periods. Using inventory management software that covers multiple sales channels can save a lot of headaches as you scale.
Final Thoughts
Amazon FBA and Walmart WFS are both strong programs that offer sellers a way to reach customers without managing their own warehousing and shipping operations. Amazon gives you the bigger audience, the more developed advertising tools, and the stronger brand protection infrastructure. Walmart gives you a growing marketplace with less competition, a simpler fee structure, and real opportunity for sellers who act while the platform is still finding its footing in e-commerce.
The smartest move for most established sellers is to start on Amazon, build your brand and your reviews, then expand to Walmart as a second channel. That combination gives you the reach of Amazon and the opportunity of Walmart without putting all your eggs in one basket.