Table of Contents
1. Introduction
2. The Rise of Amazon and Walmart
3. Customer Demographics and Shopping Preferences
4. Pros and Cons of Selling on Amazon
5. Pros and Cons of Selling on Walmart
6. Best Performing Product Categories on Amazon
7. Best Performing Product Categories on Walmart
8. Getting Started on Amazon
9. Getting Started on Walmart
10. Conclusion
Introduction
In this article, we will explore the key data on customer acquisition, shopping preferences, and the pros and cons of selling on Amazon versus Walmart. Our aim is to help you make an informed decision about which platform to choose for starting your business and selling your products. Both Amazon and Walmart are well-known names in the e-commerce industry, but there are distinct differences between them. By understanding the numbers, demographics, and shopping preferences, you can gain valuable insights into the strengths and weaknesses of each platform. So, let's dive in and explore the world of online retail!
The Rise of Amazon and Walmart
When it comes to online shopping, Amazon has established itself as the go-to platform for millions of customers. With its wide variety of products and the convenience of Prime two-day shipping, Amazon has become the first choice for many online shoppers. However, Walmart is not far behind. While it may not be the first place people think of when shopping online, Walmart is investing heavily in its online platform to compete with Amazon. With a focus on fulfillment capacity, supply chain automation, and newer technology, Walmart is slowly gaining ground in the e-commerce market.
To understand the scale of both Amazon and Walmart, let's take a look at some numbers. Amazon records approximately 2.45 billion monthly visits, while Walmart lags behind with 410 million visits. In terms of market share, Amazon dominates the U.S. e-commerce market with 41%, followed by Walmart at 6.6%. However, Walmart's growth rate in e-commerce is five times higher than Amazon's, indicating a potential shift in the future. If this trend continues, Walmart could surpass Amazon's retail sales within the next four years.
Customer Demographics and Shopping Preferences
To better understand the customer base of both Amazon and Walmart, let's examine their average shoppers. Surprisingly, the demographics of the average shopper for each marketplace are quite similar, with one notable exception. The average household income of a Walmart shopper is $76,000, while Amazon shoppers have an average household income of $84,000. This slight difference suggests that Walmart tends to attract slightly lower-income shoppers compared to Amazon.
When it comes to shopping preferences, both Amazon and Walmart have their strengths. Walmart shoppers prefer the platform because they can buy good quality products at low prices. Additionally, they have the option to schedule a pickup and collect their purchases from a nearby store. Walmart shoppers tend to buy groceries, cleaning supplies, and over-the-counter medications more frequently than any other product category.
On the other hand, Amazon customers prefer the platform for its extensive product selection and fast, free shipping, especially with a Prime membership. Customers who primarily shop on Amazon, but not on Walmart, tend to purchase apparel, vitamins and supplements, beauty and personal care products, and more. Each marketplace caters to different customer needs, and understanding these preferences can help you tailor your product offerings accordingly.
Pros and Cons of Selling on Amazon
As a seller, there are several pros and cons to consider when choosing Amazon as your platform. Let's start with the advantages. First and foremost, Amazon is one of the fastest-growing marketplaces in the U.S. and has a global presence. With billions of views each month, your products have a higher chance of gaining visibility and attracting potential customers. Moreover, Amazon is a trusted site, making it easier to convince customers to make a purchase.
However, there are also some drawbacks to selling on Amazon. One major concern is the high selling fees. While it is relatively easy to set up a seller account on Amazon, you will have to pay significant monthly fees. These fees can eat into your profits, especially if you are selling low-margin products. Additionally, Amazon's growth rate is not as rapid as Walmart's, which means you may face more competition on the platform.
Pros and Cons of Selling on Walmart
Now, let's explore the pros and cons of selling on Walmart. One significant advantage is that Walmart is not as saturated as Amazon. Since selling on Walmart is by invitation only, the competition is relatively low. This allows for greater visibility of your products, especially if you optimize your listings and invest in marketing campaigns. Additionally, selling on Walmart is free, which means you can save on monthly fees compared to Amazon.
However, the invitation-only requirement can be a hurdle for new sellers. Getting started on Walmart's platform can take time and effort, as you need to be approved or invited to sell. This can be a drawback for those looking for a quick and easy setup. Furthermore, Walmart's online presence is still growing, and it may not have the same global reach as Amazon. If you are targeting international markets, Amazon might be a better option.
Best Performing Product Categories on Amazon and Walmart
Both Amazon and Walmart offer a wide range of product categories for sellers. Understanding the best-performing categories on each platform can help you make informed decisions about what to sell. On Walmart, top-performing categories include groceries, cleaning supplies, and over-the-counter medications. These products are in high demand among Walmart shoppers. On the other hand, Amazon excels in categories such as electronics, books, and office supplies. If your products fall into these categories, Amazon might be the better choice for you.
Getting Started on Amazon and Walmart
Getting started on Amazon is relatively straightforward. All you need to do is create a seller account, and you can start selling within 24 hours, sometimes even less. Amazon welcomes new sellers and provides a user-friendly interface to manage your products and inventory. However, keep in mind that you will need to navigate through the various fees associated with selling on Amazon, including referral fees, fulfillment fees, and storage fees.
On the other hand, getting started on Walmart requires an invitation or approval from the platform. This process can take anywhere from two to four weeks. While it may seem like a drawback, the advantage is that Walmart's marketplace is less saturated, giving your products more visibility. Additionally, Walmart is continuously rolling out new features to help sellers reach a wider customer base. If you are interested in selling on Walmart, we will provide more information on how to get started in the resources section at the end of this article.
Conclusion
In conclusion, both Amazon and Walmart offer unique opportunities for sellers. Amazon has established itself as the dominant player in the e-commerce market, with a vast customer base and global reach. However, Walmart is rapidly growing and investing in its online platform, making it an attractive option for sellers looking for less competition and greater visibility. By considering the pros and cons of each platform, understanding customer demographics and shopping preferences, and identifying the best-performing product categories, you can make an informed decision about where to sell your products.
Remember, it's not necessarily an either-or choice. If feasible, consider selling on both platforms and test which one performs better for your products. Each platform has its strengths and weaknesses, and by diversifying your sales channels, you can maximize your reach and potential profits. So, why not give both Amazon and Walmart a try? Explore the possibilities, adapt your strategies, and see what works best for your business.
Highlights
- Amazon and Walmart are two major players in the e-commerce industry, each with its own strengths and weaknesses.
- Walmart is investing heavily in its online platform to compete with Amazon, while Amazon continues to dominate the market.
- Understanding customer demographics and shopping preferences can help you tailor your product offerings to each platform.
- Selling on Amazon offers global reach and a well-established reputation, but comes with high selling fees.
- Selling on Walmart is less saturated and free, but requires an invitation or approval to get started.
- The best-performing product categories differ between Amazon and Walmart, so choose accordingly.
- Consider selling on both platforms to maximize your reach and potential profits.
FAQ
**Q: How long does it take to get approved to sell on Walmart?**
A: Getting approved to sell on Walmart can take anywhere from two to four weeks. The process involves an invitation or approval from the platform.
**Q: Are there any fees associated with selling on Amazon?**
A: Yes, there are various fees associated with selling on Amazon, including referral fees, fulfillment fees, and storage fees. These fees can impact your profitability, so it's important to consider them when pricing your products.
**Q: Can I sell internationally on Walmart?**
A: Currently, Walmart's online presence is primarily limited to the U.S. However, they are actively working on expanding into international markets, so keep an eye
