Table of Contents
1. Introduction
2. Amazon vs. Walmart: A Brief Overview
3. The Size and Reach of Amazon
4. The Growing Potential of Walmart Marketplace
5. Competition: Amazon vs. Walmart
6. Fulfillment Options: FBA vs. Walmart WFS
7. Selling Fees: Amazon vs. Walmart
8. Customer Loyalty: Amazon Prime vs. Walmart Plus
9. Ease of Use: Amazon Seller Platform vs. Walmart Marketplace
10. Pros and Cons: Amazon and Walmart
11. Which Platform Can Make You More Money?
12. Conclusion
Introduction
In today's competitive e-commerce landscape, selling on Amazon has become increasingly challenging. With rising prices and cutthroat competition, many sellers are looking for alternative platforms to maximize their profits. One such platform that has gained attention is Walmart Marketplace. In this article, we will delve into a deep comparison between Amazon and Walmart, focusing on one key question: which platform offers a better opportunity to make more money? We will explore various aspects, including size, competition, fulfillment options, selling fees, customer loyalty, ease of use, and more. So, let's dive in and discover the potential of these two retail giants.
Amazon vs. Walmart: A Brief Overview
Amazon and Walmart are two retail powerhouses, each dominating their respective spaces. Amazon is the undisputed king of online retail, while Walmart has a stronghold in the traditional brick-and-mortar space. Both platforms have their unique strengths and advantages. However, when it comes to making money as a seller, it's essential to understand which platform offers the best opportunity.
The Size and Reach of Amazon
Amazon's size and reach are unparalleled in the e-commerce industry. As of 2022, Amazon's annual revenue reached a staggering $502 billion, while Walmart's e-commerce revenue stood at $47.8 billion. Amazon's online sales are approximately 10 times larger than Walmart's. Moreover, Amazon receives around 2.5 billion monthly visits compared to Walmart's 500 million. Amazon dominates the U.S. e-commerce sales and has been experiencing consistent year-over-year growth.
The Growing Potential of Walmart Marketplace
Although Amazon holds a significant advantage in terms of size, Walmart Marketplace presents a unique opportunity for sellers. With around 150,000 sellers compared to Amazon's 1.1 million, Walmart offers a less competitive environment. Walmart's registration process is more complex, resulting in a higher barrier to entry. However, this also means that once accepted, sellers have a better chance of standing out organically in Walmart's search results. Every Walmart seller receives approximately 27,000 unique visitors per month, while Amazon sellers receive around 2,100 monthly visitors. This 10x ratio gives sellers a higher chance of product visibility on Walmart.
Competition: Amazon vs. Walmart
When it comes to competition, Amazon's marketplace is highly saturated, making it challenging for sellers to differentiate their products without resorting to paid advertising. On the other hand, Walmart Marketplace has significantly fewer sellers, making it easier for new sellers to rank organically in search results. Walmart's rigorous approval process and complex registration contribute to a less crowded marketplace. While Amazon has a massive customer base, Walmart's 510 million monthly visitors still offer significant potential for sellers.
Fulfillment Options: FBA vs. Walmart WFS
Amazon's FBA (Fulfillment by Amazon) and Walmart's WFS (Walmart Fulfillment) are similar services that handle order fulfillment for sellers. Walmart WFS is a clone of Amazon FBA, offering seamless fulfillment services. However, Walmart WFS is not only comparable but also cheaper than FBA. Amazon charges fees based on product volume, storage time, and imposes penalty storage fees. In contrast, Walmart charges fees solely based on product volume and storage time, with more reasonable long-term storage fees. Additionally, Walmart has partnered with a third-party logistics firm called Deliver, which can offer even cheaper fulfillment options depending on the time of the year.
Selling Fees: Amazon vs. Walmart
Both Amazon and Walmart charge a 15% referral fee for most items sold. However, Amazon requires a monthly fee of $39.99 for a professional seller account, while Walmart does not charge any monthly fees. This makes Walmart a more cost-effective option for sellers, especially those starting out or with a limited budget.
