Why Amazon Sellers Should Consider Selling on Walmart.com
Since Walmart’s 2020 marketplace relaunch, the platform now hosts tens of thousands of third‑party sellers and offers referral fees 1–2 percentage points lower than Amazon (e.g., 13% vs 15% for an apparel brand). Adding Walmart gives Amazon sellers access to a price‑sensitive suburban shopper base and faster placement in niche categories.
Overview
Amazon merchants are increasingly looking beyond the dominant marketplace to capture additional demand. Walmart.com’s online marketplace has expanded rapidly since its 2020 relaunch, offering a viable second channel for brands already selling on Amazon. Adding Walmart can lower dependence on a single platform, expose sellers to a distinct shopper cohort, and open fresh growth avenues.
Key Points
- Marketplace expansion — Walmart now hosts tens of thousands of active third‑party sellers, a sharp increase from the few thousand that participated before the 2020 program overhaul.
- Lower referral fees — In many categories Walmart’s commission sits 1–2 percentage points beneath Amazon’s standard rate, directly boosting net margins for comparable sales.
- Different buyer profile — Walmart shoppers are generally more price‑sensitive, with a larger share of suburban families, giving sellers access to a demographic that may shop less frequently on Amazon.
- Less competition in niche verticals — Categories such as home‑improvement tools, pet supplies, and certain hobby items have far fewer listings on Walmart, allowing new entrants to achieve prominent placement faster.
- Flexible fulfillment choices — Sellers can ship from Walmart’s own fulfillment network, use third‑party logistics, or tap existing Amazon FBA inventory through multi‑channel fulfillment.
- Cost‑effective advertising — Sponsored Products on Walmart operate on a CPC model similar to Amazon, but average click costs are typically lower, making paid acquisition more affordable.
How Selling on Walmart.com Works
- Open a Walmart Marketplace account — Register on the Walmart Seller Center, upload required business documents, and complete a verification that usually finishes within 7–10 business days. Example: A dietary‑supplement brand submitted its tax identification and product feed, receiving approval on day nine.
- Add product listings — After approval, upload items via bulk CSV files, API connections, or integration platforms such as ChannelAdvisor.
Analysis & Recommendations
Why This Matters
Lower referral fees directly improve profit margins, while Walmart’s distinct buyer profile—more price‑sensitive suburban families—adds a new revenue stream. In niche verticals such as home‑improvement tools, fewer competing listings let sellers achieve top‑10 rankings quickly, as an apparel brand did after joining Walmart.
Key Takeaways
- Walmart Marketplace grew from a few thousand sellers pre‑2020 to tens of thousands after its 2020 relaunch.
- Referral commissions on Walmart are typically 1–2 percentage points below Amazon’s rates (e.g., 13% vs 15% for an apparel brand).
- Walmart shoppers are more price‑sensitive and largely suburban families, creating a demographic less active on Amazon.
- Sponsored Products on Walmart use a CPC model with average click costs lower than Amazon, illustrated by a pet‑food campaign with a $200 daily budg...
Recommended Actions
- →Open a Walmart Marketplace account in Seller Center > Registration, upload business docs, and wait 7–10 business days for verification.
- →Upload product listings via bulk CSV (Seller Center > Catalog > Bulk Upload) or API; use the CSV template to add hundreds of SKUs efficiently.
- →Create Sponsored Products campaigns in Seller Center > Advertising, allocate 5–10% of projected Walmart revenue, and monitor CPC/ROAS to adjust bids.
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