Agenda
Walmart vs. Amazon: Advantages and Drawbacks for Sellers
Introduction
The U.S. eCommerce market is one of the most lucrative in the world, generating hundreds of billions of dollars annually. Among the leading platforms, Amazon and Walmart Marketplace stand out as the top choices for sellers looking to enter this market.
Although both operate in online retail, these platforms have very different business models, customer bases, and seller requirements. Understanding the advantages and drawbacks of each will help businesses make better strategic decisions.
Walmart Marketplace – Advantages and Challenges
Advantages
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Loyal customer base: Walmart is the largest physical retailer in the U.S., with over 4,700 stores and millions of offline shoppers transitioning online.
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Lower competition: Walmart has significantly fewer sellers compared to Amazon, offering greater visibility opportunities.
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Strong brand trust: Walmart’s long-standing retail reputation boosts consumer confidence.
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No subscription fees: Walmart does not charge a seller registration fee—only commission fees per sale.
Challenges
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Strict requirements: Walmart only accepts experienced international sellers with a proven business track record.
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Longer approval process: Account approval can take more time compared to Amazon.
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Less mature ecosystem: While improving, Walmart still lags behind Amazon in advertising tools and fulfillment solutions.
Amazon – Advantages and Challenges
Advantages
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Massive market share: Amazon holds over 37% of U.S. eCommerce market share, attracting hundreds of millions of global shoppers.
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Robust ecosystem: FBA (Fulfillment by Amazon) streamlines logistics, warehousing, and customer service.
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Advanced advertising tools: Amazon Ads offers powerful options to target buyers effectively.
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Easier onboarding: International sellers can create accounts quickly with fewer entry barriers compared to Walmart.
Challenges
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Fierce competition: With millions of active sellers, standing out can be difficult.
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High costs: Sellers face multiple fees, including subscription, referral, and FBA fulfillment fees.
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Strict policies: Accounts can be suspended, or listings removed, if policies are violated.
Walmart vs. Amazon: Key Comparison
| Criteria | Walmart Marketplace | Amazon |
|---|---|---|
| Market size | 2nd largest in the U.S., fast-growing | Largest worldwide, dominant market share |
| Number of sellers | Fewer, less competitive | Very high, intense competition |
| Costs & fees | Commission-only | Multiple fees (FBA, subscription, referral) |
| Seller approval | Strict, requires business proof & experience | Easier, supports international sellers |
| Fulfillment | Walmart Fulfillment Services (WFS), developing | Fulfillment by Amazon (FBA), well-established |
| Brand reputation | Strong in U.S. retail, trusted offline & online | Global brand recognition, wide product range |
Conclusion
Both Walmart Marketplace and Amazon provide significant opportunities for international sellers, including those from Vietnam.
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If you are an established business with strong branding and product quality, Walmart is an attractive option thanks to lower competition and loyal customers.
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If you’re looking for faster entry, global reach, and a comprehensive fulfillment ecosystem, Amazon remains the best starting point.
The most strategic approach is to leverage both platforms: start with Amazon to build brand visibility, then expand to Walmart to diversify sales channels and reduce dependency on a single marketplace.
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