Importance of E-Commerce Marketplace
In today’s era, the trend of e-commerce is growing very rapidly all over the world, and every day a large number of buyers prefer online shopping and order their products with a click while sitting at home because it is a very easy way and saves time. It is a method full of diverse options. Whenever online shopping is mentioned, big platforms like Amazon and Walmart come to mind leading many to compare Walmart Marketplace vs Amazon when choosing where to sell or shop online.
E-commerce markets not only provide convenience for buyers but also provide many opportunities for sellers, as anyone can sell their products all over the world without a physical store. This is a great convenience for any seller. These online marketplaces have completely changed the way of doing business around the world and have provided many conveniences to people.
Both Amazon and Walmart have established a wide network of customers and every month, millions of visitors come to these two platforms and buy their products. With the help of these two platforms, any seller can present their product and their business on a global level. However, when comparing Walmart Marketplace vs Amazon, there are several fundamental differences that every online business person should understand.
What is Walmart Marketplace?
Walmart Marketplace is actually an online marketplace of Walmart where third-party sellers can list their products and sell their products by creating their own website. Walmart expanded its e-commerce strategy after 2016 by allowing third-party platforms to join in order to strengthen its presence. If you are selling your products on Walmart Marketplace, understanding how it compares to other major platforms is essential especially when evaluating Walmart Marketplace vs Amazon in terms of reach, tools, and seller support.
you first have to submit an application to list the product, in requires you to fulfill some conditions and answer. The advantage of this platform is that every type of seller is subject to it. It is especially beneficial for those who want to sell their products on a large scale within the United States and want to expand their business. One of the great features of Walmart Marketplace is that it is not as strict as Amazon. This means that any new seller can sell their products on Walmart.
Therefore, their chances of success are higher because here you will see less competition and get more attention. The number of Walmart users is increasing on a daily basis. Walmart is a well-known retail brand, so people easily trust it. This is why the products available on Walmart are also considered a reliable source. When comparing Walmart Marketplace vs Amazon, trust and lower competition are key advantages that make Walmart an appealing option for many sellers.
If you sell products on Walmart, then Walmart’s policies will be very friendly to you, especially since the fee structure is very easy compared to Amazon. You get to see referral fees on Walmart, and you do not have to face service charges and structure like Amazon FBA on Walmart. When comparing Walmart Marketplace vs Amazon, Walmart offers a more straightforward and cost effective fee system for many sellers.
What is Amazon, and how does it work
Amazon is one of the world’s largest online marketplaces that provides its services to millions of users in different countries around the world. This platform is not only beneficial for buyers, but also for sellers; it is a golden opportunity for them to sell their products anywhere in the world. When analyzing Walmart Marketplace vs Amazon, Amazon’s global reach and established infrastructure give it a strong edge for sellers aiming for international markets.
The biggest secret of Amazon’s success is its modern system, customer-friendly policies, and extensive logistics network. Anyone who sends their products to Amazon can sell their products in these two ways.
FBA: In Amazon’s FBA model, to sell a product, you have to buy your product from any seller or supplier and send it to Amazon’s warehouse, and Amazon will store your product, pack it, and deliver it when the customer orders it. In addition, Amazon will also provide customer service to you. Amazon’s FBA model is very beneficial for those who do their work on a large scale and want to avoid logistics and hassles.
FBM: In the FBM model, the seller stores his own products, and whenever he receives an order, he packs his own products and arranges for shipping, and also manages returns and customer service himself. Amazon’s FBM model is great for those who want to start their business at the initial level or on a low budget. When comparing Walmart Marketplace vs Amazon, models like FBM give Amazon more flexibility for new or budget-conscious sellers.
Benefits of selling on Amazon
- Access to millions of customers globally
- Brand trust increases
- Advanced marketing and advertising tools
- Detailed analytics and reporting
- A system of customer reviews is effective
If you want to succeed on Amazon, you should make your product listings according to SEO principles and get positive reviews, and pay special attention to your customer service. You will be able to achieve success on Amazon in the future. When evaluating Walmart Marketplace vs Amazon, it’s clear that success on Amazon often depends heavily on optimization and customer feedback.
Fees and Commissions Overview
Whenever an online seller plans to start his business on Amazon or Walmart, the first question that comes to his mind is how much percentage he will have to pay. Different types of fees are applicable to sellers on both platforms, and these fees directly affect the profit. Understanding the fee structure is crucial when comparing Walmart Marketplace vs Amazon, as it can significantly influence a seller’s overall earnings and business strategy.
Amazon Fee Structure
Referral Fee: This is the fee that every seller on Amazon pays to Amazon. This fee usually ranges between 8 percent and 15 percent and this fee is related to the product category and its cost.
FBA Fee: If you choose Amazon’s FBA model, you also have to pay Amazon storage, packaging and shipment fees because Amazon will charge you for storing your products, customer service and all other services. This fee is according to the volume and weight. When comparing Walmart Marketplace vs Amazon, understanding these additional costs is essential for sellers to choose the most cost-effective platform.
Account Fee: If you create your professional account on Amazon, you have to pay $39.99 per month for this account. In addition, if you create an individual seller account, you have to pay a small commission to Amazon on each sale.
Walmart Fee Structure: Walmart is also like Amazon. It takes 6 percent to 20 percent referrals from you on each sale, which is less than Amazon, but in different categories, this fee can be more than Amazon. When comparing Walmart Marketplace vs Amazon, understanding these fee differences is crucial for sellers to choose the right platform.
Monthly Fee: Any account you create on Walmart is your free account and you do not have to pay any monthly subscription or charges to Walmart.
Not a system like FBA. Walmart does not have its own system of fulfillment, although Walmart is now providing some facilities through WFS, but you may have to pay a fee for that, too. This difference is a key point when comparing Walmart Marketplace vs Amazon for seller fulfillment options.
Reach and Customer Base
Whenever we compare Walmart Marketplace vs Amazon, the biggest difference we see is the reach and customer base. Amazon is the world’s largest e-commerce platform, and its network is spread across almost every continent of the world. On the other hand, Walmart is also a big name, especially in the US, but Walmart’s presence is not as wide as Amazon’s.
Amazon’s Reach and Customer Base: Amazon provides its services to millions of customers every month. Amazon has more than 300 million active users in the USA alone, while Amazon’s presence is increasing worldwide, which makes Amazon the world’s largest marketplace. The biggest advantage of Amazon is that it also provides international sellers with the opportunity to sell on Amazon, Amazon UK, and Amazon Canada, and the seller benefits from the fact that he can sell on a global scale.
In addition, consumers have a very strong trust in Amazon. Many people blindly buy from Amazon because they are sure that they will get quality products and fast service from Amazon. When comparing Walmart Marketplace vs Amazon, Amazon’s global reach and customer trust give it a significant advantage.
Walmart’s reach and customer base: Since Walmart is also a big name in the market, its main focus is on the USA market, and Walmart provides its services to customers through physical stores. However, Walmart also provides convenience to customers through its online marketplace and now millions of visitors shop online every month.
Therefore, Walmart’s online presence is not as large as Amazon’s, especially at the international level. Currently, the marketplace is mainly limited to sellers and buyers in the USA. Although the number of buyers on Walmart is less than Amazon, there is also less competition here. This is an important factor to consider when comparing Walmart Marketplace vs Amazon, as sellers must weigh global reach against competition levels.
Marketing and Promotion Tools
To achieve success in e-commerce, it is not enough to just find a product and list it, but to improve the sales of the product, you also need to market yourself effectively. Both Amazon and Walmart platforms provide their sellers with various marketing and promotion features so that each seller can easily reach people with their products. However, the strategies and tools of these two platforms are completely different, which is very important to understand when comparing Walmart Marketplace vs Amazon.
Amazon Marketing Tools: Amazon provides its sellers with many advertising options called Amazon PPC, which include different types such as Sponsored Product, Sponsored Brand Sponsored, Display Ad. Whenever a user runs these ads, Amazon displays them on the search result product pages. In addition, you can also set specific keywords for your product in Amazon marketing and set your budget. In addition, you can manage your entire advertising campaign from your account. Amazon provides detailed analytics to its sellers so that they can fully assess how their ads are working and how much benefit they are seeing.
Walmart Marketing Tool: Like Amazon, Walmart also provides advertising facilities on its platform, which is called Walmart Connect, and it includes sponsored products and display ads. These tools are also very advanced, but not as much as Amazon’s. The advertising environment at Walmart is still in the development stage. Sellers on Walmart get better ROI due to less competition, but on Walmart, you still get to see features with less control. However, when analyzing Walmart Marketplace vs Amazon, it’s clear that Walmart offers fewer features and less control in advertising compared to Amazon’s mature ad platform.
Product Listing and Search Engine Algorithm
If you want to successfully sell your product on an e-commerce platform, one of the important secrets is to make your product more prominent in search results. The most important thing is that your product is SEO compliant. Both Walmart and Amazon have their own separate algorithms that decide which product will be shown first in a search and which one will be shown later, based on your search. When comparing Walmart Marketplace vs Amazon, understanding how each platform’s search algorithm works is crucial for optimizing product visibility.
Amazon’s A-Nine Algorithm: Amazon’s search algorithm is called A9. It takes into account various factors to rank any product, such as
- Product title
- Bullet points
- Description
- Back-end keywords
- Price Reviews
- Ratings and sales history
If you use relevant and accurate keywords while listing your product, Amazon’s algorithm will help you bring your product to the top. Similarly, if If the product is on sale and you improve your rating by seeing positive reviews, fast delivery, and good price, then your product will be able to rank because of this. In the context of Walmart Marketplace vs Amazon, both platforms rely on performance metrics and keyword relevance, but Amazon’s ranking algorithm is generally more advanced and competitive.
Walmart’s listing and algorithm: Walmart’s search algorithm also ranks any product based on the quality of its keyword search, but its focus is different compared to Amazon’s. Walmart’s availability focuses mostly on product fulfillment and price. Product keyword matching is important on Walmart, but you have to avoid over-optimization. Walmart provides a number to each of your listings through its Listing Quality Score, which tells you how worthy your listing is.
Ease of Start and Support
Whenever a new seller starts a business in the market, the most important question for them is which platform they should start their business on and which platform will be more convenient for them. Amazon and Walmart are both well-known and large platforms and the sign-up and start-up requirements for selling on both are different.
which is important for you to understand. Understanding these differences is essential when deciding between Walmart Marketplace vs Amazon for launching your e-commerce business.
Getting Started on Amazon: If you want to start your business on Amazon, you will have to go through the sign-up process, which is very straightforward and easy, no matter what country you are from. You can create your Amazon account by going to the Amazon Seller Center and completing a few easy steps. To create this Amazon account, you will need the following things such as
- ID cards Passport
- Bank account
- Credit card
- Phone number and email address
- Company registration
Most of the time, the account verification takes place within a few days Completed and you start listing your products. Amazon provides guides, videos, and a help center for new sellers on Amazon so that they can be fully guided if they get stuck in any trouble. You don’t have to pay any big fees to get started on Amazon. If you buy the monthly professional plan, you have to pay $39.99.
Getting Started on Walmart: The sign-up process to sell on Walmart is a bit complicated. Walmart reviews every application it receives immediately, and there is a Walmart Marketplace for every seller, but for that you have to meet the requirements.
- A registered company.
- US tax number.
- US bank account.
- Excellent customer service record.
- Strong fulfillment system.
New sellers are selected and added to the platform within a week or two. After verification, you get access to the Seller Center. If you plan to start a new business and quickly If you want to get started right away, Amazon may be a better choice for you because the registration process on Amazon is easy for and is open to all international sellers.
On the other hand, if you look at Walmart, it is aimed at sellers who already have experience. When comparing Walmart Marketplace vs Amazon, Amazon offers a more accessible starting point for beginners, while Walmart is better suited for established businesses.
Which platform to choose
Walmart Marketplace and Amazon. We have reviewed both in detail, so the question arises which platform is better out of the two. The answer depends on the circumstances, experience, and objectives of each business. Both platforms offer unique advantages, and the best choice will vary based on your specific goals and resources.
Why choose Amazon? If your budget is limited and you want to start your business quickly, then you can choose Amazon. In addition, if you want to reach your products to buyers at a global level, and you want to get modern fulfillment facilities like FBA. In addition, if you want a strong SEO advertising and review system, then Amazon can be a great option for you.
Why choose Walmart? If you have a reputable American company, then you can choose Walmart. In addition, if you want a platform with less competition in the market, you can also choose Walmart. In addition, you can also benefit from Walmart’s trust-based customer base. If your goal is to target the American market specifically, then Walmart Marketplace vs Amazon leans in favor of Walmart Marketplace as a great place to start.
Strategy: Within the marketplace, you will find very successful sellers who are maintaining their presence on both platforms and are taking full advantage of both Amazon’s global reach and Walmart’s exclusive American customers. If your budget and system allow, you can start selling on both platforms. This could be a smart business move for you, helping you build a strong brand within the marketplace and reach a wider audience.