Amazon business is often compared to Walmart, as they offer services for third-party sellers too. Almost 1000 sellers work by the Walmart fulfillment program.
In this article, we would like to find out whether working in this marketplace is better than selling on Amazon or having your own site. If you haven’t yet heard about what is Walmart marketplace, you can go to their official website and see everything with your own eyes.
So, let’s dive deeper into the details and learn major differences between Walmart rules for 3rd party sellers and Amazon rules.
Anyone can sign up to work with the Amazon marketplaces, but Walmart doesn’t allow everybody to use their marketplace. There is a certain approval process for Walmart third-party sellers. It can take weeks and there are no guarantees that a seller will be accepted. Walmart keeps their service very clear and they keep an eye on sellers. They will rate a seller higher if they have an own website or if they are present on other marketplaces, where they have a high rating and plenty of positive reviews.
On Amazon, everything is much simpler. You just need to open a seller account and start adding product listings, and then to sell! There are no certain requirements for each applicant, everything is free!
Both Amazon and Walmart charge fees from third-party sellers. Still, Walmart fulfillment usually costs businessmen less and their fees are more predictable.
Here is the comparison of overall fees for sellers on both marketplaces:
You see, Walmart offers better prices, but Amazon offers a greater variety of accounts.
As for sales-related fees, both marketplaces charge for sold products. Still, Amazon has some additional fees while third-party sellers on Walmart pay just category-based and referral fees.
Walmart is smaller than Amazon, and let the numbers speak:
Obviously, Walmart sellers face less competition while on Amazon, it is very hard to become a leader in case you sell not a niche product. Though, not all sellers are accepted to Walmart marketplace. That’s natural.
Order fulfillment and inventory management are crucial on marketplaces. It defines customers’ satisfaction and affects overall sales. Let’s look at what options of fulfillment Amazon and Walmart offer:
So, as you see, only Amazon has FBA which means that Amazon handles orders instead of sellers. As for Walmart marketplace, third-party sellers there have to ship orders on their own. They can either use in-house own fulfillment solution, or use a reliable center for that.
All marketplaces are the same good at this point. 3rd party sellers can list new product and add already existing ones on Amazon and Walmart as easy as it is possible. Sellers can also import their product listings, manage stock and inventory, change pricing and other data about their products.
The more categories you cover, the more opportunities for sales you get. However, there may be restrictions for that. Let’s look at how the things differ for Amazon and Walmart third-party sellers:
As you might have noticed, Amazon has gated categories that are not open to everyone: Fashion Accessories, Jewelry, etc, while other categories, for example, Kitchen or Home, are open. Third party sellers have to apply for selling in gated categories and Amazon inspects all such applications.
Walmart has no specific restrictions for categories, but they have a complicated enrollment process, from point 1.
You might know that Amazon offers tons of different seller management tools created by inspired developers. There is a great variety of analytical tools, autoresponders, trackers and other apps that help third-party sellers greatly.
Third party sellers on Walmart have fewer opportunities for this, however, there are still research tools and other management services. There are just not so many of them yet.
As a conclusion, we have to say that each marketplace has its pros and cons, and you are not limited just to one option. Sell on both of them! Discover opportunities on Amazon and become a third-party seller on Walmart - why not?