Introduction
Amazon and Walmart are major players in the online selling world, but if you’re a seller, you may find it difficult to decide which platform will be more beneficial for you. In this article, we’ll compare Amazon vs Walmart which is better for sellers, and find out which platform is better based on reaching more buyers, seller-friendly features, commission percentage, payment methods, and other important facts.
Sales Power and Buyer Numbers of Amazon and Walmart
Amazon: Huge customer base
Amazon is one of the world’s largest e-commerce platforms, with a customer base of billions. It has a global reach and offers its services in more than 100 countries. This means that sellers get more buyers here, which increases the chances of selling their products. Amazon’s brand identity is also very strong, and buyers trust this platform.
Walmart: The influence of local and US shoppers
Walmart, although smaller than Amazon, is the largest retailer in the US. Walmart’s online sales have grown rapidly in the past few years, especially after the Corona epidemic. This platform is especially popular among American shoppers. Although its global reach is less than that of Amazon, it can be a great option for local sellers.
Seller-Friendliness: Amazon vs Walmart
Amazon: A more convenient platform
Amazon has developed a detailed and easy process for sellers. Here the seller gets the opportunity to take care of everything, from listing their products to shipping and customer service. Features like Fulfillment by Amazon (FBA) are beneficial for sellers, where Amazon itself takes responsibility for shipping and customer care.
Walmart: Stringent entry standards
Walmart’s platform can be a little harsh on sellers. It only allows sellers who meet its strict standards, and the onboarding process is quite strict. But once you’re accepted as a seller, you have less competition and your products benefit from Walmart’s brand value.
Comparison of Features
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Features of Amazon
- Fulfillment by Amazon (FBA): Amazon takes care of your products’ storage, packaging, and shipping.
- Amazon Prime: Prime members enjoy free shipping, which helps sellers generate more sales.
- International Selling: Sellers can sell their products internationally.
Features of Walmart
- Walmart Fulfillment Services (WFS): This is similar to Amazon’s FBA, but this service is currently available only in the USA.
- Price Matching: Walmart matches the prices of its products with other competing platforms in the market, which benefits sellers.
- Walmart Two-Day Delivery: Sellers get the option of two-day delivery, which is better than Prime.
Fees and Commissions: Amazon vs Walmart
Amazon fees and commissions
Amazon charges different types of commissions to sellers, depending on the product category. Generally, the commission can range from 6% to 45%. Apart from this, if you use FBA, you must also pay additional fees.
Walmart fees and commissions
Walmart’s commission structure is a little simpler. Its commission fees range from 6% to 20%, which varies depending on the product category. Walmart’s fees are slightly lower than Amazon’s, which can benefit sellers.
Payment Methods and Minimum Thresholds
Amazon payment method
Amazon pays sellers every 14 days. The minimum payout threshold here is $10. If you are an international seller, Amazon allows you to get paid in different currency options.
Walmart’s Payment Methods
Walmart also pays every 14 days, but its minimum threshold is $1, which is much lower than Amazon. Walmart’s payment process is simple and fast, which is a good feature for sellers.
Advantages and Disadvantages: Amazon vs Walmart
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Benefits of Amazon
- Global reach and large customer base.
- Sellers benefit from services like Fulfillment by Amazon.
- Strong brand identity.
Disadvantages of Amazon
- High commissions and fees.
- The competition is very high.
Walmart’s Advantages
- Low commissions and fees.
- Stronghold in the US market.
- Low competition for sellers.
Disadvantages of Walmart
- Global reach is limited.
- Stringent entry standards for vendors.
Conclusion
If you are a seller looking to enter the global market, Amazon may be a better choice for you, as its reach and features are vast. However, if you are primarily targeting the US market and want less competition, Walmart may be more beneficial for you. Both platforms have their advantages and disadvantages, so you should choose the right option based on your business goals and preferences.
FAQs
1. Are Amazon’s fees higher than Walmart’s?
Yes, Amazon’s fees are typically higher than Walmart’s, especially if you are using FBA.
2. Why is the process of becoming a seller at Walmart difficult?
Walmart sets strict standards for its sellers to only allow high-quality products and sellers on the platform.
3. Is it easy to become an international seller on Amazon?
Yes, it is easy to become an international seller on Amazon as it has a global reach and provides services in many countries.
