In recent years, e-commerce has grown significantly, and selling products online has become more accessible to businesses. Among the popular e-commerce platforms are Walmart and Amazon, which have millions of active users. In this article, we will compare selling on Walmart vs Amazon marketplaces in 2023, looking at the benefits and drawbacks of each platform.
Table of Contents
- Overview of Walmart and Amazon Marketplaces
- Market Reach and Customer Base
- Listing Fees and Commissions
- Payment and Fulfillment
- Product Categories and Approval Process
- Marketing and Promotions
- Customer Service and Feedback
- Returns and Refunds
- Data Analytics and Reporting
- Integration with E-commerce Platforms and Tools
- Seller Support and Resources
- Fraud Prevention and Security Measures
Overview of Walmart and Amazon Marketplaces
Walmart and Amazon are two of the most popular online marketplaces that allow third-party sellers to list and sell their products. Walmart’s marketplace was launched in 2009, while Amazon’s marketplace has been in existence since 2000. Both platforms have millions of active users and offer various categories of products.
Market Reach and Customer Base
Amazon has a larger market reach and customer base than Walmart. According to a 2021 survey, Amazon has over 310 million active customers, while Walmart has about 140 million customers. Amazon’s customer base is more diverse, ranging from students to working-class individuals, while Walmart’s customers are mostly middle-class individuals.
Listing Fees and Commissions
Walmart charges no listing fees, while Amazon charges a $0.99 fee per item sold, plus a referral fee ranging from 6% to 45% depending on the category. Walmart’s commission rate ranges from 6% to 15% depending on the category, while Amazon’s commission rate ranges from 6% to 45%.
Payment and Fulfillment
Walmart pays sellers every two weeks, while Amazon pays sellers every two weeks or more frequently upon request. Walmart has a less strict fulfillment policy, allowing sellers to fulfill orders using their preferred carrier, while Amazon requires sellers to fulfill orders using their own fulfillment centers or use the Fulfillment by Amazon service.
Product Categories and Approval Process
Walmart has a smaller selection of product categories compared to Amazon, but it is easier to get approval to sell products at Walmart. Amazon has a more stringent approval process, requiring sellers to meet specific requirements such as having a professional seller account, providing a tax ID, and meeting specific performance metrics.
Marketing and Promotions
Amazon has more marketing and promotional tools available to sellers, including Amazon Advertising, Sponsored Products, and Amazon Deals. Walmart’s marketing tools are limited, and it does not allow sellers to advertise their products on the Walmart website.
Customer Service and Feedback
Amazon has a more robust customer service system, allowing buyers to contact sellers directly through the Amazon website. Walmart’s customer service system is less robust, and buyers can only contact sellers through the Walmart website or email. Amazon also has a more extensive feedback system, allowing buyers to rate and leave feedback on sellers’ products.
Returns and Refunds
Both Walmart and Amazon have similar return policies, allowing buyers to return products within a specific timeframe for a refund or exchange. Walmart has a more lenient policy, allowing buyers to return products within 90 days, while Amazon’s return policy varies by category.
Data Analytics and Reporting
Amazon has more advanced data analytics and reporting tools available to sellers, providing insight into sales, customer behavior, and inventory management. Walmart’s
When it comes to selling on Walmart vs Amazon marketplaces in 2023, both platforms have their pros and cons. Amazon has a larger market reach, a more diverse customer base, and more advanced tools and resources for sellers. Walmart, on the other hand, has no listing fees, a less strict approval process, and a more lenient return policy.
Ultimately, the decision to sell on Walmart or Amazon will depend on a seller’s business needs, budget, and goals. It is essential to consider factors such as market reach, fees and commissions, payment and fulfillment policies, product categories, marketing and promotions, customer service and feedback, returns and refunds, data analytics and reporting, integration with e-commerce platforms and tools, seller support and resources, and fraud prevention and security measures.
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