Walmart Marketplace vs. Amazon: Is It a Cheaper Alternative in 2025?
For a decade, Amazon has been the undisputed king of e-commerce. But kings get greedy.
With Amazon FBA fees rising every year and ad costs skyrocketing, sellers are looking for an escape route. Enter Walmart Marketplace.
In 2025, Walmart isn't just a "backup plan"—it is a serious contender offering lower fees, less competition, and access to a massive loyal customer base. But is it right for you?
In this guide, we will compare the fees head-to-head and reveal the hidden "Blue Ocean" benefits of selling on Walmart.com.
1. Fixed Costs: The Monthly Subscription
Right out of the gate, Walmart wins on fixed costs.
- Amazon Professional: $39.99 / month.
- Walmart Marketplace: $0 / month.
You only pay Walmart when you make a sale. This makes it a risk-free channel to test.
2. Referral Fees: A Close Call
Both platforms charge a percentage of the sale price (Referral Fee). On paper, they look similar, but Walmart is aggressive about undercutting Amazon in key categories.
- Electronics: Amazon charges 15% (under $100) or 8% (over $100). Walmart often charges a flat 8% or less for consumer electronics.
- Personal Care: Both are around 15% (8% for items under $10).
- Outdoor/Garden: Walmart is pushing this category hard and often offers fee rebates.
3. Fulfillment: WFS vs. FBA
WFS (Walmart Fulfillment Services) is Walmart's answer to Amazon FBA. You ship bulk inventory to them, and they handle the rest.
Where WFS Wins: Storage Fees.
Amazon's storage fees fluctuate wildly. In Q4 (Oct-Dec), Amazon storage fees triple (up to $2.40/cubic foot). Walmart keeps their storage fees much steadier and lower (approx $0.75/cubic foot).
Where WFS Wins: Weight Handling.
For items weighing over 1 lb, WFS fulfillment fees are often 10-20% cheaper than Amazon FBA. If you sell heavy items (gym weights, kitchen appliances), Walmart is mathematically superior.
4. The "Blue Ocean" Factor (Competition)
This is the biggest hidden benefit.
Amazon: Approx 9 million sellers.
Walmart: Approx 150,000 sellers.
On Amazon, you are fighting 50 other sellers for the keyword "Garlic Press." You have to spend 20% of your revenue on PPC ads just to be seen.
On Walmart, there might be only 3 other sellers. You can often rank organically on Page 1 without spending a dime on ads.
The Barrier to Entry
Why isn't everyone on Walmart? Because it's harder to get in.
Amazon lets anyone sign up instantly. Walmart has an Application Process. They want experienced sellers, not hobbyists.
Requirements to Apply:
- US Business Tax ID (EIN).
- History of e-commerce success (they will ask for your Amazon/Shopify store link).
- Product catalog that fits their guidelines (no unique/handmade items usually).
This barrier is good for you. It keeps the "junk" sellers out, keeping prices and trust high.
FAQ
Can I use Amazon FBA to fulfill Walmart orders?
NO. This is strictly banned. If a Walmart customer receives a box with Amazon Prime tape on it, Walmart will suspend your account. You must use WFS or a neutral 3rd party warehouse (3PL).
Is Walmart traffic lower than Amazon?
Yes, significantly. Amazon gets ~2.5 billion visits/month. Walmart gets ~400 million. However, because there are so few sellers, your "share of the pie" can actually be bigger on Walmart for specific niches.
Do I need different barcodes?
No. Walmart accepts standard UPC/EAN barcodes. If you already have GS1 barcodes for Amazon, they will work on Walmart.
Conclusion
Walmart Marketplace is not an "Amazon Killer," but it is the perfect "Profit Sanctuary."
If you sell heavy items, or if you are tired of Amazon's high ad costs destroying your margins, you should be on Walmart.
Action Step: Open the MarginMate Calculator. Run a scenario for your product using "Custom Fees." Input Walmart's 15% referral fee but set "Ad Spend" to 5% (instead of Amazon's typical 15%). Look at how much your Net Profit increases.