Shopping online has become our daily practice. As you know, with the pandemic and everything going on from 2020, even the skeptics started buying products from their homes. Online retailers like Amazon, Walmart, and eBay continued growing, and now, it is easier to open your computer and buy something you need just with a few clicks, avoiding in-store crowds.
It is excellent, at least for online sellers. Amazon and Walmart are two e-commerce platforms expanding their business, and many Amazon sellers are considering starting on Walmart. What similarities and differences between these platforms?
Well, we can try and answer some questions that you may have.
Selling on Amazon and Walmart – Differences
Competition between Sellers
First, we have to admit that it is much easier to register an account on Amazon than on Walmart. You can register on Amazon and list a product within a few days. On the other hand, you have to apply and be approved to start selling on Walmart.
Walmart’s requirements for sellers are much stricter than the Amazon ones, and you need to have a registered business in your state to become a Walmart seller.
Because of these strict requirements, the competition on Amazon is fierce; thus, Walmart has fewer sellers.
Monthly Subscription Fees
As we know, Amazon has two selling plans: individual and professional. An individual plan is free of charge considering monthly fees, but you have to pay $0.99 per sold item, and you will have fewer options. A professional account costs $39.99 per month, and it looks like more you have to pay, but if you sell 40+ items per month, it is worth considering.
Walmart does not charge sellers a monthly fee for their account, only a referral fee, typically 15% on the product’s sale price.
Walmart does not charge a monthly fee to sell on their platform, and they have a simple referral fee structure. If you are selling on Walmart and handling your shipment, you will have to worry only about the referral fee.
If you use WFS (similar to FBA), you will have additional fees for this service.
Amazon also charges a referral fee, and it is also about 15% depending on the product category. Using FBA, you will have to calculate every cost, which is problematic, and you will have to pay for storage and fulfillment fees, which are structured more complicated.
Registration eligibility requirements are another difference between Amazon and Walmart.
Walmart is not for beginners, and you need to have an established business to be applied at Walmart. The documents that you need are listed below:
- US Business Tax ID (SSN not accepted)
- W9 or W8 and EIN Verification Letter from the Department of Treasury that verifies your US business address or place of physical operations
- Address or place of physical operations
- US Business address
- Planned integration method for your product catalog (bulk upload, API, solution provider)
- Primary product categories, catalog size, and related information (e.g., total SKUs you will be selling on Walmart.com initially with verified UPC information and used vs. refurbished, etc.)
Also, you have to be registered in the US to apply to Walmart.
Amazon, on the other hand, is more friendly for beginners. To complete your registration on Amazon, you will need:
- Bank account number and bank routing number
- Chargeable credit card
- Government-issued national ID
- Tax information (you may use your SSN here)
- Phone number
Also, international sellers are welcomed on Amazon. You need to be a resident of one of the countries allowed to sell on Amazon.
Personalized Account Management
Using Walmart Fulfillment Services (WFS) on Walmart will provide you with personal support and a WFS fulfillment expert for your business and growth recommendations.
On the other hand, you will have to pay a hefty fee ($1600 per month) plus a percentage of your sales if you want dedicated support from Amazon.
Selling on Amazon and Walmart – Similarities
Apart from their differences, both Amazon and Walmart have some similarities in their fees or the way they work. There is a list of the things they have in common:
- Fulfillment services
- Guaranteed 2-day free shipping (only with WFS or FBA)
- Advanced listing content
- Listing optimization
- Categories shopped
We tried to list the main differences and similarities between Walmart and Amazon. Where to sell? Well, it is up to you to decide.
However, selling on both platforms would be the best if you have the option to do it. Different or similar, it doesn’t make any difference.
Amazon is a more beginner-friendly platform, as stated. On the other hand, Walmart has less competition and fewer sellers.
If you have a well-established business on Amazon and a recognizable brand, maybe it is time to think and expand your business on Walmart too. If you have registered business in the US, why not sell on Walmart?
There’s extensive market research and deciding what products are on demand. You have to do this no matter where you want to sell. Calculating your costs is also essential, and everything else is up to you. Maybe you can start on both platforms at the same time.