Selling on Walmart vs. Amazon: The Ultimate Comparison
Are you ready to step into the e-commerce world but torn between two giants, Walmart and Amazon? We’re here to help you navigate through the maze of online selling and make an informed choice. Let’s dive into the fascinating world of these two online marketplaces, each with its unique strengths and quirks.
Walmart vs. Amazon: A Clash of Titans
Before we delve into the nitty-gritty of selling on Walmart and Amazon, let’s get to know these heavyweights.
General Overview of The Walmart
Walmart, founded in 1962 by Sam Walton, started as a small venture in rural Arkansas. With a commitment to quality, affordability, and exceptional customer service, it rapidly rose to prominence. Walmart’s expansion journey took it to international shores, including Mexico, Canada, China, Germany, and the UK. In 1999, it became the world’s largest private employer, eventually dethroning Exxon Mobil as the world’s largest corporation in 2000.
General Overview of The Amazon
Amazon’s story began in 1994 in a humble garage, initially as an online bookstore. However, it didn’t stop there; Amazon ventured into diverse markets like clothing, homewares, and entertainment. With Amazon Prime and Amazon Music, it became a dominant name in the entertainment industry. The company’s foray into Amazon Web Services (AWS) and grocery retail with AmazonFresh further solidified its reputation. Amazon Kindle and Prime Wardrobe also found their place in the sun, making Amazon a versatile giant.
Selling on Walmart
Amazon considers Walmart a formidable rival, and that’s a testament to Walmart’s potential. Let’s take a closer look at selling on Walmart, complete with its pros and cons.
Pros
- Spark Reviewer Program: Gain visibility with positive product reviews from Spark Reviewers.
- Low Selling Fees: Walmart’s referral fees are competitive, and there are no hidden charges.
- Less Competition: With fewer active sellers than Amazon, you have a better chance to stand out.
Cons
- Reviews Matter: Negative reviews can impact your product’s visibility.
- Strict Pricing Policy: Adhering to Walmart’s pricing policy is crucial.
- Smaller Customer Base: Walmart has fewer visitors compared to Amazon, so targeting your audience is essential.
Pros and Cons of Selling on Amazon
Amazon is a retail giant, but it also has its own set of advantages and disadvantages.
Pros
- Vast Customer Base: With millions of active online shoppers, you have a wide audience.
- Worldwide Expansion: Sell in over 150 countries and reach a global market.
- Low Marketing Costs: Boost your visibility with Amazon PPC at a reasonable cost.
Cons
- Intensive Competition: Amazon is highly competitive, requiring a solid long-term strategy.
- Expensive Selling Fees: Amazon has various fees that can eat into your margins.
- Order Management: Managing orders from different platforms can be challenging.
Selling on Walmart vs. Amazon: A Side-by-Side Comparison
Now, it’s time for a head-to-head comparison between selling on Walmart and Amazon. Let’s break it down:
- Seller Registration: Walmart vs. Amazon
- Walmart’s registration process involves six steps, including an application and business proposal.
- Amazon’s process is shorter, with identity verification and an in-person verification video call.
Winner: Amazon’s registration process is more seller-friendly.
- Selling Fees: Walmart vs. Amazon
- Walmart charges a referral fee between 8% and 15%.
- Amazon has a subscription fee, referral fees, and additional costs for some categories.
Winner: Walmart has lower selling fees overall.
- Market Share: Walmart vs. Amazon
- Walmart holds a 5% share of e-commerce sales, valued at $43 billion.
- Amazon dominates with a 40% share and sales of $469.8 billion.
Winner: Walmart offers a less saturated market.
- Fulfillment Services: Walmart vs. Amazon
- Amazon provides Fulfillment by Amazon (FBA), offering storage, packing, and shipping services.
- Walmart relies on sellers to manage shipments, returns, and customer care.
Winner: Amazon’s FBA program provides a comprehensive fulfillment solution.
In conclusion, your choice between Walmart and Amazon depends on your business needs, budget, and market saturation. Both have their strengths, and understanding them is key to your success in the world of e-commerce.
