Walmart WFS vs. Amazon FBA: Which Is the Best Option for Your Brand in 2025?

To make the best decision for your business, it’s important to recognize the strengths and limitations of both marketplaces.

Last Updated: April 30, 2025 – Information reflects the latest fulfillment fees and platform policies.

Choosing between Walmart Marketplace (WFS) and Amazon (FBA) in 2025 isn’t a simple decision. Each platform offers distinct advantages for eCommerce brands—and where your products perform best depends on factors like your audience, pricing strategy, and operational goals. Success isn’t one-size-fits-all, and understanding the differences is key to making the right move for your brand.

The good news? You don’t have to bet everything on just one marketplace. In this article, we’ll break down a fresh side-by-side comparison of Walmart Fulfillment Services (WFS) and Fulfillment by Amazon (FBA), clear up common misconceptions, and share critical insights to help you craft the fulfillment strategy that best fits your brand’s goals.

By understanding the strengths, limitations, and evolving seller landscapes of WFS and FBA, you’ll be better equipped to decide whether to invest fully in one platform, strategically leverage both, or build a customized, diversified fulfillment plan for long-term success.

Industry Updates for 2025

Amazon Marketplace remains the giant, with 2.4 million active sellers and over 60% of sales fulfilled via FBA.

Walmart Marketplace is projected to hit 200,000+ sellers by mid-2025, up from ~150,000 in 2024.

Walmart is investing heavily in its supply chain tech, while Amazon is expanding its “Buy with Prime” and regional same-day delivery hubs.
Both platforms are increasing enforcement of compliance policies and product listing standards.

Amazon continues to be the marketplace to beat, delivering over 9 billion packages worldwide in 2024.

Walmart Fulfillment Services vs. Fulfillment by Amazon

Category	Walmart Fulfillment Services (WFS)	Fulfillment by Amazon (FBA)
Number of Sellers / Marketplace Size	160,000+ active sellers and 150+ million U.S. shoppers	1.9 million active sellers and 310+ million global users (210 million in the U.S.)
Seller Qualifications	Application required; must provide U.S. business documents; favors experienced sellers	Create an Amazon Seller account easily; no proof of experience required
Monthly Fees	None.	Individual Plan: $0.99/unit Professional Plan: $39.99/month
Standard Storage Fees	Q1–Q4: $0.75/cu ft +$1.50 per cubic foot for items stored 30+ days	Q1–Q3: $0.78/cu ft Q4: $2.40/cu ft
Fulfillment Fees	Starts at $3.45/unit.	Starts at $3.06/unit.
Referral Fees	5%-15% per item sold	8%-20% per item sold
Number of Fulfillment Centers	40+ eCommerce fulfillment centers 4,700 Walmart stores + 210 distribution centers (U.S.)	175+ fulfillment centers (U.S.) 2,000+ distribution centers worldwide
Receiving	Must ship from within the U.S.; no direct international shipments Only need to ship to one fulfillment center.	Accepts international shipments as long as products have labels. You have to ship inventory to multiple fulfillment centers.
Prep Services	Polybagging: $0.60/unit Item Labeling: $0.45/unit An extra $0.20 for products that don't meet standards.	Polybagging: $0.70/unit Item Labeling: $0.55/unit An extra $1.99 for products that don't meet standards.
Labeling Requirements	GTIN, UPC, or EAN (no FNSKU)	UPC + FNSKU
Nationwide Coverage	Yes	Yes
Cross Border Selling	Not yet available	Available
Free Customer Shipping	Free shipping without membership fees or minimum orders.	Free shiping to Prime Members only.
Return Options for Customers	Free 30-90 day returns, regardless of membership, unless noted otherwise. Can return in-store, for free through FedEx, or schedule a pickup from your home.	Free 30 day return for Prime Members, unless noted otherwise. Can return via UPS, Whole Foods, Khols, or Amazon Hubs.

With access to Walmart’s growing logistics network and 4,600+ local stores, WFS enables reliable doorstep delivery and seamless returns for eCommerce sellers.

Comparing FBA and WFS

1. Seller Base and Competition

Amazon FBA:

When it comes to the number of sellers, Amazon continues to dominate with approximately 1.9 million active sellers globally.

This means that on Amazon, your products will face significantly more competition, particularly in broad, high-demand categories where standing out often requires a well-funded advertising and SEO strategy.

Walmart WFS:

Walmart’s Marketplace has expanded to around 160,000 active sellers in 2025.

While significantly lower than Amazon’s seller base, Walmart’s Marketplace remains less saturated, offering brands a greater opportunity to gain visibility with less paid promotion—especially in niche or emerging product categories. However, Walmart’s stricter onboarding and quality standards mean sellers must maintain high performance to stay competitive.

Winner: If you’re looking to get first page visibility for your products, your odds are better with Walmart, which provides the least amount of competition amongst sellers.

2. Seller Qualifications

Amazon FBA:

Getting started on Amazon is quick and easy — simply create a Seller Account, pick a selling plan, and you can be approved in as little as 24 hours with no proof of business experience required.

Walmart WFS:

Walmart, on the other hand, has a more selective process. To sell on Walmart Marketplace, you’ll need a registered U.S. business, a valid Business Tax ID, a proven history of eCommerce success, products with valid GTIN/UPC codes, and compliance with Walmart’s policies. Approval typically takes 2–4 weeks, and you must be ready to fulfill orders through Walmart Fulfillment Services (WFS) or another U.S.-based warehouse.

FBA Requirements	WFS Requirements
Active Amazon seller account	U.S. warehouse and U.S.-based business
UPCs and compliant listings	Must ship inventory to WFS warehouse
Meets performance metrics	Only approved categories allowed

Winner: Getting started on Amazon's seller platform is significantly easier compared to Walmart's.

As of 2025, Walmart’s Marketplace hosts approximately 160,000 active sellers.

3. Fees

Monthly Subscription Fees

Walmart WFS: No monthly subscription fee.
Amazon FBA: Offers two pricing plans:
- Individual Plan: $0.99 per item sold
- Professional Plan: $39.99/month for unlimited sales

Winner: Walmart, with no monthly subscription cost, is more accessible for new or low-volume sellers

Fulfillment Fees

Amazon FBA: Starts around $3.22 per unit
Walmart WFS: Starts around $3.45 per unit

Winner: Amazon offers a slightly lower entry point. However, fulfillment fees on both platforms depend on product size, weight, and category. It's essential to use each platform’s 2025 fee calculator for accurate estimates based on your product specs.

Storage Fees

Walmart WFS: $0.75 per cubic foot (year-round)
Amazon FBA: $0.78 per cubic foot (off-peak)

During the October-December Amazon does enforce Q4 holiday surcharge rates which spikes storage to $2.40 per cubic foot.

Winner: Walmart WFS offers consistently lower storage fees, particularly during peak seasons.

Referral Fees

Referral fees are a percentage of each sale and vary by product category.

Walmart WFS: 6%–15%, averaging 12.43%
Amazon FBA: 8%–20%, averaging 13.04%

Key differences:

Walmart only charges referral fees on the product’s retail price
Amazon charges based on the combined price, shipping, and giftwrap

Winner: Since Walmart's referral fee only applies to the product's retail price, you'll pay less than Amazon, who applies a referral fee to the combined retail price, shipping, and giftwrap costs.

WFS vs. FBA Fee Breakdown Example:

Need an apples-to-apples fee comparison for selling on Walmart vs. Amazon?

Below, we break down the cost of selling the same product on each platform to see which platform would charge us more a seller.

Product: 1 lb tub of collagen peptides powder
Retail Price: $34.99
Dimensions: 6” × 4” × 4”
Stored for: 22 weeks
Quarter: Q2 2025

Fee Category	Amazon FBA	Walmart WFS
Fulfillment Fee	$4.55	$4.95
Referral Fee	$6.00	$5.25
Poly Bag (optional)	$0.70	$0.60
Item Label (Optional)	$0.55	$0.45
Monthly Storage	$0.04	$0.04
Aged Inventory (22 Weeks)	$0.03	None
Monthly Subscription Fee	$39.99/month (professional plan)	Free
Total Cost	$11.87 + subscription	$11.29

Winner: While Amazon FBA offers slightly lower fulfillment fees, Walmart WFS provides better value overall, especially when factoring in storage rates, subscription savings, and referral fee structure. For sellers focused on margin retention and long-term scalability, WFS presents a compelling alternative to Amazon.

Amazon has over 175 fulfillment centers in the U.S and 200+ fulfillment centers globally.

4. Receiving Products and Fulfillment Centers

Amazon FBA
Amazon continues to offer greater flexibility by accepting international shipments, provided products meet labeling and compliance requirements. However, Amazon does require sellers to split shipments and send products to multiple fulfillment centers, which can increase inbound shipping costs and complexity.

Amazon maintains a massive fulfillment network, with:

Over 175 fulfillment centers in the U.S.
200+ fulfillment centers globally
Supported by more than 2,000 distribution hubs worldwide

Walmart WFS

Walmart only accepts shipments from within the contiguous United States. However, their inbound process is significantly simpler by allowing sellers to ship their entire inventory to a single fulfillment center, where Walmart then handles the distribution across its network.

Walmart’s fulfillment network, while smaller, is rapidly expanding with:

40+ dedicated eCommerce fulfillment centers
Over 210 distribution centers across the U.S.
Additionally, Walmart’s 4,600+ retail stores serve as strategic nodes for returns and local fulfillment, offering a strong advantage for reaching customers in suburban and rural areas where Amazon’s return locations may be less accessible.

Winner: If you’re looking for a larger fulfillment network with international support, Amazon has Walmart beat by a mile—but at the cost of more logistics on the seller’s end.

5. Customer Experience

Walmart WFS
Walmart continues to leverage its vast network of physical stores to create a seamless eCommerce experience. Customers can easily pick up and return online orders at any of Walmart’s 4,700+ store locations, even if the products were purchased exclusively online. This in-person convenience is a major advantage—especially for rural customers who may not have easy access to Amazon’s return partners.

Walmart.com also offers a frictionless shopping experience. Customers benefit from free shipping on eligible orders without needing a paid membership.

Amazon FBA
Thanks to its massive distribution network, Amazon delivers wow-worthy speeds for Prime members—including free same-day delivery in many major cities. Few competitors can match Amazon’s shipping timelines. However, customers must maintain an active Prime membership (currently $135/year) to unlock free Prime shipping benefits.

For returns, Amazon has built a wide network of partners—including Kohl’s, Whole Foods, and UPS—to make the process fast, easy, and free. By leveraging these storefront partnerships to collect returns in bulk, Amazon eliminates the need for individual packaging and labels, streamlining the process and delivering a more convenient, customer-friendly experience.

Winner: For rural shoppers, Walmart takes the lead by combining its physical store network with strong online infrastructure—filling gaps where Amazon’s logistics network may fall short.

However, for customers in major urban areas, Amazon wins with its ability to offer free same-day and one-day delivery for Prime members—a game-changer for those who expect ultra-fast fulfillment.

WFS vs. FBA: Which marketplace do you choose to sell your online products?

The right fulfillment partner ultimately depends on your brand’s priorities. If you’re focused on lower costs, simplified operations, and less marketplace competition, Walmart Fulfillment Services (WFS) may be the better fit. On the other hand, if your priority is scale, speed, and access to Amazon’s large customer base, Fulfillment by Amazon (FBA) offers unmatched reach—though at a higher cost and greater operational complexity.

Ultimately, both platforms have strengths. Consider what matters most to your business: cost efficiency, fulfillment speed, platform competition, or international support. Align your choice with your long-term growth strategy.

How Can a 3PL Fulfillment Partner Help?

Partnering with a third-party logistics provider can help ecommerce brands with:

Faster product prep and execution,
lower operational costs, and
improved compliance across multiple marketplace channels.

Brands that leverage 3PL support often reduce prep and labeling expenses, avoid compliance-related penalties, and gain access to scalable fulfillment infrastructure.

The team at Nice Commerce has helped numerous brand partners navigate the platform-specific requirements of both WFS and FBA with services that are often more cost-effective than marketplace-run programs, like FBA, offering better control over margins without sacrificing quality.

If you're stuck evaluating the right marketplace move for your eCommerce brand, our team is always down to talk shop and problem solve with you. Reach out to get the conversation started!