Both marketplaces offer distinct advantages and limitations, making it crucial to understand them.

It can be tough for brands to navigate which of the two rival marketplaces, Walmart or Amazon, their products will sell best on. It's like choosing between a wild rodeo ride and a white-knuckle roller coaster for your order fulfillment process. However, the good news is that you have options, and it's not an all-or-nothing choice. In this article, we'll provide a side-by-side comparison of Walmart Marketplace's WFS and Amazon's FBA, debunk common myths, and offer valuable insights to help you make an informed decision.

By understanding the unique features and considerations of WFS and FBA, you can determine whether it's advantageous to use one platform exclusively, leverage both simultaneously, or select the platform that aligns best with your eCommerce goals.

First things first, FBA has been around for a whopping 14 years longer than WFS, but Walmart is gaining ground quickly. In May of 2023, Walmart reported a 27% growth in eCommerce sales domestically due largely to expedited pickup and delivery options. Amazon also reported growth of 9% in Q1, but also holds a ~30% market share over the giant, according to Statista.

Let's get into the quick-hitter differences and similarities between the two below:

When it comes to the number of sellers, Amazon takes the lead with an impressive 1.5 million active sellers, whereas Walmart Marketplace has around 150,000 sellers. This means that on Amazon, your product will face more competition, especially for general searches and broad categories. It may require a stronger advertising strategy to stand out from the crowd.

Becoming a seller on Amazon is relatively straightforward - all you need to do is create an Amazon Seller Account and choose your plan. No proof of business or selling experience is required and it usually takes around 24 hours to be approved.

However, the process for Walmart is more involved and favors experienced sellers. They have specific qualifications you must meet to join the marketplace, including a valid Business Tax ID or Business License Number, supporting documents to verify your business name and address, a history of marketplace or eCommerce success, products with GTIN/UPC GS1 Company Prefix Numbers, and compliance with Walmart's Prohibited Products Policy. Additionally, fulfillment through Walmart Fulfillment Services (WFS) or another B2C U.S. warehouse with returns capability is required. Once you send in your application, it could take anywhere from 2-4 weeks to be approved.

Walmart leverages its physical footprint to provide a superior eCommerce shopping experience. Customers have the convenience of picking up and returning products at Walmart stores, even if they were purchased as online exclusives. This advantage is particularly significant for customers living in rural areas where UPS, Whole Foods, or Amazon Hub locations, Amazon’s preferred return methods, may not be easily accessible.

Walmart.com also offers a seamless shopping experience with no barriers to buying products. Customers qualify for free shipping without requiring a membership or meeting a minimum order value. In contrast, Amazon requires a Prime membership to qualify for free shipping.

Choosing between Walmart Fulfillment Services (WFS) and Fulfillment by Amazon (FBA) depends on your business goals, target audience, and budget. Consider factors such as proximity to your target market, the scale of your operations, and the platform's specific requirements.

To optimize your WFS and FBA operations, partnering with a trusted third-party logistics (3PL) provider, like Nice Commerce, can be a smart move. A 3PL offers expert guidance on compliance, streamlines product prepping to align with platform guidelines, manages freight effectively, and provides stockout protection through advanced inventory systems and proactive monitoring.

Still unsure which option is best for you eCommerce business or need more information? We're here to help! Hit us up HERE, slide into our DM’s on Instagram, or give us a call at (843) 266-7560 (yes, for real and someone will answer!) Our experienced team would love to help you make informed decisions and maximize the potential of your WFS or FBA strategy.