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Marketplace15 min read

Walmart Is Growing 3x Faster Than Amazon. Most Sellers Still Haven't Listed There.

D
David Vance·Mar 10, 2026
Walmart marketplace growth chart showing 27.2 percent year-over-year growth versus Amazon at 9.6 percent

Open your Amazon Seller Central dashboard. Look at your fees. Look at your payout timeline. Look at your advertising costs. Now look at your profit margin and tell me you are happy with the trajectory.

Everyone complains about Amazon. The fees keep climbing. DD+7 just added another week before you see your money. Advertising costs have doubled in two years. And you are competing against millions of other sellers, including Amazon's own private label brands, for every click.

Meanwhile, Walmart's marketplace is growing at 27.2% year-over-year. Amazon is growing at 9.6%. That is nearly 3x the growth rate. Walmart has 200,000 active sellers. Amazon has millions. The fees are lower. The advertising is cheaper. The competition per listing is a fraction of Amazon's.

And most sellers still have not listed a single product there.

The Growth Numbers Tell the Story

Let me put the growth disparity in context.

Walmart's marketplace added 44,000 sellers in just 5 months in 2025. That is on track for over 100,000 new sellers per year. Sounds like a lot, until you compare it to Amazon, which adds hundreds of thousands of sellers quarterly.

Here is the critical difference: Walmart is growing from a base of 200,000 sellers. Amazon is growing from a base of millions. When Walmart adds 100,000 sellers in a year, it is a 50% increase in competition. When Amazon adds 100,000 sellers, it is a rounding error.

The 27.2% year-over-year growth rate reflects both seller count and gross merchandise volume. More sellers are joining, and the sellers who are already there are selling more. Walmart's marketplace revenue is growing faster than almost every other ecommerce channel in the US.

Amazon at 9.6% growth is not shrinking. It is still adding billions in volume. But it is a mature marketplace. The easy growth is done. The competition is entrenched. The advertising flywheel requires more spend every year to maintain the same visibility. Walmart is where Amazon was five to seven years ago, still early enough that showing up and being competent puts you ahead of most of the field.

Amazon vs Walmart: The Comparison Table

Here is the side-by-side that should inform your decision:

FactorAmazonWalmart
YoY Growth Rate9.6%27.2%
Active SellersMillions~200,000
Referral Fees8-15%6-15%
All-In Cost (fees + fulfillment + storage)15-45%10-25%
Average Advertising Cost (CPC)$1.20-$2.50+$0.40-$1.00
Payout Timeline14-28 days (post DD+7)Biweekly
Fulfillment ServiceFBA (mature, extensive)WFS (growing, improving)
Monthly Seller Fee$39.99/month (Professional)None
Organic Traffic SourceAmazon search + some GoogleWalmart.com + significant Google
Competition Per ListingHigh to extremeLow to moderate
Private Label CompetitionAmazon Basics + hundreds of PL brandsGreat Value (mostly groceries)
Price Parity RequirementInformal (suppressed Buy Box)Enforced (listing suppression)

Look at the advertising row. Amazon CPC averages $1.20 to $2.50+ depending on the category. Walmart CPC averages $0.40 to $1.00. That is 50-70% cheaper per click. In a world where advertising is often the single biggest expense after cost of goods, the difference is enormous.

And look at the monthly seller fee row. Amazon charges $39.99/month just to have a Professional seller account. Walmart charges nothing. Zero monthly fee. You pay referral fees when you sell, not before.

The Fee Advantage Is Real

Amazon's fee structure has become a maze of charges that collectively consume a staggering percentage of your selling price. Let me break down what a typical product actually costs to sell on each platform.

Take a $30 product that costs $10 to source:

Cost ComponentAmazon (FBA)Walmart (WFS)
Referral Fee$4.50 (15%)$3.60 (12%)
Fulfillment Fee$5.40$4.20
Storage Fee (monthly avg)$0.45$0.35
Advertising (est. per unit)$3.00$1.20
Monthly Pro Fee (amortized)$0.10$0.00
Total Platform Cost$13.45$9.35
COGS$10.00$10.00
Net Profit$6.55$10.65
Net Margin21.8%35.5%

Read that last row. The same product, same price, same COGS, and your margin is 13.7 percentage points higher on Walmart. On a $30 product, that is an extra $4.10 in your pocket per unit.

Sell 1,000 units a month and the Walmart fee advantage puts an extra $4,100/month, or $49,200 per year, in your business. That is not a rounding error. That is a salary. That is a new product line. That is the difference between a business that is growing and one that is treading water.

Less Competition Means More Visibility

The math on visibility is straightforward. Amazon has millions of active sellers. Walmart has roughly 200,000. Even accounting for category concentration, the competition per listing on Walmart is dramatically lower.

Here is what that means in practice:

Organic ranking is easier to achieve. On Amazon, ranking on page 1 for a competitive keyword might require hundreds of sales per day, thousands of reviews, and aggressive advertising spend to maintain velocity. On Walmart, many product categories still have listings with fewer than 50 reviews ranking on page 1. The bar is simply lower because fewer sellers are competing.

Advertising is more efficient. Lower CPC is not just about cost: it is about what that cost buys you. On Amazon, a $1.50 click competes with dozens of sponsored results and Amazon's own recommendations. On Walmart, a $0.60 click gets you placement in front of shoppers with fewer alternatives. Your conversion rate per ad dollar is typically higher because there is less noise.

Private label competition is minimal. Amazon competes with its own sellers through Amazon Basics and a growing portfolio of private label brands across dozens of categories. Walmart's private label (Great Value, Equate, etc.) is concentrated in groceries and household consumables. If you sell electronics, home goods, outdoor gear, or specialty products, Walmart is not competing against you with its own branded alternatives.

Buy Box is simpler to win. Amazon's Buy Box algorithm considers price, seller metrics, fulfillment method, and dozens of other factors. It can rotate among multiple sellers on the same listing. Walmart's Buy Box is more straightforward, competitive pricing and strong fulfillment metrics (especially WFS) give you a clear path to winning.

The Walmart Customer Is Different (In a Good Way)

Walmart's online customer base is not the same as Amazon's. Understanding the difference matters for product selection and pricing strategy.

Walmart shoppers tend to be value-conscious but not price-obsessed. They expect competitive pricing but also trust Walmart's brand and curation. They are less likely to compare prices across 10 listings the way Amazon shoppers do. This means slightly less price sensitivity and more willingness to buy from a seller who has good reviews and fast shipping.

Walmart.com also drives significant traffic from Google organic search. Unlike Amazon, which has its own internal search ecosystem, Walmart product pages rank well in Google Shopping and Google organic results. This means your Walmart listing can capture traffic that never even visits Amazon, shoppers who start their product search on Google and land directly on your Walmart listing.

For sellers who have spent years optimizing Amazon listings, this is an important mental shift. Your Walmart SEO strategy should account for Google as a traffic source, not just Walmart's internal search algorithm.

The Walmart Fulfillment Services (WFS) Reality

Let me be honest about WFS. It is not FBA. Not yet.

WFS offers 2-day shipping through Walmart's fulfillment network. Items fulfilled through WFS get the "Fulfilled by Walmart" badge and priority in search results, similar to how FBA items rank higher on Amazon. For core SKUs with consistent volume, WFS works well.

But WFS has limitations:

  • Fewer fulfillment centers, less geographic coverage means some shipments take longer
  • More restrictive product requirements, size and weight limits are tighter than FBA
  • Less mature technology, the WFS seller portal and reporting tools are improving but still behind Amazon's
  • Inventory check-in times can be slower, especially during peak seasons

The practical strategy for most sellers: use WFS for your top 20-30 SKUs (the products with the highest velocity and most predictable demand). Use seller-fulfilled (FBM equivalent) for the long tail. This gives you the WFS badge and ranking boost on your most important products while keeping operational complexity manageable.

WFS is also improving rapidly. Walmart is investing heavily in fulfillment infrastructure. The service today is materially better than it was 12 months ago, and it will be materially better 12 months from now. Early adopters are building relationships with the WFS team and establishing processes that will pay off as the service matures.

The Price Parity Trap

Here is the one thing about Walmart that catches sellers off guard: price parity enforcement.

Walmart requires that your listing price on Walmart.com is not higher than the price on any other channel: including your own website, Amazon, eBay, or anywhere else. If Walmart's automated systems detect a lower price elsewhere, they can suppress your listing or remove the Buy Box.

This means you cannot price lower on Amazon to maintain ranking there and higher on Walmart to capture better margins. Your pricing needs to be consistent across channels, or you need to work within the rules creatively (different bundle sizes, different SKUs, exclusive colorways).

Price parity is not unique to Walmart. Amazon informally enforces it too by suppressing the Buy Box when they detect lower prices elsewhere. But Walmart is more aggressive and more automated about enforcement. Plan for it from day one.

For multichannel sellers, price parity enforcement makes real-time pricing consistency across channels essential. Your Walmart price, Amazon price, Shopify price, and eBay price need to stay aligned. Any tool you use for multichannel management needs to handle pricing synchronization alongside inventory sync.

The Early-Mover Advantage Is Real and Temporary

This is the part that should create urgency.

Walmart's marketplace is adding sellers at an accelerating rate: 44,000 in five months, on track for 100,000+ per year. Every month you wait, more competitors arrive. Every quarter you delay, organic ranking becomes harder to establish.

Early sellers on Walmart establish organic ranking before competition arrives. This is exactly what happened on Amazon in 2014-2017. Sellers who showed up early with decent products, reasonable pricing, and basic optimization dominated their categories for years. The organic ranking they built during the low-competition window compounded over time as the platform grew.

Walmart is in that window right now. The sellers who are listing products, building review counts, and establishing WFS performance metrics today will have a structural advantage over sellers who arrive in 12-18 months to a much more crowded marketplace.

The math is simple: it is easier to rank #1 among 15 competitors than among 150. The competition is going from 15 to 150. The question is whether you will be established when the 150 arrive.

How to Launch on Walmart (Without Losing Your Mind)

Adding a new sales channel is operationally complex. Here is how to do it without creating chaos in your existing business.

1. Start With Your Top 20 SKUs

Do not list your entire catalog on day one. Pick your 20 best-selling products: the ones with the highest margin, strongest reviews on other channels, and most consistent demand. These are your beachhead products. Get them right before scaling.

2. Set Up Inventory Sync Before You List

This is non-negotiable. If you sell a unit on Amazon but your Walmart listing still shows it as available, you will oversell. If you oversell on Walmart, your seller metrics tank. Walmart penalizes sellers aggressively for order defects and cancellations, more aggressively than Amazon in some cases.

You need real-time inventory sync across Amazon and Walmart (and any other channels you sell on) before your first Walmart listing goes live. Nventory handles this automatically, when a unit sells on any channel, inventory counts update across all connected channels within minutes. This is the operational foundation that makes multichannel selling possible without constant manual inventory adjustments.

3. Optimize Listings for Walmart's Algorithm (Not Amazon's)

Walmart's search algorithm is not Amazon's A9/A10. Key differences:

  • Title structure matters differently, Walmart prefers shorter, cleaner titles (50-75 characters) compared to Amazon's keyword-stuffed 200-character titles
  • Product attributes are weighted heavily, fill out every attribute field Walmart offers. Their algorithm uses structured data more than Amazon's
  • Rich media performs well, Walmart's listing pages support enhanced content (similar to A+ Content) and it has a measurable impact on conversion
  • Google SEO matters, because Walmart product pages rank in Google, your listing title and description should be written for both Walmart's algorithm and Google's

Do not just copy-paste your Amazon listings. The sellers who take the time to optimize specifically for Walmart outperform lazy listings by 30-50% in conversion rate.

4. Enroll in WFS for Core Products

Get your top SKUs into Walmart Fulfillment Services. The WFS badge increases conversion rate (just like FBA does on Amazon), and WFS items rank higher in search results. Start with a small shipment to test the check-in process and turnaround time. Scale once you are comfortable with the workflow.

5. Launch Walmart Sponsored Products Ads (But Start Small)

Walmart's advertising platform (Walmart Connect) offers Sponsored Products, Sponsored Brands, and display ads. Start with Sponsored Products on your top SKUs at $20-$50/day per product. The CPC is low enough that you can gather meaningful data without burning through your budget.

Key metrics to track: ACOS (aim for under 25% in the first 30 days), click-through rate (benchmark is 0.5-1.5%), and organic rank improvement (your ad spend should be lifting organic visibility, not replacing it).

6. Monitor Your Seller Scorecard Weekly

Walmart's Seller Scorecard tracks on-time shipping rate, valid tracking rate, cancellation rate, and return rate. These metrics directly affect your Buy Box eligibility and search ranking. The thresholds are strict:

  • On-Time Shipping Rate: above 95%
  • Valid Tracking Rate: above 99%
  • Cancellation Rate: below 2%
  • Return Rate: category-dependent

Do not treat these as aspirational targets. Treat them as hard minimums. Falling below any threshold can result in listing suppression or account suspension. Walmart is less forgiving than Amazon on operational metrics because they are still curating their marketplace more aggressively.

The "But Amazon Is Still Bigger" Objection

Yes, Amazon is still bigger. Obviously. It is the largest ecommerce marketplace on the planet. Nobody is saying you should leave Amazon.

The argument is not Amazon OR Walmart. It is Amazon AND Walmart.

Most multi-marketplace sellers benefit from being on both platforms. Amazon gives you the largest audience. Walmart gives you better margins, less competition, and a growth trajectory that is 3x Amazon's. The combination is stronger than either one alone.

Here is the practical math. Say you do $100,000/month on Amazon at 22% net margin. That is $22,000/month in profit. Now add Walmart at even 20% of that volume, $20,000/month, at 35% net margin. That is $7,000/month in additional profit.

$7,000/month is $84,000/year. From a channel that most of your competitors have not listed on yet. With lower fees, lower advertising costs, and less competition. The only real cost is the operational overhead of managing a second channel, which is minimal with proper inventory sync.

The risk calculation is also important. If 90%+ of your revenue comes from Amazon, you are one account suspension, one policy change, or one algorithm shift away from losing your business. Diversifying to Walmart does not just add revenue. It adds resilience. It means an Amazon disruption does not put you out of business.

What Happens When Walmart Gets Crowded

Walmart's marketplace will get crowded eventually. At 100,000+ new sellers per year, the low-competition window has a finite lifespan. Here is what happens when it closes:

  • Advertising costs rise as more sellers compete for the same placements
  • Organic ranking becomes harder to achieve and easier to lose
  • Fee increases become likely as Walmart gains market power over its seller base
  • Product differentiation matters more as commodity sellers flood categories

This is exactly what happened on Amazon between 2015 and 2023. The sellers who were established before the crowd arrived had organic rankings, review counts, and supplier relationships that newcomers could not easily replicate. The early movers did not just participate in Amazon's growth, they rode it.

Walmart is offering the same opportunity right now. The window is not going to stay open indefinitely. The 44,000 sellers who joined in five months are just the beginning. When Walmart hits 500,000 sellers, probably within 18-24 months, the easy wins will be gone.

Your Walmart Launch Checklist

If you are an Amazon seller who has been thinking about Walmart, stop thinking and start executing. Here is your action plan:

  1. Apply for a Walmart Seller account, approval takes 1-3 weeks. Start now. You need a US business entity, EIN, and W-9
  2. Set up real-time inventory sync, connect your Amazon and Walmart inventory through Nventory or equivalent. Do this before listing products
  3. Select your top 20 SKUs, highest margin, best reviews, most consistent demand
  4. Optimize listings for Walmart's algorithm, shorter titles, complete attributes, rich media. Do not copy-paste Amazon listings
  5. Enroll top SKUs in WFS, ship a test batch, learn the process, scale from there
  6. Launch Sponsored Products ads, $20-$50/day per product, target 25% ACOS
  7. Monitor Seller Scorecard weekly, stay above thresholds from day one
  8. Ensure pricing consistency, match prices across Amazon, Walmart, and any other channels to comply with price parity
  9. Request reviews, Walmart has a Review Accelerator program. Use it. Early reviews compound into organic ranking advantages
  10. Scale gradually, add 10-20 new SKUs per month as you learn the platform's nuances

The Bottom Line

Everyone is complaining about Amazon. The fees are too high. The payouts are too slow. The competition is too intense. The advertising costs are eating the margin. All of that is true. And none of it is going to change.

Walmart's marketplace is growing at 27.2%. The fees are lower. The advertising is cheaper. There are 200,000 sellers instead of millions. The fulfillment service is improving rapidly. The customer base is massive and increasingly shopping online.

This is not a speculative play on an unproven platform. Walmart is the largest retailer on the planet. Their ecommerce business is growing faster than anyone else at scale. The marketplace is a strategic priority for the company, backed by billions in infrastructure investment.

The sellers who list on Walmart this quarter will be the ones who are established, ranked, and profitable when the crowd arrives next year. The sellers who wait will be starting from zero in a marketplace that is 50-100% more competitive than it is today.

You know what it felt like to start on Amazon in 2020, competing against sellers who had been there since 2015. Do not put yourself in that position again.

Walmart's marketplace is the clearest seller opportunity in ecommerce right now. The numbers say so. The fees say so. The growth rate says so. The only remaining question is whether you will show up before your competitors do.

Frequently Asked Questions

Walmart's marketplace is growing at 27.2% year-over-year compared to Amazon's 9.6%: roughly 3x the growth rate. Walmart crossed 200,000 active sellers and added 44,000 sellers in just 5 months in 2025, putting it on track for 100,000+ new sellers per year. Amazon has millions of sellers. The growth trajectory strongly favors Walmart for sellers looking for less competition.

Yes, significantly. Walmart's referral fees range from 6-15% depending on the category. Amazon's all-in costs (referral fees plus FBA fees plus storage fees plus advertising) typically run 15-45% of the selling price. Walmart also has lower advertising costs than Amazon because there is less competition for ad placements. For many product categories, the fee difference alone adds 10-20% to your effective margin.

Walmart enforces price parity, you cannot list a product cheaper on another channel (including your own website) than you list it on Walmart. If Walmart detects a lower price elsewhere, they can suppress your listing or remove the Buy Box. This means you need to price consistently across channels or risk losing visibility on Walmart.

WFS is growing but not as mature as FBA. It offers 2-day shipping through Walmart's fulfillment network, and WFS items get priority in search results similar to how FBA items rank higher on Amazon. However, WFS has fewer fulfillment centers, more limited product size restrictions, and less geographic coverage than FBA. For many sellers, WFS works well for core SKUs while FBM handles the long tail.

Walmart pays sellers biweekly: every two weeks on a set schedule. Amazon post-DD+7 now takes 14-28 days for payouts. Walmart's payout timing is more predictable, though not as fast as Shopify (1-3 days) or eBay (1-2 days). For cash flow planning, Walmart's biweekly schedule is easier to work with than Amazon's variable timeline.

You need real-time inventory sync to prevent overselling. When a unit sells on Amazon, the count needs to update on Walmart within minutes, and vice versa. Walmart's price parity rules also mean pricing needs to stay consistent. Tools like Nventory provide real-time sync across both platforms, automatically adjusting inventory counts and helping you avoid overselling when you add Walmart as a new channel.