Should I sell on Amazon or Walmart?

A guest blog by VAA

Should I sell on amazon or Walmart?

It’s the age of convenience. Transacting in today’s eCommerce market is definitely faster, easier, and more hassle-free than ever before. And you have online shopping platforms to thank for that. So a question you might be asking yourself is should I sell on amazon or Walmart? Or maybe both?!

The biggest online marketplace is Amazon, with a networth of a whooping $1.3 trillion. You’d expect nothing less from:

9,700,000 sellers
300,000,000 active global customer accounts
200,000,000 unique monthly visitors

But Amazon wouldn’t be sitting too comfortably on its throne. Its rising nemesis is on its way to the top as well—Walmart.

Walmart joined the online scene as early as 2009, but it is only in the fourth quarter of 2019 that its sales soared by 43%, that is, $138,800,000,000 or $2,500,000,000 more than the previous one. This feat can be attributed to its:

150,000 sellers
120,000,000 unique monthly visitor

It would be smart for you to use the popularity and credibility of these platforms to your advantage. But if you’re still contemplating on where to sell, here are some key aspects to think about so you can make an informed decision:

Cost of Selling Plan

Using the features of the platform comes with a price. You need to pay to play!

For Walmart, there is no monthly subscription fee, but you have to pay a referral fee every time you actually sell an item (which is usually 15% of the selling price).

For Amazon.com, on the other hand, the cost depends on what selling plan you choose. If you register an individual account, like in Walmart, you don’t have to pay any monthly subscription fee, but you have to pay $0.99 per item that you sell. Meanwhile, if you register a professional account, you have to pay a monthly subscription fee of $39.99. In both accounts, depending on the category, your sale will still be subject to a referral fee.

Registration

If you want to sell online… between the two, Amazon is more welcoming to beginner-level sellers. It allows international stores to register and sell on its platform. As long as you have the following, you’re about good to go:

Government-issued National ID
Tax Information (SSN)
Internationally Chargeable Credit Card
Bank Account Number
Bank Routing Number
Phone number

Walmart is the total opposite. Its stringent registration process only caters to more established brands, and only those US-registered businesses. The following are the minimum qualifications that you must possess before you can register with Walmart:

Business Tax ID(s) (not SSN) or Business License Number
W9 / W8 & EIN Verification Letter issued by the Department of Treasury that verifies US business address / place of physical operations
History of eCommerce success or marketplace
Walmart Fulfillment Services (WFS) / B2C US warehouse with returns capability
Products with GTIN/UPC GS1 Company Prefix Numbers
Compliance with Walmart Prohibited Products Policy

Onboarding

Amazon offers a simpler onboarding process for new sellers. You just have to select a selling plan, set up your Seller Central account, and then you can proceed to creating your product listings.

As mentioned earlier, Walmart’s process is more stringent. You first have to send an application and undergo a “trust and safety” review which can last up to several weeks. After getting accepted, you’ll still have to do more steps as instructed by Walmart before you can create your listings. Moreover, every listing must comply with the Unique Product Code (UPC) requirement.

Traffic

Because of Amazon’s openness to sellers of all levels, the marketplace is swamped with around 9.7 million sellers selling more than 12 million products worldwide. It’s the perfect online shopping center for around 200 million monthly visitors. You can only expect the traffic, and consequently, the competition among sellers.

In this aspect, Walmart is more advantageous to sellers because of its rigorous screening process. There are less sellers on the platform which leads to less competition as well.

Shipping and Fulfillment

If you want to sell on Amazon or Walmart you’ll need a shipping plan. Both Amazon and Walmart offer in-house shipping and fulfillment options. Amazon’s FBA (Fulfillment by Amazon) charges you with multiple fulfillment fees while Walmart’s WFS (Walmart Fulfillment Services) only charges you for the product weight.

Let’s summarise!

With all these considerations, it can be confusing and stressful to choose whether to sell on Amazon, Walmart, or both.

Both Amazon and Walmart are major players in the e-commerce space and offer platforms for you as sellers to reach a wide customer base; and of course diversify your business portfolio. However, keep in mind that the differences, specific features and policies for each platform are constantly changing, so it’s essential to check their current offerings before making any decisions.

Amazon vs Walmart understand the differences to grow your business

(VAA) are dedicated to help eCommerce sellers like you focus on scaling your business both in Amazon and Walmart. Want to know how to sell in Amazon or find ways to streamline your business? Get in touch.

About VAA

Being Amazon sellers themselves, Gilad and Hila Freimann established VAA in 2019 to address the needs of Amazon sellers for expert and professional assistance in their day-to-day operations. They select their Virtual Assistants for their proven skills and experience and train them to gain the expertise to match the sellers’ needs.

The company expanded to cater Walmart sellers as well, acknowledging the rising potential of the market.

VA Services

VAA currently offers the following services:

Get in touch

If you’ve been at a Scaleforetail event you might have met Gilad already, if not here’s how you can contact their team.

If you’re not sure which service is right for you, of or if have any questions, you can reach VAA here or communicate directly with its CEO through:

Gilad Freimann | Contact Email: service@vaaphilippines.com

A guest blog by VAA