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Choosing Between Amazon and Walmart Marketplace

In the ultra-competitive world of eCommerce, every decision you make echoes into your future.

Few decisions are as pivotal or as misunderstood as choosing the right Walmart marketplace to launch, grow, or scale your brand. Amazon & Walmart Marketplace are two titans.
Both offer incredible opportunities.
Both come with their own set of hidden challenges.

The question isn’t just “Which is bigger?” it’s:

Which platform aligns best with your brand’s DNA, Amazon advertising agencies India your operational strengths & your long-term vision?

This guide is designed by RootAMZ Amazon advertising agencies India to take you far beyond surface-level comparisons.
It’s a deep, brutally honest exploration of the real-world differences between Amazon & Walmart from a seller’s perspective so you can make a decision based on strategy, not guesswork.

Whether you’re a new seller navigating your first steps or an established brand ready to expand your empire, this guide will empower you to choose (& master) the marketplace Amazon advertising agencies India that gives you the highest odds of lasting success.

Why Your Marketplace Choice Is a Business Model Decision Not Just a Sales Channel

When sellers first start researching platforms, they often think:

“Amazon has more traffic, so I should start there.”
“Walmart has less competition, so maybe that’s easier.”

Both ideas are partially true.
Both are dangerously incomplete.

What most sellers fail to realise is that your choice of marketplace is a strategic business model decision. connect Amazon advertising agencies India for boost your sales over eCommerce marketplace.

✅ It determines the kind of customers you attract.
✅ It shapes how you must operate day-to-day.
✅ It dictates the pace (& risks) of your growth.

In other words, you aren’t just choosing a website to list your products.
You’re choosing an ecosystem that will fundamentally shape how your business survives & bscales.

Selling on Amazon: The World’s Largest Digital Mall & the World’s Fiercest Battlefield

No platform in history has transformed eCommerce quite like Amazon.
It’s no exaggeration to say Amazon invented many of the customer expectations brands must live up to today: 2-day shipping, frictionless returns, one-click buying.

But with that leadership comes enormous pressure on sellers.
Selling on Amazon is both a privilege & a challenge of the highest order.

Let’s break it down.

Amazon’s Strengths: Why It’s Still the Go-To for Many Brands partner Amazon advertising agencies India

1. Jaw-Dropping Demand at Your Fingertips

At any given moment, more than 65% of U.S. Amazon sellers list their products on Amazon. This means your products are instantly in front of highly motivated, wallet-in-hand buyers. You aren’t creating demand you’re capturing it.

Case Example:
A small home goods brand launched a kitchen & toilet gadget on Amazon with just a $11,000 inventory order. Thanks to optimised listings & Sponsored Products campaigns, they hit $125,000 in revenue within six months, with zero outside traffic. That’s the power of Amazon advertising agencies India built-in demand.

2. The Prime Ecosystem: Your Conversion Secret Weapon

Amazon Prime customers spend 76% of their time on Amazon, as per to 14% on non-Prime online marketplaces. If you qualify for Prime through FBA, you immediately tap into this high-converting audience. Think of Prime eligibility as a trust badge customers immediately recognise.

Without Prime, you’re fighting an uphill battle.
With Prime, you’re riding the rocket ship.

3. FBA: Scale Without Growing Your Warehouse

Fulfillment by Amazon (FBA) is not just a logistics service. It’s a growth multiplier.

With FBA:

Your products are eligible for Prime shipping.
Amazon handles customer service & returns.
You win higher Buy Box percentages.
You avoid needing your own 3PL or in-house fulfillment staff.

Stat to know:
FBA sellers, on average, sell 3.5x more products than non-FBA sellers. FBA shifts you from being a warehouse manager to being a true brand builder.

4. World-Class Advertising, Branding & Analytics Infrastructure

Amazon advertising agencies India gives brands unprecedented control over their customer journey if they know how to use the tools:

Sponsored Products let you drive sales from day one.
Sponsored Brands help you achieve similar recognition at the top 5 of the funnel.
A+ Content & Brand Stores allow you to create rich, immersive experiences.
Brand Analytics (available to Brand Registered sellers) reveal customer behavior insights you can’t get anywhere else.

In short: Amazon isn’t just where you sell products it’s where you grow your brand equity.

Amazon’s Challenges: The Hidden Costs & Pressures Every Seller Must Face choose Amazon advertising agencies India for Boost Amazon sales.

For all of its upsides, Amazon is not a utopia for sellers.

The platform demands:

Relentless operational excellence
Constant advertising investment
Unwavering attention to policy compliance

Here’s what to watch out for.

1. Hyper-Competition at Every Turn

There’s no such thing as an “easy” niche on Amazon anymore.

Even if you launch with a differentiated product, competitors (often from overseas manufacturers themselves) can & will copy successful products within months, sometimes weeks.

Example:
A premium outdoor gear brand launched a unique camping stove & saw massive early success, only to be undercut by low-cost replicas within six months, stealing 40% of their listing traffic.

Lesson:
On Amazon, you must defend your brand like a castle under siege with better branding, stronger listings, airtight reviews & innovation.

2. Rising Costs & Margin Pressure

Running an Amazon business in 2025 means watching your numbers like a hawk.

FBA fees increase annually.
Referral fees average 15% of each sale.
PPC advertising costs (CPCs) are rising 10-15% YoY.
Storage fees penalise slow-moving inventory.

If you don’t have precise margin management including landed costs, contribution margin after ads & lifetime value tracking you’ll scale revenue but lose profit.

Many sellers fall into the trap of thinking:

“Sales are up, so we’re doing great!” But when they dig into their P&L, they discover they’re losing money on every unit sold.

3. Seller Suspensions & Policy Risk

Amazon is ruthlessly buyer-centric. That means sellers can be penalised or even suspended for issues like:

Higher-than-average return cost.
Negative review spikes
Late shipments (if self-fulfilling)
Suspected intellectual property violations (even if unfounded)

And suspensions aren’t “timeouts” they can cripple cash flow instantly.

Smart sellers build:

Ironclad SOPs (Standard Operating Procedures)
Backup sales channels
Proactive review monitoring

Survival Tip: On Amazon, hope is not a strategy. Preparedness is.

Selling on Walmart Marketplace: The Rising Challenger Sellers Can No Longer Ignore

If Amazon is a crowded superhighway, Walmart Marketplace is a fast-growing, less congested road but one that demands more navigation skill.

Walmart’s eCommerce sales surpassed $100 billion in 2024.
This is not a small side hustle for Walmart anymore it’s a strategic corporate priority.

And that means huge opportunities for smart sellers.

Walmart’s Strengths: Why It’s a Smart Strategic Play?

1. Less Competition, More Breathing Room

With fewer sellers on Walmart, it’s much easier to:

Rank organically for keywords
Win the Buy Box without aggressive discounting
Build lasting customer relationships

Example:
An apparel brand struggled to break into Amazon’s saturated activewear market. When they launched on Walmart.com, they ranked on page 1 for core terms within 45 days, with far less ad spend than they needed on Amazon.

Result:
They built a six-figure monthly channel with much healthier margins.

2. Deep Brand Trust & Omnichannel Flexibility

Walmart’s brand reputation especially for everyday essentials gives sellers a leg up in customer trust. Plus, Walmart’s 4,600+ U.S. stores offer omnichannel fulfillment options like:

Free curbside pickup
Same-day local delivery
In-store returns

Sellers who lean into omnichannel strategies (especially BOPIS integration) can gain an unbeatable advantage Amazon can’t replicate yet.

3. Lower Fees = Higher Profit Potential

Walmart doesn’t charge a monthly fee to list products. Referral fees are competitive (6 -15%) & WFS (Walmart Fulfillment Services) pricing is often slightly cheaper than FBA.

For high-volume or low-margin sellers, this fee structure can be game-changing.

4. Responsive, Seller-Friendly Support

Walmart’s seller support team is different, hands-on & reachable, similar to Amazon’s automated, bureaucratic support maze.

Having a real human who can solve issues is invaluable, especially when scaling quickly.

Walmart’s Challenges: Be Ready to Work for Your Success

1. Stringent Approval Standards

Walmart wants experienced sellers. If you’re brand new to eCommerce, expect a rigorous vetting process.

You’ll need:

Strong DTC website or Amazon sales history
Reliable shipping systems
Competitive pricing commitments

If you pass the bar, you gain access to a platform that genuinely wants you to succeed.

2. Evolving Fulfillment Infrastructure

While WFS is growing rapidly, it’s still not quite as mature as FBA.

Sellers must carefully vet:

Inventory turnaround times
Shipping zone coverage
Return handling policies

Scaling at Walmart requires proactive supply chain management not just “ship it & forget it” tactics.

Conclusion: Smart Sellers Won’t Choose Just One They’ll Master Both

In 2025, the real winners in eCommerce won’t be Amazon or Walmart-only brands.
They’ll be multi-channel brands who understand each platform’s strengths, limitations & customer expectations & tailor their strategies accordingly.

✅ Amazon = Velocity, scale & branding at the mass-market level.
✅ Walmart = Margin protections, omnichannel access & strategy brand trust worthy.