Amazon vs. Walmart: Battle of the E-Commerce Giants

In the world of e-commerce, two giants dominate the conversation: Amazon vs. Walmart. While Amazon has long held the title of the global leader in online retail, Walmart has steadily grown its e-commerce presence, leveraging its massive brick-and-mortar footprint and reputation for affordability. For sellers, understanding the dynamics between these platforms is essential to choosing the right channel—or combination of channels—for growth.

Let’s break down the key differences between Amazon and Walmart’s e-commerce ecosystems, and what they mean for your business.

The Scale of Amazon vs. Walmart E-commerce

Amazon’s dominance in e-commerce is unmatched, with an estimated 37.8% market share in the U.S. in 2024, compared to Walmart’s 6.3%. However, Walmart’s e-commerce growth trajectory is significant. Walmart has doubled down on expanding its marketplace, offering sellers more opportunities to tap into its 120 million monthly visitors.

Amazon: With its established reputation as the “everything store,” Amazon attracts a massive, global audience. It’s often the first stop for online shoppers, particularly for convenience-driven purchases.
Walmart: Walmart’s e-commerce strategy focuses on competitive pricing and fast delivery. Its combination of online and in-store services—like curbside pickup—makes it a strong contender for value-conscious shoppers.

Seller Experience: Amazon vs. Walmart

1. Marketplace Features

Amazon: Offers robust tools like Fulfillment by Amazon (FBA), which simplifies logistics and enhances delivery speed with Prime benefits. However, Amazon’s competitive nature means sellers face tight profit margins, high fees, and constant price wars.
Walmart: Walmart Marketplace has fewer sellers, offering lower competition than Amazon. Walmart also has stricter requirements for seller approval, ensuring a higher standard of product quality.

2. Fees and Costs

Amazon: Charges referral fees (usually 8–15%) and fulfillment fees for FBA. These costs add up but are justified by Amazon’s reach and efficiency.
Walmart: Walmart’s fees are generally lower, with no subscription fee for sellers and referral fees in a similar range to Amazon. Sellers looking to maximize profitability may find Walmart more appealing.

3. Fulfillment Services

Amazon: FBA remains the gold standard for fulfillment, offering seamless integration, Prime shipping eligibility, and vast warehouse capacity.
Walmart: Walmart Fulfillment Services (WFS) is Walmart’s answer to FBA. While newer, WFS is gaining traction, offering comparable logistics solutions with the added benefit of in-store inventory integration.

Customer Demographics

Understanding customer preferences on these platforms can help sellers tailor their strategies:

Amazon Shoppers: Tend to prioritize convenience and speed. Many are loyal Prime members willing to pay more for fast shipping and exclusive perks.
Walmart Shoppers: Are often value-conscious and may prefer to buy in bulk or combine online purchases with in-store pickups to save on shipping costs.

For sellers of budget-friendly or essential items, Walmart can be a better match. Meanwhile, Amazon is ideal for reaching a broader audience with diverse needs.

Walmart’s Strength in Omnichannel Retail

One of Walmart’s biggest advantages is its omnichannel strategy. Walmart’s extensive network of physical stores allows it to offer services like:

Curbside Pickup and Delivery: Customers can order online and pick up in-store, combining the convenience of e-commerce with the immediacy of in-person shopping.
In-store Returns for Online Purchases: A seamless return process encourages more purchases and builds customer loyalty.

Amazon has made strides in omnichannel retail with its Whole Foods acquisition and growing Amazon Fresh presence, but Walmart’s entrenched physical presence gives it a distinct edge in this area.

Choosing the Right Platform for Your Brand

For sellers deciding between Amazon and Walmart—or exploring both—here are a few factors to consider:

1. Product Type

Amazon: Best for niche products, luxury items, and categories with high demand.
Walmart: Ideal for essentials, bulk items, and products targeting cost-sensitive shoppers.

2. Competition

Amazon: High competition means standing out requires significant investment in ads and competitive pricing.
Walmart: Lower competition gives new sellers a chance to shine, but it’s crucial to meet Walmart’s high standards.

3. Growth Potential

Amazon: Offers international reach and diverse audiences, making it ideal for scaling globally.
Walmart: Growing rapidly in e-commerce, particularly in grocery and everyday goods, making it a strong choice for domestic expansion.

Final Thoughts

Amazon and Walmart each bring unique strengths to the table, and the best choice depends on your brand’s goals, products, and resources. For many sellers, a hybrid approach — leveraging Amazon for reach and Walmart for value-conscious shoppers — can maximize revenue and diversify risk.

At Rebelution, we specialize in helping brands navigate these e-commerce giants. Whether you’re looking to scale on Amazon, break into Walmart Marketplace, or optimize both, our team has the tools and expertise to help you succeed.

Ready to dominate the e-commerce game? Contact us today and let’s make it happen.