Why Walmart Marketplace Is the #2 Opportunity for Amazon Brands
If your brand sells on Amazon but hasn't expanded to Walmart Marketplace, you're leaving significant revenue on the table. Walmart's online marketplace has experienced explosive growth, with third-party seller GMV increasing by over 30% year-over-year and the platform now hosting more than 150,000 active sellers across hundreds of categories.
What makes Walmart Marketplace especially compelling for Amazon sellers is the lower competition relative to demand. While Amazon hosts nearly 10 million third-party sellers, Walmart's marketplace is still relatively uncrowded - meaning your products face fewer competitors for customer attention. Early movers who establish strong listings and advertising strategies now will build competitive moats that become harder to overcome as the marketplace matures.
Walmart also brings something Amazon cannot: a massive physical retail footprint. With over 4,700 US stores and 240 million weekly customer visits (in-store and online combined), Walmart offers omnichannel exposure that pure e-commerce platforms can't replicate. Marketplace sellers increasingly benefit from this halo effect as Walmart integrates online and in-store shopping experiences.
For brands already succeeding on Amazon, Walmart Marketplace represents the clearest path to diversifying revenue and reducing platform dependency - a strategic imperative in an era where algorithm changes or policy shifts on any single platform can dramatically impact your business.
Walmart vs. Amazon: Key Differences
While Walmart and Amazon are both product search engines at their core, the differences in how they operate are significant enough that copy-pasting your Amazon strategy to Walmart will underperform. Here's what you need to know:
Algorithm Differences
Walmart's search algorithm weighs factors differently than Amazon's A10 algorithm. While both consider relevance, sales velocity, and pricing, Walmart places notably more emphasis on price competitiveness and shipping speed. Products offering the best value proposition relative to the search query tend to rank higher on Walmart than they might on Amazon, where review count and advertising spend carry more weight.
Fee Structure
Walmart charges referral fees similar to Amazon (typically 6-15% depending on category) but does not charge monthly subscription fees for marketplace sellers. There are no FBA-equivalent storage fees if you self-fulfill. For sellers using Walmart Fulfillment Services (WFS), fulfillment fees are generally competitive with or slightly lower than FBA. This fee advantage can meaningfully improve margins, especially for lower-priced products.
Fulfillment Options
Walmart offers two primary fulfillment paths: Walmart Fulfillment Services (WFS) and seller-fulfilled shipping. WFS provides two-day shipping tags, which significantly improve search visibility and conversion rate - similar to Amazon's Prime badge effect. Unlike FBA, WFS has historically offered more flexible storage policies with lower long-term storage fees.
Advertising Platform
Walmart Connect (Walmart's advertising platform) is less mature than Amazon Advertising but is growing rapidly. It offers Sponsored Search (keyword-targeted ads in search results), Sponsored Brands, and Display advertising. CPCs on Walmart Connect are generally 30-50% lower than equivalent Amazon ad placements, offering better ROAS for brands willing to invest early in this growing channel.
Getting Approved: Application Requirements and Timeline
Unlike Amazon, which allows virtually anyone to create a seller account, Walmart has a more selective application process. This selectivity is actually an advantage - it maintains marketplace quality and reduces the race-to-the-bottom pricing dynamics common on more open platforms.
Application Requirements
- US Business Tax ID (EIN) and W-9 form
- Business address verification (US warehouse or fulfillment center)
- Demonstrated e-commerce experience (existing Amazon or DTC presence strengthens your application)
- Product catalog that meets Walmart's quality and category standards
- Ability to meet Walmart's shipping and customer service performance standards
- GTIN/UPC codes for all products
Application Timeline
The application process typically takes 2-4 weeks from submission to approval. After approval, account setup, product listing, and integration can take an additional 1-3 weeks depending on catalog size and complexity. Working with an experienced Walmart marketplace partner can streamline this process significantly.
Brands with strong Amazon track records (high seller ratings, established brand presence) tend to receive faster approvals. Having your Brand Registry, professional product photography, and optimized listings ready before applying demonstrates seriousness and accelerates the process.
Walmart Fulfillment Services (WFS) vs. Self-Fulfillment
Choosing the right fulfillment strategy is one of the most consequential decisions you'll make on Walmart Marketplace.
Walmart Fulfillment Services (WFS)
WFS is Walmart's answer to FBA. You ship inventory to Walmart's fulfillment centers, and they handle picking, packing, shipping, and customer service for those orders. Key advantages include:
This is where most brands get stuck. Book a call to see how we can help.
- Two-day and three-day delivery tags that improve search ranking and conversion
- Walmart handles returns processing
- Products become eligible for Walmart+ free shipping (Walmart's equivalent of Prime)
- Generally lower fulfillment fees compared to FBA for comparable items
Self-Fulfillment
Self-fulfilling orders gives you more control over packaging, branding, and the customer experience. It's a viable option if you have an established 3PL operation that can meet Walmart's shipping performance standards (95%+ on-time shipping rate). However, self-fulfilled listings don't receive the coveted delivery speed tags, which can hurt both visibility and conversion rate.
For most brands, the recommendation is clear: start with WFS for your top-selling SKUs to maximize search visibility and conversion, while self-fulfilling slower-moving items or products that require special handling.
Listing Optimization for Walmart's Search Algorithm
Optimizing listings for Walmart requires understanding how its algorithm differs from Amazon's. While the fundamentals of good listing content apply universally, the tactical details matter. Amazon listing optimization can help you achieve these goals.
Product Titles
Walmart recommends titles of 50-75 characters - significantly shorter than Amazon's typical 150-200 character titles. The format should be: Brand + Product Name + Key Attributes (size, count, color). Avoid keyword stuffing, which Walmart's algorithm penalizes more aggressively than Amazon's.
Key Features and Descriptions
Walmart allows up to 10 key features (compared to Amazon's 5 bullet points) with up to 1,000 characters each. Use clear, benefit-driven language and incorporate relevant keywords naturally. The product description supports up to 4,000 characters and should be comprehensive, well-formatted, and keyword-rich.
Product Attributes
Walmart's Listing Quality Score heavily weights product attribute completion. Fill in every applicable attribute field - color, size, material, pattern, age group, gender, and category-specific attributes. Complete attribute data significantly improves search ranking and filter visibility.
Rich Media Content
Walmart's equivalent of A+ Content is called Rich Media. Brand Registered sellers can create enhanced product pages with additional images, comparison charts, and branded content. While the tooling is less mature than Amazon's A+ builder, Rich Media delivers meaningful conversion improvements and is worth investing in for your top SKUs.
Walmart Connect Advertising
Walmart Connect has evolved from a basic search advertising platform into a sophisticated multi-format advertising ecosystem. Understanding its current capabilities is essential for maximizing your Walmart Marketplace success.
Sponsored Search
Keyword-targeted ads that appear in search results - functionally similar to Amazon Sponsored Products. These are your bread-and-butter campaigns for driving sales on Walmart. Use both automatic and manual campaigns, and apply the same keyword research and negative keyword discipline you use on Amazon. Amazon PPC management services can help you achieve these goals.
Sponsored Brands
Banner-style ads at the top of search results featuring your brand logo, multiple products, and a custom headline. These are valuable for brand awareness and category conquest, though they require higher spend thresholds than Sponsored Search.
Display and Brand Amplifier
Walmart's display advertising reaches shoppers across Walmart.com, the Walmart app, and Walmart's broader digital properties. Brand Amplifier campaigns are specifically designed for brand awareness and consideration, targeting shoppers based on browsing behavior and purchase history.
One unique advantage of Walmart Connect: closed-loop attribution. Because Walmart can connect online ad exposure to both online and in-store purchases, you get attribution data that no other advertising platform can match.
Pricing Strategy: Walmart's Price Parity Requirements
Pricing on Walmart Marketplace requires careful attention because of Walmart's price parity policies and its algorithm's sensitivity to pricing.
Price Parity
Walmart monitors your product prices across other marketplaces and your own DTC website. If Walmart's algorithm detects that your product is priced significantly higher on Walmart than elsewhere, it may suppress your listing or remove the Buy Box. This doesn't mean your price must be identical everywhere - but it needs to be competitive.
The Pricing-Ranking Connection
Walmart's algorithm explicitly factors price into search ranking more heavily than Amazon does. Competitively priced products rank higher, receive more visibility, and convert better. When setting your Walmart pricing strategy, consider your fee savings versus Amazon and pass some of that savings into more aggressive pricing.
Price Leadership
Walmart's brand identity is built on value and low prices. Products that align with this positioning - offering genuine value relative to the category - receive algorithmic advantages. This doesn't mean being the cheapest; it means offering clear value that resonates with Walmart's customer base.
Common Mistakes Brands Make When Expanding to Walmart
After helping hundreds of brands expand to Walmart, patterns emerge. Avoid these common pitfalls:
- Copy-pasting Amazon listings: Walmart's algorithm, character limits, and customer expectations differ. Listings need to be customized for the platform, not duplicated.
- Ignoring Listing Quality Score: Walmart's LQS directly impacts search visibility. Low scores - caused by missing attributes, poor images, or incomplete content - kneecap your rankings before you even start advertising.
- Underinvesting in advertising: Many brands add products to Walmart but don't invest in Walmart Connect. Without advertising to drive initial sales velocity, organic ranking is nearly impossible to build.
- Treating Walmart as secondary: Brands that allocate minimal resources to Walmart get minimal results. Treat it as a primary channel with dedicated attention, budget, and strategy.
- Pricing above Amazon: Given Walmart's price sensitivity, pricing your products higher on Walmart than Amazon is a recipe for suppressed listings and lost Buy Box.
- Neglecting performance metrics: Walmart closely monitors seller performance (on-time shipping, cancellation rate, return rate). Poor performance leads to account restrictions. Ensure your fulfillment operation meets standards before scaling.
How to Manage Both Marketplaces Simultaneously
Running both Amazon and Walmart successfully requires coordination, not duplication. Here's a framework for multi-marketplace management:
Unified Inventory Management
Use an inventory management system that syncs stock levels across both platforms to prevent overselling. If you use FBA and WFS simultaneously, you'll need to allocate inventory strategically between the two fulfillment networks based on sales velocity on each platform.
Platform-Specific Optimization
While your brand messaging should be consistent, your listing content and advertising strategy should be customized for each platform. Keyword importance, title structure, and advertising tactics differ enough that platform-specific optimization delivers significantly better results than a one-size-fits-all approach.
Consolidated Reporting
Build reporting that gives you a unified view of multi-marketplace performance - total revenue, total advertising spend, combined TACOS, and channel-specific KPIs. This holistic view enables better budget allocation decisions across platforms.
Why Work with a Walmart Marketplace Agency
Walmart's marketplace has its own learning curve, and the stakes of getting it wrong - suppressed listings, poor seller metrics, wasted ad spend - are significant. our detailed Walmart marketplace agency guide covers the full evaluation criteria. An experienced agency like Marknology brings platform-specific expertise that accelerates your time to profitability and helps you avoid costly mistakes.
Marknology has managed Walmart Marketplace accounts for brands across dozens of categories, bringing the same data-driven rigor that has made them a leader in Amazon management. Their multi-marketplace approach ensures your Amazon and Walmart strategies work together rather than competing for internal resources.
With a 93% client retention rate and a 90-Day Growth Guarantee, the team is confident in their ability to deliver results on Walmart. View case studies or get in touch to discuss your Walmart expansion.
Frequently Asked Questions
How much does it cost to sell on Walmart Marketplace?
Walmart Marketplace has no monthly subscription fee - you only pay referral fees on completed sales (typically 6-15% depending on category). If you use Walmart Fulfillment Services, additional fulfillment fees apply (comparable to or slightly lower than FBA). This pay-as-you-sell model makes Walmart lower-risk to test than platforms with monthly subscription costs.
Can I sell on both Amazon and Walmart simultaneously?
Yes, and most successful brands do exactly that. There are no exclusivity requirements on either platform. The key considerations are inventory allocation between fulfillment networks, maintaining price competitiveness across both platforms, and ensuring your operational capacity can handle orders from both channels.
How long does it take to start generating sales on Walmart?
Most brands see initial sales within 2-4 weeks of listing activation, with meaningful revenue building over 60-90 days as listings gain organic ranking and advertising campaigns optimize. Brands that invest in WFS fulfillment and Walmart Connect advertising from launch see faster results than those that take a passive approach.
Is Walmart Marketplace worth it for small brands?
Yes, particularly because lower competition means small brands can achieve visibility that would require much larger budgets on Amazon. Walmart's selective application process also means you're competing against fewer sellers. If your products offer genuine value and you can meet Walmart's performance standards, the platform is viable for brands of all sizes.
What's the biggest difference between selling on Amazon and Walmart?
The biggest operational difference is Walmart's emphasis on pricing and fulfillment speed as ranking factors. The biggest strategic difference is competition density - Walmart's marketplace has roughly 60-70% fewer sellers than Amazon in most categories, meaning advertising costs are lower and organic ranking opportunities are greater. However, Walmart's total marketplace GMV is also smaller, so expect lower absolute volume with potentially better margins.
Need help selling on Walmart Marketplace?
Marknology handles Walmart strategy, advertising, and fulfillment end-to-end. See our Walmart services →
Drew Morgans
Founder & CEO, Marknology • 15+ Years on Amazon • 300+ Podcast Episodes
Drew founded Marknology in 2015 from a spare bedroom in Kansas City. Today his team manages $2B+ in Amazon revenue across 46+ active brands. He hosts the Startup Hustle podcast (223+ episodes) and speaks at Amazon Accelerate, Prosper Show, and Seller Sessions.
Read Drew's Story →Ready to Grow Your Amazon Business?
Get a free, no-obligation audit from the team behind $2B+ in managed revenue.
Book Your Free Audit30 minutes • No contracts • No obligation
Ready to grow your brand? Book your free strategy call with the Marknology team today.
Related Articles
- → TikTok Shop for Brands: How to Build a Profitable Sales Channel in 2026
- → Amazon Agency Services: Everything You Need to Know
- → 3PL and Fulfillment: Scaling Your E-Commerce Logistics
- → Amazon FBA Guide: Everything You Need to Know About Fulfillment by Amazon
Need expert help growing your Amazon business? Marknology is a full-service Amazon agency with in-house 3PL fulfillment. We've helped 300+ brands generate over $200M in marketplace revenue. Learn more about our services.
Ready to grow your Amazon business?
Marknology has managed over $2 billion in Amazon revenue for 300+ brands since 2015. See what we do or get in touch.