Companies may struggle to determine which of the two rival marketplaces, Walmart or Amazon, will sell most of their products. It's like choosing between a furious rodeo ride and a white-knuckle roller coaster for your order fulfillment process. The good news is that you cannot pick between two options. This article will contrast Walmart Marketplace, which provides a hassle-free approach, and the benefit of Walmart's two-day delivery with Amazon FBA, renowned for its strong logistics and fulfillment network, and Amazon Prime's customer benefits. We'll clear up frequent misunderstandings and offer helpful information to assist you in making an informed decision. By understanding the distinct features and considerations of Walmart Fulfillment Service (WFS) and Amazon FBA, you may utilize one platform at once or select the one that best meets your eCommerce goals.
Learn About Walmart Services and Amazon Fulfillment
WFS and FBA can help sellers streamline fulfillment by providing storage, packaging, shipping, and customer service. This allows them to focus on product setup and marketing, among other essential business functions.
Amazon Fulfillment
The FBA was released in 2006, and sellers can store products on the Amazon Mass Network. We will release Amazon's stock, select and package orders, release products, and handle returns and customer services. As part of Amazon Prime's customer perk, items fulfilled by Amazon are immediately eligible for expedited shipping.
Walmart Fulfillment Services
WFS debuted in 2020 and provides a practical option for vendors on the Walmart Marketplace. WFS's fulfillment centers receive merchants' merchandise, while Walmart manages order processing, storage, delivery, and returns. This hassle-free process and the advantage of Walmart's Two-Day delivery for products sold through WFS ensures a seamless experience for sellers and customers.
I. Fee Structures-
Understanding the fee structures of both services is essential for sellers to maintain profitability.
Fulfillment Fees:
- Amazon FBA: The fulfillment cost depends on the product's weight and size. As of 2024, a 12- or 16-ounce unit costs $4.75.
- Walmart WFS: On the other hand, it offers a cost-effective solution, especially for heavier items. For a 12-16 ounce product, Walmart charges a competitive $3.45 per unit, making it a prudent choice for sellers looking to maximize their profits.
Storage Fees:
- Amazon FBA: Seasonally, storage costs range from $0.87 per cubic foot from January to September to $2.40 per cubic foot during the busiest months of October through December.
- Walmart WFS: WFS charges the same storage fee of $0.75 per cubic foot throughout the year without any seasonal increase.
Referral Fees:
- Amazon FBA: Referral fees and extra expenses for advertising and storage are just a few of the costs that sellers must factor in. Depending on the product category, Amazon usually receives between 6% and 15% of each sale as referral fees.
- Walmart WFS: Referral fees fall between 6% to 15%. This is upon the category that falls.
II. Requirements for the Sellers and Onboarding-
Amazon FBA:
- Opening Registration for Sellers: Amazon holds open registration, which allows multiple sellers to register on the website. According to their requirements, sellers can choose between the Individual plan, which costs $0.99 -$1 per sold item, the Professional plan, which costs $39.99 - $40.00 monthly, or any other plan.
- Product Shipment: Sellers must transport their goods to several Amazon Warehouse sites, which can be challenging and increase delivery expenses. For items to reach Amazon's warehouse, FBA requires certain packing and labeling standards, which can be time-consuming and difficult.
Walmart WFS:
- Walmart Application: The process for WFS is straightforward and selective, favoring experienced sellers and requiring only a few essential business documents. The best part? WFS does not charge monthly subscription fees, providing sellers with a sense of reassurance about their investment.
- Inventory Shipment: The sellers ship their inventory to one Walmart fulfillment center, eliminating shipping charges and making everything much easier to manage.
III. Fulfillment Network and Shipping
Amazon FBA:
- Fulfillment Centre's: Amazon has more than 2K distribution centers worldwide, including 150 in the US and 185 overseas. Thus, It is a significant force in the global economy.
- Shipping: With Amazon Prime, customers may get free two-day shipping on any item they buy from Amazon.
Walmart WFS:
- Walmart has more than 4.7K stores in the United States, 210 distribution centers, and e-commerce fulfillment centers.
- Shipping: Walmart caters to clients who want faster shipping by offering two-day delivery for WFS goods.
IV. Multi-Channel Fulfillment
Amazon FBA:
- One of Amazon's fulfillment services is MCF, which includes everything related to order fulfillment, including choosing, packing, storing, and shipping items. Customers who place purchases through platforms other than Amazon stand to gain the most from this service, which uses the extensive fulfillment provided by the Amazon FBA network.
Walmart WFS:
- Multi-Channel Fulfillment: By 2024, Walmart will also offer multi-channel fulfillment. This will enable sellers to use WFS to fulfill orders from other channels, allowing streamlined operations across multiple sales channels.
V. Customer Base and Market Reach
Amazon FBA:
- Customer Base: Amazon readily welcomes a demographically diversified and vastly spread-out customer base, with most of them being Prime subscribers who want quick delivery.
- Market Share: This portal has highly significant e-commerce shares and helps online sellers access a massive market share.
Walmart:
- Walmart caters mainly to price-sensitive consumers. Its loyal customers are middle-income families looking for affordable goods and speedy delivery. Walmart Marketplace also increases its e-commerce insight by using its massive store base to fulfill orders online.
- While smaller than its Amazon counterpart, Walmart's online marketplace has shown significant growth in investments in technology and logistics. This growth presents an early opportunity for sellers to benefit from Walmart's growing online influence, offering a promising outlook for the future.
VI. Shipping Speed and Customer Experience
Shipping speed has become a more significant factor in customer satisfaction and conversion.
Amazon FBA:
- Amazon Prime offers fast and reliable shipping.
- Most Prime products are received within two business days or the same business day in specified areas.
- FBA's robust logistics network ensures that the product is delivered promptly throughout the US, improving the customer experience.
- Customer service issues and returns with FBA-fulfilled orders can be handled through Amazon, easing the process of sellers.
Walmart WFS:
- WFS provides two-day delivery at Walmart, making it a good selling point.
- Walmart is large, with plenty of stores and distribution centers ensuring quick shipping, sometimes rivaling Amazon Prime.
- Like in Amazon, the company takes responsibility for customer service and return handling on an order made under WFS, simplifying a seller's role in after-sales support.
VII. Brand Visibility
Amazon FBA
- The Amazon "Prime" badge boosts the visibility and appeal of such products to shoppers.
- Sellers have less control over branding. Products shipped through Amazon FBA are packaged in Amazon's packaging, and Amazon's customer-centric policies surpass the sellers' brands.
Walmart WFS:
- Walmart's Fulfillment services brand all products as "Sold and Shipped by Walmart, " which builds trust with buyers.
- It creates more room to view the product through brand names for the Walmart policy.
- Walmart has a lower saturation rate than Amazon. Thus, one can easily show one's product in one category or another, if not globally.
VIII. Return and Customer Services
Amazon FBA:
While it offers customer-friendly returns, Amazon facilitates the return process for FBA-ordered products, which helps sellers after the sale. However, moderation in its return policies sometimes means higher return rates and costs for the seller.
Walmart WFS:
Walmart can accommodate all returns for WFS orders with policies almost identical to Amazon's. However, unlike Amazon's rigid policies, Walmart's returns process is often more flexible for sellers. The huge store-based network offers returns in-store, making the process convenient for buyers.
Advantages and Disadvantages of Walmart-WFS and Amazon FBA
Advantages of Walmart WFS:
1. Lower fulfillment and storage fees for heavier items.
2. Less saturated marketplace, offering sellers more visibility.
3. Trust built with Walmart's brand name and "TwoDay Delivery" badge.
4. Ability to leverage Walmart's physical stores for multi-channel fulfillment.
5. More control over branding and product listings.
Disadvantages of Walmart WFS:
1. Smaller customer base compared to Amazon.
2. Stricter seller application process.
3. Limited international reach (mostly U.S.-focused).
Pros of Amazon FBA:
1. Millions of Amazon Prime subscribers are available.
2. Global reach with an established logistics network.
3. Prime badge increases product visibility and conversions.
4. Amazon manages customer service & returns with simplicity.
Cons of Amazon FBA:
1. Higher fees, especially for smaller items.
2. Amazon branding on all packages removes the seller's identity.
3. Strict policies and possible suspension of accounts by sellers.
How to Choose the Best Fulfilment Service for E-commerce Company?
Several aspects of your e-commerce business will determine whether you sell on Amazon or Walmart. Knowing each platform's distinctive features is essential for making the best decision, as they serve various sellers and goods.
1. Product Type:
- WFS's lower fulfillment fees may be more beneficial if you sell heavier items.
- If your products are lightweight and in competitive categories, then fulfillment by Amazon might be the better option.
2. Target Market:
- Be mindful to utilize FBA if your target audience does most of their shopping on Amazon.
- If your customers are price-sensitive and go to Walmart more frequently, WFS may be more viable.
3. Branding Needs:
- The Amazon fulfillment process diminishes opportunities for customized branding.
- Walmart offers more control in the presentation of brands.
4. International Availability:
- Amazon's international reach is better than that of Walmart. That makes it ideal for global vendors.
- Walmart primarily operates within the United States.
Future of WFS and FBA: 2025 and Beyond
Walmart WFS:
- Walmart invests significantly in its e-commerce infrastructure by implementing multi-channel fulfillment solutions, faster delivery, and AI-driven inventory management.
- WFS will continue growing as more people seek alternatives from Amazon.
Amazon FBA:
- The e-commerce company is expanding its logistics network; therefore, Amazon is also increasing its same-day delivery services.
- Amazon prioritizes sustainability and cutting down on wasteful packing.
Amazon FBA vs. Walmart WFS (2025) - Which one to choose?
E-commerce merchants may profit significantly from both Amazon Fulfilment and Walmart Fulfilment Services. Your target market, product categories, and company goals will determine your best option.
- Choose Walmart WFS if:
- You want lower fees for heavier items.
- You prefer less competition and more visibility on a growing platform.
- You want to leverage Walmart's trusted brand name.
- Choose Amazon FBA if:
- You must have worldwide access to a sizable consumer base.
- You sell products that perform well under Amazon Prime.
- You prioritize fast shipping and customer service.
A multi-channel fulfillment strategy might be the best way to succeed in 2025. To be on the safe side, consider Amazon FBA to diversify your presence across platforms and maximize sales potential. If you have any questions or want to know more about Amazon FBA—the Best Fulfillment Service provider—Contact Us !!
