Why You Should Sell on Walmart over Amazon in 2021

Why You Should Sell on Walmart over Amazon in 2021

Why selling on Walmart marketplace is better than on Amazon

Amazon and Walmart are the two leading online shopping platforms. Walmart is one of the retailers that have tried to take on Amazon in a bid to chip away at Amazon's online dominance. However, the difference contrast between the two eCommerce giants is notable. While Amazon enjoys the biggest share of all eCommerce sales at about 40 percent, Walmart's marketplace generates a little over 5 percent of all online sales.  

Although Walmart comes in at a distant second and nowhere close to the success Amazon has enjoyed in online shopping, we shouldn't be too quick to dismiss the retail giant chain just yet when it comes to online sales. Walmart has more than tripled its eCommerce sales since it acquired Jet.com in 2016. Over the last three years, Walmart has also invested heavily in improving its online sales operations. The results are beginning to show now. Their most significant addition, Walmart+, is not only providing a competitive aspect but also giving the consumer the additional online shopping option.

While there are several ways to sell your products online, all eCommerce platforms have their pros and cons, with some more successful than others. Selling across different channels will allow you to tap into the pros of each one of the platforms. However, focusing on a single online shopping site will let you get the most out of the platform. Some analysts are predicting that by 2022, Amazon will surpass Walmart as the leading retailer. Others have a contrary opinion and are championing the latest gains that Walmart has made in eCommerce. 

As the COVID-19 pandemic has highlighted the risk of over-relying on an Amazon platform with a higher number of Chinese than U.S. sellers, sellers have also begun paying more attention to Walmart Marketplace. It can be challenging deciding whether to sell on Walmart or Amazon. This is because the two platforms are in very different developmental stages, and each of Amazon and Walmart offers its sellers unique advantages. 

Here, we'll cover the competition aspect of both marketplaces. We'll also explore what sellers should expect from each platform.

Competition: Walmart vs. Amazon

Even though it is a smaller marketplace with less competition, Walmart is still an attractive selling platform with lots of potential. The website receives 87 million unique visitors each month, only third to Amazon and eBay. Walmart is everywhere; they have about 5,000 stores in the U.S. that can double as fulfillment centers or pickup locations which is massive compared to Amazon's 200 North American warehouses. Walmart has a brick-and-mortar store within 10 miles of 90% of Americans. Despite having a market cap of about $230 Million, half Amazon's market cap, Walmart could soon surpass eBay as the second-largest eCommerce retailer in the U.S.

While Walmart has several thousands of sellers, Amazon boasts over 2 million merchants worldwide, making it the reigning champion of online shopping. However, the high number of merchants means that sellers have to adopt a creative strategy to stand the competition on Amazon by building their reputation through messaging optimization or by offering top-notch customer service.

On the other hand, Walmart gives sellers the chance to stand out in its unsaturated marketplace. So, although Amazon offers consistently higher traffic, 187M unique monthly visits, it is massive and well-established, making it more competitive.

While Walmart has a steep barrier to entry, it is easy to become an Amazon seller. The benefit of having a strict seller registration policy is that Walmart has fewer sellers, 50,000 third-party sellers, which means less competition. Fewer third-party vendors mean less competition for the Buy Box and Ad Placements on Walmart Marketplace, giving sellers a great chance of standing out. By now, it is an open secret that many sellers on Amazon struggle with stiff competition. On Amazon, to stand apart from the competition, a seller needs to invest in the business to get more eyes on their products and generate sales. 

With the high level of competition on Amazon, sellers need to improve the quality of their product listings to gain traction, generate traffic, and make sales.  On Amazon, no traffic means no sales.  Some of the listing improvements that can be done on Amazon include monitoring and adjusting keywords, filling up all image slots, allocating an advertising budget, etc. 

Overall, Walmart marketplace gives an exciting opportunity to eCommerce sellers. As a seller, you'll enjoy far less competition on Walmart, and the launch of Walmart+ will only offer a better chance at sellers. New sellers who focus on Walmart will likely get higher sales revenue and reviews before the inevitable wave of competition arrives as another wave of third-party vendors flock to the marketplace.

Leave a comment

Please note, comments must be approved before they are published