Amazon vs. Walmart: Where Should You Be Selling in 2025?

The battle between Amazon and Walmart Marketplace continues to heat up, and for ecommerce sellers, choosing the right platform can make or break success. While both offer massive audiences and growth potential, they cater to different types of sellers and business models. In this article, we break down the key differences and help you determine which is the best fit for your brand in 2025.

Amazon Marketplace: The Ecommerce Giant

Amazon dominates online retail, capturing over 37% of U.S. ecommerce sales (Statista, 2024). With its vast customer base, advanced fulfillment network, and strong advertising tools, Amazon is an attractive option for many sellers.

Pros:

• Massive Audience: Over 200 million Prime members worldwide, ensuring a steady stream of potential customers (Amazon, 2024).

• Fulfillment by Amazon (FBA): Hands-off storage, shipping, and customer service with fast Prime shipping.

• Robust Advertising & SEO Tools: Sponsored ads and A9 algorithm optimization help brands increase visibility (Jungle Scout, 2024).

• Diverse Product Categories: Almost any product can find a niche on Amazon.

Cons:

• High Competition: Saturated marketplace with many sellers competing for the same customers.

• Fees & Costs: FBA, referral fees, and advertising expenses can cut into margins.

• Strict Policies: Amazon’s ever-changing policies and risk of account suspension can be challenging for sellers (Marketplace Pulse, 2024).

Walmart Marketplace: The Growing Contender

Walmart has aggressively expanded its online marketplace, offering a strong alternative to Amazon. With its brick-and-mortar presence and a reputation for competitive pricing, Walmart attracts a different customer base.

Pros:

• Lower Competition: Fewer third-party sellers mean a better chance to stand out (eMarketer, 2024).

• Competitive Fees: No monthly seller fee, lower referral fees than Amazon in many categories (Walmart Seller Center, 2024).

• Omnichannel Advantage: Integration with Walmart’s in-store pickup and delivery services.

• Trust & Brand Loyalty: Walmart customers often prioritize affordability and reliability.

Cons:

• Strict Approval Process: Sellers must apply and be approved, making entry more challenging (Walmart, 2024).

• Limited Product Categories: Certain categories, such as luxury and high-end electronics, have less traction.

• Fewer Advertising Options: Walmart’s ad tools are improving but still not as robust as Amazon’s.

Which Marketplace is Right for You?

Go with Amazon if you want access to the largest online audience, rely on FBA, or sell products in highly searched categories.

Choose Walmart if you prefer lower competition, sell competitively priced products, or want to leverage Walmart’s in-store ecosystem.

Sell on both if you want to diversify and reduce reliance on a single platform.

Final Thoughts

In 2025, both Amazon and Walmart offer unique opportunities for sellers. The best choice depends on your product type, pricing strategy, and business goals. Many successful brands are diversifying across both platforms to maximize reach and reduce risk. If you're looking to expand, consider testing both marketplaces and tracking performance to see which delivers the best ROI for your business.

Need help optimizing your marketplace strategy? Contact DATA DOGS for expert insights!

About the Author: Alex Thalacker is an experienced e-commerce consultant specializing in SEO, cross-platform selling, and digital strategy. With a passion for helping businesses scale and thrive in the competitive online marketplace, DATA DOGS offers tailored solutions to unlock growth and profitability.

📩 Have questions or ready to take your e-commerce business to the next level? Reach out at alex@fetchdatadogs.com.

References:

Amazon. (2024). Prime Membership Growth Report.

eMarketer. (2024). Walmart's Ecommerce Expansion.

Jungle Scout. (2024). Amazon Seller Trends.

Marketplace Pulse. (2024). Amazon Marketplace Policies.

Statista. (2024). U.S. Ecommerce Market Share.

Walmart. (2024). Walmart Marketplace Seller Guidelines.

Walmart Seller Center. (2024). Fee Structure and Policies.