Differences Between Selling on Amazon & Walmart
Differences Between Selling on Amazon & Walmart
As we know that Amazon and Walmart both are big platforms for online retailing. Let’s discuss some basic differences between them.
1) Seller competition
To become a seller, firstly you have to register yourself as a seller. The seller registration process is much easier for an Amazon seller account than compared to a Walmart seller account.
For Amazon, you can register anytime to sell and have a product listed within a couple of days. But for Walmart, you first need to apply and wait to be approved before you can sell. The policy and requirements for selling on Walmart are much stricter compared to Amazon’s.
First, you need to apply to be a seller, but for this, you must have a registered business in your state plus a US business Tax ID. The SSN will be accepted by Amazon, but not by Walmart.
The best thing is that with this hard process for seller registration there are fewer sellers to compete with. For now, Walmart has approximately 33,000 sellers. So there is less competition but in the case of Amazon’s, there are 2 million sellers available as a result the competition is much higher in this case.
2) Monthly Subscription
Let’s come to the subscription plan for both of these websites. Firstly we will talk about Amazon which has two different plans for selling, one is for individuals and another for professionals.
This option will be available while registering for a seller account. The individual account is free to maintain but you will be still charged $0.99 per product sale. Additionally, you can’t run PPC advertisements for the Buy Box.
The second option is to go with an Amazon seller and sign up for a professional account. You will find more features with this one and it will provide more opportunities for success.
Now coming to the Walmart Marketplace, they don’t charge sellers a monthly subscription fee instead they charge sellers a fixed referral fee per sale. This fee is typically 15% of the product’s sale price.
An additional service is also available, called WFS (Walmart’s Fulfilment Service). You need to pay additionally for this.
3) Basic requirement for business
As we already discussed, the seller competition is more in Amazon than compared to Walmart. Let’s discuss the requirement for both of these:
Amazon’s Requirements:
To complete the registration you should have the following:
●Credit card (chargeable).
●Tax Information.
●Valid Phone number.
●A Government-issued national ID Proof.
●Bank Account Number and Bank Routing Number.
Walmart Requirements:
●US Business Tax ID (Note that SSN is not acceptable by Walmart).
●W8 or W9 and EIN Verification Letter from the Department of Treasury.
●Physical Address.
●US Business address.
●Planned integration method for your product catalog.
●Primary product categories, catalog size, and related information.
4) Account Management
Personalized account management is the key feature of Walmart. Walmart provides sellers with personalized support with a WFS fulfillment expert for the recommendations for business growth and optimization.
Amazon also provides dedicated support. However, you need to fork a hefty per month fee which is $1,600 per month and a percentage of your sales.
5) Customer Base
At this time, Amazon has a firm grip on customers plus a wider reach than Walmart.com.
According to Walmart, its online marketplace draws up to 100 million unique visitors per month. Therefore, it’s sure there is no type of shortage of Shoppers.
Let’s come to the point of view of shoppers when it comes to preference— some order from Amazon while others from Walmart.
Walmart’s shoppers are as willing to spend money on a single item as Amazon’s shoppers. So both are winners in this case.
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