Is Walmart Worth it?

November 21, 2023

If you sell online, you are always looking for new ways to reach customers and improve your competitive edge. While Amazon undoubtedly offers the most global exposure, you might also hear rumblings of an old face with a new look shaking up the e-commerce landscape: Walmart.

Although Walmart made a name for itself as the budget shopping center for families, since 2016 it’s made major strides in e-commerce under the leadership of entrepreneur Marc Lore. During the peak of the pandemic, Walmart outperformed both Amazon and eBay, doubling in size in back-to-back years. Walmart now hosts more than 150,000 third-party sellers and adds an additional 5,000 sellers each month.

So, why are more and more businesses turning to Walmart? Turns out there are numerous perks that make the platform an enticing option.

While Walmart is rapidly growing, the number of sellers on their platform is still tiny compared to the 6.3 million sellers on Amazon. But for many business owners looking to break through, this is good news. Less competition means a greater chance for your products to stand out in their niche. And though there are far fewer sellers, Walmart e-commerce sales still raked in ~$72 billion in 2022, a figure which is expected to rise to $80 billion by the end of 2023. Sales are expected to keep growing as Walmart expands into foreign markets such as Chile and China.

To sweeten the deal, unlike Amazon, there is no monthly subscription fee to sell on Walmart. Sellers need only to list their products and pay a 15-20% referral fee on each sale (according to category). For many cash-strapped small businesses and start-ups this can be a breath of fresh air.

And while Amazon has created a benchmark for fast and efficient order fulfillments, Walmart is not far behind and offers its own 2-day shipping program. If you qualify for the program, your products automatically rise Walmart’s search rankings giving you that extra competitive edge.

The icing on the cake? Top selling products on Walmart may also qualify to be sold in-store, providing further brand exposure.

So, should you start selling on Walmart? The simple answer is yes. Thankfully, the same concepts for standing out on Amazon apply for Walmart Marketplace, so you don’t need to reinvent the wheel.