Entering the world of eCommerce is both exciting and overwhelming for new sellers. With so many platforms available, two of the most competitive and appealing options today are Amazon FBA and Walmart. Both platforms offer powerful tools, wide market reach, and the potential for strong earnings, but each delivers a unique experience that can impact a seller’s journey differently. Understanding how they compare can help new entrepreneurs make a confident decision and step into the marketplace with clarity.
Introduction to the Digital Marketplaces
When new sellers start exploring online retail, Amazon is often the first name that comes to mind. It is a proven giant, offering massive buyer demand and a fulfillment system designed for convenience. Walmart, however, has risen quickly and positioned itself as a strong competitor, pushing into online retail with impressive growth.
Deciding which platform to start with depends on budget, goals, comfort level with competition, and long-term strategy. Let’s break down how each marketplace performs and what new sellers can expect.
Marketplace Popularity and Customer Reach
Amazon rules the online shopping world with millions of daily visitors and product searches. This massive customer base means that products can gain traction quickly when positioned correctly. For new sellers, the traffic is a major benefit—demand already exists.
Walmart may have less online traffic compared to Amazon, but it is rapidly growing. More importantly, Walmart has one major advantage that Amazon doesn’t: thousands of physical stores. Many products listed online can extend into online pickup or improved visibility for customers searching through store networks.
While Amazon wins in sheer online numbers, Walmart’s hybrid retail model gives it strategic depth.
Onboarding and Seller Approval Process
New sellers typically notice a major difference right away: how easy it is to get started.
Amazon allows almost anyone to create an account and begin selling quickly. This accessibility is perfect for beginners, but it also results in intense competition in nearly every product category.
Walmart is more selective. Sellers must apply and provide business information before approval. This may feel like a hurdle, but it also filters out a large portion of sellers, keeping the marketplace less crowded.
Beginners who want a simpler start may appreciate Amazon’s open-door approach, while those who value less competition may prefer Walmart’s controlled seller environment.
Fulfillment and Logistics Experience
Amazon’s fulfillment program, FBA (Fulfillment by Amazon), is one of the main reasons sellers choose the platform. FBA allows sellers to send inventory directly to Amazon warehouses, where Amazon takes care of storage, packing, shipping, and return management. This saves new sellers time and reduces the need for a complex operational setup.
Walmart has its own version called Walmart Fulfillment Services (WFS). It offers fast shipping, customer support, storage, and distribution—similar to FBA. However, WFS is still newer and continues to expand, meaning fewer sellers are fully utilizing it, giving early participants a competitive advantage.
For new sellers, both fulfillment systems simplify logistics, but Amazon’s years of refinement give it a slight edge in reliability and automation.
Competition and Listing Challenges
On Amazon, competition is fierce. Every product category has numerous sellers fighting over rankings, pricing, advertising placement, and customer reviews. New sellers may feel overwhelmed at first, especially if they do not have strong branding or experience with product optimization.
Walmart, however, is still growing its seller base. With fewer active listings, it offers better visibility opportunities. Products can rank faster and stay visible longer without the same aggressive advertising battles found on Amazon.
New sellers looking for a marketplace with breathing room may find Walmart more beginner-friendly in this area.
Costs, Fees, and Profit Margins
Amazon charges selling fees, storage fees, fulfillment fees, and other optional costs such as advertising. While the systems are powerful, expenses can add up—especially if a product is slow to gain momentum.
Walmart’s fee structure is often simpler and may be lower depending on product type. There are no monthly subscription fees for marketplace sellers, making it appealing for beginners with smaller budgets. However, Walmart does not provide as many built-in tools, meaning new sellers may need third-party services for analytics or advanced marketing.
New sellers with limited investment might find Walmart more cost-friendly, while those willing to pay more for built-in support and infrastructure may lean toward Amazon.
Advertising and Product Visibility Tools
In terms of advertising maturity, Amazon is miles ahead. Sponsored product ads dominate search results, and sellers can leverage detailed targeting tools to reach specific audiences. That said, the high level of competition also means higher advertising costs.
Walmart’s advertising system is simpler and less expensive. Fewer sellers mean lower bidding rates and often faster results. New sellers with smaller budgets may see better returns here.
For beginners who need visibility quickly without heavy spending, Walmart presents a strong opportunity.
Customer Trust and Shopping Habits
Amazon customers are accustomed to fast delivery, quick refunds, polished listings, and a seamless purchasing experience. This consumer trust boosts conversion rates and helps new sellers find buyers faster.
Walmart also enjoys strong trust due to decades of retail presence but is still building its digital reputation. As shoppers grow more comfortable buying online from Walmart, the marketplace continues to strengthen.
For now, Amazon still holds the lead in converting browsing customers into buyers.
Brand Building and Platform Flexibility
Amazon provides tools like Brand Registry, storefront customization, and enhanced product pages. Sellers who want to build recognizable brands can use these features to elevate professional appeal.
Walmart also allows polished listings but does not yet offer the same depth of branding support. For sellers with long-term branding goals, Amazon provides more creative tools.
However, Walmart offers something Amazon does not—less noise. With fewer competitors fighting for the same space, a new brand can stand out organically with well-managed listings and quality products.
Learning Curve and Seller Experience
New sellers often find Amazon’s systems easy to set up but complex to master. Data, competition, algorithm shifts, and ad strategies require ongoing learning and adaptation. Sellers who stick with the platform long enough typically gain strong eCommerce skills.
Walmart’s learning curve is gentler in some areas due to less competition. However, fewer built-in tools mean sellers must be comfortable making decisions independently or using outside software.
Both platforms require commitment, but Amazon teaches beginners rapidly through exposure to marketplace challenges and tools.
Which Platform Works Best for New Sellers?
There is no universal answer because every seller has different priorities.
Amazon may be better for new sellers who:
- Want immediate access to a massive audience
- Prefer strong fulfillment support
- Have the budget for advertising and competitive positioning
- Want advanced branding tools and customer analytics
Walmart may be better for new sellers who:
- Want lower competition and easier rankings
- Prefer simple fee structures
- Have limited budgets but want strong early exposure
- Like the idea of growing with a marketplace that is still expanding
The smartest strategy for many sellers today is not choosing one platform forever—but learning one, succeeding, and then expanding to the other. Diversification reduces risk and increases overall business stability.
Final Thoughts
New sellers entering the online marketplace have more opportunity today than ever before. Amazon FBA and Walmart each offer unique advantages that can shape the early stages of an online business. Amazon may deliver massive traffic and proven systems, while Walmart provides space to stand out and grow without intense competition.
The decision comes down to product type, financial readiness, personal goals, and willingness to learn. For some, Amazon is the perfect launchpad. For others, Walmart becomes the ideal environment for sustainable early success.
No matter which marketplace a new seller chooses, dedication, research, and adaptability remain the keys to transforming an online store into a thriving digital business.
