If you’re selling online, two giants control the battlefield: Amazon and Walmart. These titans dominate e-commerce, and if you want to move product at scale, you’ve got to play by their rules. But which one should you go all-in on? Should you stick to Amazon’s established ecosystem, where millions of shoppers already swipe their credit cards without a second thought? Or should you tap into Walmart’s growing empire, where competition is lower and the buy box is still up for grabs?
Strap in. We’re about to break down the pros, cons, and brutal realities of both fulfillment models so you can make the right call for your brand.
Amazon FBA: The 800-Pound Gorilla
What is FBA?
Fulfillment by Amazon (FBA) is basically a plug-and-play e-commerce dream. You ship your products to Amazon, and they take care of storage, packing, shipping, customer service, and returns. Your job? Keep inventory flowing and cashing those payouts.
The Good Stuff:
- Prime Perks = More Sales – More than 200 million people worldwide are Amazon Prime members. They want that free two-day shipping, and they’re more likely to buy products with the Prime badge. If you’re in FBA, you get the badge.
- Logistics Beast Mode – Amazon’s fulfillment network is a machine. They can get products to customers faster than most sellers ever could on their own.
- Buy Box Domination – If you’re selling the same product as others, FBA gives you a leg up on winning the Buy Box (the magic “Add to Cart” button that drives most sales).
- Trust Factor – People trust Amazon’s customer service. A product shipped by Amazon feels more legit, which reduces friction and increases conversions.
The Not-So-Great Stuff:
- Fees, Fees, and More Fees – Amazon doesn’t run a charity. They take their cut through fulfillment fees, storage fees, long-term storage fees, removal fees… you get the idea. Margins get tight if you’re not dialed in.
- Storage Wars – Amazon punishes you for slow-moving inventory. If your product sits too long, storage costs skyrocket, and they’ll even tell you to take it back (or destroy it) to make room for faster-moving items.
- Rules Galore – Amazon’s ever-changing policies can nuke your listing overnight. They control everything—pricing, returns, and even whether you’re allowed to sell a product tomorrow.
- Competition is Brutal – Everyone and their dog is selling on Amazon. That means price wars, counterfeiters, and sellers who will undercut you at any chance they get.
Who Should Use FBA?
FBA is a powerhouse for brands that:
- Sell products that move fast
- Can handle tighter margins due to fees
- Want to scale with minimal logistics headaches
- Are willing to play Amazon’s game and adapt when the rules change
Walmart Fulfillment Services (WFS): The Underdog with a Punch
What is WFS?
Walmart Fulfillment Services (WFS) is Walmart’s answer to Amazon FBA. Same concept: ship your products to Walmart’s warehouses, and they handle the rest. WFS is newer, smaller, and less competitive—but that could be an advantage.
The Good Stuff:
- Lower Competition = More Opportunity – Amazon is cutthroat. Walmart? Less saturated, meaning you can grab market share without having to knife-fight a dozen Chinese factories selling the same thing.
- Better Margins – WFS fees are generally lower than Amazon’s, meaning more money in your pocket. Walmart also doesn’t gouge you on storage fees like Amazon does.
- Access to Walmart’s Massive Footprint – Walmart still owns the physical retail world. A strong presence on WFS could lead to future in-store opportunities.
- Customer Loyalty – Walmart customers tend to be repeat buyers who stick within the Walmart ecosystem. Less churn, more brand stickiness.
- Fewer Rule Changes – Walmart doesn’t have as many arbitrary, overnight rule changes as Amazon. The platform is still evolving, but sellers say it’s less chaotic.
The Not-So-Great Stuff:
- Smaller Online Traffic – Walmart.com is growing but still tiny compared to Amazon. You’ll get fewer eyeballs, meaning slower sales velocity.
- Strict Approval Process – Not everyone can sell on Walmart. They hand-pick brands, and if you don’t fit their criteria, you’re out.
- Limited International Reach – Amazon ships all over the globe. Walmart? Not so much. If international expansion is your game plan, WFS is limiting.
- Fewer Advanced Seller Tools – Amazon’s seller dashboard, analytics, and ad platform are lightyears ahead of Walmart’s.
Who Should Use WFS?
WFS is a great choice for brands that:
- Want less competition and better margins
- Sell products that fit Walmart’s audience (lower-mid price range, mass appeal)
- Are okay with slower sales velocity but steadier growth
- Want to diversify away from Amazon’s rule-heavy ecosystem
The Verdict: Which One Should You Choose?
If you’re playing the long game, the real answer is both—but it depends on your strategy.
Go Amazon FBA if:
- You want fast sales and high volume.
- You’re ready to deal with razor-thin margins and cutthroat competition.
- You want the credibility of Prime and Amazon’s fulfillment muscle.
- You have a product with strong demand and can keep inventory moving.
Go Walmart WFS if:
- You want better margins and less competition.
- You’re playing the long game and willing to grow with Walmart.
- You have products that align with Walmart’s typical shopper.
- You want an easier ride with fewer policy changes and seller headaches.
The Power Move: Do Both
Savvy brands are doing both Amazon and Walmart to maximize exposure while reducing risk. Amazon drives high-volume, high-speed sales. Walmart provides a steadier, more profitable revenue stream with less competition. By spreading inventory across both platforms, you also protect yourself from the dreaded “Amazon just shut down my account for no reason” nightmare.
Final Thoughts
Amazon is the monster that prints money—if you can survive the battlefield. Walmart is the emerging player where you can carve out your territory before the land rush. Smart brands don’t pick sides. They play both games, hedge their bets, and dominate where others hesitate.
So, what’s your move?