Amazon and Walmart are the two biggest online marketplaces in the U.S., but they lead in different ways. Amazon is the largest by a wide margin, accounting for over 37% of total U.S. sales. It has millions of sellers signed in their FBA Program, enabling them access to their fulfillment network and delivery service.
Walmart is the second-largest eCommerce retailer in the U.S. While its overall online market share is smaller (around 7–8%), it is growing fast, thanks in part to Walmart Marketplace and Walmart Fulfillment Services (WFS).
These two programs share a similar concept but differ in pricing and operational flexibility. This article will provide you with the information you need to choose between them.
What is Amazon FBA?
Fulfillment by Amazon (FBA) is the more established of the two programs, providing sellers with access to Amazon Prime’s fast two-day shipping and large customer base. Sellers can also use Amazon’s infrastructure to fulfill orders from non-Amazon channels (multi-channel fulfillment).
Sellers in the program pay fulfillment and storage fees. Amazon is also charging for having either excessive or insufficient inventory stuck at its warehouses. Referral fees (a percentage of the sale price) add another layer of cost, too.
The FBA Program’s distinctive fees can be hard to understand, as many of the costs change depending on the product you sell and if you choose to take advantage of other services, like the optional FBA Label Service. Amazon’s solution to all of this is the FBA Revenue Calculator. Here’s a guide on how to use it.
Benefits of the FBA Program
This program comes with multiple benefits to sellers:
More visibility
Amazon has over 3 million active third-party sellers. Getting noticed requires aggressive advertising and excellent metrics. However, Prime-eligible listings (signed to FBA) enjoy major visibility and conversion boosts because Amazon can ensure customers fast delivery of the products.
Due to its extensive market reach and large user base, Amazon is unbeatable when it comes to visibility.
Customer service
With Amazon FBA, you don’t handle returns or complaints. FBA integrates with Amazon’s customer service and return network, including order fulfillment, delivery issues, and returns. Keep in mind you are still the one who pays for refunds, but you don’t have to handle the returned item.
Platform Flexibility
Amazon FBA supports sellers across channels, allowing them to fulfill orders from platforms like Shopify or eBay using Amazon’s infrastructure.
FBA Eligibility and Requirements
To use FBA (Fulfillment by Amazon), you need to:
- Have an Amazon seller account
- Follow Amazon’s rules for packaging and labeling
- Only send products that meet Amazon’s safety and category requirements
- Documents:
- Phone number
- Tax information (you may use your SSN here)
- Government-issued national ID
- Chargeable credit card
- Bank account number and bank routing number
Note: Keep an eye on how much inventory you store: If your products sit in Amazon’s warehouse for too long, you’ll be charged long-term storage fees. So it’s smart to send only what you expect to sell soon. In this sense, timing your stock-ups is just as important as selling your items.
Walmart WFS
Walmart Fulfillment Services (WFS) is exclusive to Walmart.com. It leverages the company’s 4,700 U.S. stores and regional fulfillment centers to offer competitive two-day shipping nationwide, often at a lower cost.
Walmart’s main advantage is its brick-and-mortar stores. In fact, 80% of all U.S. consumer purchases still happen in physical stores. Plus, these facilities also serve Walmart as fulfillment centers for online orders.
Benefits of WFS
Here’s a breakdown of the aspects in which WFS stands out:
Fee structure
WFS has a very simple fee structure. Walmart itself underlines that it charges “15% less than the competition with no subscription fees or sign-ups”. Fulfillment fees are based on shipping weight and dimensions. The rate schedule starts at $5.50 for items under 1 lb, increases through weight tiers and adds $0.40 per pound beyond 11 lb.
Base fulfillment fee for standard items:
Storage costs are calculated monthly per cubic foot. During standard months, the rate is $0.80 per cubic foot, and in peak season (October–December), items stored beyond 30 days incur an additional charge of $1.70. If inventory remains for more than 12 months, a long-term storage fee of $ $7.00 per cubic foot per month applies.
And that’s it. This simplified pricing structure ensures sellers pay “only for what they use”, making WFS a cost-effective fulfillment solution for sellers.
Personalized seller support
Unlike Amazon, which charges extra for dedicated support, WFS provides sellers with access to a fulfillment expert at no additional cost. These experts provide guidance, help resolve issues quickly, and offer strategies to grow within the Walmart ecosystem.
Listing optimization tools
WFS sellers benefit from Walmart’s proprietary tools like the Listing Quality Dashboard and Growth Opportunities Dashboard. These platforms help sellers improve product visibility, identify demand trends, and optimize listings based on customer behavior—something Amazon doesn’t offer as transparently.
WFS Eligibility and Requirements
To use Walmart Fulfillment Services, you need to be a Marketplace Seller. Getting approved is more complicated than with Amazon. Here’s what you need to apply:
- U.S. Business Tax ID, as Walmart only accepts registered businesses, not individuals. You’ll need an Employer Identification Number issued by the IRS (SSN not accepted).
- U.S. Business Address or Place of Operations.
- W-9 Form or W-8BEN-E Form with an EIN Verification Letter from the Department of Treasury.
- Product Catalog Information
- A valid U.S. bank account for receiving payouts from Walmart.
Amazon FBA vs WFS: The key differences
Amazon’s FBA and Walmart Fulfillment Services differ in very specific areas. Here’s a breakdown:
Subscription Fees
Amazon requires sellers to choose between an Individual or Professional plan. While the Individual plan is free, it doesn’t include access to advertising features like Amazon PPC or Buy Box eligibility, making the $39.99/month Professional plan necessary for most serious sellers.
WFS, on the other hand, does not charge any monthly subscription fees, which may be appealing to small or emerging businesses.
Selling Fees
Both platforms charge referral, fulfillment, and storage fees. However, Amazon’s referral fees can go as high as 45% in certain categories, while Walmart’s range from 6% to 20%. Fulfillment fees also vary depending on how product dimensions are calculated. Amazon uses a tiered weight system (heavier items fall into higher tiers), while Walmart looks at both the size and weight of a package (dimensional weight).
In many cases, fees from both platforms are very similar. However, there can be big disparities. For example, if a box is large but lightweight (such as a large box of pillows), Walmart may charge more than Amazon because it occupies a significant amount of space. Most of the time, however, the difference is minuscule.
Storage Fees
During Q4 (October to December), Amazon’s storage fees increase significantly due to high demand. During this period, WFS charges extra only if items remain unsold for more than 30 days. Plus, Walmart imposes a long-term storage fee of $7.50 per cubic foot after 12 months.
Product Limitations
Amazon supports larger and heavier items (up to 150 lbs and 108″ in length), while WFS caps its product size at 30 lbs and dimensions of 25 x 20 x 14 inches.
Expert Support and Tools
WFS provides personalized account management and listing optimization tools like the Listing Quality Dashboard and Growth Opportunities insights, at no additional cost. Amazon offers similar support through its Premium Account Services.
Both platforms offer strong analytics tools to track inventory, revenue, and customer behavior.
FAQ: Walmart WFS vs Amazon FBA
1. Can I use both WFS and FBA at the same time?
Yes. Many sellers use FBA for Amazon and multi-channel orders, while using WFS to grow their Walmart.com presence.
2. Which platform is cheaper?
WFS generally has lower and simpler fees, especially for standard-size items. FBA costs more during peak seasons and includes additional charges for labeling and storage.
3. Does WFS offer two-day shipping like Amazon Prime?
Yes. WFS offers two-day delivery on eligible items, but only for Walmart.com customers. Unlike Prime, it doesn’t require a paid subscription from buyers.
4. Can I use WFS to fulfill orders from other websites like Shopify?
No. WFS only fulfills Walmart.com orders. For external platforms, Amazon’s Multi-Channel Fulfillment (MCF) is a better option.
5. Is it easier to get approved for WFS or FBA?
FBA is more open to new sellers. WFS has stricter requirements and is more selective in approving accounts.
6. Which one gives better product visibility?
On Amazon, FBA products qualify for Prime, which increases visibility. On Walmart, WFS-tagged products stand out with “Fulfilled by Walmart” and “2-Day Delivery” badges, which also boost conversions.
7. How fast can I start using each service?
FBA allows quick onboarding for most sellers. WFS may take longer due to its stricter listing criteria.
Conclusion
Fulfillment services are a big reason for the success of the two largest marketplaces right now. Choosing Amazon FBA or WFS is up to you.
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