Ecom CirclesEcomCircles

Why Amazon Sellers Should Sell on Walmart: The Case for Multi-Channel Expansion

Amazon's seller ecosystem hit critical mass around 2019–2020. Today, the platform has become a volume-driven, advertising-dependent model where:

The Amazon Saturation Problem

Amazon's seller ecosystem hit critical mass around 2019–2020. Today, the platform has become a volume-driven, advertising-dependent model where:

  • Advertising costs are at all-time highs. Average advertising cost of sale (ACoS) ranges from 35–60% for competitive categories. Many sellers report needing 40%+ ACoS just to stay visible.
  • Organic visibility is nearly impossible for new sellers. Algorithm changes in 2024–2025 have made it harder to rank without paid ads. Products launched without advertising budgets routinely fail to gain traction.
  • Competition is extreme. Most popular categories have 500–2,000+ sellers offering identical or near-identical products. Margins get compressed by price wars.
  • Fees keep rising. FBA storage surcharges (added in 2021–2022) have made low-velocity inventory expensive. Referral fees remain at 15%+.

For Amazon sellers generating $50,000–$500,000/year in revenue, this model works — barely. Profit margins are typically 10–20% after all costs. For sellers wanting to grow, Amazon alone creates a ceiling.

Why Walmart Is the Natural Expansion Path

Walmart Marketplace is not a secondary channel — it's a parallel ecosystem with fundamentally different economics:

1. Dramatically Lower Competition

Walmart has approximately 100,000 active third-party sellers. Amazon has 2,000,000+. That's a 20:1 difference.

For specific product categories:

  • Amazon: 400–1,000 sellers per product category (competitive)
  • Walmart: 20–150 sellers per product category (low competition)

Lower competition directly translates to:

  • Better visibility without advertising. A new product with decent reviews can rank in top positions on Walmart without running ads for weeks. On Amazon, the same product might never appear in top 20.
  • Higher natural conversion rates. Walmart shoppers see fewer competitive options, so they're more likely to buy from your listing.
  • Buy Box wins are achievable. The Walmart Buy Box (showing your listing when a customer searches) is far easier to win with fewer sellers competing for it.

2. Significantly Lower Advertising Costs

Walmart Connect advertising CPCs (cost-per-click) are 50–75% lower than Amazon PPC on equivalent keywords:

MetricWalmartAmazon
Average CPC$0.30–$1.00$0.50–$3.00
Typical ACoS (target)20–30%35–50%
Market saturationLowExtreme

For an Amazon seller accustomed to 40%+ ACoS, moving to Walmart and achieving 25% ACoS feels transformational. You're cutting advertising costs by 35–40% while reaching customers with higher intent.

3. Better Margins on Product Cost

Walmart's fee structure is seller-friendly compared to Amazon:

Fee ComponentWalmartAmazon
Monthly subscription$0$39.99
Referral fee (typical)10–15%15%
FBA/WFS fulfillment$3–6 per unit$3–7 per unit
Storage feesModestHigh (seasonal spikes)

For a $50 product with $15 COGS:

  • Walmart (FBM): $50 sale - $7.50 referral - $2 shipping = $40.50 to you
  • Amazon (FBA): $50 sale - $7.50 referral - $39.99/month ÷ units - $5 FBA = $35–40 to you

On Walmart, margins are typically 3–5% higher for equivalent products.

4. Walmart's Growth Trajectory

Walmart ecommerce sales grew 20%+ year-over-year in 2024–2025. The company is investing heavily in marketplace infrastructure, fulfillment, and advertising — signaling commitment to competing with Amazon long-term.

For sellers, this means:

  • Growing buyer base. Walmart.com traffic continues expanding as the company attracts more shoppers via omnichannel (buy online, pickup in-store = huge conversion lever).
  • Strengthening fulfillment network. WFS (Walmart Fulfillment Services) rollout continues expanding to more categories and regions.
  • Investment in seller tools. Walmart keeps improving analytics, repricing, and advertising features.

What Transfers Directly from Amazon to Walmart

Amazon sellers have a massive head-start on the platform. These elements translate directly:

1. Product-Market Fit Research

If a product sells well on Amazon, it likely sells on Walmart too. Demand patterns, seasonality, and customer pain points are universal across ecommerce.

Example: A product with $200,000/year in Amazon sales will likely generate $50,000–$100,000/year on Walmart with minimal optimization.

2. Product Content & Copywriting

Your product title, bullet points, and description language work on Walmart with minimal tweaks. Walmart's algorithm favors keyword-rich, benefit-focused content — exactly what Amazon sellers already write.

3. Pricing Strategy

Your cost-plus margin approach transfers directly. The only adjustment: you can often price 5–10% higher on Walmart due to lower competition.

4. Fulfillment Infrastructure

If you're using FBA on Amazon, you can use WFS on Walmart with the same inventory management mentality. If you're doing FBM, seller-fulfilled (FBM) on Walmart is identical.

5. Review Generation Tactics

Post-purchase emails, packaging inserts, and follow-up systems that worked on Amazon work identically on Walmart.

What Requires Rethinking

Despite similarities, Walmart demands strategic adaptations:

1. Don't Copy Amazon Listings Verbatim

Walmart's search algorithm penalizes low-originality content. If you upload an identical listing from Amazon, Walmart will rank it lower than competitors with original content.

Action: Rewrite 20–30% of your Walmart titles and descriptions. Keep keyword structure, change phrasing.

2. Adjust Pricing Expectations

Walmart shoppers have different price sensitivity by category. Electronics and beauty items often accept premium prices. Apparel and home goods face heavier price competition.

Research: Spend 1–2 hours analyzing top 10 competitors on Walmart for your category. Price 5% lower or 10% higher based on what you find.

3. Prepare for Lower Initial Volume

First-month sales on Walmart are typically 30–50% of Amazon equivalent. This is normal — Walmart's search algorithm needs time to learn your listing, and you have no reviews yet.

Expectation: Don't expect profitability in month 1. Expect meaningful sales by month 2–3.

4. Master Walmart's Unique Features

Walmart has features Amazon doesn't (and vice versa):

  • Rollbacks — Walmart's version of limited-time price cuts that boost visibility
  • Saved for Later shelf — customers can bookmark products, driving re-engagement
  • Walmart Plus — a membership program with free 2-day shipping (affects your fulfillment strategy)
  • Buy Box vs. "Offers" — Walmart's interface shows only one seller's listing by default; others appear as alternative offers

Understanding these features unlocks competitive advantage.

5. Build Walmart-Specific Advertising Strategy

Walmart Connect advertising is simpler than Amazon PPC but requires different keyword logic:

  • Broader keyword matching on Walmart performs better than Amazon (lower competition means less keyword saturation)
  • Lower bid amounts are sufficient to win visibility
  • Match types behave differently (phrase match on Walmart is more useful than exact match)

Action Plan: Launching on Walmart as an Amazon Seller

Phase 1: Foundation (Weeks 1–2)

  1. Apply for Walmart seller account (2–4 weeks approval, start now)
  2. Audit your top 5–10 Amazon products by revenue
  3. Research competitor pricing and content on Walmart for those products
  4. Create Walmart-specific titles and descriptions

Phase 2: Launch (Weeks 3–4)

  1. List top 5 products on Walmart
  2. Set up fulfillment method (WFS or FBM)
  3. Upload product images (use originals, not Amazon photos)
  4. Configure seller profile and policies

Phase 3: Optimization (Weeks 5–8)

  1. Monitor impressions, clicks, and conversion rates
  2. Request reviews from first customers
  3. Adjust pricing based on competition
  4. Run small Walmart Connect ad campaign ($5–10/day) once you have 5+ reviews

Phase 4: Scaling (Month 2–3)

  1. Expand product portfolio to 20+ listings
  2. Scale advertising budget to $20–50/day on winners
  3. Implement automation tools (inventory sync, repricing, analytics)
  4. Set target: $500–2,000/month in Walmart revenue

Multi-Channel Economics: The Real Numbers

For an Amazon seller doing $10,000/month:

Amazon Alone:

  • Revenue: $10,000
  • Referral fee (15%): -$1,500
  • FBA fees (est. $4/unit on 50 units): -$200
  • Subscription: -$40
  • Advertising (40% ACoS): -$4,000
  • Profit: $4,260 (42.6%)

Amazon + Walmart (Balanced):

  • Amazon Revenue: $7,000 → Profit: $2,982
  • Walmart Revenue: $5,000 (organic + ads) → Profit: $3,950 (lower fees, lower ACoS)
  • Total Profit: $6,932 (62% margin, +62% improvement)

This isn't theoretical. The economics of lower competition are real, and they compound as you build reviews and seller reputation on Walmart.

Tools for Multi-Channel Management

Managing Amazon and Walmart separately is inefficient. Ecom Circles handles:

  • Unified inventory sync across both platforms
  • Centralized repricing based on competition on both marketplaces
  • Consolidated analytics showing which channel drives more profit
  • Bulk listing creation for faster expansion
  • Automated review requests on both platforms

For Amazon sellers ready to diversify, centralized tools are essential to making the expansion sustainable.

Conclusion: Walmart Is No Longer Optional

For Amazon sellers, expanding to Walmart in 2026 is not a "nice to have" — it's a strategic necessity. The math is clear:

  • 20x less competition per category
  • 50% lower advertising costs
  • 3–5% higher margins
  • Faster path to profitability

Start with your top 5 products. Run them for 8–12 weeks on Walmart. Track profit per unit (not just revenue). Compare to Amazon. Most sellers find Walmart generates 20–30% more profit per unit at 30–40% lower advertising cost.

The barrier to entry is zero. The upside is enormous. The time to act is now.

Related blog posts:

Frequently Asked Questions

Ready to Scale Your E-Commerce Business?

Join thousands of sellers using Ecom Circles to automate sourcing, repricing, and inventory management.

Start Your 14-Day Free Trial

Credit card required. Full access to all features.