Market Size & Opportunity
● Amazon: The undisputed giant of e-commerce, with over 300 million active
customer accounts worldwide and dominating the
U.S. market share. It’s the go-to destination for online shopping, with nearly 60% of
U.S. shoppers starting their
product searches here.
● Walmart: Although traditionally a retail powerhouse, Walmart’s online presence
is growing rapidly. Its marketplace is
smaller than Amazon’s but expanding quickly, particularly in the U.S., where it benefits
from brand trust and its
brick-and-mortar presence.
● Takeaway: Amazon offers scale and global reach, while Walmart offers less competition and access to loyal U.S. shoppers.
Ranking Algorithm: Amazon vs. Walmart
● Amazon (A9/A10 Algorithm): Focuses heavily on sales velocity, CTR, CR, and
keyword relevance. The products that sell better get ranked higher,
creating a cycle where bestsellers dominate.
● Walmart (Search Algorithm): Prioritizes competitive pricing, stock
availability, and seller performance metrics. Walmart emphasizes trust and
consistency; listings from reliable sellers with fast fulfillment often rank higher.
● Tips: Amazon rewards performance, Walmart rewards reliability and value.
Advertising & Advertising Options
● Amazon Advertising: Robust ad ecosystem (Sponsored Products, Sponsored Brands,
Sponsored Display, DSP). Ads directly boost both paid
visibility and organic ranking. Amazon Advertising is essential for launching and
scaling products.
● Walmart Connect: Walmart’s advertising platform is newer and less competitive.
Ad costs (CPC) are often lower, but targeting is less
advanced than Amazon’s. It’s a great option for early movers since fewer sellers are
aggressively running ads.
● Takeaway: Amazon ads are more advanced but more expensive. Walmart ads are cheaper but less sophisticated, a great testing ground.
Listing Optimization
● Amazon: Listing success depends on keyword-rich titles, bullet points, A+
Content, images, and reviews. Conversion-focused
copywriting is crucial.
● Walmart: Listing guidelines are stricter; overstuffing keywords can hurt
visibility. Product attributes, competitive pricing, and
clear copy are critical. Unlike Amazon, Walmart limits creative formatting, so clarity
and compliance matter most.
Fulfillment Options
● Amazon FBA: Sellers can use FBA to get Prime badge access, which drastically
boosts conversion rates. Logistics is a major Amazon
advantage.
● Walmart Fulfillment Services (WFS): Walmart has been improving its WFS to
compete with FBA, offering 2-day shipping. While smaller than FBA, it’s growing
and benefits from Walmart’s nationwide distribution network.
Customer Demographics
● Amazon Shoppers: Tech-savvy, Prime-focused, willing to pay for speed and
convenience. They expect variety and are open to trying new
brands.
● Walmart Shoppers: Value-driven, price-sensitive, and loyal to Walmart’s brand
promise. Many Walmart.com shoppers overlap with in-store
customers, giving sellers unique exposure.
What Should Sellers Use?
● Amazon: Best for global expansion, scaling aggressively, and leveraging
Advertising to dominate rankings. Ideal for high-growth brands
aiming for 7- or 8-figures.
● Walmart: Best for brands that want to diversify, reduce competition, and
establish an early presence in a growing marketplace.
Strong fit for U.S.-based sellers with competitive pricing.
Final Thoughts
Amazon and Walmart are not rivals for sellers—they are complementary opportunities.
Amazon offers scale and mature
advertising tools, while Walmart provides a growing, less competitive marketplace with
loyal value-driven customers.
At Sell Harbor X, we help brands optimize for both platforms, tailoring strategies to
marketplace differences so you’re
not leaving revenue on the table. Whether you’re scaling on Amazon or expanding into
Walmart, our team knows how to make
your products visible and profitable.
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