For established brands looking to grow, Walmart Marketplace is no longer optional. It’s a key part of a strong omnichannel strategy.
Walmart has made major investments in ecommerce over the past few years. The result is a fast-growing marketplace with millions of monthly shoppers and a unique advantage: the reach and resources of one of the world’s largest retail chains.
Walmart Marketplace still has fewer sellers than Amazon, making it easier for new brands to gain visibility. It also comes with its own set of requirements, especially around pricing and fulfillment. It’s not a plug-and-play solution, but for the right brands, the opportunity is real.
This guide covers what Walmart Marketplace looks like in 2025, how it compares to other platforms, and what to know before launching.
What Is Walmart Marketplace Today?
Walmart Marketplace is where brands list products on Walmart.com. It has grown significantly in the last few years and has become a major player in ecommerce.
Today, the marketplace has over 160,000 active sellers. That’s much fewer than Amazon, but the number is climbing fast. And with less competition, it can be easier for strong brands to stand out.
Walmart.com gets around 120 million unique visitors each month. That’s a huge audience. And many of those shoppers aren’t just browsing. They’re ready to buy. Plus, Walmart’s brand is trusted, which helps drive conversions.
The catalog is massive, with over 700 million products listed. Shoppers come to Walmart expecting a wide selection and good prices. That means brands that meet those expectations can do well.
Walmart has put real money behind growing its marketplace. For established brands that already know how to sell online, it’s one of the best places to expand right now.
Who is Walmart Marketplace a Good Fit For?
Walmart Marketplace isn’t for every brand. But for the right ones, it can be a big growth opportunity.
It’s best suited for established brands that already have ecommerce experience. Think of brands that are doing well on Amazon, their own DTC site, or other marketplaces. These brands usually already have strong operations, competitive pricing, and a product catalog that’s ready to scale.
Walmart is selective about who they let onto the platform. The application process isn’t difficult, but they do review every brand. They’re looking for businesses that can deliver a great customer experience. That means fast shipping, solid product reviews, and reliable inventory.
Here’s a quick breakdown:
Walmart is a good fit if your brand:
- Has consistent sales on Amazon, DTC, or other platforms
- Can offer competitive prices and maintain price parity across channels
- Uses reliable fulfillment (whether through a 3PL, WFS, or in-house)
- Sells products that appeal to a broad, value-focused shopper base
- Has clean product content and meets retail-readiness standards
It might not be the right fit if your brand:
- Sells luxury or niche products with high price points
- Can’t commit to fast and reliable shipping
- Has trouble maintaining consistent pricing or stock levels
- Is just getting started with ecommerce and hasn’t built trust or reviews yet
Walmart isn’t the place to test a new product or build a brand from scratch. It’s better for brands that are already moving volume elsewhere and want to expand into a new channel without starting over.
Walmart vs Amazon: What’s Different?
Walmart Marketplace and Amazon might look similar on the surface. Both let third-party sellers list products, offer fulfillment and advertising options, and reach millions of shoppers every month. However, there are key differences that matter, especially for established brands deciding where to invest time and resources.
1. Less Competition, More Visibility
Amazon has over 2 million active sellers. Walmart has around 160,000. That smaller seller base means less noise and more opportunity to get your products in front of shoppers. On Amazon, it’s easy to get buried, even with good content and reviews. On Walmart, your listings have a better shot at showing up, especially in categories that aren’t oversaturated.
2. Selective Approval Process
Amazon lets almost anyone open a seller account. Walmart takes a more curated approach. Every seller must apply and be approved. While that adds a step up front, it also helps keep the platform focused on quality. If your brand is already performing well elsewhere, this can work in your favor.
3. Simpler Fees and Fewer Surprises
Walmart’s fee structure is more straightforward than Amazon’s. There’s no monthly subscription fee to sell. Walmart takes a referral fee on each sale, usually between 8% and 15%, depending on the category. That’s it. There are no extra charges for listing or account management tools and fewer hidden costs.
4. Pricing Rules Are Stricter
Walmart is serious about offering low prices to shoppers. The platform watches pricing closely across the internet. If your product is cheaper on Amazon or your own site, Walmart may take action. That could mean removing the Buy Box or even unpublishing the listing. For multichannel sellers, this can be a challenge and may require extra attention to pricing strategy.
5. Advertising Still Catching Up
Amazon’s ad platform is advanced and mature. Walmart’s is still growing. Walmart Connect has added new features recently, like Sponsored Search, Display Ads, and video, but the tools aren’t as sophisticated yet. For many brands, it still takes some testing to find the right strategy and budget.
In short, Amazon is bigger and more developed, but also more crowded and expensive to compete on. Walmart is still catching up in some areas but offers more space for brands to stand out and grow.
How Fulfillment Works on Walmart
Getting products to customers quickly is a huge part of success on Walmart Marketplace. Fast, reliable shipping isn’t just a nice-to-have anymore. It’s something shoppers expect, and Walmart has made it a top priority. Listings with fast delivery options tend to get better placement and convert at a higher rate.
Walmart offers several fulfillment options so sellers can choose what works best for their business. Some brands use Walmart’s own fulfillment network, others ship from their own warehouse or 3PL, and some do a mix. Each method has its pros and cons, depending on the size of the business, product category, and shipping goals.
Here’s a breakdown of the three main fulfillment paths:
1. Walmart Fulfillment Services (WFS)
Walmart Fulfillment Services is Walmart’s version of Fulfillment by Amazon. Brands send inventory to a Walmart fulfillment center, and Walmart takes care of the rest. That includes storage, picking, packing, shipping, customer service, and returns.
Orders shipped through WFS get the “Fulfilled by Walmart” badge, which builds trust with shoppers. Products also become eligible for Walmart’s free two-day shipping program, which is a key way to drive conversions and win the Buy Box.
WFS works well for brands that:
- Don’t want to manage fulfillment in-house
- Want to qualify for fast shipping without a 3PL
- Need help scaling quickly during peak seasons
Costs include monthly storage fees and fulfillment fees based on weight and dimensions. In many cases, WFS is less expensive than FBA, especially for standard-size products.
2. Deliverr (also known as Flexport)
Deliverr is a third-party logistics provider that integrates directly with Walmart Marketplace. It offers fast shipping options like two-day delivery, and listings that qualify can display the same fast-shipping tags used by WFS.
Deliverr is now part of Flexport, a global logistics and freight company. This gives sellers access to a broader fulfillment and supply chain network that supports multichannel ecommerce.
Deliverr can be a good fit for brands that:
- Already use Deliverr or Flexport for other channels
- Want more control or flexibility than WFS offers
- Need fast shipping without handing off fulfillment to Walmart directly
Keep in mind that WFS orders are fulfilled by Walmart, which can create a smoother customer experience in some cases. But for brands looking for a third-party option with reach across multiple marketplaces, Deliverr through Flexport can be a strong alternative.
3. Seller-Fulfilled (FBM)
Brands can also fulfill Walmart orders from their own warehouse or 3PL. This gives the most control over the process, but it also comes with more responsibility.
Walmart has strict expectations for shipping speed, delivery accuracy, and customer service. If performance drops, Walmart may suppress listings or take other action. Self-fulfilling sellers need to meet delivery windows, provide tracking, and handle returns smoothly.
Seller-fulfilled is a good option for:
- Brands with strong in-house logistics
- Products that aren’t a fit for WFS due to size or special handling
- Sellers who want to test Walmart before committing to a full rollout
Choosing the right fulfillment model depends on your goals, catalog, and operational needs. Many brands start with self-fulfillment and move to WFS as they scale. Others jump straight into WFS to maximize speed and conversion.
Advertising on Walmart: What to Expect
Getting your listings live on Walmart is just the start. To really move the needle, most brands need to invest in advertising.
Walmart doesn’t have the same organic traffic power as Amazon, so ads play a big role in helping products get found. The good news is that Walmart’s ad platform, Walmart Connect, has improved a lot over the past couple of years. It’s still catching up to Amazon in terms of features, but it gives brands the tools to drive visibility and sales across Walmart.com and beyond.
Here’s what to know about how ads work on Walmart today:
Sponsored Search
This is the most common starting point for most brands. Sponsored Search ads appear in Walmart’s search results and on product detail pages. They look a lot like regular listings but with a small “sponsored” tag. These ads help push products higher up in search results and can be very effective for high-volume SKUs.
Just like Amazon, targeting can be automatic or manual. Brands can target specific keywords or let Walmart’s algorithm decide which searches make the most sense.
Within Sponsored Search, there are several ad formats:
- Sponsored Products: Appear within relevant search results and on browse, category, item, and pre-checkout pages. Available to all Walmart Connect advertisers.
- Sponsored Brands: Feature your logo, a custom headline, and up to four products at the top of search results and browse pages. Available to eligible brand owners.
- Sponsored Videos: Keyword-targeted video ads that appear in search results, designed to improve product awareness and consideration.
Onsite Display Ads
Walmart also offers display ads across its homepage, category pages, and other parts of the site. These ads include product images and brand logos and are more visual than Sponsored Products. They can help drive awareness for seasonal products, new launches, or broader brand campaigns.
Display ads are a good fit for brands that want to reach shoppers earlier in the buying journey—not just at the point of purchase.
Offsite Media
For larger budgets, Walmart offers demand-side platform (DSP) options. These allow brands to advertise across the web using Walmart’s shopper data. Ads can appear on third-party sites, in apps, or even connected TV. This is a more advanced play, but it’s becoming more popular as Walmart leans into omnichannel media.
In-Store Advertising
Walmart offers in-store advertising solutions to connect with customers during their shopping experience. These include:
- Digital Screen Ads: Engage shoppers with digital ads on screens located throughout the store.
- In-Store Audio Ads: Deliver brand messages through Walmart’s in-store radio programming.
- Experiential Marketing: Create memorable experiences with product demos, sampling, and live events.
Brand Shop and Shelf
Eligible Walmart suppliers and Marketplace brand owners can build their own free digital storefronts and product collections on Walmart.com. This feature allows brands to showcase their products and tell their brand story in a dedicated space.
Measurement and Optimization
Walmart uses its own first-party shopper data to power ad targeting. That includes both online and in-store behavior, which gives advertisers a unique edge. Ads can be personalized based on geography, purchase history, and search behavior.
For many brands, ad performance is closely tied to listing quality and fulfillment. If a product has strong reviews, fast shipping, and good pricing, ads tend to perform better. On the other hand, if the listing is weak or the offer isn’t competitive, even the best ad strategy will struggle.
Walmart’s Omnichannel Advantage
One of the biggest reasons to take Walmart Marketplace seriously is something no other marketplace can match: its brick-and-mortar network.
Walmart has over 4,500 stores in the U.S. and nearly 90% of Americans live within 10 miles of one. That level of physical presence gives the company a considerable edge in the world of omnichannel retail. It’s not just about what happens online. Walmart connects ecommerce to real-world locations in ways other platforms can’t.
Here’s how that benefits brands:
Buy Online, Pick Up in Store (BOPIS)
Walmart was one of the first major retailers to roll out BOPIS at scale. Many customers prefer this option because it gives them fast access to products without waiting for delivery. Marketplace items that qualify for store pickup can tap into that behavior, especially in high-volume categories like household goods and consumables.
Even if a brand’s product isn’t stocked in stores, the customer is already engaging with Walmart in both online and offline environments. That makes for a more flexible and trusted shopping experience.
In-Store Returns for Online Orders
Customers can return most online orders at any Walmart store. For brands, this means less friction in the return process and higher customer satisfaction. It also makes shoppers more comfortable buying from new brands because they know they can take the product back locally if needed.
This return model reduces customer anxiety and builds trust—two things that are especially important when selling through a third-party marketplace.
Stronger Brand Visibility
As Walmart builds out its advertising and digital shelf, it’s also finding ways to connect online performance to in-store activity. Brands that advertise through Walmart Connect may be able to influence in-store sales, not just clicks and conversions on Walmart.com.
There’s also potential for long-term opportunities. Brands that perform well online may have the chance to expand into store placements later. While not guaranteed, digital success on Walmart.com can open doors to broader retail conversations.
Pricing, Margins, and Profitability
Walmart Marketplace can be a strong channel for growth, but profitability depends on how well a brand manages pricing and fulfillment. Walmart is known for low prices, and that reputation drives everything about how the marketplace works.
To succeed here, brands need to offer competitive pricing and stay on top of their cost structure.
No Monthly Fees, Just Referral Fees
Walmart keeps its fee structure simple. There’s no monthly subscription or setup fee to sell. Instead, Walmart charges a referral fee on each sale. The rate varies by product category, typically ranging from 8% to 15%. That’s similar to Amazon, but the lack of a subscription fee can make Walmart more appealing for brands testing the channel.
There are no listing fees or hidden platform charges. This transparency makes it easier to model out margins and predict costs.
WFS Fees are Straightforward Too
If a brand uses Walmart Fulfillment Services (WFS), there are additional fees for storage and shipping. These are based on item size and weight. In many cases, WFS is slightly more cost-effective than Amazon’s FBA, especially for standard-sized products.
Storage fees are charged monthly, and fulfillment fees are per unit shipped. Brands can use Walmart’s calculator to estimate these costs before committing.
Walmart Watches Pricing Closely
Walmart’s pricing algorithm scans other websites, including Amazon and brand-owned DTC stores. If a product is available elsewhere at a lower price, Walmart may suppress the listing or remove the Buy Box. This policy, called price parity, is designed to protect Walmart’s reputation for value.
For multichannel sellers, this means pricing needs to be aligned across all platforms. It’s not enough to just set a price and forget it. Brands need to regularly audit listings and watch for unauthorized sellers or promotions that could trigger pricing issues.
Staying Profitable
To stay profitable on Walmart, brands should:
- Monitor total costs, including WFS, referral fees, and advertising
- Keep pricing competitive across all channels
- Watch for margin leaks like unauthorized discounts or high return rates
- Optimize product content to improve conversion without relying only on ads
Walmart may not offer the same advertising firepower or high-margin flexibility as other platforms, but for brands that manage operations well, it can still deliver strong ROI.
Common Mistakes to Avoid
Walmart Marketplace offers real potential, but it’s not the same as Amazon. Brands that treat it like a copy-paste job from their Amazon playbook usually run into problems.
Here are some of the most common mistakes established brands make when launching on Walmart and how to avoid them:
1. Reusing Amazon Content Without Adjustments
Walmart’s search algorithm and layout are different from Amazon’s. Copying titles, bullets, and product copy straight from Amazon often leads to poor results. Walmart shoppers expect shorter, clearer product descriptions and a more streamlined experience.
It’s worth taking the time to optimize listings specifically for Walmart. That includes writing clear titles, using high-quality images, and focusing on key product benefits that speak to value-focused customers.
2. Ignoring Walmart’s Pricing Policy
Walmart enforces strict price parity. If your product is cheaper on Amazon or your own site, Walmart may remove the Buy Box or unpublish the listing.
This doesn’t just hurt visibility. It can kill sales. Brands need a pricing strategy that works across all channels and includes guardrails to prevent unauthorized discounts or undercutting from resellers.
3. Underestimating the Importance of Fast Shipping
Fast shipping is a major factor in success on Walmart. Listings that qualify for two-day delivery get better placement and usually convert at a higher rate.
Whether through WFS, Deliverr, or a strong in-house system, reliable fulfillment is critical. Brands that self-fulfill without the right infrastructure often struggle with delivery issues, low ratings, and suppressed listings.
4. Expecting Instant Traffic
Walmart has strong traffic, with more than 120 million unique visitors each month. But traffic is not automatic. Just going live doesn’t guarantee sales.
It takes time, optimization, and advertising to build momentum. Even a small ad budget can help boost visibility, but brands should expect a ramp-up period before seeing consistent results.
5. Treating Walmart Like a Backup Channel
Some brands approach Walmart as an extra channel instead of a core one. That usually leads to poor execution and weak performance.
Walmart works best when it’s treated as a strategic part of the brand’s overall marketplace plan. The brands that succeed are the ones that invest in Walmart with the same focus they bring to Amazon or DTC.
Channel Key Takeaway
For most established brands, the answer is yes. Walmart Marketplace is worth considering in 2025.
The platform has grown fast. It now serves millions of online shoppers every month and gives brands access to a massive, nationwide retail footprint. It’s not as big or mature as Amazon, but that can be an advantage. There’s less competition, ad costs are lower, and early movers still have room to stand out.
That said, Walmart is not a shortcut. It rewards brands that offer fast shipping, sharp pricing, and strong product content. It also works best when it’s part of a broader, long-term omnichannel strategy.
Walmart is investing heavily in ecommerce and building a modern marketplace that connects digital and physical retail in ways other platforms can’t. For brands that are serious about growing across channels, now is the time to lean in.
Ready to Grow on Walmart Marketplace?
Walmart is a key part of a modern omnichannel strategy. Whether you’re expanding to Walmart Marketplace or looking to scale more efficiently, success takes the right plan.
Channel Key helps established brands build, optimize, and grow on Walmart Marketplace. From fulfillment and pricing to advertising and operations, our team knows what works and how to get results.