It seems that there are a bunch of posts up on the internet about why e-commerce sellers might want to pick Amazon over Walmart, and visa versa. However, we think that a case could be made that actually choosing one – and not the other – might unnecessarily limit your potential for long term success. That’s because selling on both Amazon and Walmart is a great way for entrepreneurs to increase their sales and reach a wider audience. More importantly, the two platforms work TOGETHER synergistically to help sellers grow their business.
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It seems that there are a bunch of posts up on the internet about why e-commerce sellers might want to pick Amazon over Walmart, and visa versa.
However, we think that a case could be made that actually choosing one – and not the other – might unnecessarily limit your potential for long term success.
That’s because selling on both Amazon and Walmart is a great way for entrepreneurs to increase their sales and reach a wider audience. More importantly, the two platforms work TOGETHER synergistically to help sellers grow their business.
By listing products on both platforms, sellers can take advantage of the unique features and benefits each platform has to offer. The two marketplaces are also just different enough to allow sellers access to a more diverse group of customers than had they only sold on a single platform.
Lastly, having a presence on both platforms can provide sellers with an e-commerce safety net. The last 24 months have been a wild ride for online sellers. Amazon’s warehouse storage limitations (and new Storage Auction program), and problems with supply chains, adding a second selling platform can help mitigate the increased risk of selling during volatile times.
In this article, we will dig into the top reasons why Amazon and Walmart sellers might want to sell on each other’s platforms, and why choosing between the two marketplaces might handicap your chances of overall success.
Why Walmart Sellers Might Want to Expand to Amazon
Let’s start with the 800-pound, e-commerce selling gorilla in the room. Why might a Walmart.com seller want to take a closer look at this former online bookseller?
With a much larger customer base, Amazon’s ability to potentially reach more customers and make more sales on the platform is hard to pass up. As of June 2021, Amazon was the most visited e-commerce site in the United States, with approximately 2.45 billion monthly visits. This simply means that there is a lot more potential to make sales.
Sure, everyone has driven by (or shopped in) a Walmart store. But this isn’t brick and mortar, this is e-commerce. Amazon is the most well-known e-commerce platform in the world. Its reputation for convenience and selection is unparalleled. Amazon customers automatically navigate to the site when they want to buy something. What’s better than that?
Powerful Sales Data
You can’t repeat a process without data to back it up. Amazon’s ability to provide detailed analytics and sales data to sellers helps them to optimize their listings and make increasingly informed business decisions. The available data includes information on sales trends, advertising expenditures, customer reviews, ratings, competitor research and marketplaces trends.
Entrepreneurs are constantly trying to add more tools to their toolbox. At this point, Amazon is unparalleled in its ability to offer e-commerce tool solutions to its sellers. Of course, that’s just the beginning. Software as a Service (SaaS) companies that have developed tools for Amazon sellers number in the hundreds (such as Helium 10 and Jungle Scout).
Between the following Amazon tools and programs, and SaaS companies, Amazon sellers are not lacking for technological applications to get a head start on the competition.
- Amazon Marketplace Web Service (MWS) API: Allows sellers to integrate Amazon data into their own systems and automate key business processes, such as listing and fulfilling orders.
- Amazon Advertising: Amazon PPC and DSP have become invaluable to sellers looking to promote their products on Amazon.
- Fulfillment by Amazon (FBA): Sure, Walmart has WFS (Walmart Fulfillment Services) but FBA is the OG fulfillment service for online sellers.
- Amazon Brand Registry: This offers sellers on Amazon two for one benefits. Not only does it help protect their intellectual property and brand, it’s also the gateway to additional tools to manage their brand’s presence on the platform.
- Amazon Stores: Allows sellers to create a branded storefront on Amazon to showcase their products and increase brand awareness.
- Merch by Amazon: Do you have an artistic streak? Maybe it’s time to become a Merch on Demand content creator. With Amazon Merch on Demand, you can create graphic tees, accessories, and more, all printed on demand.
- Kindle Direct Publishing: Amazon Kindle Direct Publishing (KDP) allows you to self-publish eBooks, paperbacks, and hardcover books for free. It also gives you the option to expand your book’s availability on a global scale.
- Amazon Influencer Program: Allows social media influencers to earn money from promoting products on Amazon to their followers.
- Amazon Handmade: Allows artisans and craftspeople to sell handmade goods directly to customers on Amazon.
Why Amazon Sellers Need to Take a Closer Look at Walmart
Amazon launched their third-party marketplace in 2000. That allowed everyone from small businesses to established brands to begin selling on their growing platform. Since then, Amazon – and the sellers that call it home – have become increasingly sophisticated. But, that’s not to say that Amazon has all the answers.
Here are a few reasons why Walmart’s marketplace might offer online sellers a better opportunity.
With the smaller margins that sometimes exist in online selling, it all adds up. Compared to Amazon, Walmart typically has lower fees for sellers. That’s going to increase the profitability of sales for you as a seller. Amazon’s $39.99/month pro seller fee doesn’t exist on the Walmart platform. At Walmart, you only pay referral fees and fulfillment fees (similar to Amazon) only when you make a sale.
Thinking about giving Walmart a try? It’s nice to know that on Walmart, you can set up your account without having to pay any fees.
This is a big one. While Walmart does have less traffic than Amazon, not having to battle against the many (occasionally aggressive competitors) is a relief. There are about 1.9 million sellers on the Amazon platform and a little over 150,000 (and rapidly climbing) sellers on Walmart. That’s a lot less competition.
It’s just a question of odds. All other things being equal, more customers are going to view your Walmart listing. Amazon’s larger number of sellers can make it difficult for novice sellers to stand out.
Brick and Mortar Stores
As I mentioned above, everyone has driven past a Walmart store. They’re part of the fabric of American life. Walmart has an entire customer base with loyal customers who might not otherwise see your products were they only listed on Amazon. Walmart’s large physical retail presence can be beneficial for sellers who want to reach customers who may not be comfortable shopping online.
If you’re successful selling online on Walmart, there’s also the chance that you’ll be invited to sell in a brick and mortar Walmart store. With over 10, 000 stores worldwide, that’s a significant benefit.
4 Reasons Why E-Commerce Sellers Should Sell On Both Platforms
Why pick just one? There are increasing numbers of e-commerce sellers that are making a very good case that best business practices point towards selling on both platforms. Here are 10 reasons why that argument makes a lot of sense.
- Complementary Customer Base: Why not cover your bases? Amazon and Walmart customer bases are very complementary. Many experts view the two online marketplaces as pulling from large (differentiated) customer bases. That makes it easier for sellers to reach the widest possible audience.
- Increased Visibility: Selling on both platforms will absolutely increase the visibility of your products. It also strengthens the “social proof” that’s at the heart of a lot of purchasing decisions. Both Amazon and Walmart are well-known and respected brands. Showing up on both marketplaces doesn’t just double your chance of making a sale, it creates exponential awareness and trust for the consumer.
- Diversify and Conquer: As mentioned in the introduction to this post, the entire world – including e-commerce – has suffered through a bumpy, volatile last 24 months. Having a presence on both platforms can provide sellers with a level of diversification that can safeguard your online business from challenges that might be specific to either Walmart of Amazon. It’s always better to have a plan ‘B.’
- No Need to Reinvent the Wheel: Lastly, much of the two marketplaces and selling ecosystems are very similar. From the fulfillment options such as Fulfillment by Amazon (FBA) and Walmart Fulfillment Services, to pay per click (PPC) advertising and listing optimization, the two e-commerce giants are more alike than they are different. This makes the learning process a quick one for those transitioning to selling on both.
How Canopy Management Can Help
The entire online-selling marketplace has become increasingly competitive. It’s no longer enough to have “good business instincts” as many entrepreneurs do.
It’s a different ballgame now.
That’s why many experienced Amazon and Walmart sellers reach out to the team at Canopy Management. Our expert Creative Services, PPC and DSP pros are a big part of why Canopy partners show an 84% average profit increase.
Want to be part of the Canopy Tribe? Find out more right here.
Canopy Management is a full-service marketing agency for Walmart and Amazon sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”
- Strategic Growth Planning
- Listing Copywriting Optimization
- Listing Photography
- Product Videography
- Advertising Management
- Customer Service
- Demand Side Platform (Amazon DSP)
- Amazon Posts
- Full Service Management
- Amazon Review Aggregation