Walmart Vs Amazon – Online Shopping Platform Battle

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    Walmart has been ruling the retail market for decades.

    It currently has 4700 brick-and-mortar stores in the US. Amazon, on the other hand, has 525 stores. Walmart has been the biggest retail giant for 30 years.

    With its exponential growth, Amazon will soon surpass Walmart. When it comes to e-commerce Amazon has a 40% market share. At the same time, Walmart has a 5% share. It is no secret that the two have been competing for years. 

    In 2019, Amazon won the title of the World’s largest and most reliable retailer. In terms of revenue, Walmart is still way ahead of Amazon. But when it comes to brand image, Amazon takes the cake.

    According to experts, by 2022, Amazon will surpass Walmart in the retail business. Amazon aims at becoming the biggest retail giant in the world.

    Amazon’s retail presence is at $20 billion, whereas Walmart’s is at $270 billion. And these are just from grocery sales. Recently, Walmart overtook eBay and became the #2 online retailer. Amazon is still at #1.

    Two Biggest Online Markets

    comparison

    Both Walmart and Amazon have superior strengths.

    Amazon is the king of e-commerce, while Walmart rules the brick-and-mortar market. Recently, Walmart began expanding its online marketplace with full force.

    Due to the coronavirus pandemic, Amazon received an overwhelming number of orders. As a result, there was a month-long delay in delivering orders. Since the world was in a complete lockdown, Amazon was not able to fulfill all the orders.

    Sellers realized that they couldn’t rely on one platform. They had to look for another online marketplace. That is when sellers began flocking towards Walmart’s marketplace.

    Most people were ordering low-margin items. Groceries, toiletries, and other necessities were being purchased online. E-commerce brands had never experienced such a surge in orders. And the worst part was, they weren’t able to deliver these orders.

    Since Amazon is a saturated marketplace, sellers felt the need to be seen on other e-commerce platforms. Walmart was the second-best option for necessities. Because of the lockdown, Walmart had to shut down most of the stores.

    People were not allowed to come and shop. That is when Walmart decided to use technology for their benefit. They already had inventory in their stores. All they had to do was enable people to place their orders.

    Walmart started something called Express Delivery. With Express Delivery, customers could get their orders delivered in 2-hours. They also heavily promoted the two-day delivery.

    By tactfully working through the challenges, Walmart was able to over-deliver. They surpassed all the expectations. Their online strategy was so good that they managed to beat eBay. In 2020, Walmart Marketplace became the second-best online retail store after Amazon.

    Due to its large number of retail stores, Walmart could process and deliver orders much faster. In addition, their offline stores gave them a lot of leverage.

    Can I sell my products on Walmart Marketplace?

    what is walmart marketplace

    In 2009, Walmart launched the Walmart Marketplace. The online retail platform was open to select sellers.

    They are pretty strict about their selling policies. As a result, Walmart saw a slight growth in its online platform. But it was nothing worth mentioning. In 2016, they integrated third-party sellers.

    The development was slow, but it all changed. In 2020, Walmart saw a massive jump in the number of sellers. According to statistics, 25,000 new sellers joined Walmart Marketplace in 2020. The total number of sellers on Walmart is 60,000.

    Of course, this is nothing compared to the 2.5 million sellers on Amazon. Amazon may seem the perfect place to sell. That, unfortunately, is not the case.

    For one, the marketplace is saturated. There are hundreds of people selling the same product. Second, it is challenging for a seller to get their product on the first few pages of Amazon. This being the reason why some sellers opt to setup shop on their own store on a platform like Shopify in comparison to Amazon.

    It requires constant search engine optimization. But there is a strong reason as to why so many sellers prefer Amazon. Becoming a seller on Amazon is much simpler. In addition, Walmart has stringent onboarding policies for sellers. 

    Initially, Walmart Marketplace had an invite-only policy for sellers. Now that has changed. Anyone can apply to be a seller on Walmart Marketplace.

    Unfortunately, it is much harder to become a seller on Walmart than it is on Amazon. Walmart is entirely about the brands. The potential seller needs to fulfill several criteria. If you want to be an approved seller on Walmart Marketplace, you need excellent customer support.

    Apart from that, you will need to show a proven sales record on another e-commerce platform. Walmart needs you to have competitive pricing and a wide array of products. 

    If you fulfill all these conditions, Walmart will approve your request. Once you become a seller, they take 2-4 weeks for the onboarding process. After you have become a seller, you can begin using Walmart’s exclusive offers.

    Sellers can offer two-day delivery of their products. They are also eligible for ‘Express Delivery.’ Becoming a seller on Walmart is a task. But once your request is approved, you can take advantage of all their features! 

    How does it compare with selling on Amazon?

    Over the years, Amazon has upped its SEO game. That is why it receives tons of traffic every month.

    When a customer searches for a product on Google, the first few options are from Amazon. They have worked so hard on it that they have surpassed Google. So if your product is listed on Amazon, it is likely to get more traffic. 

    Walmart Marketplace does not boast such strong SEO skills. But they are not far behind. To begin with, Amazon receives 206 million unique visitors per month.

    In comparison, Walmart receives 110 million new visitors every month. But more traffic doesn’t necessarily mean more exposure to the seller.

    Less competition for Sellers 

    Since Walmart Market has less competition, a seller can get better exposure. Walmart can show your products on the first few pages of its website.

    With a few sellers, it is easier to build brand loyalty. Sellers also have a better chance of being noticed. As a result, they can get better leads. It is much easier to turn the leads into paying customers.

    Amazon has millions of sellers. It is much harder to get exposure on Amazon. As a seller, you need to strengthen your SEO game constantly.

    Titles, product descriptions, and images should be on point. You have to make sure you are using the right keywords for the product. Minor SEO tweaks help bring your product to the top. If your search engine optimization is weak, your product will not show up in searches.

    Payment Structure

    Unlike Amazon, Walmart has a simple payment plan. You don’t have to go through a complex payment structure. Walmart does not charge any setup costs.

    Sellers don’t have to pay a monthly fee or a subscription fee. Walmart only charges a 6-20% referral fee.

    Amazon has two types of accounts – individual accounts and professional accounts. There is no monthly fee charged for individual accounts.

    However, if you have a professional account, you will have to pay $39.99 per month. Amazon also charges a referral fee, a closing fee, a per-item fee, and a high-volume listing fee.

    Quick Returns

    returns on amazon and walmart

    Every city in the US has multiple Walmart stores. Therefore, it is much easier for sellers to exchange their products.

    In addition, Walmart has a strong brick-and-mortar network. Thus, making it easy for them to provide excellent customer support. As a result, customers enjoy using Walmart Marketplace.

    Amazon is known for its quick delivery and 10-day return. But since it has to move its products from different warehouses, these returns can take time. Nonetheless, people love Amazon and trust it more than any other marketplace.

    Brand Familiarity

    Most paying customers in the States are well acquainted with Walmart. They are likely to choose Walmart over Amazon.

    Brand loyalty plays a huge part in sales. Customers have solid trust in Walmart as a brand. Sellers must try to leverage this trust to their advantage. By becoming a seller on the Walmart Marketplace, you gain your customer’s confidence.

    In recent times Amazon has become a household name. Customers love purchasing products from Amazon.

    But during the pandemic, Amazon took a significant hit. It was unable to deliver the products on time. That is when customers began flocking towards other marketplaces.

    Product Listing

    Walmart allows sellers to list a large number of products. Amazon does not let you do that. If you have an individual account, you can put 40 listings per month.

    However, sellers can only add these listings to 20 different categories. Sellers with a professional account can add unlimited listings in 20 categories. They can also apply for 10 additional categories.

    CPC Ads

    Amazon enables sellers to run ads on its platform. In addition, they allow people to run highly advanced ad campaigns. Through these ads, sellers gain maximum exposure.

    Walmart Marketplace is not well versed with CPC ads. Since there are such few sellers on their platforms, they don’t focus on the ad service.

    However, as the number of active sellers increases, Walmart Market will have to improve their advertising structure.

    Walmart+ vs Amazon Prime

    walmart plus

    Amazon launched its monthly subscription model called Amazon Prime. Walmart Marketplace has a similar program called Walmart+.

    68% of all US customers have an Amazon Prime membership. In contrast, 17% of Americans that shop from Walmart Marketplace have a Walmart+ membership.

    Amazon Prime members enjoy quick delivery services. Most of the products with the Prime tag are delivered for free. It is not easy to get your product under the Amazon Prime program. If you are a seller, your reputation must be on point.

    Seller-Fulfilled Prime can be used by sellers who have excellent order history. Even though the prices may be high, sellers with the Prime Delivery tag sell more products. It would be best to take care of product availability, reviews, returns, and customer ratings.

    Walmart also scrutinizes the seller before allowing them to be a part of Walmart+. Just like Amazon, Walmart Marketplace requires sellers to maintain a good number of sales.

    In addition, they should provide excellent customer service. Sellers should also make sure that their products have above-average ratings. Reviews are thoroughly checked for Walmart+ eligibility.

    Amazon Prime costs $119 for a year. Walmart+ is much cheaper than Amazon Prime. It costs $98 per year. When it comes to monthly costs, there isn’t much of a difference.

    Amazon Prime costs $12.99 per month. At the same time, Walmart+ costs $12.95 per month. With Amazon Prime, you get a 30 Free Trial. Walmart+ also offers a free trial for 15 days. 

    Walmart+ offers same-day delivery for grocery orders over $35 and up. In addition, if buyers order any other product on Walmart+, they enjoy free delivery. With Amazon Prime, the free delivery differs from product to product. But they offer same-day delivery for orders over $35.

    Amazon Prime offers 3 million products for same-day delivery. It also lets you access the Prime Video Streaming service. Customers can enjoy far more benefits with Amazon Prime as well.

    Walmart+ provides same-day delivery for 160,000 products. However, Walmart+ offers no streaming service. Both e-commerce stores deliver groceries. 

    One plus point of Walmart+ is that it gives a discount on fuel. Amazon Prime provides no such deal.

    Further reading: Amazon FBA Vs FBM.

    Who offers a better customer experience?

    Who offers a better customer experience?

    As per the American Customer Satisfaction Index, Amazon ranks amongst the top 5 retailers.

    Amazon is obsessed with customer satisfaction. Its quick return policies and one-day deliveries have won the hearts of customers. The company’s main motto is to keep the customer happy. With the launch of Amazon Prime, customers can enjoy free return policies and free deliveries.

    There is nothing more satisfying than free delivery. Amazon knows exactly what the customers want. Therefore, they constantly improve the customer’s shopping experience.

    Walmart provides good customer support in stores, but it is still new to the e-commerce market. When it comes to customer experience, it is not even close to Amazon. Walmart has an ACSI score of 75.

    The minimum score should be 73. The brand is way behind in terms of customer satisfaction. They are slowly growing their online presence. As the brand becomes well acquainted with online retails, their customer experience will also improve. 

    Conclusion

    Amazon has been an e-commerce giant for years. But when it comes to brick-and-mortar stores, Walmart is the clear winner.

    If you want to get your seller account approved, Amazon is a much better option. But when it comes to seller competition, Walmart Marketplace takes the prize. Both marketplaces have their pros and cons. 

    It is best to apply for one marketplace and see how it works out. If it doesn’t improve your sales, then you can move to another e-commerce brand. Either way, both have their strengths. In the end, it will depend on the type of product you are selling.

    No matter which site you choose, you will have to create an aggressive sales strategy. Online sales require constant search engine optimization. Ultimately, you have to choose a platform you are most comfortable with and take it from there!  

    Resources:

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