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For years, Amazon has been the undisputed king of e-commerce, but that title is being aggressively challenged by a platform that is finally ready to compete: Walmart.
Walmart is rolling out massive incentives and eliminating some of the most frustrating pain points Amazon sellers have dealt with for years. If you are exclusively selling on Amazon FBA and ignoring Walmart WFS (Walmart Fulfillment Services), you are leaving massive amounts of profit and growth potential on the table.
We recently had a client generate over $11,000 in sales on Walmart in 30 days—and they did it with significantly lower fees than Amazon. This is not a fluke; it’s a strategic shift.
Walmart isn’t just trying to attract new sellers; they are putting its money where its mouth is to directly court established Amazon sellers.
Here is the exact breakdown of why Walmart is making such a compelling case for Amazon sellers to expand to their platform, based on our analysis and findings:
1. Zero Referral Fees on Popular Products
Walmart is giving aggressive pricing incentives by waiving the standard referral fee (which is typically 15% on Amazon). They are funding the commission themselves to bring in more business.
The key takeaway is that Walmart is actively looking for high-demand items to incentivize.
- 100% Off Commission: Walmart uses an automatic algorithm to identify “customer favorites.” If you sell a product that gains clicks and popularity, they may randomly decide to give you a 100% incentive, meaning a 0% referral fee on that specific item [01:27, 03:32].
- 30%-50% Off Commission: For “new customer favorite in-demand items” listed after April 1st, Walmart offers an automatic 30% off referral fees. For other in-demand items, they can offer up to 50% off [02:57, 03:13].
When Walmart takes a 0% commission on a $42.99 item, that is an instant $5+ saving compared to Amazon, not including shipping costs, which we are also seeing are lower on Walmart [01:17].
2. No Peak Season Storage Fees (A Direct Shot at FBA)
Amazon’s fulfillment structure punishes sellers during the most crucial time of the year: the holidays.
On Amazon, the storage fees during peak season (typically October, November, and December) can increase by up to 200% (2x the normal rate) for standard items [05:20]. This is how Amazon gets you—you need more stock, so you’re forced to pay their massive premium.
Walmart has waived peak season storage fees entirely [03:56].
This move is a direct, substantial benefit to the seller’s bottom line, allowing you to stock up on inventory for Q4 without the fear of crippling storage costs.
3. Capacity Limits Are a Thing of the Past
If you are an Amazon FBA seller, you know the dread of a sudden, unexpected capacity limit slash. Amazon can limit the number of units you can send into the fulfillment center, often without warning, preventing you from restocking during your busiest season [06:07].
If you exceed your limit, Amazon will charge you steep overage storage fees—sometimes reaching thousands of dollars per month [07:09].
With Walmart WFS, there are currently no inventory or capacity limits [07:29].
You are free to send in all the inventory you need to cover expected sales, eliminating the biggest logistical headache of selling on FBA.
4. The Pro Seller Badge and Real Incentives
Amazon is the top dog, so they don’t need to incentivize good sellers. Walmart, however, is actively rewarding success through its Pro Seller Badge program [07:51].
The badge itself appears next to your listings, increasing customer trust and conversion rates. But the benefits go far beyond a nice logo:
- Free Advertising Credit: Spend $100 on ads, get $100 back in credit—a 100% match that is nearly unbeatable [08:31].
- Low-Interest Capital: Access to “Walmart Capital” loans, often with an interest rate around 3% [08:15].
- Shipping & Listing Discounts: Get 25% off “Ship with Walmart” services and listing discounts that further save on referral fees [08:04, 08:44].
Walmart is sending a clear message: “We actually care about you as a seller” [09:10].
The Bottom Line
Walmart is proactively investing to attract more customers and sellers. While Amazon is comfortable squeezing its sellers with increasing fees and limits, Walmart is extending an invitation with low fees, no peak storage charges, and valuable incentives.
If you are not selling on Walmart yet, now is the time to expand. The best time to jump into a growing platform is always at the beginning [09:23].
Need Help Expanding?
If you need expert assistance with increasing sales or managing your inventory, advertising, and customer service on the Walmart platform, contact EHP Consulting Group today. We offer Walmart account management services to help you seamlessly expand and generate more sales. Contact us today
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Written by: Jhan Rose Magbanua