Generally, most e-commerce sellers think that there are not too many differences between Amazon and Walmart while both of these businesses differ from each other like night and day. So, if you intend to start your online business, and are considering these two options, then keep reading our blog. That’s because we are going to go through all the details concerning both markets.
First of all, we would like to mention that both markets provide their customers with lots of benefits for promoting their brands; however, there are lots of aspects that every seller should be aware of when he or she intends to start an online business.
Fees
If you intend to launch your business on Amazon, you will be provided with an option to choose between an individual and a seller account. By choosing a professional account, you will have to pay a $39.99 monthly fee.
However, if you choose Walmart for running your e-commerce business, you should not pay monthly fees. Additionally, Walmart’s referral fees are much lower than Amazon’s.
At the same time, if you run your business through Amazon FBA, you can gain access to Amazon’s Prime member program and use the advantages that come along with it.
Walmart does not stay far away, and comes up with its Loyalty program which also offers free same day shipping for products in the grocery category.
Advantages and Disadvantages
Whether we like it or not, more than 85% of United State’s transactions go through physical stores. So, Walmart is confidentially possessing more than 11,000 retail units all over the States. According to statistics from 2020, Walmart’s total revenue was $524 billion. Amazon in its turn, showed good results by scoring a record-breaking revenue in $386 billion in sales.
Additionally, Amazon pays much attention to crucial aspects such as technology, innovation and digitals. Moreover, in comparison with Walmart, Amazon provides its sellers with the benefits of Amazon Web Services (AWS) which allows sellers to reach out to more customers and have a better-established third-party marketplace.
Among other benefits provided by Amazon is the Prime Program. Nearly 100 million are active users of this program. By paying a $13 monthly fee, customers gain advantages such as free shipping, music, videos, eBooks and lots of other benefits from the Prime Program.
By choosing a Walmart for your e-commerce business, you should be ready that this platform provides its sellers with less resources for running your business. However, Walmart does not put its sellers on the back burner as much as Amazon does. Suspensions, anyone?
Let’s be honest, when one is thinking about an online store, the first name which comes to his or her mind is Amazon. That’s because Amazon is a respected leader among other e-commerce marketplaces. Of course, Walmart shows good metrics in sales; however, its online services are still in the process of development. Amazon is continuing to expand its services by becoming the most popular and widely-used e-commerce platforms. It is wise to mention that currently, more than 2.5 people are successfully operating on Amazon by providing high-quality customer service and products to more than 310 million buyers.
Additionally, if you choose FBA Amazon as your business model, Amazon will take responsibility for lots of important aspects within your operation. In this case, you can be sure that your customers get solely high-quality customer service, with the best products.
If you are a brand owner who intends to start selling on Amazon, then you should reach out to Oceanic Zoo, since our team provides the best services for brands. We will help you start your business in the best way, and succeed on Amazon in a very short period of time.