When deciding where to sell—or evaluating your current marketplace mix—understanding the true cost of each platform is essential. While Walmart and Amazon have similar referral fee structures, fulfillment and storage costs can differ significantly.
Referral Fees: Nearly Identical
Referral fees (the percentage of each sale paid to the marketplace) are remarkably similar between Walmart and Amazon across most categories:
- Electronics: 8% (both platforms)
- Clothing & Accessories: 15% (both platforms)
- Home & Garden: 15% (both platforms)
- Health & Beauty: 8-15% (varies by subcategory, similar on both)
- Toys: 15% (both platforms)
The referral fee similarity isn't coincidental—Walmart deliberately matched Amazon's structure to make seller economics comparable.
Fulfillment Fees: Walmart's Advantage
Where platforms diverge significantly is fulfillment. Walmart Fulfillment Services (WFS) generally costs less than Fulfillment by Amazon (FBA):
Small Items (1 lb or less)
- Walmart WFS: ~$3.45
- Amazon FBA: ~$5.32 (non-peak)
- Difference: ~35% lower on Walmart
Standard Items (1-3 lbs)
- Walmart WFS: ~$4.50-$5.50
- Amazon FBA: ~$6.00-$7.50
- Difference: ~25-30% lower on Walmart
These differences compound quickly. For a seller doing 10,000 units monthly, the fulfillment savings on Walmart could exceed $15,000-$20,000 annually.
Storage Fees
Both platforms charge monthly storage fees, with peak season surcharges:
Standard Storage (January-September)
- Walmart: $0.75 per cubic foot
- Amazon: $0.87 per cubic foot
Peak Season (October-December)
- Walmart: $0.75 per cubic foot (no increase)
- Amazon: $2.40 per cubic foot
Amazon's Q4 storage surge catches many sellers off guard. Plan inventory carefully or face significant storage cost increases during your highest-volume season.
Additional Fee Considerations
Long-Term Storage
Both platforms penalize slow-moving inventory:
- Amazon: Aged inventory surcharge starting at 181 days, significant penalties at 365+ days
- Walmart: Long-term storage fees after 12 months
Returns Processing
Amazon charges return processing fees in many categories. Walmart's return fee structure is generally more favorable for sellers.
Advertising Costs
While not technically fees, advertising costs affect profitability:
- Amazon: Highly competitive; many categories see CPCs over $1-2
- Walmart: Less competition typically means lower CPCs and better ROAS
When to Choose Each Platform
Amazon Advantages
- Larger customer base and higher traffic
- More mature advertising platform
- Prime membership drives conversion
- Better for new brands building awareness
Walmart Advantages
- Lower fulfillment and storage costs
- Less competition in many categories
- Growing platform with increasing investment
- Better margins on comparable sales
Recommendation: Sell on Both
For most sellers, the answer isn't Walmart OR Amazon—it's both. The platforms serve different customer segments, and diversification reduces platform risk.
Start with Amazon to prove product-market fit and build reviews, then expand to Walmart to capture additional demand and improve overall margins through lower fulfillment costs.
Regularly audit your fees on both platforms. Small percentage differences become significant at scale, and both platforms adjust fee structures periodically. For more on expanding beyond Amazon, see our guide to building a DTC sales channel.