Introduction
E-commerce is no longer just about convenience; it's a battlefield where titans collide—and at the center of it all is the Walmart vs Amazon Marketplace rivalry. These two retail giants are constantly innovating, competing, and evolving to claim the largest share of online shoppers. While Amazon has dominated the digital marketplace for years, Walmart is aggressively expanding its online presence, leveraging its massive network of physical stores, logistics infrastructure, and competitive pricing strategies.
With global e-commerce expected to reach $6.3 trillion in 2024, the competition between these two giants has intensified. Amazon boasts over 300 million active customers worldwide, while Walmart is gaining momentum with its 400,000+ marketplace sellers and expanding online services.
The question is: Can Walmart realistically dethrone Amazon, or is it simply playing catch-up?
In this blog, we will deep dive into Walmart’s e-commerce journey, its strengths and weaknesses, Amazon’s dominance, and whether Walmart has what it takes to challenge the king of online retail.
1. The Evolution of Walmart’s E-Commerce & Marketplace
1.1 The Traditional Walmart Business Model
The traditional Walmart business model is rooted in its emergence as a dominant brick-and-mortar retail giant, with operations spanning 10,500 stores across 24 countries. Central to Walmart's success are several key strategies:
1. Everyday Low Prices (EDLP): This pricing strategy is a cornerstone of Walmart's appeal, allowing it to offer consistently low prices to customers. This approach makes Walmart a compelling choice for budget-conscious shoppers, fostering customer loyalty and driving volume sales.
2. Massive Supply Chain Efficiency: Walmart is renowned for its sophisticated supply chain management. The company has developed robust relationships with suppliers, allowing for effective negotiations that help keep costs low. Walmart's integrated logistics systems and distribution centers further optimize inventory management, ensuring that products are available when customers need them.
3. Expansive Store Network: Walmart's extensive geographical reach is a critical factor in its success. With 90% of Americans living within a 10-mile radius of a Walmart store, the company has established unparalleled accessibility for its customer base. This network not only increases foot traffic but also enhances brand visibility, making it a convenient shopping option for millions.
Despite these strengths, Walmart faced significant challenges as the e-commerce landscape began to evolve. The company underestimated the transformative potential of online retail, particularly when Amazon introduced innovative features such as one-click shopping and free two-day shipping. Additionally, Amazon's expanding third-party seller marketplace created a competitive advantage that shifted consumer expectations around convenience and speed in purchasing.
As a result, Walmart has had to adapt its business model to respond to the growing dominance of e-commerce, integrating online and offline shopping experiences to remain competitive in the changing retail environment.
1.2 Walmart’s Struggle to Enter E-Commerce (Pre-2016)
Before 2016, Walmart struggled to establish a strong presence in the online retail space. Its website, Walmart.com, mainly served as an add-on to its physical stores rather than a standalone e-commerce platform. This limited approach held it back as consumer behavior increasingly shifted toward digital shopping.
One of the main issues was Walmart’s continued focus on brick-and-mortar retail, which took priority over investing in digital innovation. As a result, the company lagged behind competitors like Amazon, which was rapidly expanding its online ecosystem. Walmart’s e-commerce platform also lacked a wide variety of products, especially from third-party sellers, making it less attractive to customers who were used to Amazon’s vast selection.
Additionally, the user experience on Walmart’s website was outdated, with poor navigation and limited features that failed to meet modern expectations. These factors combined led to low customer satisfaction and made it difficult for Walmart to compete effectively online.
Recognizing these gaps, Walmart realized the urgent need for a digital overhaul—paving the way for transformative moves like its acquisition of Jet.com.
Walmart Marketplace
1.3 The Turning Point: Jet.com Acquisition (2016)
In 2016, Walmart made a bold move in the e-commerce space by acquiring Jet.com for $3.3 billion. This acquisition played a crucial role in enhancing Walmart’s digital presence and bringing in advanced e-commerce expertise. Jet.com, known for its innovative pricing strategies and customer-first approach, provided Walmart with deeper insights into online consumer behavior, helping it adapt to the rapidly evolving digital retail market.
By integrating Jet.com’s technology, Walmart was able to improve its website experience, streamline logistics, and optimize its supply chain for faster deliveries and better customer satisfaction. This acquisition also allowed Walmart to tap into the premium online shopping segment, catering to consumers looking for high-quality products and a seamless shopping experience.
Additionally, the deal expanded Walmart’s marketplace capabilities, enabling it to attract more third-party sellers and diversify its product offerings. Ultimately, the Jet.com acquisition marked a turning point for Walmart, strengthening its position against Amazon and helping it evolve into a more competitive force in the digital retail industry.
1.4 Walmart Marketplace: The Amazon Alternative
Walmart launched its Marketplace back in 2009, but for nearly a decade, its impact remained modest. It wasn’t until 2018 that Walmart started actively scaling this platform, positioning it as a serious alternative to Amazon’s third-party seller ecosystem.
The Marketplace allows independent sellers to list and sell their products directly on Walmart.com—similar to Amazon’s highly successful model. However, Walmart made several strategic improvements that significantly boosted its growth:
1. Seller Approval Process Simplified: Initially invitation-only, Walmart opened up the platform by making the onboarding process faster and more accessible to qualified sellers.
2. Walmart Fulfillment Services (WFS): Launched in 2020, WFS allows sellers to store, pack, and ship products directly through Walmart’s logistics network, directly competing with Amazon’s FBA model and enhancing delivery efficiency.
3. E-Commerce Integrations: Walmart partnered with major platforms like Shopify and BigCommerce, making it seamless for existing e-commerce sellers to integrate their stores with Walmart and reach a broader audience.
These strategic moves led to rapid expansion. By 2023, Walmart Marketplace had grown to over 400,000 active sellers, marking the fastest seller growth in its history and signaling Walmart’s rising influence in the online marketplace economy.
2. Walmart vs Amazon Marketplace: Strategies to Compete in the E-Commerce Battle
2.1 Walmart’s Omnichannel Edge: The Store Advantage
A major competitive edge for Walmart lies in its massive physical store network—something Amazon largely lacks. With over 4,700 stores across the U.S., Walmart can fulfill online orders more quickly by leveraging local inventory and offering same-day delivery or pickup.
In fact, 90% of Americans live within 10 miles of a Walmart, enabling faster, more efficient last-mile delivery compared to Amazon’s warehouse-based model. This widespread presence gives Walmart a powerful omnichannel advantage, seamlessly blending in-store and online shopping experiences.
2.2 Walmart+ vs. Amazon Prime: The Membership Battle
The rivalry between Walmart+ and Amazon Prime highlights two different strengths in the membership model:
> Amazon Prime ($139/year): Offers free one-day shipping, access to Prime Video, music streaming, and more. With over 200 million global subscribers, it dominates the subscription space.
> Walmart+ ($98/year): Focuses on free same-day grocery delivery, fuel discounts, and exclusive in-store and online deals—targeting everyday shoppers and families. Pricing Comparison
While Amazon Prime still leads in overall perks and entertainment, Walmart+ is gaining momentum, especially among grocery shoppers and customers looking for fast, local fulfillment.
2.3 Walmart Fulfillment Services (WFS) vs. Amazon FBA
To compete with Amazon’s logistics powerhouse, Walmart introduced Walmart Fulfillment Services (WFS)—a direct alternative to Fulfillment by Amazon (FBA).
Key advantages of WFS:
> Lower storage costs than Amazon’s warehousing fees.
> No long-term storage penalties, making it ideal for slower-moving inventory.
> Faster delivery by leveraging Walmart’s vast store network for local fulfillment.
While Amazon FBA still leads in terms of scale and international reach, Walmart’s growing infrastructure is quickly becoming a strong domestic fulfillment option for U.S.-based sellers looking to reduce costs and improve delivery speed.
2.4 Walmart Connect vs. Amazon Advertising
Both Amazon and Walmart generate significant revenue through advertising platforms, but their ecosystems differ:
> Amazon Ads (2023 revenue: $40B+) is highly mature—but also highly competitive, with expensive PPC bids and saturated niches.
> Walmart Connect (2023 revenue: $2.7B) is newer and less crowded, offering advertisers a higher return on investment (ROI) with lower costs per click.
For sellers, advertising on Walmart Marketplace often means less competition, cheaper campaigns, and a better chance to stand out—making it an appealing option for brands looking to diversify beyond Amazon.
3. Walmart Marketplace Growth & Seller Opportunities
As Walmart continues to scale its e-commerce platform, more third-party sellers are taking notice—especially those already established on Amazon. With fewer sellers, competitive pricing, and growing buyer interest, Walmart Marketplace is becoming an attractive alternative.
3.1 Why Amazon Sellers Are Moving to Walmart
Sellers are increasingly exploring Walmart Marketplace as a complement—or even alternative—to Amazon, for several key reasons:
> Less Competition: Amazon hosts over 6 million sellers, making visibility and ranking a constant challenge. Walmart, with around 400,000 sellers, offers a less saturated environment where listings are more discoverable.
>No Monthly Subscription Fees: Unlike Amazon’s $39.99/month Pro Seller plan, Walmart charges no ongoing monthly fees, lowering the barrier to entry for new and small sellers.
>Higher Organic Visibility: Walmart prioritizes organic search ranking and doesn’t rely as heavily on paid ads. This helps sellers gain traction without excessive PPC costs, allowing for better margins.
>Amazon Seller Central Agency Management
3.2 Challenges for Walmart Sellers
Despite the opportunities, selling on Walmart Marketplace comes with its own set of challenges:
> Stricter Approval Process: Walmart maintains a more selective onboarding process, vetting sellers for quality, legitimacy, and fulfillment capacity—unlike Amazon’s more open-door policy.
> Lower Overall Traffic: While Walmart’s marketplace is growing, Amazon still leads in sheer customer volume, which can impact sales velocity for new Walmart sellers.
> Limited Seller Tools & Analytics: Compared to Amazon, Walmart’s seller dashboard is less advanced, offering fewer data-driven insights and tools to optimize performance and growth.
4. Challenges Walmart Faces in Overtaking Amazon
Despite Walmart’s rapid e-commerce growth, it still faces several obstacles in its mission to rival Amazon’s dominance. From tech limitations to global reach, the path ahead is ambitious—and complex.
4.1 Amazon’s Ecosystem Is More Advanced
Amazon isn’t just a retail platform—it’s a fully integrated tech ecosystem that keeps customers within its orbit:
> Amazon Web Services (AWS) powers thousands of global companies and fuels Amazon’s infrastructure with unmatched scalability.
> Devices like Alexa, Kindle, and Fire TV deepen user engagement and strengthen brand loyalty.
> Its AI-driven recommendation engine is industry-leading, offering personalized experiences that convert visitors into repeat customers.
Walmart, while progressing, has yet to build a similarly connected ecosystem across tech and services.
4.2 Walmart’s Website & Tech Still Lag Behind
Though Walmart has invested in digital transformation, its tech stack still trails Amazon in several key areas:
> User Interface (UI) & User Experience (UX): Amazon’s website offers smoother navigation, smarter filters, and more intuitive checkout processes.
> Search Algorithm: Amazon’s product discovery engine is powered by years of machine learning refinement. Walmart’s search function, by comparison, is less accurate and less optimized for conversions.
Improving its digital storefront is critical for Walmart to compete more effectively online.
4.3 Global Expansion Remains a Challenge
Amazon has a well-established presence in 20+ international markets, including the UK, Germany, Japan, and Australia. In contrast:
> Walmart’s e-commerce focus remains largely domestic, with notable efforts only in the U.S. and India (through Flipkart).
> Logistics and regulatory challenges continue to limit Walmart’s ability to scale globally at the pace Amazon has achieved.
For Walmart to truly rival Amazon’s market share, global expansion and cross-border logistics will be essential long-term goals.
5. The Future: Can Walmart Realistically Overtake Amazon?
As Walmart continues to invest heavily in digital infrastructure, marketplace expansion, and seller tools, one question remains at the forefront: Can Walmart realistically challenge Amazon’s e-commerce dominance?
5.1 Future Growth Projections
Walmart is making noticeable strides in the e-commerce race:
> Its marketplace is growing at a 40% year-over-year (YoY) rate, signaling increasing adoption from both sellers and buyers.
> Walmart+, the retailer’s answer to Amazon Prime, continues to attract new subscribers—especially among grocery shoppers and loyal in-store customers.
> However, in terms of absolute numbers, Walmart+ still lags far behind Amazon Prime, which boasts over 200 million subscribers globally.
This growth shows promise but underscores the scale of Amazon’s current advantage.
5.2 Strategies Walmart Could Use to Win
To truly compete with Amazon, Walmart will need to execute aggressive and forward-looking strategies:
Expand Globally
Walmart’s current e-commerce presence is concentrated in the U.S. and India. Entering key international markets like Europe, Southeast Asia, and South America could unlock new revenue streams and diversify its customer base.
Improve Personalization Through AI
Amazon’s AI-driven product recommendations are a big part of its success. By enhancing Walmart’s personalization engine, the company can boost customer engagement and conversions.
Strengthen Walmart Connect Advertising
With less competition and lower ad costs than Amazon, Walmart Connect offers a unique value proposition. Scaling its advertising network and delivering better targeting tools could help Walmart capture a larger share of ad revenue.
5.3 Will Walmart Overtake Amazon?
It’s clear that Amazon maintains a significant lead, thanks to its global footprint, robust infrastructure, and tech ecosystem. However, Walmart is gaining ground by leveraging its omnichannel strength, aggressive marketplace expansion, and fulfillment innovations.
If Walmart manages to attract even 15–20% of Amazon’s third-party sellers while continuing to improve its customer experience, it could become a formidable force in the e-commerce space—possibly not overtaking Amazon immediately, but becoming the strongest alternative in the years to come.
The Traditional Walmart Business Model has been a cornerstone of the company’s identity since its inception. As a brick-and-mortar retail giant, Walmart has expanded its footprint to include over 10,500 stores across 24 countries, operating on a business model characterized by several key elements:
Everyday Low Prices (EDLP): At the heart of Walmart's pricing strategy is its commitment to Everyday Low Prices. This approach aims to provide customers with consistently lower prices on a wide range of products without the need for sales or coupons. Walmart’s pricing strategy was designed to attract a broad customer base by making affordability a primary focus. This approach not only helped to position the company as a leader in the retail sector but also created a perception of value among consumers, reinforcing loyalty and frequent shopping behavior.
Massive Supply Chain Efficiency: Walmart’s operational model is built around unparalleled supply chain efficiency. The company is renowned for its sophisticated logistics and inventory management systems, which facilitate seamless coordination with suppliers. By utilizing a just-in-time inventory system, Walmart reduces holding costs and stockouts, ensuring that products are available when customers seek them. Additionally, Walmart's bargaining power with suppliers allows it to negotiate favorable terms, resulting in lower purchasing costs that can subsequently be passed on to consumers. This strategic advantage has enabled Walmart to maintain its low-price leadership while maintaining high product availability.
Expansive Store Network: Walmart's extensive store network is one of its most significant competitive advantages. With 90% of Americans residing within a 10-mile radius of a Walmart store, the company has ensured that its physical locations are within easy reach for a vast majority of consumers. This level of accessibility enhances customer convenience and drives foot traffic to stores. Walmart has strategically placed its stores in both urban and rural areas, allowing it to cater to diverse demographics and maximize its market presence. Walmart Vs Amazon
Despite these strengths, Walmart faced significant challenges as e-commerce began to disrupt traditional retail models. The rise of Amazon signaled a shift in consumer shopping behavior, emphasizing the importance of online convenience. Amazon’s introduction of innovations such as one-click shopping, free 2-day shipping, and a growing ecosystem of third-party sellers fundamentally changed how consumers approached their shopping experiences. Walmart initially underestimated the urgency of adapting to this new landscape, which led to increased competition and potential market share erosion.
As a result, Walmart has been prompted to reevaluate and adapt its business model to incorporate e-commerce strategies. The company has invested heavily in its online presence and has implemented initiatives such as grocery delivery, click-and-collect options, and a robust online marketplace. These steps illustrate Walmart's recognition of the need to evolve beyond its traditional retail strengths to compete effectively in a digitally-driven marketplace.
Conclusion: Adapt, Compete & Win with PDMG
While Amazon may still lead the race, Walmart’s transformation into a powerful digital contender is impossible to ignore. With its everyday low pricing model, massive physical store network, and rapidly growing e-commerce capabilities, Walmart is positioning itself as the strongest alternative to Amazon in the years to come.
But navigating this two-giant marketplace war isn’t easy—and that’s exactly where Palmetto Digital Marketing Group (PDMG) comes in.
Whether you’re a seller expanding into Walmart, scaling on Amazon, or managing both, PDMG offers tailored growth solutions:
> Strategic onboarding for Amazon and Walmart
> Optimized listings that convert across both platforms
> Paid ads & campaign management to maximize ROI
> Real-time analytics to help you scale smarter
> Inventory + fulfillment support to reduce friction
Contact us today to get your brand marketplace-ready—and turn the Amazon vs. Walmart battle into your biggest opportunity.
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