Walmart.com after Amazon.com - Is it worth it? Debunking the Myth and Navigating the Differences

Written By Jeannie Stamberger

This is another article of the series “Launching & Scaling on Amazon”. This article is authored by Jeannie Stamberger and Lindsey Owen. Jeannie Stamberger is the CEO and Lindsey Owen is an Analyst at The AmaZone, an Amazon Brand Management Agency that has facilitated over $100M+ in Amazon sales.  Together we pull on our extensive backgrounds preparing, launching and scaling sales on Amazon, to bring you tactical tips and tricks to sell on Amazon. The articles are geared to issues for Food and Beverage Brands and the US marketplace (Amazon.com), but most tips apply to other CPG Brands.

So, you've found success on Amazon.com 💡🛒and now you're considering expanding to Walmart.com? Hold on! While the idea might seem tempting, it's crucial to understand the significant differences between these platforms to make an informed decision. Let's break it down and see if Walmart.com is worth the investment:

  • Success on Walmart.com doesn't guarantee retail POs: Don't fall for the misconception that succeeding on Walmart.com will lead to increased retail purchase orders. While Walmart has repeatedly promised this to Brands, in reality, this hasn't been the case for many Brands. Keep your expectations realistic.

  • Distribution challenges: Unlike Amazon, Walmart.com lacks a robust distribution network for their eCommerce. Their store footprint is unparalleled and they are masters of logistics, but to date they haven't fully leveraged this to go after Amazon's FBA. Walmart's fulfillment program isn't on par with Amazon's FBA, making it hard to compete on a large scale. Until they catch up in distribution, Amazon remains the frontrunner.

  • Market size matters: Walmart.com is only about 12-21% the size of Amazon*, which might not translate into significant sales. It's often perceived as a place to make a splash, but the impact on sales might not be as substantial as you expect.

  • Limited consultant support: On Walmart.com, consultants' hands are tied due to the platform's backend complexities and lack of sophistication. Moving the needle as they can on Amazon is a challenge here.

  • Walmart's uphill battle: Despite multiple attempts and program changes, Walmart.com still struggles to match Amazon's performance and growth. They have gone from Jet.com to internal programs, and overhauled their program at least once. However, their efforts have yet to fully pan out to a full Amazon competitor. It would be great to see Amazon get some competition though!

  • Listings and pricing issues: Walmart.com's listings can be chaotic, and pricing wars between Amazon and Walmart can make things messy. Given its smaller sales volume, the hassle might not be worth it.

  • Fewer Brands may allow you to get more visibility: This is the hook we hear from many Brands as the driver to get on Walmart.com. It makes sense on the surface, but the technical backend issues we describe above make it very difficult to make the lower competition into a path for success.

Considering the expense and challenges, we can't wholeheartedly recommend Walmart.com if it compromises your growth in other channels. If you can navigate the landscape without significant costs, go ahead and give it a shot. We can only hope that Walmart.com improves and becomes a true competitor for Amazon.com in the future. Until then, keep an eye on the evolving market dynamics and make informed decisions for your brand's success! 🚀📈

#AmazonVsWalmart #EcommerceComparison #RetailExpansion #MarketInsights #EcommerceSuccess #BrandGrowth #OnlineMarketplace #RetailChallenges

*This is an estimate we are getting from 3 different sources all of which point roughly in this direction

Don't let the allure of new platforms distract you from maximizing your Amazon sales. Join The AmaZone family, where success is our primary focus. As you Full Service Amazon Agency, together, we'll explore opportunities, overcome challenges, and achieve the growth your brand deserves.

Don't miss out on this opportunity! Contact us today to take your Amazon business to new heights!

Jeannie Stamberger

Brings deep data analytics skills from a Stanford PhD in the sciences (which included extension collaboration with the Stanford University Computer Science Department) to optimize the rapidly evolving Amazon landscape.

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