Nearly two decades ago, Amazon launched Prime and with it a perk that would change ecommerce forever—two-day shipping. I still remember it like it was yesterday.
I wasn’t an online seller yet at the time. I was just another New Yorker holed up in a tiny apartment, daydreaming about how to escape the nine-to-five grind. But when I saw Amazon’s ad for Prime, I leaned back in my chair and whispered to myself, “Oh boy. It’s over for Target and Walmart.“
That wasn’t just some random hunch. I could feel the shift coming like the winter cold. Up until that moment, I never imagined Amazon could pull off nationwide two-day shipping. If it could do that now, I thought, how long before same-day delivery becomes the norm? And when that happens, what’s stopping shoppers from ditching malls entirely?
Back then, the biggest thing keeping people from fully relying on Amazon was the wait time—several days, sometimes a week, before their orders arrived. The moment that barrier fell, I knew everything would change. And sure enough, once Amazon proved fast shipping was possible, the floodgates burst open, and the retail world was never the same.
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Walmart Marketplace has a strict vetting process, unlike Amazon, requiring sellers to demonstrate strong experience, competitive pricing, and reliable fulfillment capabilities before approval.
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Sellers benefit from Walmart’s massive physical store network, which allows for faster shipping through store-based fulfillment, giving Walmart an edge over Amazon in certain areas.
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Pricing is critical on Walmart Marketplace, as Walmart enforces strict price parity rules, suppressing listings if products are found cheaper on other platforms.
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Walmart discourages dropshipping and arbitrage, favoring private-label and branded products while maintaining high standards for customer service and fulfillment.
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Selling on Walmart Marketplace offers significant growth opportunities, but only for experienced sellers who can meet its high performance expectations and adapt to its unique marketplace rules.
Within a decade, they had built a logistics empire so absurdly efficient that they could deliver products in under an hour. They called it Prime Now—a feature that felt straight out of a sci-fi novel. Granted, it was only available in select areas of New York, but still… they made it happen.
At that moment, I realized that ecommerce was leaving traditional retail in the dust. Fortunately, I wasn’t the only one who sensed it. Folks at Walmart saw what was coming, too. They knew that if they didn’t step up and build their own ecommerce platform and fulfillment infrastructure, they’d be left behind or, worse, wiped out.
And so, Walmart Marketplace was born.
Fast forward to today, and Walmart Marketplace is no longer playing catch-up—it’s going toe-to-toe with Amazon. They’ve expanded aggressively, rolling out seller-friendly policies and leveraging their massive network of physical stores to outmaneuver Amazon in ways no one saw coming.
With Walmart Fulfillment Services (WFS) offering a real alternative to FBA, AI-powered search tools fine-tuning the shopping experience, and Walmart+ giving Prime a run for its money, more and more sellers are taking notice.
What sets Walmart apart isn’t just its infrastructure—it’s how it uses it. Instead of trying to beat Amazon at its own game, Walmart plays to its strengths, turning its stores into fulfillment hubs that power same-day and next-day delivery.
The result? A seamless shopping experience that blends online convenience with real-world speed. Add to that Walmart’s lower seller fees and a no-nonsense approach to pricing, and it’s no surprise that brands and third-party sellers are flocking to the platform.
For sellers looking to break into Walmart Marketplace, the opportunity is massive—but so are the expectations. This isn’t a free-for-all like some other marketplaces. It has a strict approval process, prioritizing sellers who can prove they’re reliable, competitive, and ready to meet high fulfillment standards.
But for those who can keep up, the rewards are undeniable. The question isn’t whether Walmart is worth selling on. It’s whether you’re ready to take advantage of everything it has to offer.
In this blog, I’ll discuss a few important things aspiring Walmart Marketplace sellers should know before setting up a Walmart seller central account. I’ll also share tips on how to avoid suspension or removal and how to optimize your products for maximum profitability, just as you would on other platforms.
Ready? Here we go.
How does Walmart Marketplace differ from other ecommerce platforms?
The biggest difference between Walmart Marketplace and platforms like Amazon, eBay, or Shopify is exclusivity. Unlike Amazon, where almost anyone can sign up and sell, Walmart has a strict vetting process. They only allow reputable, experienced sellers who can meet their high standards for pricing, fulfillment, and customer service.
Another major difference is the pricing model. Walmart doesn’t charge a monthly subscription fee like Amazon’s Professional Seller Plan. Instead, they charge a referral fee per sale, which varies by category but generally ranges between 6% and 15%. This can be a game-changer if you’re trying to minimize fixed costs.
Customer expectations on Walmart Marketplace also lean toward affordability. Walmart’s reputation is built on providing low prices, so competitive pricing is crucial. Unlike Amazon, where you can charge premium prices for convenience or branding, Walmart’s algorithms and policies favor sellers who keep prices low.
Fulfillment options are also different. While Amazon FBA handles storage and shipping for you, Walmart has its own fulfillment service, WFS, as previously mentioned. It’s similar to FBA but comes with its own rules and cost structures.
If you’re handling your own shipping, you must meet strict performance metrics, including fast shipping times and a low order defect rate.
What are the indicators that selling on Walmart Marketplace is for you?
If you’re considering Walmart Marketplace, ask yourself these:
- Do you have experience selling online and managing an ecommerce business?
- Walmart favors established sellers. Can you price competitively while still maintaining a healthy profit margin? Do you sell branded or private-label products?
- Walmart discourages dropshipping and reselling generic products. Are you willing to comply with Walmart’s strict fulfillment and customer service requirements?
For some sellers, Walmart Marketplace can be incredibly lucrative. If you’re struggling with high competition on Amazon or tired of paying steep FBA fees, Walmart can be a great alternative.
Several case studies highlight substantial revenue growth for sellers who have optimized their presence on Walmart Marketplace. For instance, a men’s grooming product company experienced a 28.05% increase in Gross Merchandise Value (GMV) after fully optimizing their product listings and launching advertising campaigns.
Similarly, a leading home improvement brand achieved a 200% month-over-month sales increase after obtaining the Pro Seller Badge on Walmart Marketplace. This is because Walmart’s marketplace is less saturated than Amazon’s, making it easier to stand out.
Moreover, Walmart Marketplace offers sellers a unique advantage—its omnichannel reach. Walmart leverages its extensive physical store network to enhance its online services.
For instance, approximately 90% of the U.S. population lives within 10 miles of a Walmart store, enabling the company to fulfill about 50% of its online orders directly from these stores.
Some regular customers call the nearest mall to them their Walmart neighborhood marketplace. This integration suggests a significant overlap between online and in-store customers, allowing sellers to benefit from Walmart’s physical presence.
This hybrid shopping behavior increases brand visibility and trust, leading to higher conversions for online sellers. Additionally, Walmart’s free TwoDay Delivery program, similar to Amazon Prime, can significantly boost sales.
In a November 2024 earnings call, Walmart’s CFO, John David Rainey, highlighted that 30% of customer orders included a paid convenience fee for expedited delivery within one to three hours. This indicates a significant customer demand for faster delivery options, which can positively impact sales for sellers offering such services.
Another key indicator that Walmart Marketplace may be right for you is your product category. Some categories, such as electronics, home goods, and grocery items, perform exceptionally well due to Walmart’s existing customer base.
If your products align with Walmart’s strengths—affordability, everyday essentials, and high-demand categories—then, you’re a seller Walmart is looking for and you’ll have a greater chance of success.
Can you sell anything on Walmart Marketplace?
No. Walmart Marketplace has strict guidelines on what you can and cannot sell. Restricted categories include firearms, alcohol, drugs, certain electronics, and anything deemed inappropriate or illegal. Additionally, some categories, like grocery and medical supplies, require approval before you can list them.
Unlike eBay or Amazon, where sellers have more freedom in listing used or refurbished products, Walmart prefers new, high-quality items. If you deal in second-hand goods, collectibles, or handmade products, this might not be the best platform for you.
Walmart also maintains high standards for brand approval and intellectual property protection. For example, selling branded products requires proper authorization, and unauthorized sellers risk account suspension.
This is in stark contrast to Amazon, where third-party sellers often face challenges due to counterfeit competition. If you’re a legitimate brand or authorized reseller, this stricter vetting process can work in your favor by reducing competition from gray-market sellers.
Another important factor is pricing. Walmart enforces a strict price parity rule, meaning your product’s price on Walmart must not be higher than what you offer on other marketplaces, including your own website. Walmart routinely delists products if they find them cheaper elsewhere.
This policy benefits shoppers but can be a challenge for sellers who rely on dynamic pricing strategies. If you primarily operate on platforms like Shopify or Amazon and use price automation tools, you’ll need to adjust your pricing strategy to avoid violations on Walmart Marketplace. Believe me, I learned this the hard way.
Can I flip Walmart products on other ecommerce platforms?
This is a bit of a gray area. Technically, you can buy products from Walmart and resell them elsewhere, but there are a few risks. Walmart discourages resellers from using their products for arbitrage, and if they suspect you’re doing so, they might limit your purchases or even ban your account.
Additionally, many brands that sell on Walmart have agreements preventing reselling. If you try to flip Walmart products on Amazon or eBay, you might run into brand protection issues, or worse, get flagged for violating policies.
However, some sellers have found success with retail arbitrage by carefully selecting unbranded or generic products that don’t have resale restrictions.
It’s important to consider the platform-specific rules and restrictions when flipping Walmart products. For example, Amazon has a strict Brand Registry program that allows brands to control their product listings and prevent unauthorized resellers.
Top brands on Amazon actively enforce their brand protection policies, leading to more takedown requests and account suspensions for resellers who source from major retailers like Walmart.
If you attempt to list a product that falls under these restrictions, you risk having your listing removed or even facing a suspension, especially if the brand files an intellectual property complaint against you.
That said, some sellers successfully navigate these challenges by focusing on clearance items or products exclusive to Walmart that don’t have strict resale policies. As a Walmart seller, you need to be extra careful when treading this path.
For instance, Walmart’s private-label brands, such as Mainstays or Equate, generally can’t be resold on Amazon, but they might perform well on eBay or Facebook Marketplace, where restrictions are looser.
Sellers who sourced limited-time seasonal items from Walmart, such as holiday decorations or exclusive toys, are likely to flip them on secondary platforms for significant profits. This suggests that while Walmart arbitrage is risky, strategic sourcing and platform selection can make it a viable business model if executed carefully.
What does it take to become eligible to sell on Walmart Marketplace?
Becoming a Walmart Marketplace seller requires more than just filling out an application. Walmart is highly selective, aiming to onboard only reputable sellers who can maintain the platform’s credibility and competitive pricing.
Unlike Amazon or eBay, where almost anyone can start selling, Walmart carefully vets applicants based on their track record and operational capabilities.
A history of ecommerce success is one of the most critical factors. Sellers who can demonstrate strong sales performance on platforms like Amazon, Shopify, or eBay have a much higher chance of approval. Walmart wants proof that you can manage inventory, handle customer service effectively, and meet shipping deadlines.
For instance, a seller with an established Shopify store generating consistent revenue will have a better standing than someone new to online retail. Walmart sellers who had prior experience on other ecommerce platforms get approved faster.
Walmart also requires a U.S. business tax ID, meaning sole proprietors without an LLC, corporation, or other legal business entity are automatically ineligible. This policy ensures that only serious businesses apply, reducing the risk of fraudulent or low-quality sellers.
Additionally, product listings must meet strict quality guidelines, including UPCs (Universal Product Codes). Unlike Amazon, where some sellers get away with using generic or private-label barcodes, Walmart often cross-checks UPC legitimacy to prevent duplicate or misleading listings.
Competitive pricing plays a significant role in approval as well. Walmart’s reputation is built on offering low prices, so sellers must ensure their products are priced competitively compared to Amazon and other marketplaces.
Walmart even has automated pricing algorithms that compare listings, and sellers who try to overprice their products might struggle with visibility. It suppresses listings that are significantly more expensive than those found on other major platforms.
Lastly, fulfillment reliability is crucial. While Walmart doesn’t have a fulfillment network like Amazon’s FBA, it expects sellers to ship quickly and efficiently. Many successful Walmart sellers use third-party logistics providers (3PLs) or Walmart Fulfillment Services (WFS) to ensure fast delivery.
A 2021 Walmart report showed that sellers using WFS saw a 50% boost in sales due to faster shipping times and higher placement in search results.
Even if you meet all the requirements, approval isn’t guaranteed. Many sellers report being rejected without a clear reason, making it essential to submit a well-documented application.
Also, having a well-optimized online store, strong sales history, and a clear fulfillment strategy can improve your chances of getting approved.
How do I avoid getting kicked out from the platform?
Avoiding suspension on Walmart Marketplace requires a proactive approach, as the platform’s policies are far stricter than many sellers expect. Even minor infractions can lead to suppressed listings or account bans, so it’s crucial to maintain compliance across all key areas.
Pricing is one of the biggest reasons sellers run into trouble. Always base your prices on Walmart’s price parity rules. Your listings must not be priced higher than on other platforms like Amazon or your own Shopify store.
If Walmart detects a lower price elsewhere, they may suppress your listing or even deactivate your account. Again, Walmart actively scans competitor platforms for price discrepancies and has removed thousands of listings that didn’t meet its pricing policies.
To stay compliant, many sellers use automated repricing tools or monitor their competitors manually to ensure their Walmart listings remain competitive.
Shipping and fulfillment are just as critical. Walmart customers expect fast, reliable shipping, and the company penalizes sellers who fall short. Orders that ship late, have high cancellation rates, or take too long to deliver can trigger warnings or suspensions.
One common mistake is underestimating shipping times or failing to update inventory levels accurately, leading to canceled orders—something Walmart takes seriously.
To avoid this, many sellers opt for WFS to ensure orders meet Walmart’s delivery expectations. Those fulfilling orders themselves must work with reliable carriers and maintain accurate stock levels to avoid overselling.
Customer service also plays a major role in seller performance. Walmart expects sellers to respond to customer inquiries within 24 hours and maintain a low order defect rate. Poor customer service, unresolved disputes, or too many negative reviews can impact your seller score and lead to penalties.
In 2021, Walmart removed several third-party sellers due to excessive customer complaints, reinforcing its stance on maintaining a high standard of service. A strong strategy is to implement a dedicated customer support system, whether through AI-driven chatbots or hiring a support team to handle inquiries promptly.
While Walmart Marketplace offers a great opportunity for sellers, it operates under strict guidelines that require constant monitoring. To stay in good standing, sellers must be vigilant about pricing, fulfillment, and customer service, adapting their strategies to meet Walmart’s expectations.
Selling on Walmart Marketplace might be the big break you’ve been waiting for. It offers lower competition, no monthly seller fees, and access to Walmart’s massive customer base.
But it’s not for everyone. If you’re an experienced seller with competitive pricing, strong fulfillment capabilities, and the ability to meet Walmart’s high standards, it’s worth considering.
However, if you’re new to ecommerce, rely heavily on dropshipping, or struggle with strict performance metrics, you might find Walmart’s requirements too challenging. Before diving in, make sure you have the right business model, the right products, and the right mindset.
At the end of the day, Walmart Marketplace isn’t just another selling platform—it’s an opportunity for serious sellers to scale. If you’re up for the challenge, it could be one of the best moves for your ecommerce business.
