Walmart vs. Amazon Economics: Where Do Marketplace Sellers Actually Make More?

For marketplace sellers, revenue is only one part of the equation. A product may generate strong sales on Amazon or Walmart, but the real question is how much profit remains after referral fees, fulfillment, advertising, returns, storage, shipping and other operating costs.

Amazon and Walmart each provide access to large customer audiences, but their marketplace economics are different. For sellers in Canada and the USA, understanding these differences can help determine where a product has the strongest potential for profitable growth.

The better marketplace is not necessarily the one with the lowest fee. Profitability depends on the complete unit economics of the product, operational model, category, selling price, advertising strategy and fulfillment method.

Amazon Seller Economics

Amazon provides a mature marketplace ecosystem with extensive seller tools, fulfillment options and advertising capabilities. However, sellers need to account for multiple costs when calculating profitability.

Amazon Canada states that sellers can pay selling plan fees and referral fees, while optional services such as Fulfillment by Amazon and advertising can add further costs. Referral fees vary by category. For example, Amazon’s current Canada pricing lists a 15% referral fee for categories such as Home and Kitchen, Sports and Outdoors, Toys and Games, and Backpacks, Handbags and Luggage.

Amazon also offers Professional and Individual selling plans in Canada. The Professional plan is currently CAD $29.99 per month, while the Individual plan has a per-unit selling fee in addition to applicable referral fees.

For sellers using FBA, fulfillment economics become particularly important. Amazon handles shipping, returns and customer service, but sellers need to incorporate fulfillment and storage expenses into their product-level profit calculations.

Walmart Marketplace Economics

Walmart Marketplace uses a different fee structure. Walmart states that its marketplace has no setup or monthly fee and charges referral fees when products are sold. In the USA, current referral fees vary by category, with many categories falling around the 8% to 15% range.

Walmart Canada similarly states that it does not charge setup or monthly marketplace fees and generally charges referral fees based on the product category.

This can make Walmart attractive for sellers who want to reduce fixed marketplace costs. However, the lower platform fee alone does not guarantee higher profit. Sellers still need to consider fulfillment, advertising, returns, inventory and operational expenses.

Walmart also offers Walmart Fulfillment Services, which can change the economics by shifting fulfillment responsibilities to the platform. Sellers should compare seller-fulfilled and Walmart-fulfilled costs using their actual product dimensions, shipping profile and sales volume.

Which Marketplace Has Lower Seller Fees?

There is no universal answer because Amazon and Walmart calculate marketplace costs differently.

Walmart can have an advantage when a seller benefits from its lack of monthly marketplace fees and a competitive category referral rate. Amazon, however, can provide strong economics when its customer demand, conversion rates, fulfillment infrastructure and advertising ecosystem generate sufficient incremental sales and contribution margin.

The right comparison should therefore focus on profit per order and contribution margin, rather than simply comparing referral percentages.

For example, if a product sells for $50 and generates substantially more sales on Amazon, a somewhat higher overall selling cost could still produce greater monthly profit. Conversely, if the same product performs efficiently on Walmart with lower marketplace costs, Walmart may deliver stronger contribution margins.

Advertising Can Change the Profit Equation

Marketplace advertising is one of the most important variables in seller profitability.

Amazon Advertising operates on a cost-per-click model, meaning sellers can incur advertising costs when shoppers click sponsored placements.

Walmart also provides advertising solutions through Walmart Connect. The economics depend on product competitiveness, keyword demand, conversion rate, advertising efficiency and the seller’s campaign strategy.

A seller should therefore calculate profit after advertising rather than evaluating marketplace performance based only on gross sales.

A product generating $100,000 in monthly revenue with a high advertising cost can be less profitable than a product generating $70,000 with substantially better contribution margins.

Fulfillment and Inventory Economics

Fulfillment can significantly influence marketplace profitability. Sellers need to account for picking, packing, shipping, storage, returns and inventory movement.

Amazon’s FBA model can simplify operations because Amazon manages shipping, returns and customer service.

Walmart Fulfillment Services can provide a similar operational advantage for eligible sellers. Walmart’s 2026 Canada new-seller program currently includes incentives related to fulfillment fees and storage for eligible sellers, showing how marketplace promotions can temporarily affect seller economics.

Because marketplace programs and incentives can change, sellers should use current fee schedules and their own financial data rather than relying on outdated marketplace comparisons.

Amazon vs Walmart: Where Do Sellers Make More?

For some sellers, Amazon may produce higher total profit because of its extensive customer traffic and mature ecosystem. For others, Walmart may provide attractive margins because of its marketplace fee structure and fulfillment options.

Product category is also critical. A product with strong search demand on Amazon may outperform there, while a product that attracts Walmart’s customer base may perform better on Walmart.

Seller maturity matters too. Established brands with optimized listings, strong reviews, efficient inventory management and sophisticated advertising can often evaluate both marketplaces more effectively than newer sellers.

The best approach is to calculate marketplace-specific unit economics and then compare the resulting contribution margin.

Should Sellers Use Both Amazon and Walmart?

For many established eCommerce businesses, the strongest strategy may not be choosing one marketplace exclusively. Selling on both Amazon and Walmart can diversify revenue and create additional customer acquisition opportunities.

However, multi-channel selling also increases operational complexity. Inventory synchronization, listing management, pricing, advertising, order processing and marketplace compliance must be managed consistently.

A centralized marketplace management strategy can help sellers maintain accurate product information and inventory across channels while monitoring performance by marketplace.

How AMZ Northland Helps Marketplace Sellers

AMZ Northland helps businesses manage and grow their eCommerce marketplace presence across Amazon and Walmart in Canada and the USA. Its marketplace services can support product listing optimization, catalog management, inventory coordination, advertising, marketplace operations and ongoing performance improvement.

For sellers deciding between Amazon and Walmart, the goal should not simply be to identify the platform with the lowest fee. The stronger strategy is to understand the complete economics of each marketplace and determine where the product can achieve sustainable revenue, efficient operations and healthy profit margins.

With the right marketplace management strategy, businesses can evaluate Amazon and Walmart based on actual performance data and make informed decisions about where to invest their eCommerce resources.