Walmart WFS vs Amazon FBA: Fees, Shipping, Support & More

For decades, retail giants Walmart and Amazon have dominated different subcategories: Walmart has been ruling brick-and-mortar with unbeatable prices, while Amazon has revolutionized e-commerce. Now, as Walmart aggressively expands into online marketplaces with Walmart Fulfillment Services (WFS), third-party sellers face a crucial decision in the Walmart WFS vs Amazon FBA debate.

As both giants double down on marketplace growth and logistics innovation, understanding the differences between these two services is essential for sellers looking to scale efficiently, reduce costs, and reach more customers. The Walmart marketplace vs Amazon competition has intensified as Walmart aggressively expands its e-commerce capabilities to challenge Amazon’s dominance.

Whether you’re scaling a private label brand, seeking lower fulfillment fees, or building an omni-channel strategy, this comparison breaks down Amazon FBA vs Walmart WFS to see how these two programs stack up against each other to help inform your decision on where to take your online business.

What Are WFS and FBA?

Amazon FBA

Fulfillment by Amazon (FBA) allows sellers to store products in Amazon’s fulfillment centers, where Amazon picks, packs, ships, and handles customer service. It’s the engine behind Prime shipping and is used by most third-party sellers on the platform, which was responsible for a record-high 62% of items sold on the platform in 2024.

In other words, the FBA initiative is the heartbeat of Amazon’s success, providing a strong infrastructure for entrepreneurs to enter the marketplace while bolstering the product catalog for customers and empowering the quick and cheap shipping we love so much.

Pro Tip: Learn how to get started with FBA here.

Walmart WFS

Walmart Fulfillment Services (WFS) is Walmart’s in-house solution for third-party sellers in its growing marketplace, which is its answer to FBA. Similar to Amazon, Walmart handles storage, picking, packing, shipping, and customer service for WFS orders. While newer to the game, Walmart marketplace has been investing heavily in its fulfillment infrastructure since its 2020 launch to compete with Amazon’s established network.

As Walmart expands its online presence, WFS has become an increasingly attractive option for sellers looking to diversify beyond Amazon or reach Walmart’s substantial customer base.

Key Differences Between Amazon FBA & Walmart WFS

Fulfillment Fees & Cost Structure

Amazon FBA

Amazon FBA fees follow a multi-tiered structure that can be complex to navigate:

• Per-unit fulfillment fees based on size and weight categories
• Monthly storage fees that increase during Q4 (October-January)
• Long-term storage fees for inventory stored over 365 days
• Additional fees for special handling, returns processing, and removal orders

For those who learn and understand ideas better through real-world application and concrete examples, the image below shows how the fulfillment fee breakdown for items can fluctuate by product, based on their size, weight, and shipping tier.

These fees can be frustrating, but cover end-to-end fulfillment and customer service, which can be costly, time-consuming, and not feasible with FBA alternatives.

Pro Tip: Use our Amazon FBA Calculator to estimate your specific Amazon FBA fees accurately.

Walmart WFS

Walmart WFS fees generally follow a simpler structure:

• Fulfillment fees based on weight tiers
• Storage fees that are typically lower than Amazon’s
• No long-term storage penalties (as of this writing)
• Fewer additional fees compared to Amazon

For many sellers, especially those with larger or heavier items, WFS fulfillment fees can be significantly lower than Amazon’s. Just be sure your products meet the following Walmart WFS requirements:

• Up to 500 lb., including packaging
• Maximum dimensions of 120″ x 105″ x 93″, including packaging
• No regulated or perishable items that require temperature control
• Must ship to Walmart fulfillment centers from within the U.S. or clear customs before arriving at our facilities
• Must be items that are permitted in the WFS program. See WFS Prohibited Products and Marketplace Prohibited Products Policy for details

To learn more about WFS fees, we highly recommend checking out the WFS fulfillment fees calculator. If you already have a product on Amazon, you can enter your individualized costs and compare them to better understand how the differences could impact your bottom line.

In summary, WFS can be more cost-effective for larger items or brands with tight margins. If this applies to you, we highly recommend running the numbers for your business to see if the difference would be worth switching to WFS or adding it to your selling arsenal.

Inventory & Storage Policies

Amazon FBA

Amazon implements strict inventory controls, including:

• ASIN-level storage limits that may fluctuate on a whim based on performance
• Restock limits that can change without much notice
• Seasonal restrictions during peak periods (especially Q4)
• Inventory Performance Index (IPI) scores that affect storage limits

Walmart WFS

Walmart currently offers:

• Generally more flexible storage limits
• Simpler inventory caps based on seller performance
• Lower storage penalties and fewer restrictions
• More forgiving policies for newer sellers

WFS’s more lenient storage policies can represent significant cost savings over time for sellers who maintain slower-moving inventory or deal with seasonal products. If you’ve had serious issues with inventory management on Amazon or aren’t confident in your ability to monitor inventory levels, WFS may be a more appealing option, as the penalties for inventory errors are generally less severe and less likely to damage your bottom line.

Shipping Speed & Customer Reach

Amazon FBA

Amazon offers unparalleled advantages in this category, including:

• Access to over 300 million Amazon customers globally Prime eligibility (crucial for conversion rates)
• Fast delivery options including same-day in some markets
• International fulfillment capabilities
• Industry-leading fulfillment network

Walmart WFS

• 2-day delivery with Walmart Plus
• Strong US-based reach, but no international fulfillment
• Access to Walmart’s substantial customer base (59M Walmart+ members as of 2024)
• Growing but more regionally concentrated fulfillment network

Takeaway: This area is where Amazon FBA shines brightest. It’s difficult to overstate how advantageous access to Amazon Prime shoppers is for sellers. With more than 200 million paid subscribers worldwide, Amazon’s infrastructure of services and built-in audience are simply unmatched in setting a seller up for success. However, Walmart WFS offers a compelling alternative for sellers focusing primarily on the US market, especially those looking to diversify their sales channels beyond Amazon.

Branding & Packaging

Although often overlooked, the unboxing experience can significantly impact customer perception and loyalty. Here’s how the two platforms differ in their approach to branding and packaging from a seller perspective.

Amazon FBA

• Products arrive in Amazon-branded packaging
• Limited brand visibility in the delivery experience
• Customers associate the positive delivery experience with Amazon, not necessarily your brand

When utilizing Amazon FBA, your products will always arrive in Amazon’s distinctive packaging with their logo prominently displayed. This creates a consistent customer experience but effectively transfers much of the brand recognition to Amazon itself, limiting a seller’s ability to create an experience that resonates with the shopper and impacts a future purchase.

This arrangement works well if you’re primarily focused on sales volume over brand building, but it creates a significant obstacle for sellers trying to establish a unique brand identity and customer loyalty.

Walmart WFS

• Products ship in neutral, non-Walmart-branded packaging
• More “white-label” fulfillment experience
• Potentially better for brand-conscious sellers who want to maintain their identity

In contrast, Walmart fulfillment sends orders in generic, unbranded packaging that doesn’t prominently feature Walmart’s branding. For sellers investing in custom inserts, thank you cards, or other brand touchpoints, this packaging neutrality preserves those efforts rather than overshadowing them with marketplace branding, allowing your brand an opportunity to shine in a way that can boost your brand.

Our Take

Walmart’s relaxed seller requirements and neutral packaging approach may be preferable for sellers focused on building a recognizable brand. This is particularly important if you’re trying to establish a direct-to-consumer relationship that extends beyond the marketplace. However, to do this effectively, you may spend more time, energy, and resources on unnecessary extras to make an impression on the customer.

The approach to packaging also hinges on the product. Not all products benefit equally from package inserts and brand-focused shipping. Products that particularly benefit from inserts include:

• Premium or luxury items where perceived value matters (jewelry, high-end electronics, premium kitchenware)
• Products that require assembly or have specific care instructions
• Items with complementary products or subscription options
• Products with strong community elements or social media presence
• Anything with repeat purchase potential (consumables, beauty products, supplements)

Conversely, products that may not see significant ROI from package inserts include:

• Commodity items with minimal differentiation
• Extremely low-cost products where insert costs impact margins
• One-time purchase products with no upsell potential
• Products predominantly purchased as gifts (where the recipient isn’t the buyer)
• Bulk industrial or B2B orders where decision-makers don’t open packages

Return Management

How returns are handled can significantly impact your business operations and customer satisfaction.

Amazon FBA

• Amazon fully manages the returns process
• Customer-friendly return policies that can sometimes be too lenient
• Limited seller input on return decisions
• Automated return processing that can sometimes result in returned items being marked as unsellable

Pro Tip: Need help optimizing returns? Read our Amazon return policy guide.

Walmart WFS

• Walmart handles returns processing
• Generally balanced approach between seller and buyer interests
• Sellers may have slightly more control over return outcomes
• Less automated system that can sometimes result in more consistent return quality

Both platforms remove the operational burden of managing returns, freeing up more time for you to spend time and energy on larger picture elements of your business.

Omni-Channel Selling Considerations

The ability to efficiently fulfill orders across multiple sales channels, such as your own website, marketplaces like eBay or Etsy, and social platforms, has become a major competitive advantage for e-commerce brands. Without a multi-channel approach, sellers rely on one central platform for sales, and fluctuations in business costs, such as fees, can shrink profits without an alternative to turn to.

The perks of a platform offering multi-channel fulfillment options are simple: you can centralize your inventory, simplify your storage and shipping strategy, and multiply your opportunities to earn sales across various marketplaces. Meeting your customer where they are is crucial for exposure, so casting a wide net beyond the confines of Amazon or Walmart keeps your business agile and less reliant on one income stream.

Amazon FBA

Amazon MCF allows sellers to use their FBA inventory to fulfill orders from virtually any sales channel, not just Amazon.com. This means you can centralize your inventory in Amazon’s fulfillment centers and automate order processing for platforms like Shopify, WooCommerce, eBay, and more. Amazon handles picking, packing, shipping (with multiple speed options), and even returns for these off-Amazon orders, so you can enjoy the seller-friendly perks of Amazon FBA even when selling items on other platforms.

Walmart WFS

As of September 2024, Walmart now offers a directly comparable service through its Multichannel Solutions program. Sellers using Walmart Fulfillment Services (WFS) can fulfill orders from other sales channels, including Shopify, Etsy, eBay, and others, using their WFS inventory. Walmart provides fast shipping (including two-day delivery), unbranded packaging, and manages returns and customer service for these off-Walmart orders. This update puts Walmart on equal footing with Amazon for sellers looking to streamline fulfillment across multiple platforms.

Summary Table: Walmart Multichannel Solutions vs. Amazon MCF

Amazon MCF and WMS enable true omnichannel fulfillment, letting you automate and scale your operations across all major e-commerce platforms.

Now, with all this information available, you might ask, “Can I use Amazon MCF to sell on Walmart? Or vice versa?” Smart idea, however, the answer is currently no.

While technical workarounds exist, using Amazon MCF to fulfill Walmart orders or attempting to fulfill Amazon orders through Walmart’s network is either prohibited or unsupported, and doing so could jeopardize your seller accounts on both platforms. If there are major changes to the packaging rules for either platform, it may become feasible, but sellers shouldn’t anticipate these changes anytime soon.

Seller Support & Onboarding

Regarding seller support, Amazon and Walmart take slightly different approaches to providing help for sellers in need of instruction and assistance while starting up or as questions or issues arise throughout your selling experience.

Amazon FBA

Being the more mature of the two marketplaces, Amazon offers extensive documentation and self-serve resources, which are great for independent problem-solving. However, sellers frequently report frustration with automated support systems, delayed responses, and difficulty reaching knowledgeable human reps, which can be especially irritating when dealing with time-sensitive issues like ASIN reinstatements or inventory errors.

Walmart WFS

On the other hand, Walmart is still scaling its marketplace, which comes with some advantages. Their WFS onboarding team is more hands-on, often assigning account reps to help new sellers transition from Amazon or other platforms.

Sellers report that Walmart’s smaller seller base makes getting attention, troubleshooting issues, and receiving tailored guidance easier than the more crowded Amazon ecosystem. However, this could very well change if and when Walmart starts picking up a larger chunk of the seller community.

Amazon FBA vs Walmart WFS Pros and Cons

Amazon FBA Pros:

• Massive customer base: Access to over 300 million global customers and 200+ million Prime members.
• Fast Prime shipping: 1–2 day delivery is a major conversion booster
• Scalable systems: Built to handle high-volume sellers with advanced automation
• Multi-Channel Fulfillment (MCF): Fulfill orders from Shopify, eBay, and more using your FBA inventory
• Global reach: International programs like FBA Export and PAN EU allow for seamless cross-border selling

Amazon FBA Cons:

• Higher fees: FBA fees can add up quickly, especially for bulky or slow-moving products
• Limited brand control: Amazon-branded packaging weakens your direct-to-consumer branding efforts
• Strict storage policies: Inventory limits, IPI scores, and long-term storage fees can be difficult to manage
• Automated seller support: Help can be slow and impersonal
  

Walmart WFS Pros:

• Lower fulfillment costs: Especially for larger or heavier items
• Neutral packaging: Preserves your branding and allows for custom inserts or DTC-style presentation
• Growing traffic and market share: Walmart Marketplace is expanding rapidly in the U.S
• More flexible inventory policies: Less punitive storage rules and easier onboarding for new sellers
• More personalized support: Often includes onboarding reps and growth incentives for strategic sellers

Walmart WFS Cons:

• Smaller reach: Walmart’s customer base is large but significantly smaller than Amazon’s
• Limited features and tools: There are fewer fulfillment and advertising options than Amazon at this juncture
• No international fulfillment: WFS is U.S.-only for now
• More changes: As the newer platform, WFS is catching up to Amazon with functionality, which means changes are more constant

Which One Is Right for You?

When sellers ask me what is more profitable, Walmart or Amazon, we emphasize that the answer depends on several factors unique to each business. For better or worse, there’s no across-the-board answer we can give as to which platform should be the optimal choice for your online business. However, we can help simplify your decision-making with key factors in the Walmart WFS vs Amazon FBA debate.

Choose Amazon FBA if:

• You’re selling globally or plan to expand internationally
• Your products are small, lightweight, and have healthy margins
• Prime visibility and shipping speed are critical for your category
• You have the capital to manage higher fulfillment costs
• You’ve mastered inventory management and can navigate Amazon’s restrictions

Choose Walmart WFS if:

• You’re looking to diversify beyond Amazon
• You sell larger or heavier items, where FBA fees cut deeply into margins
• Brand identity and unboxing experience matter to your customers
• You want more flexible inventory policies
• You’re seeking a less competitive marketplace space

Ultimately, the best fulfillment strategy isn’t one-size-fits-all, as each offers unique strengths, weaknesses, and opportunities that may appeal more to one seller or type of business than the next. Reviewing these aspects and finding differences when considering to sell on Amazon vs Walmart can better position your brand, and thinking critically about how your catalog might perform on each platform can do wonders to set yourself up for maximum success and profits to match.

Pro Tip: Many successful brands use both! If you’re in a position to invest in more inventory to get started with Walmart WFS, there’s plenty of upside and little downside to expanding your customer reach and fortifying a foundation across both marketplaces.

Final Thoughts on Walmart WFS vs Amazon FBA

In the WFS vs FBA battle for e-commerce fulfillment dominance, the real winners are third-party sellers. As these giants compete for your business, they’re offering more tools, incentives, and infrastructure than ever before.

If you’re deciding where to start, whether to switch your business’s platform, or whether to expand, ask yourself:

• Where are your margins strongest?
• How important is brand visibility vs sales volume?
• Are you positioned to handle platform-specific inventory and support challenges?

As you audit your existing business or run the numbers on potentially starting a new one, keep these questions in mind as you determine what’s best for business.

At Viral Launch, we’ve specialized with over a decade of experience helping sellers start, grow, and scale their Amazon businesses. Whether launching your first product or refining your multi-channel game, we’re here to provide the tools and expertise to help you win on Amazon, Walmart, and beyond! Sign up for our risk-free 14-day trial to test out our seller solutions and see how they can assist you in taking your online business to the next level.