Why Walmart Marketplace Is the Opportunity of 2026
Let me be straight with you: I was an Amazon seller for three years before I even looked at Walmart. Like most e-commerce people, I thought Walmart was just... well, Walmart. A brick-and-mortar giant trying to play catch-up in the digital space. I was dead wrong, and it cost me six months of explosive growth.
Here's what changed my mind: In 2023, Walmart Marketplace grew by 60% year-over-year. They're actively recruiting sellers, not gatekeeping like Amazon. Their customer base—120 million monthly visitors—is massive and, crucially, less saturated than Amazon's. While Amazon has 9.7 million sellers, Walmart has just 150,000.
Those numbers tell a story. Walmart is aggressively expanding their online marketplace, and they need sellers. They're offering incentives Amazon stopped giving years ago: lower fees, better support, and actual humans you can talk to when things go wrong.
The Walmart Customer Is Different (And Better)
Here's something that shocked me: Walmart customers have higher brand loyalty and lower return rates than Amazon customers. On Amazon, I dealt with 8-10% return rates. On Walmart? 3-4%. That's massive for your bottom line.
Walmart shoppers aren't hunting for the cheapest deal like Amazon's price-comparison addicts. They're looking for value, trust, and convenience. They shop at Walmart because they know the brand. When they see your product on Walmart.com, that trust transfers to you.
Real Numbers: My First 90 Days
I started on Walmart Marketplace in March 2020 with 50 SKUs from my Amazon inventory. Month 1: $8,400 in sales. Month 2: $14,200. Month 3: $22,800. By month 6, I hit $45,000 and finally paused my Amazon PPC campaigns. The math was undeniable—Walmart was more profitable with less headache.
My Honest Walmart Story (From Skeptic to Evangelist)
Three years ago, I was drowning in Amazon's endless fee increases, ruthless competition, and arbitrary account suspensions. I was doing $80K monthly on Amazon but keeping maybe 8% after all fees, ads, and returns. I was working 70-hour weeks just to tread water.
A friend mentioned Walmart Marketplace at a conference. I laughed. "Walmart? Really? My brand doesn't belong there." That was my Amazon ego talking. I thought Walmart was all about bargain-bin products and low margins. I couldn't have been more wrong.
I applied to Walmart on a Sunday night, half-expecting rejection. They approved me Tuesday morning. No endless documentation, no video verification, no 'we'll review and get back to you in 2-4 weeks.' Just... approved. I was suspicious it was too easy.
— My first week as a Walmart seller
The onboarding was shockingly smooth. A real human called me—an actual American-based account manager named Jennifer—to walk me through setup. When I had questions, I emailed her directly and got responses within hours, not the 3-day automated nonsense from Amazon Seller Support.
Within 90 days, I was making more profit on Walmart with 40% fewer sales than Amazon. The math was simple: lower fees, no PPC bloodbath, fewer returns, and customers who actually read listings before buying. I started shifting inventory over, and by month 6, Walmart was 70% of my revenue.
Today, I run a team of 4 from an office in Austin. We do $120K monthly on Walmart, $15K on Amazon (mostly clearance), and I'm actually enjoying e-commerce again. That's the Walmart difference.
Getting Approved: The Real Requirements (Not What You Read Online)
Here's where most guides get it wrong. They tell you Walmart is "invite-only" or "impossible to get approved." That was true in 2019. It's not true anymore. Walmart opened their marketplace wide in 2021, and they're actively looking for quality sellers.
But—and this is important—they're selective about WHO they let in. Walmart protects their brand fiercely. They want established sellers with track records, not dropshippers working from their laptops. Here's what you actually need:
The Non-Negotiable Requirements
- US Business Entity: LLC or Corporation (no sole proprietorships)
- US Tax ID (EIN): From the IRS, not optional
- W9 or W8: Tax documentation
- US Warehouse: Must ship from US locations (no direct China shipping)
- Product GTINs: UPC codes for everything you sell
- Established E-commerce History: They want to see you're already selling somewhere
If you're a brand new seller with no track record, Walmart will likely reject you. Build a business on Amazon, eBay, or Shopify first. Get 6-12 months of sales history, then apply. I know that's not what you want to hear, but it's the reality.
The Application Process That Actually Works
I help sellers get approved weekly. Here's the process that works in 2026:
Prepare Your Business Documentation
Have your LLC articles, EIN letter, and business bank account ready. Walmart verifies everything. Use a real business address (not a PO box). If you're working from home, that's fine—just use your home address.
Gather Your E-commerce Proof
Screenshots of your Amazon Seller Central dashboard, eBay store, or Shopify analytics showing 90 days of sales. They want to see $100K+ annual revenue ideally, but I've seen approvals at $50K for niche products.
Apply at marketplace.walmart.com
The application takes 20 minutes if you're prepared. Be honest about your business. They're verifying everything anyway. Don't exaggerate numbers—they'll check your Amazon store directly.
The Phone Call (This Is Key)
If they call, answer. It's usually a 15-minute conversation about your business, products, and fulfillment capabilities. Be professional but human. They're assessing if you're a real business, not a dropshipper.
Pro tip: If you have a unique product category that's underrepresented on Walmart (certain home goods, specialty pet products, eco-friendly items), mention that in your application. They're actively trying to expand categories beyond the typical big-box fare.
Walmart vs Amazon: The Brutally Honest Comparison
I've sold on both platforms for years. Here's the real comparison, not the marketing fluff:
| Factor | Walmart | Amazon |
|---|---|---|
| Monthly Fee | $0 (just referral fees) | $39.99 (Professional plan) |
| Referral Fees | 6-15% (category dependent) | 8-15% (category dependent) |
| Fulfillment Fees | WFS: Generally lower than FBA | FBA: Higher, complex structure |
| Advertising Costs | Lower competition = lower CPC | Expensive, saturated |
| Return Rate | 3-4% average | 8-12% average |
| Competition | 150K sellers (less saturated) | 9.7M sellers (extreme) |
| Support Quality | Humans, responsive, helpful | Automated, frustrating |
| Approval Difficulty | Moderate (need track record) | Easy to start, hard to sustain |
Where Walmart Wins
Profit Margins: I'm netting 18-22% on Walmart vs. 8-12% on Amazon. Lower fees, cheaper ads, fewer returns—it adds up fast.
Customer Quality: Walmart shoppers buy, not browse. They have higher intent and lower return rates. I spend 70% less time on customer service.
Growth Potential: Walmart's online sales are growing 60% YoY. Amazon's growth has plateaued. You're getting in on the ground floor.
Where Amazon Still Wins
Traffic Volume: Amazon has 2.5 billion monthly visits vs. Walmart's 120 million. If you need volume over profit, Amazon delivers.
International Reach: Amazon operates in 20+ countries. Walmart is US-focused (though expanding to Canada, Mexico).
Tools & Ecosystem: Amazon's seller tools are more mature. Walmart is catching up but still behind on analytics and automation.
My Recommendation: Hybrid Approach
Don't choose—do both. Use Amazon for volume and brand exposure, Walmart for profit. I use Amazon to launch new products, gather reviews, then shift inventory to Walmart once established. Best of both worlds.
Winning Product Categories on Walmart (Data-Backed)
Not everything sells on Walmart. I've tested dozens of categories. Here's what actually works based on my $500K+ in sales data:
Tier 1: Home & Garden (My Bread and Butter)
This is Walmart's sweet spot. Kitchen gadgets, organization products, bedding, small furniture. The Walmart customer is literally shopping for their home. I do 40% of my revenue here.
Winning products: Storage containers, vacuum sealers, robotic vacuums, air fryers, weighted blankets. Price point sweet spot: $25-$75.
Tier 2: Health & Personal Care
Post-COVID, this category exploded. Supplements, fitness equipment, personal care devices. Less competitive than Amazon, higher margins.
Winning products: Resistance bands, yoga mats, electric toothbrushes, massage guns, air purifiers. Avoid: ingestible supplements (regulatory headache).
Tier 3: Pet Supplies
Walmart shoppers love their pets. This category is underserved compared to Amazon. Premium pet products perform surprisingly well.
Winning products: Automatic feeders, pet cameras, orthopedic pet beds, grooming tools. Pet parents spend freely on Walmart.
What to Avoid (Learn From My Losses)
- Electronics: Too competitive, thin margins, high return rates
- Clothing: Walmart has their own massive apparel business, hard to compete
- Books/Media: Walmart isn't a destination for these, low volume
- Groceries: Restricted category, requires special approval
- Cheap junk: Walmart is moving upmarket, quality matters now
Use Walmart's Seller Center to research gaps. Look for categories with high search volume but low seller competition. That's your opportunity.
Pricing Strategy: The Walmart Way
Walmart's algorithm is different from Amazon's. They prioritize value over everything else. Here's how to price for success:
The Value Perception Game
Walmart customers expect fair prices, not necessarily the cheapest. They're comparing against in-store Walmart prices, not Amazon. If your $40 kitchen gadget is $60 at Walmart stores, you're winning.
I use a simple formula: Check the Walmart app for in-store prices on similar items. Price 10-15% below that, not below Amazon. You're competing with Walmart's own shelves, not just other online sellers.
Repracing Strategy
Walmart has a "Price Parity" rule—they don't want you selling cheaper on Amazon or your own site. I learned this the hard way when they suppressed my listings.
My solution: Same base price everywhere, but different promotions. On Walmart, I use their "Reduced Price" and "Clearance" tags. On Amazon, I use coupons. Same effective price, different presentation. Walmart's happy, I'm happy.
The Free Shipping Threshold
Walmart offers free 2-day shipping on orders $35+. Price your products to hit that threshold. A $32 product becomes a $36 product with better perceived value. Customers add cheap add-ons to hit free shipping, increasing your average order value.
Walmart Fulfillment Services (WFS): Better Than FBA?
WFS is Walmart's answer to Amazon FBA, and honestly? In many ways, it's better. I've been using WFS for 18 months. Here's the unfiltered truth:
WFS Advantages
- Lower fees: 10-20% cheaper than FBA on average
- Simpler pricing: No long-term storage fees, no complicated calculations
- 2-day shipping badge: Just like Prime, massive conversion boost
- Customer service handled: Walmart deals with returns and inquiries
- Search boost: WFS items rank higher in search results
WFS Disadvantages
- Strict prep requirements: More stringent than FBA
- Slower inbound: 2-week receiving vs. Amazon's 3-5 days
- Limited warehouses: Only 4 fulfillment centers vs. Amazon's 100+
- No commingling: Every unit needs individual labeling
My WFS Results
I moved 80% of my inventory to WFS within 6 months. My conversion rate increased 35%, shipping costs dropped 25%, and I reclaimed 10 hours weekly from not handling fulfillment. The slower inbound is annoying, but the benefits outweigh it.
When to Use Self-Fulfillment
Don't use WFS for everything. Large items (oversized fees add up), slow-moving inventory (takes up space), or items under $10 (fees eat margin). I self-fulfill about 20% of my catalog and use WFS for the rest.
Scaling to 6-Figures: Advanced Strategies
Getting to $10K/month is one thing. Scaling past $100K requires systems. Here's how I did it:
Strategy 1: The Product Expansion Flywheel
Don't launch random products. Build product lines. I started with one air fryer. Now I have 12 kitchen appliances under my brand. Customers who buy one come back for others. Walmart's "More from this seller" feature drives repeat purchases.
Each new product in your line makes the others sell better. It's compound growth, not linear.
Strategy 2: Walmart Advertising (Sponsored Products)
Walmart's ad platform is simpler than Amazon's but effective. I spend 8-12% of revenue on ads vs. 25-30% on Amazon. Start with automatic campaigns, then graduate to manual once you have data.
Key difference: Walmart ads convert better because there's less competition. My ACoS (Advertising Cost of Sales) on Walmart is 18% vs. 35% on Amazon.
Strategy 3: Build Your Team
You can't scale past $50K/month alone. My team structure:
- Operations Manager: Handles WFS shipments, inventory planning
- Customer Service VA: $6/hour from Philippines, handles inquiries
- Listing Specialist: Creates optimized listings, manages pricing
- Me: Strategy, new product development, relationship management
I work 25 hours weekly now. The business runs without me. That's the goal.
Costly Mistakes I Made (And How to Avoid Them)
I've lost over $30K to stupid mistakes on Walmart. Learn from my pain:
Mistake #1: Ignoring the Buy Box
Walmart has a Buy Box just like Amazon. If you're not winning it, you're not selling. I listed 100 products and wondered why only 20 sold. The other 80 were losing Buy Box to competitors.
Solution: Use repricing software (I use Feedvisor) to stay competitive. Monitor Buy Box win rate weekly.
Mistake #2: Poor Listing Quality
Walmart's algorithm prioritizes complete listings. I half-assed my first 50 listings—terrible photos, short descriptions, missing attributes. Crickets.
Solution: Treat every listing like a sales page. Professional photos, 500+ word descriptions, all attributes filled. Conversion rate jumped 40% when I fixed this.
Mistake #3: Stockouts
Walmart punishes stockouts harder than Amazon. I went out of stock on my best seller for 2 weeks. When I restocked, my ranking had dropped 70%. Took 2 months to recover.
Solution: Keep 60 days of inventory at WFS minimum. Use inventory management software. Better to overstock than stockout.
Mistake #4: Price Parity Violations
I listed products cheaper on my Shopify store. Walmart found out and suppressed my listings for 30 days. Revenue dropped 60%.
Solution: Same base price everywhere. Use different promotional strategies, not different base prices.
The Future of Walmart Marketplace
Where is this all heading? Based on my conversations with Walmart execs and what I'm seeing in beta programs:
What's Coming in 2025-2026
- Walmart+ Integration: Their membership program (like Prime) is growing fast. Sellers will get more tools to target these loyal customers.
- International Expansion: Canada and Mexico marketplaces opening to US sellers. I'm in the beta—it's promising.
- Improved Advertising: Display ads, video ads, sponsored brands coming. Get ready for more sophisticated marketing.
- Enhanced Analytics: Walmart knows their data tools are behind Amazon. Major upgrades coming.
- More Categories: Grocery, alcohol, pharmaceuticals opening to marketplace sellers (with restrictions).
Final Thoughts
Walmart Marketplace isn't a side hustle anymore—it's a serious business opportunity. The window is open now while competition is low and growth is high. In 3 years, it'll be as saturated as Amazon.
If you're already selling on Amazon, you need to be on Walmart. If you're just starting, consider starting on Walmart (once you meet requirements). The opportunity is real, the timing is now, and the potential is massive.
Questions? I'm active in the comments and on Twitter. Let's build something together.