Walmart Marketplace is one of the most interesting growth channels for US small businesses today. It is the second-largest online marketplace in the US after Amazon, with fewer sellers and strong shopper traffic. This market research summary covers market size, buyers and sellers, the pain points, logistics and payments, and how to get started.
Editor’s note for review: the statistics below come from the original mid-2025 research. Please verify each figure against current Walmart and industry sources, and update the date, before publishing.
1. Market size and growth (mid-2025 data, verify)
| Measure | Detail | What it means for you |
|---|---|---|
| Active sellers | About 200,000+ | Far fewer than Amazon’s millions, so less competition and room for early movers. |
| Seller growth | About 25 to 30 percent year over year | A fast-growing platform. Demand is rising too. |
| Product catalogue | About 420 million items, with most from third-party sellers | Marketplace sellers are central to Walmart’s strategy. |
| E-commerce growth | Double-digit growth in US marketplace sales | A reliable base of traffic and orders. |
| Seller origin | A large share of sellers and new sellers are international, especially from China | More price competition in generic products. US sellers should compete on quality, brand and niche. |
2. Market opportunity (TAM, SAM, SOM)
- TAM: all US e-commerce, estimated at over $1.3 trillion in 2025 [verify].
- SAM: the part that sells through marketplaces and fits Walmart’s seller criteria, roughly half of TAM in the original estimate.
- SOM: the realistic share Walmart can capture, estimated at 10 to 20 percent of SAM.
Walmart is working to grow its share by using physical stores for fulfilment and returns, an advantage online-only rivals lack.
3. Who buys and who sells
Buyers
- Income and life stage: increasingly middle to higher-income households, with a large group aged roughly 23 to 38, many with families and homes.
- Preferences: they want everyday low prices but also fast, reliable shipping (two-day delivery is the benchmark) and easy returns, including in-store returns.
- Trust: they trust the Walmart brand and expect quality, especially from items marked “Fulfilled by Walmart”.
Sellers
- Type: professional merchants, often already selling on Amazon or other channels.
- Motivation: diversification, competitive fees and less competition.
- Behaviour: price-sensitive, often using repricing tools, and many use Walmart Fulfillment Services (WFS) to meet delivery standards.
4. Pain points and motivations
Challenges
- Strict performance standards: Walmart expects very low cancellation rates, high on-time delivery and almost perfect valid tracking. Missing them can lead to suspension.
- Search visibility: the algorithm rewards competitive offers (price plus fast shipping), not only keywords, which makes it harder for new brands.
- Advertising: tools are less mature than Amazon’s, so organic performance matters.
- Onboarding review: the application is selective and favours businesses with e-commerce experience.
Reasons to sell
- Fewer sellers and more niche opportunities.
- Competitive referral fees, often cited as roughly 5 to 15 percent depending on category [verify].
- Store network for returns and pickups.
- WFS benefits: sellers often report large sales increases from the “Fulfilled by Walmart” and two-day shipping badges.
5. Logistics, payments and safety
- Seller-fulfilled: you handle storage, packing and shipping and must keep delivery metrics high.
- WFS: Walmart stores, packs, ships, handles support and returns. Items must meet size and weight limits.
- Returns: shoppers can return marketplace items by mail or at Walmart stores, which builds trust.
- Payouts: usually every two weeks, via Walmart’s marketplace wallet or approved providers such as Payoneer. New sellers may face an initial payment hold.
- Safety: strict vetting, a Brand Portal for IP protection and monitoring of seller behaviour.
6. Getting started: onboarding steps
- Apply: submit business and tax details (a US EIN is required), your e-commerce history and categories.
- Create your account: sign the retailer agreement and complete two-step verification.
- Set up your partner profile: company information, customer service contacts, tax details, shipping and returns policies.
- Choose fulfilment: WFS or seller-fulfilled.
- Set up payouts: marketplace wallet or an approved provider.
- Upload your catalogue: by bulk upload, API or import from another marketplace. Products need valid GTIN or UPC codes unless exempt.
- Go live: confirm the checklist. Items can take a few hours to publish.
The bottom line
Walmart is in an aggressive growth phase and offers high traffic with less competition than Amazon. Success rewards operational excellence and speed:
- Use WFS as soon as you can, since it is the biggest visibility lever.
- Price competitively against Amazon and other major retailers.
- Protect your metrics from day one: low cancellations, on-time delivery and valid tracking.
Frequently asked questions
Is Walmart Marketplace better than Amazon for small sellers?
It is less crowded and can have lower fees, but approval is stricter and advertising tools are less developed. Many sellers use both.
Do I need an EIN?
Yes. A US business tax ID is required, and a personal SSN is not accepted.
Is WFS worth it?
For many sellers, yes, because of the visibility and delivery badges. Check storage and fulfilment fees against your margins.
Can you help with my marketplace strategy?
Yes. I help with marketplace marketing, ads and website strategy. Book a free 20-minute call.
Keep learning
Read next: Amazon Marketplace market research and multichannel PPC blueprint.