Which marketplace costs less for sellers? Here’s a quick breakdown of Amazon‘s and Walmart‘s fees to help you decide where to list your products.
- Amazon charges a $39.99 monthly subscription fee for its Professional plan (or $0.99/item for Individual sellers). Walmart has no subscription fee.
- Referral fees: Amazon ranges from 8% to 45%, while Walmart’s fees are 6% to 15%. Walmart generally charges lower referral fees for most categories.
- Fulfillment fees: Amazon’s Fulfillment by Amazon (FBA) starts at $3.06/unit, while Walmart Fulfillment Services (WFS) starts at $3.45/unit. Walmart’s fees are weight-based and predictable.
- Storage fees: Walmart charges $0.75 per cubic foot year-round, while Amazon’s fees vary – $0.78/cu ft (Jan–Sep) and $2.40/cu ft (Oct–Dec).
- Fee calculation base: Amazon includes product price, shipping, and gift wrap in fee calculations. Walmart only charges fees based on the product price.
Quick Comparison
| Fee Category | Amazon | Walmart |
|---|---|---|
| Subscription Fee | $39.99/month (Professional) | $0 |
| Referral Fees | 8%–45% (avg. 13.04%) | 6%–15% (avg. 12.43%) |
| Fulfillment Fees | From $3.06/unit | From $3.45/unit |
| Storage Fees | $0.78–$2.40/cu ft (seasonal) | $0.75/cu ft (year-round) |
| Fee Base | Product price + shipping | Product price only |
Key takeaway: Walmart is often cheaper for smaller sellers or those testing products, while Amazon offers a larger customer base but higher costs. Both platforms have unique advantages depending on your business goals.
Amazon Selling Fees vs Walmart Selling Fees – Which One is Cheaper and Best for You?
Amazon Marketplace Fees
Amazon’s fees play a major role in shaping your profits. Understanding these costs can help you create smarter pricing strategies.
Monthly Subscription Costs
Amazon offers two subscription options: the Individual plan and the Professional plan. The Individual plan costs $0.99 per item sold, which works well for sellers with fewer than 40 monthly sales. On the other hand, the Professional plan costs $39.99 per month and is better suited for those selling more than 40 items monthly. This plan also provides access to advanced tools like bulk listings, dynamic pricing, advertising features, and even restricted products.
For example, if you sell 25 items each month at $20 per item, you’d make about $475.25 in profit on the Individual plan versus $460.01 on the Professional plan. However, with 100 monthly sales at $35 each, the Professional plan edges ahead, yielding $3,460.01 compared to $3,401 on the Individual plan. Professional sellers also benefit from tools like the Revenue Calculator and the Amazon Seller App, and they can switch or cancel plans as their business needs evolve.
Next, let’s look at how referral fees by category can impact your margins.
Referral Fees by Category
Amazon charges a referral fee on every sale, and these fees vary depending on the product category. They typically range from 5% to 45%, calculated on the total sales price, which includes the item cost, shipping, and any gift wrap charges.
Most categories carry a 15% referral fee. For instance:
- Electronics: 15% with a $0.30 minimum
- Baby products and beauty items: 8% for items priced at $10 or less and 15% for higher-priced items, both with a $0.30 minimum
- Jewelry: 20% with a $2.00 minimum
- Amazon Device Accessories: 45%
- Apparel and accessories: 17%
- Watches: 16%
To illustrate, a seller who switched from selling electronics (15% referral fee) to industrial supplies (12% referral fee) saw a significant profit boost. On a monthly revenue of $500,000, that 3% difference added up to an extra $15,000 in profit.
Fulfillment by Amazon (FBA) Costs
If you use Fulfillment by Amazon (FBA), you’ll face fees for services like picking, packing, shipping, and handling returns. Storage fees are also charged based on inventory volume, with higher rates during peak seasons. Additional charges may apply for inventory stored longer than 181 days, processing returns with free shipping, or removing unsold items.
“As long as I have my tools and materials, I can depend on FBA to keep my income constant.” – Marcia Asuncion Ricchiuti, Founder, Kahili Creations
Here’s an example: A kitchenware seller reduced their product’s box size by just 1 inch, qualifying it for the “Small Standard-Size (12–16 oz)” category. This simple adjustment cut FBA shipping fees from $5.86 to $3.22 per unit, saving $2.64 per unit. With 300 units sold each month, the brand saved $792 monthly.
Other Amazon Fees
Beyond the standard fees, Amazon may charge for additional services. While most listings avoid extra charges, high-volume sellers in certain categories might face listing fees.
Advertising costs, though optional, are becoming essential for visibility. Many sellers allocate 10–20% of their revenue to Amazon PPC campaigns. Other fees include the FBA Inbound Placement Service, which optimizes inventory distribution across fulfillment centers, and removal order fees for retrieving or disposing of unsold inventory.
Understanding which fees are unavoidable and which can be minimized – through better inventory management or product adjustments – can help keep your costs under control.
Walmart Marketplace Fees
Walmart stands out by not charging a monthly subscription fee, making it an attractive option for sellers looking to avoid recurring costs. However, understanding the fee structure is crucial for accurate profit calculations.
Referral Fees by Category
Walmart applies referral fees as a percentage of the gross sales price, which includes the cost of the item, shipping, handling, and gift wrap charges. These fees vary by category and often use a tiered pricing model based on the sale price.
Here’s a breakdown of referral fees for some popular categories:
| Category | Fee Structure |
|---|---|
| Consumer Electronics | 8% |
| Personal Computers | 6% |
| Video Game Consoles | 8% |
| Camera & Photo | 8% |
| Electronics Accessories | 15% (up to $100); 8% (>$100) |
| Apparel & Accessories | 5% (≤$15); 10% ($15–$20); 15% (>$20) |
| Baby Products | 8% (≤$10); 15% (>$10) |
| Beauty, Health & Personal Care | 8% (≤$10); 15% (>$10) |
| Home, Kitchen, Decor & Garden | 15% |
| Jewelry & Precious Metals | 20% (up to $250); 5% (>$250) |
| Watches | 15% (up to $1,500); 3% (>$1,500) |
This tiered structure can benefit sellers in certain scenarios. For instance, selling high-end electronics accessories priced above $100 reduces the fee from 15% to 8%. Similarly, luxury watch sellers enjoy a lower 3% fee on items priced over $1,500.
Next, let’s dive into Walmart’s weight-based fulfillment fees.
Walmart Fulfillment Services (WFS) Costs
Walmart Fulfillment Services (WFS) uses a weight-based pricing model, and its fees are typically about 15% lower than competitors. Fulfillment fees are determined by the greater of the item’s actual weight or dimensional weight. Here’s the fee structure:
- ≤1 lb: $3.45
- 2 lb: $4.95
- 3 lb: $5.45
- 4–20 lb: $5.75 + $0.40 per pound over 4 lbs
- 21–30 lb: $15.55 + $0.40 per pound over 21 lbs
- 31–50 lb: $14.55 + $0.40 per pound over 31 lbs
- ≥51 lb: $17.55 + $0.40 per pound over 51 lbs
Additional fees may apply for specific situations:
- Apparel: Add $0.50
- Hazardous materials: Add $0.50
- Items under $10: Add $1.00
- Oversize items: Add $3.00 or $20.00
For example, consider a product weighing 6 lbs with dimensions of 12.0 x 10.0 x 10.0 inches. Its dimensional weight is calculated as (12.0 × 10.0 × 10.0) / 139 ≈ 8.63 lbs. After adding 0.25 lbs for packing, the shipping weight rounds to 9 lbs. This results in a fee of $5.75 plus $0.40 for each pound over 4 lbs, totaling $7.75.
Storage Fees:
Storage is charged monthly at $0.75 per cubic foot from January through September. During peak season (October–December), the rate remains $0.75 for items stored 30 days or less but increases to $1.50 for items stored longer. Items stored over 12 months may face fees as high as $7.50 per cubic foot per month.
“After analyzing data from over 10,000 multichannel sellers, we’ve discovered that optimizing warehouse placement can reduce fulfillment costs by up to 32% while improving delivery times by 27%. At AMZ Prep, we’ve developed a proprietary geolocation algorithm that helps sellers strategically position inventory to maximize both Walmart and Amazon’s fulfillment networks, resulting in significant competitive advantages for our clients.” – Arishekar N., Director of Marketing, AMZ Prep
Other Walmart Fees
While Walmart avoids listing and subscription fees, sellers should account for other costs that could impact margins. Return shipping fees and chargebacks for late deliveries or inaccurate orders fall on the seller, highlighting the importance of precise listings and reliable shipping standards.
Sellers may also encounter fees for problem inventory, such as shipments with incorrect labeling or missing poly bags. Disposal and removal fees apply when items need to be returned or discarded from Walmart’s fulfillment centers.
Lastly, advertising through Walmart Connect is optional but can be a valuable tool for boosting product visibility.
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Amazon vs Walmart Fee Comparison
Now that we’ve outlined the fees for each marketplace, let’s dig into how these cost structures can impact your bottom line. The differences in fees directly affect profitability and can influence where you choose to concentrate your selling efforts.
Fee Comparison Chart
Here’s a side-by-side look at the key fee categories for Amazon and Walmart:
| Fee Category | Amazon | Walmart |
|---|---|---|
| Monthly Subscription | $39.99 (Professional) / $0.99 per item (Individual) | $0 |
| Referral Fees | 8%–20%, averaging 13.04% | 6%–15%, averaging 12.43% |
| Fulfillment Fees | Starting at $3.06 per unit | Starting at $3.45 per unit |
| Storage Fees | $0.78/cu ft (Q1–Q3), $2.40/cu ft (Q4) | $0.75/cu ft year-round |
| Fee Calculation Base | Product price + shipping + gift wrap | Product price only |
This table highlights some notable contrasts. While Amazon’s fulfillment fees start slightly lower at $3.06 per unit compared to Walmart’s $3.45, Walmart offers consistent storage pricing at $0.75 per cubic foot year-round. In contrast, Amazon’s storage fees jump significantly during Q4, reaching $2.40 per cubic foot.
For specific categories, the differences become even clearer. For electronics under $100, Walmart charges a 10% referral fee, while Amazon charges 8%. In the apparel and accessories category, Walmart’s 15% rate is lower than Amazon’s 17%. Additionally, Amazon calculates referral fees based on the product price plus shipping and gift wrap, whereas Walmart only considers the product’s retail price.
Main Differences and Seller Types
These fee differences highlight which platform might work better for different types of sellers. One of Walmart’s standout advantages is its zero subscription fee policy. Amazon requires sellers to pay a $39.99 monthly fee for its Professional plan, whereas Walmart allows sellers to list products without any upfront subscription costs.
Storage fees are another key distinction. Amazon’s seasonal pricing can create budgeting challenges, especially in Q4 when storage fees rise from $0.78 to $2.40 per cubic foot. Walmart’s stable $0.75 per cubic foot rate makes it easier to plan for peak seasons without unexpected cost spikes.
Ultimately, the platform you choose will depend on your business model and sales volume. High-volume sellers might prefer Amazon’s larger customer base, while Walmart’s fee structure – with no subscription costs and predictable storage fees – could appeal to sellers with lower sales or those just starting out. Additionally, Walmart’s more selective marketplace, with stricter seller requirements, often results in less competition.
These differences set the stage for exploring real-world fee scenarios and their impact on profit margins in the next section.
Real Fee Examples and Math
Let’s break down some real-world fee scenarios to see how they can impact your bottom line.
Sample Product Fee Breakdown
Take, for instance, a $50 Bluetooth speaker that weighs 1 lb and takes up 0.5 cubic feet of space.
Amazon Fee Breakdown:
- Monthly subscription: $39.99 (Professional plan)
- Referral fee: 15% of $50 = $7.50
- FBA fulfillment fee: $3.06 (small standard, ≤1 lb)
- Storage fee: $0.39 per month (calculated as $0.78 per cubic foot × 0.5 cubic feet)
- Total fees per unit: $50.94
Walmart Fee Breakdown:
- Monthly subscription: $0
- Referral fee: 10% of $50 = $5.00 (for electronics under $100)
- WFS fulfillment fee: $3.45 (for items ≤1 lb)
- Storage fee: $0.38 per month (calculated as $0.75 per cubic foot × 0.5 cubic feet)
- Total fees per unit: $8.83
In this scenario, Walmart’s fees are about $42.11 lower per unit compared to Amazon, thanks to the absence of a subscription fee and lower referral rates for electronics.
Now, let’s factor in Walmart’s 2025 New-Seller Savings program. This initiative slashes referral fees by up to 75% (capped at $75,000 in total savings). With the discount, the referral fee on the $50 Bluetooth speaker drops from $5.00 to just $1.25. This reduces Walmart’s total fees per unit to about $5.08.
For another perspective, let’s look at an apparel item. Consider a $50 women’s shirt weighing 0.5 pounds:
| Fee Component | Amazon | Walmart | Walmart (New Seller) |
|---|---|---|---|
| Monthly Subscription | $39.99 | $0 | $0 |
| Referral Fee | $8.50 (≈17%) | $7.50 (15%) | $1.88 (≈75% off) |
| Fulfillment Fee | $3.06 | $3.95* | $3.95 |
| Storage Fee (monthly) | $0.39 | $0.38 | $0.38 |
| Total Cost | $51.94 | $11.83 | $6.21 |
*Note: Walmart’s fulfillment fee for apparel includes a $3.45 base fee plus an additional $0.50 apparel fee.
These examples highlight how fees can vary depending on the product type and platform.
How Fees Affect Profit Margins
Now, let’s see how these fees directly influence your profit margins. For example, if you purchase the $50 Bluetooth speaker for $25, you start with a 50% gross margin before fees.
Amazon Profit Analysis:
- Selling price: $50.00
- Product cost: $25.00
- Total Amazon fees: $50.94
- Net result: A loss of $25.94 per unit
Walmart Profit Analysis:
- Selling price: $50.00
- Product cost: $25.00
- Total Walmart fees: $8.83
- Net result: A profit of $16.17 per unit
The $42 fee difference means that Amazon sellers need far higher sales volume to achieve the same level of profitability as Walmart sellers.
For sellers on Amazon’s Individual plan (which charges $0.99 per sale), the break-even point compared to the Professional plan occurs when you sell about 40 units per month. Below that, the Individual plan might make more sense.
These fee comparisons demonstrate why Walmart’s structure can be particularly appealing for smaller sellers or those testing new products. With lower fixed costs and reduced referral fees, Walmart offers more flexibility and better profit potential, especially during the early stages of a business.
Conclusion
The comparison of fee structures between Amazon and Walmart highlights how these costs can shape your overall profitability as a seller. Each platform offers distinct advantages, and understanding these differences is crucial for making informed decisions.
Amazon, with its massive marketplace of 9.7 million sellers worldwide, presents significant opportunities for established brands that can invest in strong marketing efforts. High sales volumes often justify the cost of Amazon’s Professional plan. On the other hand, Walmart’s smaller pool of just 150,000 active sellers provides a less crowded environment, making it an attractive option for smaller sellers or newcomers looking for better visibility.
When it comes to referral fees, Walmart generally offers lower rates across various categories. While Amazon tends to attract premium buyers, Walmart appeals to more price-conscious shoppers, drawing over 152 million visitors each month. This difference in audience behavior can influence where your products might perform best.
Managing fees efficiently is key to improving profitability. Strategic platform selection becomes even more important when factoring in these fee dynamics. Emplicit’s marketplace management services specialize in helping sellers navigate both platforms. Their expertise in areas like fee optimization and inventory management has led to impressive results for clients, including a 30–45% increase in marketplace revenue within 90 days and a 15–20% reduction in advertising costs. By outsourcing these complexities, you can focus on scaling your business.
Ultimately, you don’t have to choose one platform over the other. Many successful sellers use Amazon for its unparalleled reach with established products while leveraging Walmart to test new offerings. With thoughtful fee management, both platforms can work together to drive your e-commerce growth.
FAQs
What are the key differences in cost and benefits between Amazon FBA and Walmart Fulfillment Services (WFS) for sellers?
Amazon FBA and Walmart Fulfillment Services (WFS) both simplify the selling process by handling inventory storage, shipping, and returns. However, the costs and perks of each service vary quite a bit.
WFS tends to be more cost-effective, with fulfillment fees starting at $2.92 per unit for smaller items. Plus, it skips the monthly subscription fee entirely, making it a great choice for sellers aiming to keep expenses low. Another advantage? WFS distributes inventory across multiple fulfillment centers, which helps lower shipping costs and ensures speedy 2-day delivery – an important factor for keeping customers happy.
Amazon FBA, meanwhile, offers unmatched access to a massive customer base. But that reach comes at a price, with higher fees, especially for oversized products or storage during peak times. Sellers need to take a close look at their business goals and budget to decide which platform makes the most sense for them.
What should I consider when comparing Amazon and Walmart marketplace fees?
When weighing the fees for Amazon and Walmart marketplaces, it’s important to zero in on a few critical factors: referral fees, subscription charges, and fulfillment costs. Walmart’s referral fees generally fall between 8% and 15%, which can sometimes be more budget-friendly compared to Amazon – especially if you’re using Amazon’s FBA (Fulfillment by Amazon) services. Plus, Walmart skips the monthly subscription fee altogether, making it an appealing choice for smaller or newer sellers looking to keep costs low.
Beyond these, other expenses like fulfillment, advertising, and refund-related fees can differ quite a bit between the two platforms. To figure out which marketplace suits your business better, think about your product category, sales projections, and how you plan to handle logistics. Matching these factors with each platform’s fee structure can help you stay within budget while meeting your business goals.
How does Walmart’s fee structure benefit smaller sellers or those testing new products compared to Amazon?
Walmart’s fee structure offers a budget-friendly option for smaller sellers or those testing out new products. Unlike Amazon, Walmart skips monthly subscription or setup fees, which means sellers can avoid hefty upfront costs. Instead, sellers are only charged a referral fee, which typically falls between 5% and 15%, depending on the product category.
This streamlined approach makes it easier for smaller businesses and product testers to dip their toes into the marketplace without a significant financial commitment. Plus, it allows sellers to scale their operations at their own pace as their business grows, making Walmart an attractive platform for managing costs while exploring new opportunities.