eComCatalyst - Selling on Amazon FBA and e-Commerce

eComCatalyst - Selling on Amazon FBA and e-Commerce


5 Reasons Why Walmart WFS Is Better Than Amazon FBA

September 18, 2024
Reading Time: 4 minutes

If you’re in the e-commerce business, you already know the importance of finding the right fulfillment service. Today, Walmart Fulfillment Services (WFS) is showing up as a serious competitor to Amazon FBA (Fulfillment by Amazon). With over 20 years of experience selling on both platforms, I can confidently say Walmart WFS is not just an alternative — in many ways, it’s better than FBA.



In this post, I’ll break down five solid reasons why Walmart WFS is better than Amazon FBA. Whether you’re new to selling or a veteran looking to cut costs and streamline operations, you’ll want to pay attention.



Understanding the Basics: Walmart WFS vs. Amazon FBA

Before jumping straight into the reasons, here’s a quick comparison of how both services work. In both Amazon FBA and Walmart WFS, sellers send their inventory to the respective fulfillment center. From there, the platforms handle storage, packing, and shipping.



For Amazon FBA, products have the appeal of being Prime-eligible, which can boost conversions. Similarly, Walmart WFS makes products eligible for Walmart’s 2-day shipping. This high-speed service is perfect for the millions of Walmart customers who are used to fast delivery.



Now, let’s dive into why Walmart WFS has an edge over Amazon FBA.



1. Lower Fulfillment Fees (Most of the Time)

walmart wfs rates vs amazon fba rates

The first clear advantage of Walmart WFS is lower overall fulfillment fees. Amazon may be competitive on tiny, lightweight items like phone cases, but once you get into products that weigh more than a few ounces, Walmart takes the win.



Here’s a quick comparison:




  • For a product that weighs 12-16 oz, Amazon charges $4.75 per order, whereas Walmart only charges $3.45.

  • For a 1-1.5 lb product, Amazon’s rate is $5.69, yet Walmart stays at $4.95.


That may not seem like much, but over hundreds or even thousands of orders, those savings stack up fast. When every penny counts, Walmart’s cheaper rates simply make sense.



2. Storage Fees: Consistently Cheaper, Especially During Peak Season

Amazon and Walmart charge similar base storage fees throughout the year, with Amazon at around 78 cents and Walmart slightly lower at 75 cents per cubic foot. But here’s where Walmart makes a huge difference — peak season pricing.



Amazon’s storage fees explode during the October-December holiday season, jumping from 78 cents to a whopping $2.40 per cubic foot. Walmart, on the other hand, doesn’t jack up its prices. If you get your inventory into Walmart’s warehouses by September 30th, you’ll still pay just 75 cents per cubic foot, even during the holiday rush.



No holiday storage price hikes. For sellers focused on maximizing profit, this is a game-changer.



3. No Inbound Placement Fees

Amazon makes it complicated and costly to send inventory into their warehouses. You either have to pay for expensive inbound placement fees, or strategically ship products to multiple warehouse locations. This adds money, headache, and time.



Walmart WFS couldn’t be any simpler. Just send your inventory to one location, and they take care of the rest. No inbound placement fees. Nothing complicated about where and how to ship products. At Ecom Catalyst, we’ve sent products from our Georgia office to Walmart’s fulfillment center in Florida using FedEx ground, and the whole process was smooth and fast.



This factor alone makes Walmart WFS much easier and cheaper for sellers who don’t want the hassle that Amazon routinely creates.



4. Multi-Channel Fulfillment Options Now Available

Amazon’s Multi-Channel Fulfillment (MCF) has been a huge selling point for years. You could sell on other platforms like Shopify and still have Amazon fulfill orders for you. Walmart was missing this feature—until now.



Walmart WFS now offers multi-channel fulfillment, meaning you can have your Walmart inventory fulfill orders for sales not just from Walmart, but also Shopify, Etsy, eBay, and more. This recent update from Walmart completely erases Amazon’s advantage in this area.



The ability to streamline fulfillment across multiple sales platforms makes Walmart WFS the better choice for sellers looking to simplify logistics. Plus, using Walmart instead of Amazon aligns you with a major U.S. retailer growing in marketplace share.



5. Higher Conversion Rates

Shoppers trust fulfillment from their favorite marketplace. It’s the difference between a listing that says “ships by Amazon” or “ships by Walmart” versus one that says “ships by XYZ Seller.”



Studies show that when your product is fulfilled by Amazon or Walmart, customers are far more likely to complete the purchase. People trust the fast delivery, reliability, and customer service these platforms have built their names on. According to internal reports, Walmart WFS can boost your conversion rate by over 30%.



That increased trust translates directly into more sales. Especially with Walmart WFS picking up speed in the market, now’s the best time to take advantage of their growing fulfillment service.



Conclusion

Walmart WFS is emerging as the better fulfillment option for many sellers. With lower fulfillment fees, especially for larger items, stable storage costs, and far less hassle with inbound shipments, it’s more seller-friendly than Amazon FBA. The introduction of multi-channel fulfillment is a huge win, giving Walmart WFS sellers even more flexibility across platforms like Shopify and eBay.



Whether you’re expanding from Amazon or just starting in e-commerce, Walmart WFS offers a clear path of efficiency, cost savings, and growth.



At Ecom Catalyst, we manage everything for you, from connecting listings to fulfillment centers. We’ve been selling for over 20 years, and we don’t just talk the talk — we do this every single day for ourselves and our clients. It’s not about regurgitating information that’s floating out there online. We’ve walked the walk and know how to help you scale your business with real, practical solutions.



Need help optimizing your sales channels with Walmart WFS? Book your free consultation with us today and let’s grow your business together:



Visit us at EcomCatalyst.com and get on the fast track. Let’s get you selling smart.


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