Amazon vs. Walmart: Where Should Your Brand Be Selling in 2023
Jun 26, 20233 min read Nick Heethuis
Every week, without fail, I find myself in a conversation with a brand owner who is contemplating expanding their brand to Walmart.
They’ve seen some success on Amazon and are now eyeing Walmart as a potential new revenue stream. But is it really the golden opportunity it appears to be? Let’s dive into this topic and see if we can find some answers.
Selling on Amazon vs. Selling on Walmart: A Comparative Analysis
First, let’s take a step back and look at the bigger picture. When it comes to the major metrics that matter to brands, Amazon consistently outperforms Walmart.
This isn’t just an opinion. It’s a fact that’s hard to ignore. From customer reach to sales volume, Amazon reigns supreme. So, why do brand owners still consider Walmart as a viable option?
The Reality of Selling on Walmart
The allure of a new distribution channel is strong. It’s seen as a fresh revenue stream with little to no downside.
However, the reality is often far from this optimistic view.
Here are a few things to consider before you make the leap:
- The revenue stream from Walmart is likely to be far smaller than Amazon’s. Think of it as a smaller pond with fewer fish. While it’s true that any additional revenue is beneficial, it’s essential to weigh the potential gains against the effort required to achieve them.
- Walmart comes with its own set of challenges. There will be substantial headaches and operational hurdles that you’ll need to overcome. From navigating their unique seller platform to dealing with their stringent policies, these challenges can drain your resources and divert your attention from other aspects of your business.
- The opportunity cost is real. Every minute and dollar you spend on Walmart is time and resources not spent on Amazon or other potentially more lucrative channels. It’s crucial to consider whether the potential benefits of selling on Walmart outweigh the costs.
The Potential Upside of Walmart
But let’s not paint an entirely grim picture. Walmart, despite its challenges, does have its advantages. It’s a well-established brand with a loyal customer base. For specific product categories, Walmart might even offer better visibility and sales. The key is understanding your product, your target audience, and where they prefer to shop.
Making the Decision: Amazon or Walmart?
Does this mean you should abandon the idea of selling on Walmart? Not necessarily.
A Walmart strategy can be a good move for your brand, but only if you’ve already maximized your presence on Amazon and have things operating smoothly.
The last thing you want is to have your brand represented in a mediocre way on two marketplaces simultaneously. It’s not just about being everywhere. It’s about being everywhere that counts. And right now, Amazon counts the most.
In conclusion, expanding to Walmart is not a decision to be taken lightly. It requires careful consideration and strategic planning. While it can provide an additional revenue stream, ensuring that your brand is well-established and operating efficiently on Amazon before venturing into new territories is essential.
Remember, success is not about being present on every platform. It’s about making a significant impact where it matters most.
And for now, that place is Amazon.
At TripleShot, we provide expert assistance in launching, growing, and scaling brands on Amazon. Both established and emerging brands benefit from our services.
Aug 25, 202310 min read