More and more brands that want to open the American market trust amazon either Walmart to sell their products. Now, in which of the two is it more profitable to do it? Which are the advantages and disadvantages when selling on Amazon and Walmart?
Today, amazon is he world’s largest marketplace and it has more than 126 million subscribers. Furthermore, according to StatisticalAmazon is already the leading global retail brand.
In Spain, Walmart it is a great unknown; Now, in America, he’s one of the marketplaces with better prospects for the future. Today, according to the consultant Tandem Uphas more than 32 million subscribers and with 10,600 stores in more than 20 countries.
If we refer exclusively to Amazon in the United States, and approaching the business prism, these are some of its most important features:
- The monthly subscription it is $39.99.
- The return fee it is five dollars or 20% of the product.
- The referral fee varies between 6% and 45%.
- The monthly storage fee is 83 cents per cubic foot.
- The long-term storage fee is an additional $6.90 per cubic foot.
- The advertising on amazon it is more expensive, although it obtains a higher conversion rate.
On the contrary, if we talk about Walmartthese are some aspects to take into account if you want to sell products through it:
- No monthly subscriptionno return fee.
- The referral fee varies between 6% and 20%.
- The monthly storage fee is 75 cents per cubic foot.
- The storage fee long-term It amounts to an additional $7.50 per cubic foot.
- The walmart advertising it is cheaper, although you get a lower conversion rate.
Amazon vs Walmart: advantages and disadvantages
be a seller of amazon puts at your disposal warehouses all over the world, and a larger clientele. 38% of shoppers start their product search on Amazon and have marketing tools with which you can optimize content and position your products.
In addition, it has Customer Service who handles returns and refunds (if you opt for their logistics) and also thanks to their FBA serviceyour products will be positioned more easily.
But sell at amazon it also has some disadvantages. The seller has to pay a monthly subscription and return rates.
Also, you must pay advertising, because organic search decreases as the number of products increases. That is, if Amazon gets your product at a lower price, it will automatically be reduced.
On the other hand, if we choose to sell in Walmart we will have some advantages among which stand out a product pick, pack and ship program, no monthly subscription fee or returns and there is less competition between sellers.
As for the disadvantages, if you want to take advantage of the warehouses of Walmart you will have to send your products to the United States, registering is not a simple process and if you put an ‘unfair’ price, the product is removed.