Amazon and Walmart are the two largest e-commerce marketplaces in the United States. For a new fashion brand, choosing where to focus first is one of the most consequential early decisions you'll make. The platforms are genuinely different in ways that matter significantly for fashion brands. Here's the complete comparison.
Platform Scale: Amazon Still Dominates, But Walmart Is Growing Fast
- Amazon.com: 310M+ active customer accounts globally, 200M+ US monthly visitors. Fashion is Amazon's second-largest category by revenue after electronics.
- Walmart Marketplace: 120M+ monthly US visitors, 100,000+ marketplace sellers (vs Amazon's 2M+). Walmart's e-commerce is growing at 27% YoY compared to Amazon's 9%.
The volume difference is real — Amazon has more traffic — but Walmart's growth rate and lower competition make it increasingly attractive for new brands.
Fee Comparison
Amazon FBA fees (apparel):
- Referral fee: 17% (clothing and accessories)
- FBA fulfilment fee: $3.22–$6.40 per unit depending on size/weight
- FBA storage fee: $0.56–$0.87/cubic foot/month (increases significantly Oct–Dec)
- Optional advertising (essential): typically 10–20% of revenue for new brands
Walmart Marketplace fees (apparel):
- Referral fee: 15% (clothing) — slightly lower than Amazon
- No monthly seller fee (Amazon charges $39.99/month for Professional plan)
- Fulfilment by Walmart (WFS): competitive with FBA, slightly lower fees on many SKUs
- Walmart Connect advertising: typically 8–15% of revenue for new brands
Verdict: Walmart has lower total fee burden, but this difference is partially offset by lower traffic volume.
Competition Level
This is where the platforms diverge most dramatically for fashion:
Amazon fashion is brutally competitive. The top fashion categories (women's dresses, activewear, basics) have thousands of sellers including major brands, private label veterans with 10,000+ reviews, and Chinese manufacturers selling at razor-thin margins. Rank on page 1 without advertising is nearly impossible for new brands in competitive categories.
Walmart Marketplace fashion has dramatically lower competition. With 100,000 sellers vs Amazon's 2 million, many fashion subcategories on Walmart have fewer than 50 sellers. New brands can achieve page 1 rankings in niche categories with 10–50 reviews instead of Amazon's typical 1,000+ review requirement.
Verdict: Walmart wins on competition — new brands often achieve profitability 40–60% faster on Walmart than Amazon.
Buyer Demographics
Amazon fashion buyers: Broad demographic (18–65), deal-conscious, trust the platform (not necessarily the brand). Heavy Prime membership — buyers expect 2-day shipping. Brand loyalty is lower than on premium fashion platforms.
Walmart fashion buyers: Skews slightly older (30–55), value-conscious, higher household income than the Walmart physical store stereotype. Walmart.com's online buyer demographics are significantly different from Walmart's in-store shoppers.
Verdict: Amazon has broader reach; Walmart buyers convert at higher rates for value-positioned brands.
Approval Process
Amazon: Open marketplace — most sellers can list within 24–48 hours after account approval. However, certain brand registry requirements and gated categories require additional approval.
Walmart Marketplace: Application-based with a 1–4 week approval process. Walmart reviews your website, business credentials, and product quality. Rejection rate is approximately 50–60% of applications. Once approved, however, you face significantly less competition.
Which Platform Should You Launch on First?
The answer depends on your product:
- Commodity basics (t-shirts, basics, simple accessories) → Start with Walmart. These categories are saturated on Amazon; Walmart's lower competition allows new brands to build sales velocity faster.
- Differentiated, story-driven fashion → Start with Amazon. Amazon's larger traffic gives differentiated products better discovery, and Amazon's Brand Registry tools (A+ Content, Brand Story) support premium brand building.
- Price point over $50 → Amazon first. Amazon buyers at this price point research purchases and brand legitimacy matters. Walmart buyers at this price point are fewer.
- Price point under $40 → Walmart first. Value positioning on Walmart outperforms comparable Amazon listings in many fashion subcategories.
Most established brands should be on both within 6 months. Our marketplace onboarding service handles simultaneous Amazon and Walmart setup — Brand Registry, listing optimization, FBA/WFS setup, and launch advertising — so you don't have to manage two platforms sequentially. Talk to our US team to plan your launch strategy.