For many Amazon FBA sellers, 2025 is shaping up to be a year of both promise and pressure. With Amazon’s reach, logistics efficiency, and massive shopper base, it’s easy to stay loyal to one platform. But recent policy changes, higher fees, and saturated competition are pushing smart sellers to think beyond the Amazon bubble. Enter Walmart Fulfillment Services (WFS)—a growing fulfillment network with lower costs, a rapidly expanding customer base, and far less seller competition. The question is no longer if Amazon sellers should consider Walmart—it’s when and how.

This guide is tailored to help serious Amazon FBA sellers decide whether expanding to Walmart WFS is worth it in 2025. We’ll examine the benefits, pitfalls, and strategic value of operating across both platforms. With real-world seller examples, a side-by-side comparison table, and actionable steps, this is your go-to resource for making a smart multichannel move.

Why WFS Is Gaining Attention in 2025

Amazon FBA continues to dominate with over 300 million monthly shoppers, but it’s no longer the only game in town. Walmart Marketplace, now boasting 130 million monthly visitors, is catching up fast—especially with the evolution of WFS. In 2024 alone, Walmart reported a 15% increase in value-focused shoppers, while WFS fulfillment costs remained 20% cheaper than Amazon’s.

Amazon, meanwhile, has introduced multiple fee hikes. For example, in early 2024, fulfillment costs for standard-size products rose by $0.15/unit. For a seller moving 10,000 units a year, that means an extra $1,500 shaved from the bottom line. Walmart’s less saturated platform offers a way to reach new audiences while reducing dependence on Amazon’s constantly shifting ecosystem.

Hypothetical 2025 surveys suggest that dual-platform sellers see higher business stability. Nearly 70% of those using both Amazon and Walmart report better revenue consistency, and 20% say Walmart helped them recover during an Amazon-related disruption.

Why Relying Solely on Amazon Could Be Risky

While Amazon FBA has fueled e-commerce success stories, it’s also becoming more unpredictable. A single account suspension, sudden change in listing policy, or shift in algorithm can tank your sales overnight. One documented case from 2024 involved an FBA seller whose inventory was mislabeled by Amazon as hazardous—locking up $20,000 worth of stock for two months.

Increased seller saturation also makes ranking harder. With over 9 million active sellers on the platform, some niches now see 5,000+ listings and ad costs of $2.50 per click. Many sellers are now spending 20–30% of revenue just to maintain visibility, which cuts deeply into profits.

Walmart WFS, in contrast, currently hosts around 2 million sellers—roughly one-fifth of Amazon’s total. Less competition means better ad visibility and more organic rankings, especially for mid-priced, household-value products.

Real Seller Scenarios: What’s Working (and Not)

Jane (Kitchenware Seller): After seeing FBA profits shrink due to a 2024 fee hike, Jane launched a 200-unit test on Walmart with her $15 spatula set. Within 60 days, she sold 120 units. Her WFS ad spend was 40% cheaper than Amazon’s, and her profit margin jumped by 5%. This helped stabilize her monthly income while growing a second channel.

Mark (Electronics Brand): Mark decided to test high-end gadgets on WFS with a $2,500 inventory investment. But the product failed to resonate with Walmart’s value-driven audience. After 90 days, only 20 units were sold, resulting in $400 in losses and additional storage fees. His takeaway? Walmart isn’t ideal for luxury tech products.

Pros of Expanding from FBA to WFS

Walmart WFS offers distinct advantages that make it highly attractive to existing Amazon sellers.

1. Lower Fulfillment Fees:
For a 1-lb item, WFS charges around $2.40 vs. Amazon FBA’s $3.00. That’s 20% less in fulfillment costs. Multiplied over thousands of units, these savings add up quickly.

2. Reduced Competition:
Walmart sellers face fewer listings per niche. For example, “handmade candles” show 800 listings on Walmart, compared to over 5,000 on Amazon. Lower ad costs (around $1.80/click vs. $2.50) mean better ROI for advertising.

3. Access to a New Shopper Base:
Walmart customers skew toward price-conscious, practical buyers. If your products cater to utility or household use—think kitchen tools, health supplements, or pet care—you’ll likely find higher conversions.

4. Risk Diversification:
Operating on both platforms protects your business from platform-specific issues. If Amazon changes a policy, increases fees, or suspends your listings, you’ll still have a stable channel to fall back on.

Cons of Expanding to WFS

Despite the upside, WFS isn’t perfect—and expansion comes with risks.

1. Increased Complexity:
Managing two fulfillment platforms requires time, attention, and software tools. Many sellers report needing 10–15 extra hours per week to handle inventory sync, ad campaigns, and performance reviews.

2. Shorter Storage Windows:
WFS starts charging long-term storage fees after 90 days, compared to 365 days for Amazon. This puts pressure on sellers to manage stock tightly.

3. Learning Curve:
Walmart has its own rules, metrics, and workflows. For example, you’ll need to maintain a 95% Perfect Order Rate (POR) to rank well. Missteps can lead to fees or suppressed listings.

4. Upfront Costs:
Launching WFS requires upfront inventory investment. The typical recommendation is 100+ units per SKU, which can tie up $1,000–$5,000 in product and shipping costs.

FBA vs. WFS: Key Comparison Table

When Should You Expand to WFS?

Start WFS if:

• You have 3–5 proven products doing well on Amazon with stable reviews and margins.

• Your catalog includes home goods, kitchenware, health, or grocery products.

• You have at least $1,000–$5,000 in flexible inventory capital.

• You can dedicate ~10 hours/week to test and optimize Walmart performance.

• Your Amazon ad costs are becoming unsustainable (>25% ACoS).

Hold Off if:

• Your catalog is niche, premium, or luxury (electronics, high-end fashion).

• You’re already overwhelmed managing Amazon logistics.

• You lack capital to fund inventory across two platforms.

Actionable Steps to Launch WFS

1. Select Products: Start with your top 3–5 FBA performers.

2. Test Inventory: Ship 100–200 units per SKU to WFS.

3. Optimize Listings: Write Walmart-specific copy (less keyword stuffing, more benefits).

4. Launch Ads: Set an initial $300/week ad budget and monitor ACoS weekly.

5. Track Performance: Focus on Perfect Order Rate, returns, and pricing alignment.

6. Evaluate After 60 Days: If sales hit 30%+ margin on 2+ SKUs, scale to 500+ units.

Conclusion: WFS as a Strategic Second Engine

In 2025, expanding to Walmart WFS is one of the smartest moves for experienced Amazon sellers. It’s not about abandoning FBA—it’s about complementing it. With fulfillment costs up to 20% cheaper, reduced ad competition, and access to Walmart’s growing shopper base, WFS offers a powerful way to stabilize and grow your e-commerce brand.

But the expansion isn’t for everyone. It takes effort, capital, and a clear understanding of Walmart’s platform. If you’re selling value-based products and have bandwidth to manage a second channel, WFS could become a vital part of your growth engine. Test small, track results, and scale only when the data says you’re ready.

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