Walmart Fulfillment Services (WFS) vs Amazon FBA: Advantages, Disadvantages, and Major Differences
Sellers on e-commerce websites look to have multiple options when it comes to choosing fulfillment services today. This is especially true for large companies, with competitors such as Walmart Fulfillment Services (WFS) and Amazon’s Vendor Services that offer Fulfillment by Amazon (FBA). Both ensure the smooth functioning of their powerful logistical networks, which assist sellers in storing inventory, shipping orders, and even managing customer care services. But which one best aligns with your business needs?
In this article, we will analyze both WFS and FBA in detail and how they compare against each other in terms of features, pros, cons, and differences. You will understand which service is more beneficial in relation to your business planning targets by the end of this article.
Understanding the Basics
What is Walmart Fulfillment Services (WFS)?
Walmart Fulfillment Services refers to the Walmart internal logistical system for third-party sellers available on its marketplace. Offering WFS services such as storage of inventory, order shipping and returns, as well as picking, packing and shipping order services, Walmart has made strides in expanding their customer base as well as supply chains since WFS launched in 2020.
What is Fulfillment by Amazon (FBA)?
The service of Amazon FBA was launched in 2006 and has continued to be the most popular ecommerce fulfillment option for ecommerce sellers. With FBA , sellers ship their products to Amazon’s warehouse facilities, from which Amazon takes care of everything, including order fulfillment, customer support, and even returns.
Pros of Using Walmart Fulfillment Services (WFS)
Access to Walmart’s Customers: WFS provides sellers access to a multitude of users shopping at Walmart.com. Walmart is one of the most reputable retail chains in the United States.
Two-Day Shipping Badge: Sellers WFS can provide customers with two-day shipping, which enhances product visibility and sometimes leads to increased conversion rates.
Automated Return Handling: Returns are managed by WFS for the sellers, simplifying the process.
No Referral Fee on Fulfillment Charges: Unlike FBA, WFS does not have a referral fee on costs related to fulfillment.
Less Competition: Amazon has a greater number of users, leading to a surge in competition compared to Walmart Marketplace, which is still growing.
Cons of Using Walmart Fulfillment Services (WFS)
WFS has strict criteria for sellers. The initial threshold requires approval before you can officially join the marketplace.
Limited International Reach: Selling globally may be restrictive because it is mainly U.S.-based.
Slightly less than Amazon, Walmart has a smaller number of third-party tools and integrations, meaning there’s fewer assistance options.
Younger System: WFS Still needs some refining, unlike Amazon which is more streamlined in its use of the FBA model.
Narrow Product Categories: WFS does not cover certain products and this could limit your selling potential.
Pros of Using FBA
Market Penetration: FBA allows users to widen their business reach to millions of customers through exposure on the Amazon marketplace.
Eligibility For Amazon Prime: FBA products are part of the Amazon prime family which can increase consumer purchases.
Optimized Logistics: Through its fulfillment network, Amazon guarantees swift and reliable delivery as well as inventory control.
Selling From Other Countries: The FBA program encourages selling from other countries and allows the user to operate in various markets.
Support for All Users: Use of Amazon FBA is available for most sellers which enables less complicated scaling without logistical concerns.
Cons of Using FBA
Charges: The storage and fulfillment costs set by Amazon may prove too much for some sellers, especially those with low turnover products.
Harsh Penalties For Selling: There is a punishment system in place for having excess stock or inventory that does not sell quickly in relation to competitors.
Competition in the System: It is very competitive on this platform which makes achieving recognition and standing out very challenging.
Little Control Over Marketing: Branding opportunities are reduced as FBA products are shipped in Amazon boxes which limits brand identity.
Ambiguous Fee Policies: The costs of FBA services may be complex to define and estimate with profitability in mind.
Key Differences Between WFS and FBA
| Feature | Walmart WFS | Amazon FBA |
| Year Launched | 2020 | 2006 |
| Marketplace Size | Smaller, growing | Largest globally |
| Fulfillment Network | U.S.-focused | Global |
| Branding Options | Limited | Limited |
| Prime/Badge Access | Two-Day Shipping Badge | Amazon Prime Badge |
| Competition | Less | High |
| Integration Tools | Limited | Extensive |
| Return Handling | Yes | Yes |
| International Fulfillment | No | Yes |
| Fee Transparency | Simple | Complex |
Which One Should You Choose?
It depends on your business model, goals, and target audience when deciding between WFS and FBA.
Use WFS if:
You want to take advantage of Walmart’s growing online presence.
You prefer lower competition and better visibility.
You sell primarily within the U.S.
Use FBA if:
You want global reach and access to Prime customers.
You’re comfortable managing a more complex system.
Your business is ready to scale quickly.
Some sellers opt for both services for broader reach and reduced risk. Selling on both platforms lets you access two large customer bases to see which better fits your niche.
B. Other considerations
1. Customer service
Both WFS and FBA work hard to achieve high satisfaction levels. Amazon’s system is more sophisticated, featuring advanced tracking, communication, and support mechanisms. Walmart is improving, but the journey may not be as seamless.
2. Inventory control
FBA provides greater detail with regards to inventory control across different marketplaces. WFS is simpler, but restricts to Walmart.com and the U.S. geographical region.
3. Seller support
Extensive documentation, training, and materials from third parties are available to Amazon users. Seller support from Walmart is becoming better, but there are complaints of longer wait times among some sellers and a lack of materials.
4. Profit margins
It is noted that due to less competition and lower fees, some sellers make higher margins off Walmart. However, Amazon provides greater volume of sales which can counteract the lower margin per item.
Final remarks
Both WFS and Amazon FBA have useful services for ecommerce sellers. FBA is the most advanced system available globally, with a large customer base, while WFS offers an emerging prospect with less competition, backed by one of the largest retail brands in the world.
As it pertains to logistics, the optimal fulfillment service will depend on your products, objectives, and desired level of control over the operations. If possible, test a few to gain the best insights and use those in building a successful multichannel ecommerce business.
