Does Amazon Own Walmart In 2023? (An Amazon Seller’s Perspective)
As an experienced Amazon seller for over 10 years, I often get questions from other sellers about the competitive dynamic between Amazon and Walmart. One key question is – does Amazon own Walmart?
The short answer is no, Amazon does not own Walmart. However, I wanted to provide some deeper perspectives on this, using my expertise in areas like Amazon account management, FBA, brand protection, and data analytics.
Both companies are retail giants who sellers simply can’t ignore today. But there are key factors that make them very different marketplaces for sellers.
In this detailed guide for ecommerce sellers, I’ll cover:
- The ownership and origins of Amazon and Walmart
- How the companies differ for sellers
- Whether Amazon could acquire Walmart
- Acquisitions and strategies used by both companies
- How Amazon and Walmart compare for sellers
- Tips for selling successfully on both marketplaces
Let’s get started!
What company owns Walmart?
First, Walmart remains an independent Fortune 1 company, headquartered in Bentonville, Arkansas. It was founded in 1962 by Sam Walton and is still majority owned by the Walton family.
Walmart owns over 10,500 stores worldwide, with over 5,000 stores in the United States. It operates stores under brands like Walmart Supercenter, Sam’s Club, and Walmart Neighborhood Market.
In contrast, Amazon was founded much later in 1994 by Jeff Bezos in Seattle, WA. It has always been a publicly traded company after launching as an online bookseller.
While Walmart built an empire of physical stores, Amazon focused on ecommerce and now owns a wide array of subsidiaries. But Amazon itself is not the parent company or owner of Walmart.
How are Amazon and Walmart different for sellers?
Both companies are giants in retail, but they operate very differently—especially for third-party sellers.
Walmart operates both first-party and third-party marketplaces, but physical store sales still dominate. Listing fees for Walmart Marketplace are also higher vs. Amazon.
For fulfillment and delivery, Walmart uses a mix of options like ship-to-store and carriers like UPS. There is no Fulfillment by Walmart (FBW) equivalent to Amazon‘s FBA.
Amazon generates most sales digitally. It provides Fulfillment by Amazon (FBA), extensive seller tools (like Seller Central), and comprehensive logistics programs.
Over 50% of Amazon’s units sold now come from third-party sellers, a percentage that continues to grow. Walmart’s marketplace share is still in the low single digits.
Here‘s a comparison of selling on the two marketplaces:
| Amazon | Walmart | |
|---|---|---|
| Listing fees | $0.10 – $150 per month, varies by category | $0.30 to $79 per month based on category |
| Referral fee rates | 8-20% of product price + shipping | 6-20% referral fee + additional fees |
| Fulfillment | FBA handles storage, delivery, returns | No equivalent option, sellers handle themselves |
| Seller tools | Extensive suite including Seller Central, reports, API | Limited compared to Amazon |
| Traffic volume | Over 2.5 billion site visits a month globally | 330+ million site visits a month in U.S. |
Has Amazon ever tried to buy Walmart?
Based on public records, there is no evidence that Amazon has ever attempted to acquire Walmart. And frankly, it would be incredibly difficult.
Walmart‘s market valuation is over $370 billion compared to Amazon‘s $1 trillion valuation. Even for Amazon, buying a retailer of Walmart‘s size and scale would carry massive costs and complexity.
Culturally, the two companies also have very different backgrounds that would make integration difficult. Walmart started as a rural discount store chain, while Amazon pioneered digital retail out of Seattle tech hub.
Amazon has likely decided that competing with Walmart drives more value than trying to own them. But Amazon has shown interest in exploring Walmart‘s core grocery offerings…
What companies does Amazon own?
Although Amazon doesn‘t own Walmart, it has acquired many companies that expand its retail ecosystem. Some major acquisitions include:
Whole Foods – Amazon bought this organic grocery chain for $13.7 billion in 2017, gaining hundreds of physical stores overnight. This helps Amazon with online grocery delivery capabilities.
Zappos – The online shoe retailer was purchased in 2009 for $1.2 billion. The move allowed Amazon to aggressively expand into apparel and fashion.
PillPack – Amazon acquired this pharmacy startup in 2018 for $753 million. PillPack is now part of Amazon Pharmacy, positioning Amazon in the prescription delivery market.
Amazon has also bought companies to expand technology, media, smart home products, and more. Amazon looks for acquisitions that provide infrastructure and access to disrupt new markets.
As a seller, Amazon’s acquisitions have strengthened its first-party retail presence. But the marketplace opportunity for third-party sellers continues to grow.
What companies does Walmart own?
Walmart has made strategic acquisitions focused primarily on ecommerce and delivery:
Jet.com – Walmart acquired this Amazon competitor for $3.3 billion in 2016. The goal was to boost Walmart’s online sales capabilities.
Bonobos – Walmart purchased this millennial-focused apparel brand in 2017 for $310 million. Part of Walmart’s apparel and ecommerce strategy.
Parcel – This delivery logistics company was bought in 2017 to enable same-day delivery services for Walmart. Terms were undisclosed.
The acquisitions signal Walmart is serious about competing in ecommerce and delivery, while leveraging its extensive physical infrastructure.
How do Amazon and Walmart compare for sellers?
Both Amazon and Walmart present major opportunities for sellers, but Amazon tends to provide better tools, rates, and sales volume.
Fees
Amazon referral fees range from 8-20% based on product category. Walmart referral fees range from 6-20%, but additional fees drive up costs. Walmart also charges monthly recurring fees for listings based on product type.
Amazon’s fees are more streamlined and often cheaper, especially at higher sales volumes where discounts apply. FBA fees can be high, so doing your own fulfillment calculations is important.
Performance
Amazon simply provides more visibility and sales volume potential. It has over 300 million active customers globally and sells over 12 billion products a year.
Walmart has lower traffic at around 100 million unique monthly visitors. But it’s actively growing marketplace share. Walmart is estimated to have around 60,000 sellers compared to millions on Amazon.
Conversion rates also tend to be higher on Amazon. The impact of prominently displaying Prime badges, customer trust in the brand, and faster shipping all help Amazon conversion rates.
Tools
Selling on Amazon means access to an extensive suite of tools through Seller Central. Inventory and pricing management, order tracking, reporting, and automation can all be handled using Amazon’s tools.
Walmart has a Seller Center but lacks the depth of tools and integration that Amazon offers sellers. Managing listings, inventory, and orders takes more manual work.
Logistics
FBA provides the clear advantage of Amazon handling fulfillment and delivery for sellers. Walmart does not offer an equivalent warehouse/shipping solution, so sellers must handle their own fulfillment.
Amazon also has a wider range of delivery programs like Seller Fulfilled Prime. Plus the giant warehouse network servicing customer orders.
Bottom line – Amazon brings higher sales potential, reach, and capabilities for sellers. But expanding to Walmart can diversify revenue streams. Many sellers find success on both marketplaces.
Tips for selling successfully on Amazon and Walmart
Based on my experience as an Amazon seller for over 10 years, here are some top tips for selling on these two dominant marketplaces:
Account management
- Carefully complete all required info and tax forms when setting up accounts. Errors can cause suspension.
- Regularly update business addresses, contact info, banking details. Keep everything current.
- Use two-factor authentication and strong unique passwords for added security.
Listings
- Include detailed titles, bullet points, product descriptions on listings. Optimize for keywords.
- Keep listings in stock. Out of stock listings get lower visibility in rankings.
- Configure listings for variations like size, color, quantity. Make it easy for customers.
Pricing
- Benchmark competitors’ pricing but don’t solely match the lowest price.
- Test different pricing levels to find the optimal balance of volume and profit margin.
- Adjust prices dynamically using repricers to respond to competitors.
Advertising
- Create targeted product and brand campaigns to increase visibility.
- Monitor performance metrics to identify winning products and keywords.
- Let algorithms optimize bids to balance clicks and conversion rates.
Inventory
- Use fulfillment reports to identify fast-selling items and avoid stockouts.
- Forecast demand and stock up appropriately on long lead time products.
- Ship inventory to warehouses ahead of peak holiday seasons.
Brand protection
- Use automated brand monitoring tools to detect counterfeit listings or reviews.
- Report trademark or copyright violations promptly through official channels.
- Consider Amazon’s Brand Registry and Project Zero for added protection.
Metrics
- Review reports frequently – don’t just set it and forget it! Identify issues quickly.
- Track marketing performance, conversions, reviews. Tweak based on data insights.
- Monitor changes in search ranking positions to catch issues early.
Could Amazon acquire Walmart?
It’s very unlikely that Amazon could realistically acquire a retailer of Walmart’s epic size and complexity in the foreseeable future.
Walmart’s valuation topped $370 billion in 2022 compared to Amazon’s $1 trillion valuation. Even with deep pockets, acquiring Walmart would carry massive financial and operational risks.
Culturally, combining a digital disruptor like Amazon with Walmart’s traditional retail model would also pose challenges. The value of synergy may not outweigh integration costs.
Walmart is also vigorously competing with Amazon now in ecommerce and delivery while leveraging its strong in-store foundation.
Acquiring niche retailers within grocery, pharmacy or other segments is more plausible than owning Walmart outright. But I don’t anticipate an Amazon-Walmart merger on the horizon.
The bottom line for sellers
While Amazon does not own Walmart, the two companies remain intrinsically linked in retail. Sellers have to decide how to best leverage each marketplace.
For me, Amazon’s tools, reach, and fulfillment network provide unmatched advantages. But diversifying to Walmart can expand revenue channels.
Each seller needs to weigh factors like product mix, capabilities, and investment tradeoffs. Partner with both marketplaces for maximum potential!
I hope this detailed guide provided helpful perspective on Amazon and Walmart for sellers. Please feel free to reach out if you have any other questions!
