Walmart is one of the largest eCommerce marketplaces in the world. In 2025, Walmart sees over 120 million unique monthly visitors and over 150,000 sellers. Want to sell on the Walmart marketplace? You have 2 choices: Walmart 1P vs 3P.
You might wonder what is the key difference between these options. And should you sell as a first-party (1P) or third-party (3P) seller? Choosing the right selling model is a big decision that can impact your business operation and growth in both the short and long term.
In this guide, we will walk you through everything you should know about 1P vs 3P Walmart, including:
- What is Walmart 1P vs 3P?
- The key differences between Walmart 1P and 3P
- Which selling model is best for your business strategy?
Keep reading to discover which model aligns best with your goals and business growth.
Key takeaways:
On Walmart Marketplace, being a 1P (first-party) seller means you sell your products wholesale to Walmart, and they take care of the listing, marketing, and order fulfillment. In contrast, as a 3P (third-party) seller, you’re responsible for listing your own products, managing inventory, and handling fulfillment directly to customers.
What is Walmart 1P (First-Party Seller)?
Let’s start comparing Walmart 1P vs 3P by discovering what Walmart 1P is.
Walmart 1P, or first-party seller, refers to businesses that sell products directly to Walmart at a wholesale price. Then, Walmart handles selling your products, from pricing the items, optimizing listing, marketing, and supporting customers to shipping your products. Simply put, the 1P seller acts as a supplier and Walmart as the retailer.
On Walmart.com, your products appear as “Sold and shipped by Walmart.com”, and Walmart is listed as the seller but not your brand.
As a 1P seller, you are responsible for shipping your inventory to Walmart’s fulfillment centers, where it is stored and later distributed. Your products are sold on Walmart.com rather than in physical Walmart stores, and you don’t have to manage direct shipping to customers.
This model is ideal for brands looking for large-scale distribution without the need to manage direct-to-consumer sales. However, it comes with both benefits and drawbacks.
Pros of Walmart 1P
One of the main benefits of being a Walmart 1P seller is that you sell your products in bulk directly to Walmart, and they handle everything else – pricing, shipping, and customer service. This makes selling easier and saves time, especially if you don’t want to manage daily operations.
Some other benefits of selling on Walmart as a 1P seller are:
- Brand credibility: With Walmart 1P, your products are sold under the Walmart name, labeled as “Sold & Shipped by Walmart,”. It gives customers more confidence to buy. This can help improve your credibility, increase visibility, and boost your sales – especially among shoppers who trust Walmart’s brand.
- Higher product visibility: Plus, Walmart often gives 1P products more visibility by promoting them through ads, discounts, and in-store campaigns—helping your items stand out without extra effort.
Cons of Walmart 1P
While Walmart 1P offers convenience and credibility, this selling model also comes with its own drawbacks.
The biggest downside of the 1P model is the lack of control. Walmart sets the prices and may lower them to stay competitive, which reduces your profit. You also sell at wholesale prices, so your earnings per sale are lower.
Additionally, unlike Walmart 3P sellers, 1P sellers cannot control product descriptions, branding, or packaging, which can affect brand inconsistencies. Plus, if your product is cheaper elsewhere, Walmart may hide your listing or penalize your account. Overall, 1P sellers have less flexibility and mostly sell lower-priced items.
What is Walmart 3P (Third-Party Marketplace Seller)?
Walmart 3P selling means you sell your products directly to customers through the Walmart Marketplace, not to Walmart itself. As a 3P seller, you own and control everything – your products, listings, pricing, and brand. Walmart simply acts as the sales platform while you manage the business side.
On Walmart.com, your product appears with “Sold and shipped by” your brand. This model gives you the most control and flexibility over your business at Walmart.
To sell on the Walmart marketplace, you must first apply and meet Walmart’s business requirements. Once approved, you can start listing products directly on Walmart or using a third-party tool like LitCommerce to list your products from your current online store to Walmart.
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Advantages of Walmart 3P
One of the biggest advantages of the Walmart 3P model is the potential for higher profit margins. 3P sellers have the freedom to set their own prices. This means you’re not limited by wholesale pricing or middlemen, allowing you to keep more revenue from each sale.
With Walmart 3P, you also have full control over your business. You manage your own listings, adjust pricing as needed, and control how your brand appears on the marketplace. This flexibility helps you build a consistent brand image and optimize your product pages for better performance.
Another major benefit is fulfillment freedom. You can choose to ship orders yourself or use a service like Walmart Fulfillment Services (WFS) to help meet delivery standards. Plus, with the same inventory, you can sell across multiple platforms – like Amazon, Shopify, or Etsy – making it easier to scale and grow your business efficiently.
Disadvantages of Walmart 3P
The tradeoff with the Walmart 3P model is that it comes with more responsibility. As a 3P seller, you must manage everything yourself, including marketing, fulfillment, returns, and customer service.
In case you are starting from the beginning, you may need to research the best-selling items on Walmart, find ways to make your products stand out, get good reviews, and rank higher than your competitors.
You’ll also have to manage your inventory levels and make sure your shipping meets Walmart’s standards. While the 3P model offers greater freedom, it also demands more effort and hands-on management to succeed on the Walmart Marketplace.
Walmart 1P vs 3P: The Key Differences
When deciding between Walmart 1P and 3P, you need to consider several factors below:
Walmart 1P | Walmart 3P | |
Who you sell to? | Sell to Walmart (they resell to customers) | Sell directly to customers |
Brand control | Limited control over branding | Full control over branding and listings |
Pricing control | Walmart sets the price | You control the price |
Profit margins | Lower margins (wholesale pricing) | Higher margins (you keep more per sale) |
Fulfillment | Walmart handles shipping | You handle shipping or use WFS/3PL |
Factor #1: Your eCommerce strategy
The first thing to think about when comparing Walmart 1P vs 3P marketplace is your eCommerce strategy.
Ask yourself: How much control do you want over your brand and products?
If your goal is to sell products in large volumes quickly and you’re not focused on building your brand, the Walmart 1P model might be a good fit. Walmart takes care of selling, advertising, and shipping, so you don’t have to worry about branding or marketing.
But if you want to build your brand, set your own prices, and manage how your products appear online, the 3P model is likely the better option. As a 3P seller, you take full charge of your Walmart store, from creating a store, listing your products, optimizing your listings, and meeting criteria to become a Walmart pro seller, to taking care of shipping. You stay in control and grow your brand by yourself.
With this selling model, you can not just sell on Walmart but on other platforms, too. For example, you can, at the same time, run your online store and sell your products on different platforms such as TikTok Shop, eBay, and more, leveraging multiple channels to boost your sales.
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Factor #2: Profit margins and pricing control
Another key factor when choosing between Walmart 1P vs 3P is how much control you want over pricing – and how that affects your profit margins.
Walmart is known for low prices, and that extends to its marketplace. If you choose the 1P model, be prepared to give up control over pricing. Walmart sets the price for 1P products and may lower it to stay competitive. Since you’re selling at wholesale prices, your profit per item is usually smaller.
As a 3P seller, you keep control of your pricing, which gives you a chance to earn more per sale even if you still need to be competitive. You’re not limited by wholesale pricing or middlemen, so you can keep a larger profit margin. However, Walmart expects all sellers to offer great value, and if they find your product cheaper on another website (including shipping), they may take action, like removing the listing or reducing visibility.
Before listing your products, take time to research similar items on Walmart. Ask yourself:
- Can I stay competitive on price as a 3P seller?
- Am I okay with Walmart changing my prices as a 1P seller?
- Will this impact my pricing on other marketplaces like Amazon?
If making more profit and keeping control over your prices is important, the 3P model may be a better choice as long as you can stay competitive.
Factor #3: Shipping and fulfillment
Shipping plays a big role in your success on Walmart Marketplace. Managing fulfillment yourself sometimes can be tough, especially as your business grows. Or simply, you want to be free of fulfilling orders. In this case, many sellers choose the Walmart 1P model – Walmart takes care of warehousing and shipping, so you don’t have to.
Otherwise, if you’re a 3P marketplace seller, you’ll need to handle shipping on your own or work with a third-party logistics provider (3PL). Walmart also offers its own service called Walmart Fulfillment Services (WFS), which helps sellers deliver orders quickly and reliably.
No matter what option you choose, your shipping strategy must meet Walmart’s expectations: fast, affordable, and reliable delivery. While 1P sellers only handle wholesale shipments to Walmart, 3P sellers are responsible for getting orders directly to customers, so having a strong fulfillment plan is a must.
Walmart 1P vs 3P: Which Selling Model is Right for You?
So which selling model on Walmart should you go for, between 1P vs 3P? It all depends on how you want to run your business and what your goals are.
Walmart 1P is a good choice if you want to sell your products in bulk to Walmart and let them take care of the rest – like shipping, customer service, and setting prices. This works well if you’re focused on large-scale sales and don’t need full control.
Walmart 3P is better if you want to stay in control of your pricing, product listings, and brand. You’ll be selling directly to customers on Walmart and can choose how to ship orders (yourself or with a service like WFS). This is great if you want to grow your brand.
In short:
- Pick Walmart 1P if you are looking for wholesale and hassle-free of shipping.
- Pick 3P if you want higher profit margins, brand growth and business control.
1P vs 3P Walmart: FAQs
1P Walmart involves supplying products to Walmart, while 3P involves selling products directly to consumers through the retail marketplace. 1P (first-party) refers to selling directly to the platform as a vendor, while 3P (third-party) means selling independently on the platform’s marketplace. Walmart 1P is better for large brands that want bulk wholesale deals, while Walmart 3P is better for smaller sellers who want control over pricing, branding, and higher profit margins. For most eCommerce businesses, 3P is the better choice.
Sum Up
Choosing between Walmart 1P vs 3P depends on your business goals, level of control, and profit expectations. If you prefer a hands-off approach with Walmart handling fulfillment, pricing, and customer service, then Walmart 1P might be the right fit. However, if you want more control over pricing, branding, and direct customer interaction, selling as a Walmart 3P seller offers greater flexibility and higher profit margins.
If you’re ready to sell on Walmart Marketplace as a 3P seller, LitCommerce can help streamline the process. As a leading multichannel selling tool, LitCommerce makes it easy to list, sync, and manage your Walmart store alongside other platforms like Amazon, eBay, Shopify, WooCommerce, and more. Moreover, with our powerful Walmart integration, you can automate inventory management, centralize orders, and start selling smarter. Try LitCommerce today, or contact us for more details!
