Marketplace KPIs, or key performance indicators, are the measurable values used by platforms like Amazon and Walmart to evaluate seller performance. These metrics set the standards for what is considered healthy account activity. KPIs help both platforms and sellers track how well a business is meeting expected service levels and operational targets.

Marketplace KPI standards at a glance

KPIs on Amazon and Walmart include statistics such as order defect rate, late shipment rate, cancellation rate, and on-time delivery percentage. Both marketplaces use these metrics to decide which sellers qualify for buy box eligibility, maintain active selling privileges, or may face account warnings.

KPIs also cover areas like retail media ACOS (advertising cost of sale), customer response time, and inventory performance. Each platform has its own minimum standards, so Amazon performance metrics and Walmart seller KPIs often differ in threshold and enforcement.

Meeting the marketplace KPI benchmarks is not optional; these metrics are tied directly to account health. A seller's ability to access premium features, participate in deals, or maintain selling access relies on staying within set KPI targets.

Amazon KPI benchmarks

Amazon uses strict performance standards and closely monitors seller behavior. The company enforces these standards through automated systems and regular account reviews.

Order defect rate target

Order defect rate measures how many orders have problems such as negative feedback, A-to-Z Guarantee claims, or credit card chargebacks. Amazon sets the order defect rate target at less than 1%. Any order that receives a negative review, results in a customer-initiated claim, or has a payment issue counts toward this metric.

On-time shipment rate target

On-time shipment rate measures the percentage of orders shipped by their promised date. Amazon expects sellers to maintain an on-time shipment rate above 97%. The platform also monitors the pre-fulfillment cancel rate, which tracks how often orders are canceled before shipping, with a target below 2.5%.

Conversion rate median

Conversion rate is the percentage of visitors to a product listing who make a purchase. Amazon's median conversion rate typically ranges from 10% to 15%, which is higher than most ecommerce platforms. This reflects the high buyer intent on the platform.

Walmart KPI benchmarks

Order defect rate threshold

Walmart uses an order defect rate to measure how often orders have problems, such as returns due to damage, customer complaints, or negative feedback. Walmart allows a higher defect rate than Amazon, with a typical threshold of 2% or less, and reviews performance over a 90-day period.

On-time shipment and tracking targets

Walmart expects sellers to ship orders on time and to provide valid tracking numbers for every shipment. The on-time shipment rate target is generally 95% or higher, calculated over a 14-day window. Walmart also monitors whether tracking information is provided and if it shows valid carrier scans.

Conversion rate median

Walmart's conversion rate, which is the percentage of shoppers who buy after viewing a product, is usually between 4% and 8%. This rate is lower than Amazon's, reflecting Walmart's value-focused customer base and the platform's broader product assortment.

Side-by-side KPI comparison

The following table summarizes the 2025 marketplace KPI benchmarks and key differences between the two leading platforms:

Compliance metrics

Amazon evaluates order defect rates using a strict threshold of less than 1%, with performance measured over a rolling window of about 60 days. If a seller exceeds this rate, Amazon enforces immediate consequences, which may include warnings or suspension.

Walmart uses a higher order defect rate tolerance, allowing up to 2%, and measures over a longer, 90-day period. Walmart's enforcement process is more flexible, often emphasizing direct support for sellers to resolve issues before imposing restrictions.

Performance metrics

Both platforms require on-time shipment and valid tracking for all orders. Amazon expects a shipment rate over 97%, usually measured over the previous 7 to 30 days. Walmart targets a 95% or higher on-time shipment rate, measured over a 14-day period.

Median conversion rates also differ significantly:

• Amazon conversion rates: Range from 10% to 15%, reflecting high buyer intent and mature search algorithms

• Walmart conversion rates: Fall between 4% and 8%, as Walmart's shopper base is more value-driven

How KPI variances impact ranking and buy box eligibility

KPI performance directly affects how visible sellers are on both Amazon and Walmart. Each marketplace uses KPIs to decide which sellers appear higher in search results and which offers are featured in the buy box.

Algorithm weighting factors

Amazon and Walmart both use algorithms to rank sellers and products in search results. These algorithms assign different weights to KPIs such as order defect rate, on-time shipment, and conversion rate. Amazon's algorithm heavily weights low order defect rates and high on-time shipment rates, while conversion rate reflects how well a listing turns visitors into buyers.

Walmart also weighs KPIs such as order defect rate and on-time shipment, but the algorithm places more emphasis on operational consistency and inventory reliability. Walmart's seller score calculation uses a longer performance review period, which can reduce the effect of short-term changes in metrics.

Buy box eligibility triggers

Buy box eligibility depends on meeting minimum KPI requirements. On Amazon, sellers maintain an order defect rate below 1%, on-time shipment above 97%, and a low pre-fulfillment cancel rate to qualify for buy box placement.

Walmart has a more flexible threshold, requiring an order defect rate under 2% and on-time shipment above 95%. Walmart's buy box algorithm also considers valid tracking information and fulfillment reliability.

Advertising cost benchmarks and trends

Amazon ACOS and TACOS averages

ACOS, or advertising cost of sale, shows how much is spent on advertising to make a sale. It is calculated by dividing ad spend by sales generated from ads. TACOS, or total advertising cost of sale, includes total sales from both ads and organic sales.

On Amazon in 2025, ACOS typically falls between 22% and 30% for most product categories. TACOS usually ranges from 8% to 15%. Higher ACOS values are often seen in more competitive categories or during major shopping events.

Walmart Connect ACOS averages

Walmart Connect ACOS is generally lower than Amazon's. In 2025, ACOS for Walmart Connect ranges from 12% to 22% across most categories. This lower range reflects a marketplace with less advertising competition and newer retail media infrastructure.

However, advertising costs on Walmart Connect have increased as more brands and sellers use the platform. The growth of Walmart's retail media business has led to more sophisticated campaign tools and higher demand for placements.

Profitability snapshot across marketplaces

KPI performance influences how much profit a seller can make on Amazon and Walmart. Metrics such as order defect rate, conversion rate, and on-time shipment determine a seller's visibility, costs, and access to important features.

Average order value gap

Average order value (AOV) is the average amount a customer spends each time they place an order. On Amazon, the AOV is typically higher than on Walmart. This difference is partly due to Amazon's broad product selection, strong Prime membership program, and a user base that is more likely to purchase higher-priced items.

Walmart's AOV tends to be lower, reflecting its position as a value-focused retailer. Walmart's core customers are often looking for essentials or lower-priced goods, which impacts the average amount they spend per order.

Total cost of ownership drivers

Total cost of ownership includes all expenses involved in selling on Amazon or Walmart. The main cost categories are:

• Platform fees and commissions: Amazon includes monthly subscription fees, referral fees based on product category, and fulfillment fees for FBA users. Walmart sellers pay referral fees but no monthly subscription for standard accounts

• Advertising spend requirements: Amazon's mature advertising ecosystem has higher cost-per-click rates and more competition. Walmart Connect's advertising costs are usually lower but rising each year

• Fulfillment and logistics costs: Amazon FBA fees can be significant, especially for large or slow-moving items. Walmart's WFS offers competitive rates

Choosing your primary growth channel

Selecting a primary marketplace channel depends on the relationship between your business's operational strengths and the performance standards set by each platform.

Budget allocation framework

Evaluating which platform aligns with your budget and operational capacity starts with comparing total costs. Amazon generally involves higher fees, advertising costs, and stricter KPI compliance. Walmart has lower entry costs and more flexible enforcement but may require a different approach to inventory management.

Decision criteria include advertising budget, ability to maintain high order defect and shipment KPIs, and the resources available for maintaining listing quality.

Category-specific considerations

Product categories perform differently across Amazon and Walmart, based on shopper expectations and platform strengths. High-frequency consumables, such as groceries and household goods, tend to perform better on Walmart. Electronics, books, and premium goods often see stronger performance on Amazon, where conversion rates and buyer intent are higher.

Each platform's KPI requirements can impact category performance. Amazon's strict shipment and conversion KPIs may favor fast-moving, high-margin SKUs, while Walmart's longer measurement periods may support categories with more variable demand.

Quick wins to improve underperforming KPIs

Optimize listing data quality

Detailed and accurate product listings provide shoppers with the information required to make confident purchase decisions. Listings that include clear titles, thorough descriptions, and complete attribute data help reduce customer confusion and returns.

High-quality photos, relevant keywords, and up-to-date inventory status contribute to higher conversion rates and fewer order defects. Marketplace algorithms use listing data to determine relevance in search results and eligibility for promotions.

Streamline fulfillment and returns

Fast and reliable shipping processes help sellers maintain on-time shipment and tracking KPIs. Automated order routing, clear cut-off times, and integration with carrier systems support timely dispatch and accurate tracking uploads.

Return management systems that process requests efficiently offer clear instructions and minimize friction for buyers. This can lower order defect rates by reducing customer complaints and disputes.

Darkroom's perspective on omnichannel growth

Professional growth marketing uses data to understand and improve performance across different marketplaces like Amazon and Walmart. Each platform has its own set of key performance indicators, so making decisions based on real numbers helps brands succeed in more than one place at the same time.

Growth marketers collect and analyze marketplace data, such as conversion rates and advertising costs, to identify what is working and what is not. This process allows teams to adjust product listings, advertising strategies, and inventory management for each channel.

Strategic channel management involves creating separate plans for each marketplace. Brands use data to set budgets, choose which products to promote, and decide where to focus resources. By reviewing performance regularly, marketers can shift efforts to the channels that are showing the most promise.

For those interested in learning more about how Darkroom approaches data-driven optimization and channel management, schedule an introductory call to explore how Darkroom can help your business grow.

Frequently asked questions about Amazon and Walmart KPIs

Why does my Amazon order defect rate increase during high-volume periods?

Order defect rate spikes typically result from negative feedback clusters, unresolved A-to-Z claims, or payment issues during high-volume periods. Amazon calculates this metric over rolling windows, so recent problems have immediate impact on your overall rate.

How long does Walmart give sellers to fix KPI performance problems?

Walmart provides longer correction periods compared to Amazon and often works directly with sellers to resolve performance problems before account restrictions. Their approach emphasizes seller support over immediate penalties, typically allowing 30-60 days for improvement.

Does Walmart Connect advertising affect organic product rankings?

Walmart Connect performance can indirectly boost organic visibility through increased sales velocity and customer engagement signals. However, organic ranking primarily depends on conversion rates, inventory levels, and listing optimization rather than ad spend alone.

What dashboard tools track both Amazon and Walmart KPIs together?

Several third-party analytics platforms offer unified KPI monitoring across marketplaces, though most sellers use native platform tools for the most accurate real-time data. Popular options include Helium 10, Jungle Scout, and SellerApp, though integration capabilities vary by tool and subscription level.