Something is stirring inside Walmart’s Marketplace division, and the chatter coming out of Bentonville — and from a handful of well-connected Amazon aggregator executives — is getting hard to ignore. According to three sources close to the matter who spoke with Ecommerce Times on condition of anonymity, Walmart is in the advanced stages of piloting an inventory migration and onboarding tool internally codenamed “Project Crossover” that would allow active Amazon FBA sellers to port their catalog data, existing ASIN-mapped SKUs, and historical sales velocity estimates directly into Walmart Fulfillment Services (WFS) in what one source described as “a shockingly short setup window — under 72 hours for most mid-sized catalogs.”
The alleged tool is reportedly being tested with a closed cohort of roughly 40 to 60 sellers, most doing between $2M and $15M annually on Amazon, and at least two large aggregators — reportedly including one in the Thrasio mold that has been aggressively restructuring since late 2025 — are said to be part of the pilot. Neither Walmart nor any named aggregator responded to requests for comment by press time.
What Is Walmart Allegedly Building With Project Crossover?
The picture painted by sources is of a tool that goes well beyond Walmart’s existing “Sell on Walmart” onboarding flow, which sellers have long criticized as clunky and slow relative to Amazon Seller Central. Project Crossover reportedly maps Amazon listing data — titles, bullet points, backend keywords, image sets — and auto-populates Walmart item setup fields using a proprietary translation layer that accounts for Walmart’s different taxonomy and content requirements.
- Automated SKU mapping from ASIN structure to Walmart Item ID format
- Pre-filled WFS inbound shipment templates based on existing FBA box dimensions
- Historical Amazon BSR data used to recommend Walmart pricing floors
- Integrated Walmart Connect ad campaign scaffolding seeded from Amazon PPC keyword history
- A dedicated “migration concierge” rep assigned to each pilot seller for 90 days
One source familiar with the pilot described the pitch bluntly: “Walmart is basically saying, ‘We know your Amazon business better than you think we do, and we’re going to make it trivially easy to clone it here.’ The tool is rough, but the intent is crystal clear.”
Why Are Amazon Aggregators Allegedly Interested Now?
The timing is notable. Amazon’s referral fee adjustments in early 2026, combined with the ongoing pressure on FBA storage fees — particularly for slow-moving SKUs in the apparel and home goods categories — have been quietly compressing margins for aggregators already operating on thin multiples. Several roll-up operators that were riding 4x to 5x EBITDA acquisition valuations in 2022 and 2023 are now reportedly running sub-2x on their Amazon-only assets.
“Every aggregator we talk to is asking the same question: how do we diversify revenue off Amazon without rebuilding our entire operations stack? If Walmart can genuinely offer a credible shortcut, that changes the calculus significantly.” — Josh Tarasoff, managing partner at a New York-based ecommerce investment advisory, speaking generally about marketplace diversification trends
Sources say at least one aggregator in the pilot — which controls somewhere between 18 and 25 Amazon brands across the pet supplies and kitchen gadgets verticals — has allegedly already moved roughly 30% of its active SKU count into WFS as part of the test, with early sell-through rates described as “better than expected but still nowhere near Amazon velocity.”
How Is Amazon Responding to the Alleged Competitive Threat?
Predictably, the rumor is generating anxiety inside Amazon’s third-party seller ecosystem. Several seller consultants and PPC agency owners reached by Ecommerce Times said they’ve been fielding more questions from clients about WFS in the last 60 days than in the prior 18 months combined. Whether that’s directly tied to Project Crossover rumors or simply a broader marketplace diversification trend is difficult to untangle.
What’s less ambiguous is that Amazon appears to be sharpening its own retention tools. Sources say Amazon’s Seller Experience team has been quietly rolling out proactive outreach to high-GMV third-party sellers flagged as “churn risk” — a designation reportedly based on signals like declining reorder rates, reduced PPC spend, and inbound shipment volume drops. The outreach reportedly includes personalized fee modeling and, in some cases, introductions to Amazon’s Strategic Account Services program at a subsidized rate.
“Amazon knows who their most valuable sellers are, and they’re not sitting still. I’ve had three clients get direct outreach from Amazon SAS reps in the last six weeks — sellers who hadn’t heard from Amazon in years. That’s not a coincidence.” — Vanessa Hung, founder of Online Seller Solutions, in a comment shared on her LinkedIn feed earlier this month
Amazon declined to comment on any specific seller retention programs or whether an internal churn-risk scoring system exists.
What Do Sellers Actually Think About WFS as an FBA Alternative?
Skepticism remains the dominant sentiment among the seller operators and agency leaders who spoke with Ecommerce Times, even among those intrigued by the Project Crossover rumors. The core objection is consistent: Walmart’s organic traffic and conversion infrastructure simply doesn’t yet justify splitting inventory and operational attention, particularly for brands that have spent years building Amazon review velocity and keyword rank.
- WFS storage fees are competitive — currently $0.75 per cubic foot for standard items vs. Amazon’s tiered structure — but fulfillment speed SLAs are still perceived as less reliable in non-metro zones
- Walmart’s sponsored product ad platform (Walmart Connect) has improved meaningfully but lacks the granular campaign structure that Amazon PPC veterans rely on
- Walmart’s review ecosystem remains thin in most subcategories, making cold-start conversion rates low for migrated listings
- Walmart’s Buy Box algorithm is less transparent than Amazon’s, frustrating sellers who’ve optimized Buy Box capture as a core KPI
“The economics on paper can work for certain SKUs — high-volume consumables, pet food, cleaning supplies, anything with repeat purchase behavior,” said one seller who runs a seven-figure supplements brand and asked not to be named. “But the idea of a clean one-click migration is still a fantasy for anyone with a complex catalog. The listing quality gap between what wins on Amazon and what Walmart’s algorithm rewards is real and meaningful.”
Is Walmart’s Marketplace Strategy Actually Gaining Ground on Amazon?
Walmart Marketplace’s growth trajectory is genuinely difficult to dismiss at this point. The company reported third-party marketplace GMV growth of over 30% year-over-year in its most recent quarterly earnings, and WFS penetration as a share of total marketplace orders has reportedly crossed 40% — a figure that would have seemed implausible three years ago. Walmart’s decision to open its marketplace to international sellers in late 2024, combined with aggressive seller acquisition incentives including fee waivers and co-op advertising credits, has meaningfully expanded its SKU depth in previously weak categories.
Seth Dallaire, Walmart’s EVP and Chief Revenue Officer, has been publicly vocal about the company’s ambition to be “the most seller-friendly major marketplace in North America” — a framing that sources say is reflected in the internal culture of Walmart’s marketplace product team, which has reportedly been staffed with several former Amazon Seller Services executives hired specifically to accelerate WFS feature parity.
“Walmart is playing a longer game than most sellers give them credit for. They’re not trying to beat Amazon in 2026 — they’re trying to make sure that when sellers eventually want to diversify, Walmart is the path of least resistance. Project Crossover, if real, is exactly that kind of strategic patience made operational.” — one source described as a former Walmart Marketplace product advisor, speaking on background
What Should Amazon Sellers Do With This Information Right Now?
For operators watching this play out from the sidelines, the practical takeaway is less about Project Crossover specifically and more about what it signals: the competitive pressure on Amazon to retain third-party sellers is real and intensifying, and sellers who understand that dynamic are in a stronger negotiating position than they’ve been in years. Several agency leaders reached by Ecommerce Times said they’re now routinely advising Amazon-heavy clients to at minimum maintain “WFS-ready” catalog hygiene — meaning clean content, accurate dimensions, and compliant listing structure that could be activated on Walmart with minimal friction.
Whether Project Crossover materializes into a publicly available product, remains a limited pilot, or quietly gets shelved remains unconfirmed. But the mere fact that it’s being discussed at the aggregator level — and that Amazon appears to be responding with seller retention outreach — suggests the marketplace competition dynamic in 2026 is more fluid than the conventional wisdom of “Amazon wins, everyone else is noise” would suggest.
Ecommerce Times will continue tracking Project Crossover as additional details emerge. Sellers with direct knowledge of the pilot are encouraged to reach out via our secure tip line.
