Marketplace performance across Amazon and Walmart continues to evolve as we head into the final quarter of 2025. Ad costs are rising, consumer behavior is shifting, and competition has never been higher. Yet amid these pressures, the data reveals clear signals — where efficiency remains attainable, where growth is still accelerating, and what sellers can do now to prepare for 2026.
Rising CPCs, Tightening Efficiency
Both Amazon and Walmart have seen record-high Cost Per Click (CPC) rates through Q3 2025. This escalation stems from heavier advertiser competition and sustained investment across both marketplaces.
- Amazon: CPCs have climbed gradually but consistently each quarter, marking a new structural baseline for ad pricing. Despite this, returns have remained relatively stable thanks to mature bidding behaviors and predictive optimization.
- Walmart: CPCs rose more sharply, reflecting a still-expanding advertiser base. Sellers aren’t retreating — they’re doubling down to protect visibility and capitalize on Walmart’s growing customer base.
The takeaway: efficiency now depends on precision. Automated pacing, refined segmentation, and disciplined budget allocation are essential for staying profitable when every click costs more
Two Marketplaces, Two Growth Models
Amazon and Walmart may share overlapping audiences, but the data shows they behave as two distinct ecosystems.
- Amazon favors stability. Average Order Value (AOV) has held steady year over year, and Return on Ad Spend (ROAS) softened only slightly. Sellers leveraging automation and predictive bidding are maintaining performance despite higher ad costs.
- Walmart rewards agility. ROAS fluctuated quarter-to-quarter as advertisers adjusted to shifting shopper price sensitivity. Conversion rates rose sharply (+36% in Household Essentials, +42% in Home Improvement), signaling that smaller baskets and lower-cost SKUs are driving more frequent conversions.
Strategically, this means sellers must treat each marketplace differently — use Walmart for rapid experimentation and tactical growth, while using Amazon for sustained performance and forecasting reliability
Category-Level Insights Sellers Can Act On
The category breakdown reveals clear efficiency pockets that can guide Q4 planning and 2026 strategy:
- Amazon: Electronics (+14% ROAS), Office Products (+15%), and Clothing (+10%) are outperforming despite higher CPCs. These categories are benefiting from higher basket values and steady shopper demand.
- Walmart: Sports & Outdoors (+8% ROAS) and Household Essentials (+7%) remain strong performers. Meanwhile, declining CPCs in Toys, Food, and Health & Medicine signal lighter competition and potential for efficient scaling.
In short, high-value categories on Amazon and high-volume categories on Walmart are where the most opportunity lies heading into the holiday season.
How Sellers Should Respond
Benchmark and calibrate: Compare your own ROAS, CPC, and AOV trends against marketplace averages. Determine whether performance dips are platform-wide or campaign-specific.
Automate intelligently: Rising costs require speed and accuracy — predictive AI bidding and automated pacing can protect efficiency in volatile markets.
Diversify strategically: Balance Amazon’s predictability with Walmart’s growth velocity. A dual-channel approach provides resilience and reach.
Plan for pricing shifts: Lower AOVs on Walmart suggest more price-sensitive consumers. Adjust product mixes and creative messaging accordingly.
The Bottom Line
The 2025 benchmark data makes one fact undeniable: success now depends on precision. Sellers who embrace automation, data-informed decision-making, and cross-platform diversification will not only weather rising CPCs — they’ll turn them into an advantage.
As Teikametrics’ analysts note, “Agility and precision matter more than favoring one channel over another.” The sellers who thrive in 2026 will be those who move faster, spend smarter, and optimize relentlessly.
Want to elevate your business with more data and insights? See what Teikametrics can do for you and your business.