Walmart (WMT) is taking a bold step to extend its influence in the logistics sector by opening its fulfillment services to third-party sellers across platforms beyond its own marketplace. This new initiative allows merchants to leverage Walmart’s extensive warehousing, delivery, and returns services for orders placed on sites such as Target (TGT), Etsy, and even rival Amazon (AMZN). The move marks a significant expansion of Walmart’s logistics capabilities and positions the retailer as a formidable competitor to Amazon’s Fulfillment by Amazon service.
Starting September 10, Walmart will offer these logistics services through its Walmart Fulfillment Services division, aiming to ease the complexities and costs associated with importing and transporting goods for online sellers. Additionally, Walmart will handle imports from Asia to U.S. distribution centers and provide access to discounted shipping rates for less-than-truckload and full-truckload shipments. By offering these services, Walmart aims to enhance the home-delivery experience for customers and provide a seamless logistics solution for merchants, mirroring Amazon’s strategy of integrating logistics with e-commerce.
Market Overview:- Walmart opens its logistics services to third-party sellers beyond its own marketplace.
- The company aims to compete directly with Amazon’s Fulfillment by Amazon service.
- Walmart’s logistics expansion includes warehousing, delivery, and import services.
- Walmart will offer fulfillment services for orders placed on other platforms like Target and Etsy.
- The expansion is part of Walmart’s strategy to control the home-delivery experience for customers.
- Walmart’s U.S. marketplace sales grew by 32% in the latest quarter, continuing a strong upward trend.
- Walmart’s logistics services will launch on September 10, targeting a broad range of third-party sellers.
- The new Walmart LocalFinds service will connect customers with local merchants for same-day delivery.
- Walmart’s logistics expansion is set to challenge Amazon’s dominance in the e-commerce space.
The expansion comes as Walmart’s U.S. marketplace sales continue to surge, with a 32% increase in the quarter ended July 26. This marks the fourth consecutive quarter of over 30% growth in marketplace sales. By integrating logistics services for vendors, Walmart not only broadens its revenue streams but also tightens control over the delivery process, ensuring a consistent customer experience. This strategic move echoes Amazon’s September 2023 launch of Supply Chain by Amazon, an end-to-end logistics service designed to manage all aspects of a seller’s supply chain across various online platforms.
As Walmart builds out its logistics network with increased automation and warehouse capacity, the company is well-positioned to capitalize on unutilized space and further entrench itself in the logistics market. Walmart’s ability to offer these services at scale, combined with the launch of Walmart LocalFinds—a new service that connects customers with local merchants for same-day pickup and delivery—demonstrates the retailer’s commitment to innovation and its competitive drive in the e-commerce space.
