Walmart is making a big move, rolling out next-day delivery for orders from third-party sellers in major cities like Los Angeles, New York, Chicago, Houston and Atlanta. This aggressive push into marketplace growth is definitely something to watch.
Walmart's Speed Advantage
What's really interesting is how Walmart is competing on speed. They're aiming to have 95% of the country deliverable in under 3 hours, and they're already pretty close at 93%.
Even more impressive, one-third of their deliveries currently happen in under 3 hours, with a quarter of those arriving in under 30 minutes. It's a pretty remarkable achievement.
Bringing Sellers into the Speed Game
Now, Walmart wants its marketplace sellers to be part of this fast delivery network too. There are a couple of good reasons for this. First, customers clearly want faster delivery, as the stats show. The demand is definitely there.
Second, this could start to take some business away from Amazon's FBA (Fulfillment by Amazon) service. The main idea is to get more sellers to use Walmart Fulfillment Services (WFS).
The WFS Advantage for Sellers
Selling through Walmart's WFS offers something unique that Amazon doesn't: the potential to grow your business beyond just online sales. Walmart provides a path for sellers to eventually get their products into physical stores.
This dual online and in-store capability is a big draw for sellers looking to expand. Ultimately, the strategy is a strong play that's tough for competitors to match.
