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Walmart and Amazon increase access to logistics networks for third-party sellers

Smaller merchants benefit from the retail giants’ battle to dominate the fulfillment space.
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Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

When it comes to fulfillment, sharing is caring for the country’s biggest retailers. Both Walmart and Amazon on Wednesday announced initiatives to increase access for third-party sellers to their logistics and fulfillment networks.

Walmart said it plans to offer local pickup and delivery services to third-party merchants with physical stores.

“Customers can pick up their items directly or have same-day delivery through our last-mile delivery network,” Manish Joneja, SVP of Walmart Marketplace and Walmart Fulfillment Services (WFS), wrote in a blog post.

In addition, sellers can ship bulky items such as canoes and trampolines, and “multi-box items such as patio sets.” Walmart said merchants see an average 50% bump in merchandise value after switching to WFS.

As for Amazon, the online retailer is integrating its “Buy with Prime” app with the Shopify platform, making it easier for Shopify merchants to ship their products through its fulfillment network and sell directly to Prime members.

“The build of this app was a collaboration with Shopify, and we’re excited to help merchants not only grow their businesses, but also save time and resources—all while giving Prime members even more places to enjoy their shopping benefits,” Peter Larsen, Amazon VP of Buy with Prime, said in a press release.

Shopify echoed the collaborative sentiment in its own press statement. “We’re on a mission to make commerce better for everyone,” the company said. “That means making sure our merchants are able to sell everywhere.”

Zoom out: Amazon’s commitment to third-party sellers bore fruit in the second quarter, when revenue from the segment jumped 18%. Walmart, likewise, has recently bolstered efforts to make itself a one-stop e-commerce shop for merchants. This week’s announcement came during its first Walmart Marketplace summit for third-party sellers. Other recent efforts include a service designed to make it easier for sellers to store their inventory at Walmart fulfillment centers, and incentives such as reduced commission costs.

The dueling efforts to offer fulfillment as a service are just the latest examples of Walmart and Amazon’s ongoing battle for e-commerce market share.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.