Retailers might dream of completely loyal shoppers, who visit only its stores for all their purchases. But such dreams are, for the most part, unrealistic in today’s retail markets. No one store can meet all of a customer’s needs. However, in its attempt to come closer to doing so, Walmart had developed an expanded fulfillment service. Through this service, independent sellers can pay Walmart for the right to use its massive network of distribution centers, advanced logistics, and efficient return systems. 

Some of these services include transporting third-party goods from Asian ports to U.S. warehouses. By taking over such complex transport operations, it promises to help smaller businesses navigate the complicated import process. Furthermore, Walmart has entered into an agreement with Symbotic, designed to build automated fulfillment points that will support web purchases. Currently, Walmart is on track to implement collection and delivery points within 400 stores. On the other side of the deal, Symbotic acquired Walmart’s existing robotics properties, which allowed it to improve its own fulfillment services in turn. Together, they have achieved the capacity to offer storage and transportation options to other sellers, which promises to increase overall profits.

In this strategic expansion, Walmart clearly is aiming to compete more effectively with Amazon and its existing, integrated logistics services. The tactic appears popular and promising, according to expert evaluations. For example, the financial services firm UBS praised the new fulfillment services as crucial for both revenue and net profit growth. Notably, even though logistics offerings are not part of Walmart’s core retail business model, they enable the company as a whole to flourish. Such service expansions also promise to come to the benefit other parts of the company, considering that reliable delivery and easy returns incentivize customers to shop on Walmart’s own web platform too.

Discussion Questions

1. What are some other ways that Walmart might compete with Amazon’s fulfillment and end-to-end logistics services?
2. What kinds of business-to-business connections benefit from Walmart’s development of fulfillment services, upstream or downstream or both?

Sources: Liz Young, “Walmart to Offer Logistics Outside its Own Marketplace Sales,” The Wall Street Journal, August 27, 2024; Robb M. Stewart, “Symbotic to Buy Walmart’s Advanced Systems and Robotics Unit, Signs Commercial Agreement,” The Wall Street Journal, January 16, 2025; Sheryar Siddiq, “UBS Maintains Buy Rating on Walmart, Highlights Fulfillment Services,” Yahoo! Finance, July 3, 2025.