ST. LOUIS — Walmart is a major online shopping company, and shipping speed is a big factor in your purchase. Amazon is probably best known for its Prime service, which offers free delivery and expedited shipping. Walmart is currently expanding its parcel network, which is expected to increase delivery speeds.
Customers may not notice it in-store, but the delivery stations will help Walmart customers receive their online orders faster. It plans to have more than 40 in-store parcel stations by the end of the year, many of which are already operational for the busy holiday season. The goal is to expand this functionality to more locations in 2024.
Walmart uses its 4,700 stores strategically. Located within 10 miles of 90% of the US population, these stores have transformed into more than just a place to shop. These now serve as online fulfillment centers and distribution hubs, supported by vast transportation and last-mile delivery networks.
Currently, over 4,000 stores operate as delivery hubs and handle a variety of orders. The next step in their plan is to introduce parcel stations at these hubs. Parcel stations act like mini post offices, facilitating quick shipment of goods to customers’ homes. This process leverages Walmart’s private fleet to transport more online orders faster.
Parcel Station helps customers access a wide range of products eligible for next-day delivery. It also helps reduce shipping costs.
Competition between online retailers and large retailers is increasing. Walmart offers “plus services” like Amazon Prime that compete on factors such as price, speed, video streaming and returns.
The secret to Amazon’s delivery speed is logistics. The company’s fulfillment centers are large warehouses where employees pack orders. When you buy something, it goes through the process of being packed at a fulfillment center, loaded onto a plane, organized by location, and then shipped to your home.
According to estimates, there are over 185 Amazon fulfillment centers worldwide, with 100 in the United States. Unlike Walmart, which has many stores and warehouses, Amazon has several large centers.
Amazon started with one in Seattle and has expanded to cover entire regions and even states. This setup allows Amazon to stock large quantities of products and quickly respond to the diverse needs of its customers. Unlike Walmart, Amazon’s structure allows it to handle changes in demand a little better. It will be interesting to see how this competition for customer acquisition will turn out.