Walmart Fulfillment Services, which stores and ships products for the retailer’s third-party marketplace sellers, is now offering expanded next-day shipping in Los Angeles, New York, Chicago, Houston, Atlanta and other major U.S. cities.
The next-day deliveries will begin with some of the most popular items on the e-commerce platform. The platform expects 95% of U.S. households will have access to same-day delivery by later this year.
Walmart announced during its recent U.S. Grow Summit in Bentonville the fulfillment expansion and technology tools to help accelerate its growing marketplace. The retail giant introduced new AI-powered tools and seller incentives to help third-party sellers operate more efficiently and reach more customers.
Walmart’s online marketplace continues to be a growth engine for the company around the world. The retail giant recorded global e-commerce growth of 25% in the recent quarter. Walmart grew marketplace sales nearly 20% with more sellers using fulfillment services in the recent quarter. About 44% of marketplace volumes flow through Walmart’s fulfillment services, according to Chief Financial Officer John David Rainey.
The marketplace also allows for brands that are not typically associated with Walmart to set up their own stores and reach new shopper demographics.
“Everything we’re building – from smarter tools to expanded fulfillment and global reach – is designed to accelerate seller growth and empower sellers to serve customers while driving their businesses forward,” said Manish Joneja, senior vice president, Walmart U.S. Marketplace and Walmart Fulfillment Services
Fulfillment services help sellers streamline fulfillment at rates 15% less on average than competitors, driving stronger results, Walmart said. Sellers using the service see, on average, a 50% lift in gross merchandise value on items tagged Walmart Fulfilled and 2-Day Shipping.
The retailer also said it is bringing the extended “Marketplace” aisle inside stores, starting with a few items on display. Walmart recently introduced this concept in its new Cypress, Texas, store in the Houston metro. The company did not disclose which stores would receive the new “Marketplace” aisle. When customers see this aisle in their local stores, they can purchase featured items through the Walmart app by scanning a QR code and have the products delivered to their home.
Walmart also said it is introducing new incentives to help sellers compete during the peak shopping season. Walmart slashed fees on select toy listings during the peak holiday season for marketplace sellers. Walmart also reduced referral fees by 50% on qualifying pet supplies, and 100% referral fee reductions on qualifying top-selling items across categories.