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Amazon has a program, "Fulfillment By Amazon", where you can pay Amazon $2.50-$4.00 to pick, pack and ship an item for you[1]. Would Wal-Mart be better off jus

Amazon has a program, "Fulfillment By Amazon", where you can pay Amazon $2.50-$4.00 to pick, pack and ship an item for you[1]. Would Wal-Mart be better off just paying Amazon than paying all the people involved in its process? I'd imagine Wal-Mart is paying its people at least $3 per delivery, in addition to paying the people in its stores to pick/pack the item... Does turning Wal-Mart stores into distribution centers and retail employees into pickers and delivery people beat dedicated DC's and delivery people? I'd guess not. [1]https://services.amazon.com/fulfillment-by-amazon/pricing.htm/ref=asus_fba_snav_p https://services.amazon.com/fulfillment-by-amazon/pricing.ht...

jcastro 9y ago
> Would Wal-Mart be better off just paying Amazon That sounds like McDonald's paying Burger King to sell Big Macs.
petra 9y ago
Walmart is paying it's people their hourly wages(let's say $14/hr in Texas), and lets them deliver up to 10 packages. With the right route. If 10 packages take an hour, it's $1.4 per package. It may take less. It leaves $1.6 for handling, and shipping to store(large trucks, very cheap). Seems possible. BTW: Are there any distance limits for the Amazon offer?
colechristensen 9y ago
WalMart is trying to compete with Amazon at the logistics business, not give them more. Wal-Mart's business isn't just stores, it's their whole system of product acquisition, inventory, distribution, etc. The store is just the frontend. They don't want to retreat into just being distributors, they want to expand into front-door delivery.