"retailers with similar physical infrastructure (Walmart, Kroger, et al)" There's a lot more to direct-to-consumer logistics than there is to "center-to-store"

"retailers with similar physical infrastructure (Walmart, Kroger, et al)" There's a lot more to direct-to-consumer logistics than there is to "center-to-store" logistics. Distribution-center-to-store logistics can rely on largish shipments of any individual product, very large shipments for any DC to any store, and has a backup mini-warehouse (aka the back of that Kroger's) for each delivery site. Amazon can't store ten extra "diamond-coated Samsung Makeupsian-2" cases at your house when you order just the 1. Walmart often stores a few pallets of "nobody wants it" at their stores. Amazon doesn't drop of multiple pallets per deliver (usually, that is); Kroger's never gets less than several pallets at a time. Amazon can't predict what you're going to order months in advance; Target knows they need ten cases of "Fresh Bloom"-scented bleach per month, plus-or-minus 10%. Multi-pallet vs. singleton; buffered vs. just-in-time; predictable-load vs. "I want only one, once, randomly".... there are a lot of differences in the logistics that Amazon faces versus what Kroger/et. al. face. I honestly do not think that most existing distribution systems could support an FBA-style system w/out massive overhaul. That's not to say that FBA is not replicable... it just requires a massive capital investment and a massive rethink of how to do product logistics. Even if they're good at tech, I don't think the old-school organizations could successfully pull it off.