Efficient Delivery Network
Walmart has made significant strides in the fast delivery arena, dispatching over 4.4 billion items with same-day or next-day delivery options within the U.S. over the past year. Doug McMillon, Walmart’s President and CEO, highlighted on a recent earnings call that approximately 20% of these deliveries were completed in under three hours. This impressive feat is attributed to the retailer’s ability to optimize delivery routes and serve a growing online customer base, which has led to a nearly 40% reduction in net delivery cost per order, as reported by John David Rainey, EVP and CFO.
Global Delivery Enhancements
The retail giant has not only improved delivery times domestically but has also seen significant advancements internationally. McMillon pointed out that same-day orders in India surged by over 150%, while one-hour delivery in China reached 55 million orders.
Competitive Edge
In comparison to Amazon’s delivery performance, which reported over 4 billion U.S. units delivered with same-day or next-day service in 2023, Walmart’s approach utilizes its expansive network of over 4,600 U.S. stores. This strategic use of brick-and-mortar locations allows Walmart to efficiently meet online shopping demands without the need for the costly fulfillment network adjustments that Amazon has undergone. Additionally, Walmart has been cutting delivery costs by distributing these expenses across its increasing customer base and integrating parcel stations into its stores to boost last-mile delivery efficiency. McMillon emphasized the dual achievement of faster delivery times and reduced costs, marking a significant milestone in Walmart’s delivery operations.
Walmart’s innovative delivery strategy leveraging its vast store network has propelled the company to outperform Amazon in the rapidly evolving ecommerce delivery landscape. With significant improvements in delivery times and cost efficiency, Walmart has solidified its position as a formidable contender in the race for expedited online order fulfillment.
