This move into brokerage could have considerable repercussions for the third-party logistics (3PL) industry. By utilizing its extensive logistics infrastructure and one of the largest private trucking fleets in North America, Walmart is poised to challenge traditional brokerage models. The company’s capability to consolidate freight from its marketplace sellers while integrating with its existing distribution network offers a compelling value proposition for shippers seeking cost-effective and reliable logistics options.

This expansion also represents a strategic step in Walmart’s ongoing rivalry with Amazon. WFS aims to provide an alternative to Amazon’s Fulfillment by Amazon (FBA), enabling third-party sellers to leverage Walmart’s warehousing and shipping capabilities. As more sellers transition their inventory to Walmart’s platform, Amazon may experience a decline in freight volume within its logistics network. A key advantage for Walmart is its extensive network of physical stores, which function as mini-fulfillment centers, enabling quicker last-mile deliveries and lower transportation costs compared to Amazon’s dependence on regional fulfillment centers and its Amazon Freight network.

Amazon’s FBA model has faced scrutiny for high storage fees and long-term penalties, while Walmart has positioned WFS as a more cost-effective alternative with a straightforward pricing structure. Additionally, with Walmart GoLocal providing last-mile delivery services for third parties, integrating this with its freight brokerage could create a comprehensive logistics solution that rivals Amazon’s same-day and next-day delivery offerings.

Despite Walmart’s swift growth in the logistics sector, Amazon still holds a significant advantage with its dedicated air fleet, ocean shipping capabilities, and extensive network of third-party carriers. However, if Walmart strategically scales WFS, it could emerge as a formidable competitor to both Amazon and the broader North American 3PL industry.