Walmart’s E-commerce Sales Up 27% as It Pilots Store-Based Same-Day Delivery Model
Walmart’s U.S. e-commerce sales jumped 27% year-over-year as the retailer pilots a fulfillment model using store back rooms to hold third-party marketplace inventory for same-day delivery. TD Cowen analysts raised revenue estimates by 4–5% following 20% marketplace growth, highlighting a direct challenge to Amazon’s delivery advantage.
1. New Fulfillment Model
Walmart is testing a new fulfillment approach that leverages existing store back rooms to house third-party marketplace products. The pilot aims to reduce transportation times, enabling faster same-day delivery to local customers and optimizing inventory placement.
2. E-Commerce and Marketplace Growth
The retailer's U.S. e-commerce sales rose 27% year-over-year in Q1, driven by increased online demand and marketplace expansion. Its marketplace revenue is growing nearly 20% annually, although it still trails Amazon’s larger platform.
3. Analyst Upgrades
TD Cowen analysts increased Walmart’s revenue projections by 4–5%, citing efficiency gains from the new fulfillment strategy and stronger marketplace performance. The upgrade underscores growing investor confidence in Walmart's capacity to erode Amazon's delivery lead.