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Walmart Fulfillment Services and Multichannel Delivery: Model the Economics Before Moving Inventory

Multichannel fulfillment can simplify operations, but the decision should be modeled with inbound, storage, delivery, returns and inventory-allocation costs together.

Walmart highlighted expanded fulfillment and multichannel capabilities for marketplace sellers. The proposition is attractive when one inventory position can serve several demand sources, but the economics depend on the exact products and lanes involved.

See Walmart’s announcement for its stated program details.

Use a total-cost model

Compare inbound transportation, storage, handling, delivery, peak surcharges, returns and the working-capital cost of inventory. Then test the service promise against the destinations that matter to your customers.

A pilot with predictable products and clear baselines is the safest way to determine whether multichannel fulfillment improves the business rather than merely changing where costs appear.

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