Walmart's logistics model has emerged as a strong competitor to Amazon's Fulfillment by Amazon, driving down pricing and putting pressure on Amazon's fee structure significantly.
Wells Fargo analysts note that Walmart's third-party logistics is about 15% cheaper than Amazon's offerings, influencing Amazon to potentially limit its fee increases.
The analysts foresee a challenging period for Amazon's operating income, as competitive pressure from Walmart could reduce the expected fee increments to near 2% instead of the historical 5%.
With Walmart investing heavily in its logistics network, analysts suggest this evolution in retail dynamics implies that Amazon is no longer the sole major marketplace.
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