Amazon and Walmart sell Supply Chain — Market Mad House

The actual product Amazon (AMZN) and Walmart (WMT) sell is supply chain. Or more precisely, access to a supply chain.

I discerned this reality because I needed a ream of copy paper. The two discounters in my town, Family Dollar, a Dollar Tree (DLTR) subsidiary, and Dollar General (DG) sell copy paper. However, there was no copy paper on the shelves of either store.

Yet, I could order over a ream of copy paper from Walmart.com (WMT) in less than a minute. Why? Walmart’s supply chain is far bigger and far more efficient than those of Dollar Tree and Dollar General.

Walmart (NYSE: WMT), for example, operated 195 distribution centers in the United States in 2020, MPVL International estimates. Those centers contained 143.108 billion square feature of storage and processing. Additionally, Walmart plans seven more distribution centers with 10,060 square feet in space.

Why You Cannot Compete with Amazon and Walmart

In comparison, Amazon (NASDAQ: AMZN) operates 110 active fulfillment centers in the United States and 185 fulfillment centers globally, FBA Help estimates. Consequently, FBA estimates express shipments can arrive at an Amazon fulfillment center in two to 10 working days.