Walmart Rolls Forward with Brokerage: A Game-Changer for Supply Chains and a Challenge to Amazon

Walmart, the retail behemoth known for its sprawling stores and massive private fleet, is making waves in the logistics world with the launch of its new third-party logistics (3PL) brokerage arm. Recently, trucking companies in Walmart Transportation’s network began receiving emails inviting them to join this initiative, marking a significant step in the retailer’s August announcement to expand freight services for its Walmart Sellers. At Gain Consulting, we’ve been tracking this development closely, and it’s clear: Walmart’s move into brokerage isn’t just about hauling freight—it’s a strategic play to reshape supply chains and take on Amazon head-to-head. Here’s what it means for the industry and how it could redefine the competitive landscape.

Walmart’s Brokerage Takes Shape

The emails sent to select carriers offer a glimpse into Walmart’s ambitions. “We’re connecting with a select group of carriers like yourself to embark on an initiative that will transform the way we deliver to our customers,” the message reads, according to FreightWaves. It promises “steady freight” and a “crucial role” in customer delivery, directing carriers to a website to begin onboarding. While still in its early “stealth mode” phase, the program is already generating buzz among transportation partners.

To qualify, carriers must meet strict criteria: operate between 10 and 1,000 trucks, have at least five years of operating authority, carry $1 million in liability insurance and $100,000 in cargo insurance, and maintain a fleet of 53-foot dry vans, reefers, or flatbeds. Additional requirements include adherence to Walmart’s safety standards (details TBD) and equipping drivers with smart devices for tracking. These standards signal Walmart’s intent to build a reliable, tech-savvy network capable of meeting the demands of its growing e-commerce ecosystem.

Leveraging a Logistics Powerhouse

Walmart’s brokerage isn’t starting from scratch—it’s built on the backbone of one of North America’s largest private fleets and an extensive logistics infrastructure. The initiative likely falls under Walmart Fulfillment Services (WFS), which already holds broker authority (MC#1096733) and freight forwarding authority (FF#37548). WFS, launched to support Walmart Marketplace sellers with warehousing and shipping, expanded last year into freight forwarding for cross-border and international shipments. Now, with brokerage services, Walmart is poised to consolidate freight from its sellers and integrate it into its existing distribution network.

This move could disrupt traditional 3PL models. By tapping into its scale—think thousands of stores doubling as mini-fulfillment centers—and its private fleet, Walmart can offer shippers cost-effective, reliable solutions that competitors might struggle to match. For carriers, the promise of “steady freight” from a retail giant could provide stability in an industry often plagued by volatility.

Walmart vs. Amazon: The Logistics Showdown Intensifies

The real story here is Walmart’s escalating rivalry with Amazon. WFS positions itself as a direct competitor to Amazon’s Fulfillment by Amazon (FBA), offering third-party sellers an alternative for storage, packing, and shipping. Amazon’s FBA has long dominated e-commerce logistics, but it’s not without flaws—high storage fees and long-term penalties have frustrated sellers, as noted in a FreightWaves piece titled, “If we used FBA all the time, we’d be toast.” Walmart, by contrast, touts WFS as a simpler, more cost-effective option, leveraging its physical store network for faster last-mile delivery and lower transportation costs.

Amazon relies heavily on regional fulfillment centers and its Amazon Freight network, bolstered by a dedicated air fleet and ocean shipping capabilities. Walmart counters with its brick-and-mortar advantage—stores that act as distribution hubs, reducing the distance goods travel to reach customers. Add in Walmart GoLocal, its last-mile delivery service for third parties, and the new brokerage arm, and you’ve got the makings of an end-to-end logistics solution that could rival Amazon’s same-day and next-day delivery dominance.

If Walmart scales WFS effectively, it could siphon freight volume from Amazon’s ecosystem as sellers migrate inventory to Walmart’s platform. That’s a direct threat to Amazon’s logistics revenue and a potential shake-up for the broader 3PL industry.

What This Means for Supply Chains

Walmart’s brokerage rollout has far-reaching implications for supply chain professionals. At Gain Consulting, we’ve identified several key takeaways:

A New Player in 3PL
Walmart’s entry into brokerage adds a formidable competitor to the mix. Its ability to bundle freight from marketplace sellers with its own volume could drive down costs and improve service levels, pressuring traditional 3PLs to innovate or risk losing market share.
Cost and Speed as Differentiators
By integrating its store network with brokerage services, Walmart can offer faster, cheaper last-mile delivery than Amazon’s hub-centric model. For shippers, this could mean lower rates and happier customers—a win-win that’s hard to ignore.
Carrier Opportunities—and Challenges
Carriers meeting Walmart’s criteria stand to gain steady freight, but the requirements (e.g., smart device tracking, safety standards) demand investment. Smaller operators may struggle to qualify, while mid-sized fleets could find a sweet spot in Walmart’s network.
A Shift in Seller Dynamics
As WFS grows, third-party sellers frustrated with Amazon’s fees might pivot to Walmart, reshaping e-commerce freight flows. Supply chain leaders will need to adapt to this potential migration, balancing partnerships with both retail giants.

Opportunities for Optimization with Gain Consulting

Walmart’s logistics expansion isn’t just a competitive flex—it’s a signal that supply chains must evolve to keep pace. At Gain Consulting, we see this as an opportunity for businesses to rethink their strategies. Whether you’re a carrier looking to join Walmart’s network or a shipper navigating the Walmart-Amazon rivalry, we can help you optimize your operations.

For Carriers: We’ll assess your fleet readiness, streamline compliance with Walmart’s standards, and identify efficiencies to maximize your role in this new brokerage ecosystem.
For Shippers: Our team can design a multi-platform logistics plan, leveraging Walmart’s cost advantages and Amazon’s scale to ensure flexibility and resilience.
For All: From last-mile delivery to cross-border freight, we’ll tailor solutions that align with your goals and capitalize on emerging trends.

The Road Ahead

Walmart’s brokerage is still in its infancy, but its potential is undeniable. Amazon may hold the lead with its air and ocean capabilities, but Walmart’s store-based logistics and simpler pricing could close the gap. For the North American 3PL industry, this is a wake-up call: disruption is here, and scale alone won’t guarantee success.

At Gain Consulting, we’re ready to guide you through this shifting landscape. Contact us today to explore how Walmart’s brokerage rollout—and the broader Walmart-Amazon showdown—can work to your advantage. Let’s build a supply chain that’s not just reactive, but ahead of the curve, delivering value in a world where retail giants are rewriting the rules of logistics.