--- title: "Walmart slashes US delivery costs by 40% per order" type: "News" locale: "en" url: "https://longbridge.com/en/news/220471314.md" description: "Walmart has reduced its U.S. net delivery cost per order by 40% for the third consecutive quarter, driven by delivery densification, increased paid expedited orders, and supply chain automation. Orders per delivery rose 20% year-over-year, with over 50% of fulfillment center volume now automated. Store-fulfilled delivery sales surged nearly 50% year-over-year, with Walmart expanding its delivery-capable stores from 4,200 to 4,500. Fast delivery remains a priority as Walmart competes with Amazon, with over 30% of deliveries made within three hours for customers willing to pay extra." datetime: "2024-11-22T15:29:49.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/220471314.md) - [en](https://longbridge.com/en/news/220471314.md) - [zh-HK](https://longbridge.com/zh-HK/news/220471314.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/220471314.md) | [繁體中文](https://longbridge.com/zh-HK/news/220471314.md) # Walmart slashes US delivery costs by 40% per order ### Dive Brief: - Walmart slashed its U.S. net delivery cost per order by 40% in Q3 for the third consecutive quarter, EVP and CFO John David Rainey said in an earnings call Tuesday. - "There are a few key factors driving this improvement: delivery densification, increased penetration of paid expedited delivery orders and the automation of our supply chain," Rainey said. - Orders per delivery increased 20% year over year, resulting in more cost-efficient and productive driver routes. Walmart is also handling more than 50% of its fulfillment center volume with automation, twice as much as a year ago, Rainey said. By the numbers 20% Walmart’s year-over-year increase in orders per store-fulfilled delivery in Q3 30% The share of orders from customers who paid more to have their items delivered in three hours or less 40% The reduction in net delivery cost per order in the U.S. for Q3 50% The percentage of volume Walmart is handling in an automated fashion in its fulfillment centers ### Dive Insight: Walmart has made steady progress in reducing its last-mile delivery costs this year as it grows its online shopper base, helping the retailer spread out expenses among more customers. Store-fulfilled delivery sales for the company jumped nearly 50% year over year in Q3 and surpassed a $2.5-billion monthly run rate, Rainey said. "We've now had 12 consecutive months of deliveries above $2 billion," he added. The sales growth comes as Walmart has expanded its roster of U.S. stores that offer delivery from 4,200 in Q3 of last year to 4,500, according to an earnings presentation. While Walmart is pushing for more efficient delivery operations from these stores, it's not looking to sacrifice speed in the process. More than 30% of store-fulfilled deliveries are coming from customers who paid more to have their items in less than 3 hours, or even within the hour, according to Rainey. "If investments in delivery speed cause us to reach profitability a little later, that's fine too," Rainey said of the company's e-commerce business. "We want to deliver faster. So I think we are very confident that we're going to make money in e-commerce." Fast delivery is a priority for Walmart amid its growing competition with Amazon. President and CEO Doug McMillon said in May that Walmart delivered 4.4 billion items with either same-day or next-day shipping speeds in the U.S. in the prior 12 months.While McMillon didn't provide an update on the stat in Tuesday's call, he did say delivery speeds are "becoming increasingly important to customers." ### Related Stocks - [Walmart Inc. (WMT.US)](https://longbridge.com/en/quote/WMT.US.md) ## Related News & Research - [Here's How Much $100 Invested In abrdn Physical Silver Shares ETF 10 Years Ago Would Be Worth Today](https://longbridge.com/en/news/281394387.md) - [Destiny Tech100 Stock Rises After SpaceX IPO Rumors](https://longbridge.com/en/news/281415250.md) - [BREAKINGVIEWS-SpaceX IPO will gauge market moxie more than depth](https://longbridge.com/en/news/281406751.md) - [Fired via email? Some of the 30,000 workers cut by Oracle woke up to a morning message saying they were laid off.](https://longbridge.com/en/news/281429821.md) - [Palantir vs. Oracle: 1 AI Stock Looks Cheap](https://longbridge.com/en/news/281400403.md)