The Big Scoop on Walmart’s New Innovation in Online Sales

warehouse for online retailers

Image Source: Businessinsurancequotes.com

If you’ve been following along with this crazy new concept, you’ll remember we briefly touched on Walmart’s shipping innovations in a previous article. While Walmart always seems to capture the media limelight for one scheme or another, this one doesn’t break the mold, it busts out of it.

Walmart is exploring the possibility of having their customers deliver online sales packages for them. The process is very simple; someone places an order online, then a willing customer delivers the package to the person.

In essence, this seems similar to online restaurant ordering or, say, having your groceries delivered. In a way, it’s kind of charming to consider that your neighbor is just running your errand for you, since they’ll pass your house on the way home, right? So, what’s the big deal?

Well, this is Walmart we’re talking about here. Their theory right now implies that they are targeting the weak labor market by honing in on the jobless. Speculators suggest that they are trying to create a culture of unemployed who hang out in Walmart hoping to be assigned deliveries as they become available.

From a business perspective, Walmart is a high-grossing company. In outward appearance, they are successful. They accomplish their impressive bottom line by cutting every possible corner to save themselves, and their customers, money.

Vendors have complained for a very long time that Walmart crushes their profit margins (i.e. bullies them to take a lower margin in exchange for being featured in their stores.) Mom and pops in small towns simply can’t compete with Walmart’s bulk buying (and therefore lower pricing) abilities, either. We won’t even mention the underlying suggestions related to Walmart’s overseas transactions.

 

 

Oh, and one more thing, do you know how Walmart manages their labor force? They keep employees just below the minimum hourly requirements so they don’t have to provide them with health insurance or company benefits. Any employee who didn’t earn enough to support their family was encouraged to head down to the welfare office and take advantage of social service benefits.

So, when Walmart begins to discuss a new innovation, you’re crazy if you think they have customers in mind. Nope. Walmart’s one and only concern, as dictated by a long and well-established pattern of behaviors, is their own bottom line.

warehouses peek inside

Image Source: Businessinsurancequotes.com

If you don’t believe us, let’s use one more example. The infographic we’ve inserted into this post today is based on what happens when you make an online purchase. Online sales orders are typically fulfilled by warehouses and logistics companies. Your order is picked and packed by someone who earns just about minimum wage to stand on their feet all day and place your order in boxes.

Whereas many online retailers (Walmart is the second largest behind Amazon) use their own companies to complete the process, Walmart uses a third party logistics services. Why, you ask? It allows them to try and get around any and all arguments related to the treatment of warehouse workers. Walmart was sued anyway, by the way.

So, the big scoop we’re referring to is that Walmart is at it again. They are attempting to innovate their way into a new fangled method of shipment and delivery. With a new locker and pick-up plan in place, they might just succeed, too.

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