Competition from Amazon and Walmart intensifies, leading to a surge in new warehouses

Affected by supply chain issues, whether goods can be delivered on time has become a headache for both buyers and sellers. As a result, large e-commerce platforms in the US market, such as Amazon and Walmart, have increased back-end competition and increased the number of warehouses in order to increase delivery service speed and storage volume, and also to win a better reputation among consumers.

Amazon, which has always been the leader in the e-commerce market, has significantly expanded its distribution network in the past decade, building many new warehouses in densely populated areas to increase the speed of online order delivery. Amazon's main competitors, such as Walmart, Home Depot, Target and Wayfair, have all opened new distribution centers.

According to a new analysis by BigRentz Inc., Amazon currently operates 1,137 fulfillment centers in the United States, including about 305 large fulfillment centers. By 2023, Amazon will have at least 355 warehouses in the United States , with most of its distribution centers concentrated near the largest population centers in the United States.

With many advantages , Amazon has a clear advantage in the number of operation centers and e-commerce warehouses compared with its competitors.

Data shows that Walmart operates 198 distribution centers of various types in the United States , 29 of which are dedicated to online orders . Walmart plans to add 10 more, 6 of which will be dedicated to e-commerce. Target operates 49 US warehouses, 7 of which are used for e-commerce . Home Depot currently operates 130 distribution centers in the United States , 10 of which are dedicated to e-commerce .

Although many retailers such as Walmart and Home Depot are trying to catch up with Amazon, Amazon still leads in many aspects such as seller entry rate, buyer selection, and back-end delivery.

Major U.S. e-commerce platforms have increased the number of warehouses, not only to speed up the delivery of goods, but also to increase the amount of goods entering the warehouse. Every year when the peak season comes, the difficulty of entering the warehouse due to warehouse overflow will trouble many sellers, and increasing the number of warehouses may alleviate this problem to a certain extent.

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