Walmart adds next day delivery for third party orders; expands use of Ranpak's AutoFill system

[A Walmart warehouse, Canada Logistics PDC, Chain retailer.]
Marvin Samuel Tolentino Pineda/iStock Editorial via Getty Images

To compete with Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]) and boost sales for its rapidly growing e-commerce business, Walmart (NYSE:WMT [https://seekingalpha.com/symbol/WMT]) is now offering next-day delivery in certain U.S. cities for third-party orders.

With a goal to achieve “the speed that customers expect,” the company will now provide next-day delivery in New York City, Los Angeles, Chicago, Houston, and Atlanta, senior vice president of Walmart U.S. marketplace and fulfillment services Manish Joneja said in an interview with Bloomberg.

The service will apply to some of Walmart.com’s most popular items and eventually expand to more areas.

In addition, to lure in more sellers and broaden its merchandise assortment, Walmart (NYSE:WMT [https://seekingalpha.com/symbol/WMT]) is introducing AI-powered tools for sellers, will begin selling third-party items in certain Walmart (NYSE:WMT [https://seekingalpha.com/symbol/WMT]) stores, and will enhance its warehouse automation for more efficient shipping through an expanded partnership [https://seekingalpha.com/pr/20211215-ranpak-and-walmart-join-forces-to-roll-out-automated-technology-and-sustainable-packaging] with Ranpak (NYSE:PACK [https://seekingalpha.com/symbol/PACK]).

Ranpak (NYSE:PACK [https://seekingalpha.com/symbol/PACK]) will install its AutoFill systems at five additional Walmart fulfillment centers that will lead to faster fulfillment, reduce packaging waste, and create efficiencies for employees.

The Ranpak (NYSE:PACK [https://seekingalpha.com/symbol/PACK]) DecisionTower uses machine vision and AI to detect package contents and identify the precise amount of void fill material needed to offer optimal product protection. It then communicates that information to the AutoFill machine, which dispenses the paper void fill, closes, and seals the box.

The news drove shares of Ranpak (NYSE:PACK [https://seekingalpha.com/symbol/PACK]) up as much as 30% to a 5-month high and above its 200-day moving average for the first time in six months.

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