Walmart is launching a new service that allows third-party vendors to hire the retailer to store, pack and ship items for customers, a move that could better position the big-box retailer to compete against Amazon. Through Walmart Fulfillment Services, third-party vendors that sell clothing or other items in Walmart.com's marketplace can pay to have the retailer handle the logistics of getting items to a customer's door. They currently have to use a third-party to handle fulfillment or do it themselves. Walmart said both sellers and customers will benefit from the new service. Sellers will pay a low fee to store and ship goods and be able to drive up profitability while customers will have more brands to choose from, faster shipping and easier returns.

With the service, Walmart will have more control over the customer experience. It will be able to increase the number of packages with next-day or two-day delivery and will also have more visibility in warehouses.