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Isn’t this what selling 3rd party on Amazon is? They handle fulfillment and delivery? I think it’s a good idea since I don’t think eBay or Walmart offer this service (?), and I’m continually hearing how Amazon is screwing over their 3rd party sellers (Amazon basic to replace 3rd party products that sell well, etc). What would you happen to you guys if say Walmart started offering 3rd party fulfillment? Think they could do it well?

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Amazon has a program called Multi-channel fulfillment. But there are significant drawbacks to sellers and marketplaces:

1. It comes in an Amazon box. Large marketplace have started penalizing sellers for that.

2. They don't integrate into fast shipping programs that act like Prime, as an example eBay eGD.

You are right that eBay and Walmart can offer this service, but most sellers will sell in multiple places, and splitting inventory across different facilities is expensive, inefficient, and difficult to manage. Isolationism in this market hurts everybody.

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