Walmart delivery plan to undercut Amazon Prime
If you can’t beat ’em, lower the price. It’s the Walmart way and the retailer undoubtedly has Amazon and its Prime $99 annual program in mind with its new test of a new unlimited shipping service with a $50 annual fee.
Unlike the Prime program, which offers guaranteed two-day delivery on purchases, Walmart’s offer will guarantee delivery within three days or less. The initial test, codenamed Tahoe according to a report by The Information, will be offered to select customers by invitation only.
"One of things that we’ve heard from customers is that they want shopping that’s predicable and they want it to be affordable," Ravi Jariwala, a Walmart company spokesperson told TechCrunch. "[This test is] really to understand is this yet another new way that we can serve customers?"
While Amazon Prime involves program elements such as free Kindle books and streaming videos, the Walmart test will be strictly limited to the shipping offer, at least initially. Walmart may choose to add other options such as its Vudu streaming video service.
- Walmart Preps Rival to Amazon Prime – The Information
- Wal-Mart’s new shipping service will cost $50 per year, beating Amazon Prime’s $99 annual fee – The Associated Press/U.S. News & World Report
- Walmart To Test A Free, Three-Day Shipping Service That’s Half The Price Of Amazon Prime – TechCrunch
Do you think Walmart.com management is looking at its Tahoe program primarily as a means to cut into Amazon’s business or does it view the initiative in different terms? How do you think consumers will react to Walmart’s new delivery option?