Will free two-day shipping give Walmart an edge over Amazon?
Has Walmart finally found a way to gain an e-commerce advantage in its competition with Amazon.com? The world’s largest retailer announced earlier today that it will now offer free two-day shipping with no annual fee for orders placed on walmart.com.
The free two-day shipping options requires a $35 minimum purchase and covers more than two million items sold on the site.
Marc Lore, president and CEO of Walmart U.S. eCommerce, wrote in a blog post, “These items make up the vast majority of what customers buy online. In today’s world of e-commerce, two-day free shipping is table stakes. It no longer makes sense to charge for it. We believe this is the most compelling all-around value proposition for customers looking for low prices, a broad assortment and quick shipping.”
With the new program going into effect today, Walmart is discontinuing its ShippingPass program, which offered free two-day shipping for a $49 annual fee. Members in the program will receive a refund from Walmart.
“This is just the beginning. Now that we’ve checked the two-day shipping box, my focus is on leveraging our unique assets and network to serve customers in innovative ways that only Walmart can,” wrote Mr. Lore. “Stay tuned … you won’t be waiting long.”
- Walmart Launches Free Two-Day Shipping on More Than Two Million Items, No Membership Required – Walmart
- Two-Day Free Shipping: Just the Beginning – Walmart
- Walmart tests matching Prime delivery speed – RetailWire
- Walmart counters Prime Day with free shipping, no minimum required – RetailWire
DISCUSSION QUESTIONS: Will Walmart’s free two-day shipping offer substantially improve the company’s competitive position relative to Amazon? How will the move affect its brick and mortar business as well as those of its competitors? What do you think are the next steps that Walmart’s eCommerce operations will take in the U.S.?