Walmart has targeted Amazon with its free shipping policy. The retailing multinational announced the free 2-day shipping program – ‘Shipping Pass’ on 29th June. This program is in direct competition with Amazon Prime which offers an annual subscription at $99. The Shipping Pass is on a 30-day trial and will cost $49 per year otherwise.
Presently this offer is available for products that are sold directly on Walmart.com. Walmart is planning to expand this delivery service to third-party sellers as well, but presently that isn’t the case. According to Wall Street Journal, the company is infusing $2 billion into e-commerce.
To achieve the promise, Walmart has been moving the inventory to major locations across the country. Speed delivery of low margin products might be a losing bet without external revenue supporting the costs. This might be an area of concern for the company.
Amazon has been planning for its Prime Day on the 12th July, driving interest and increasing enrolment for Amazon Prime; Walmart is taking measures against the possible threat of this sale. People are concerned if Walmart’s amateur system will be able to compete in online sales and delivery as efficiently as that of the well establish Amazon Prime.
As the customers are shifting to online shopping and willing for speed delivery, Walmart has no other option than to adapt to the demands and survive the competition as well. Scott Galloway, chairman L2 said, ‘Walmart has to play by a different rulebook’. Anyway, it is an opportunity for the buyers to make the most out of it and register for the 30-day free trial.
