Wal-Mart Changes Delivery Program to Compete With Amazon

Wal-Mart is terminating its fee-based, two-day ShippingPass program designed to compete with Amazon’s Prime service. In its place, Wal-Mart is lowering its threshold spending threshold for free two-day shipping down to $35. The previous threshold customers had to meet for free shipping was $50, and the previous delivery window was three to five days.

Walmart purchased start-up Jet.com from co-founder and CEO Marc Lore last year. Since then, Lore has made a number of changes to the world’s largest retailer.

Lore, now CEO of Wal-Mart U.S. eCommerce, said on Monday. “In this day and age, two-day shipping is really just table stakes. We Don’t think it’s necessary to charge a membership for it.”

The undisclosed number of customers who purchased a ShippingPass membership will receive a refund in full. Wal-Mart began testing the program in May 2015, offering a free 30-day trial. The service offered an unlimited amount of free deliveries for $49 a year, $50 less than Amazon’s Prime service. However, the program never achieved the same degree of popularity as Primes.

Amazon Prime includes ancillary rewards, like a music and video streaming service, as well as unlimited storage for photos. Amazon also recently introduced a member-only deal for a credit card that gives 5% cash back on Amazon purchases.

Leon Nicholas, chief insights officer at Kantar Retail, said in an interview that Wal-Mart had simply missed the window of opportunity for subscription success. According to Kantar’s data, about one-third of Wal-Mart customers have Prime memberships and have little incentive to switch.

Kantar’s data also reveals that the main reason Prime members renew their subscription at a rate of over 90% is for free two-day shipping. Wal-Mart will now provide this shipping option for customers who spend $35 or more.

Wal-Mart’s offer is applicable to 2 million products on the retailer’s website, compared to the 40 million eligible products on Amazon Prime.

Lore emphasized that the selection of items will make up a majority of what customers are already buying,”There won’t be too many products that you’ll want that won’t be available [for] two-day shipping.” According to Lore, the selection will be skewed toward essential items for everyday use.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

Have a tip we should know? tips@rhd.news


Most Read

  1. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    3 years ago
  2. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    3 years ago
  3. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    3 years ago
    Women’s Demand for Shapewear – the big Trends
    3 years ago
    Valentino Launches its Cosmetics Line
    3 years ago
  6. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    3 years ago
  7. Health
    UK Offers Aid Amid Surging COVID-19 Cases in India
    3 years ago
  8. Sports
    Thousands of fans welcome Charlton funeral cortege at Old Trafford
    7 months ago
  9. News
    Brit left fighting for life after train derails in Argentinia
    7 months ago
    Dubai faces down airline rivals with $50 bln jet orders
    7 months ago
  11. Sunak
    UK’s Sunak brings back Cameron, sacks Braverman
    7 months ago
  12. Sports
    Man United’s Hojlund, Eriksen withdrawn from Denmark team duty
    7 months ago
  13. Health
    Autumn Sneezing Syndrome is on the rise… here’s what you can do
    7 months ago
  14. Canada
    Canada beat Italy to win Billie Jean King Cup for first time
    7 months ago

Follow @rushhourdaily: