Walmart has just issued its strongest response to the growing Amazon threat, since its acquisition of e-commerce newcomer Jet.com last summer.
Last week, Walmart announced an unlimited free delivery program offering free, two-day shipping on over 2 million items, with no need for a membership fee.
- Walmart has done away with it’s “ShippingPass” program that charged customers $49 a year, just about half the cost of an Amazon Prime membership.
- Walmart said that ShippingPass customers will receive a refund on their membership, since the program is no longer required in order to take advantage of free shipping.
- Last week, Wal-Mart announced free two-day shipping program to compete with Amazon Prime program. Wal-Mart also decreased its minimum order amount to $35 from $50, but experts think that Arkansas-headquartered retailer giant is far from denting Amazon’s business.
A new Slice Intelligence report suggests that Amazon.com, Inc. captured over 53% of total online e-commerce growth in the US in 2016, up from 40% a year earlier. Other ecommerce and retail players were battling for the rest of the 47% of the market share.
However Walmart has become agile and is now operating like a start-up reacting quickly to test ideas to capture new customers that includes this free shipping strategy.
Walmart U.S. eCommerce Marc Lore stated in a media briefing “I couldn’t be more excited. We are moving at the speed of a startup. In today’s world of e-commerce, two-day free shipping is table stakes. It no longer makes sense to charge for it.”
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