“Let’s just order it online, it’s cheaper on Amazon” is a phrase you probably say, or hear, when shopping in a store today. Retailers are starting to feel the effects of the Amazon beast and are doing anything, and everything, to meet the demands of online shoppers.
Walmart has fallen in line and now offers free two-day shipping, without a membership, for almost all products. The only requirement, orders must total to at least $35.00 before tax. This move comes shortly after Walmart acquired Jet.com, where the $35.00 minimum for free two-day shipping was standard.
Amazon Prime vs Walmart ShippingPass – Where it Went Wrong
Prior to launching the free two-day shipping, Walmart had a membership shipping program similar to Prime. In an effort to capture Amazon’s clients, Walmart created ShippingPass, an annual $50.00 free shipping membership for all purchases made on Walmart.com
Amazon Prime’s membership hasn’t changed. It is still an annual payment of $99.00 and includes two-day free shipping, access to Prime movies, shows, and music, as well as other perks.
Perks are probably why Walmart scrapped ShippingPass. Even though they offered the same shipping service as Amazon, for half the price, they didn’t offer same day shipping, family account sharing, discounts on certain products or Prime deals, and free returns among the entertainment perks. Walmart tried to offer perks like free Kindle e-book downloads and photo storage on the cloud but for $50.00 more you got so much more with Prime.
On top of that the ‘two-day’ shipping usually took five business days for Walmart.com customers and they were not happy with that.
Is Walmart’s Two-Day Shipping Better than Prime?
Well, you can be the judge of that because what it really boils down to is what you want from a retailer. If you’re just looking to make purchases and not pay for shipping, and have your items shipped quickly by a reliable company, than Walmart is your winner. Even at a minimum order of $35.00 it’s a great deal especially when having to purchase heavy items that usually come with a hefty shipping cost.
If you are a consumer that likes perks, Amazon’s Prime may be your pick. You get the free shipping, on qualified items, and you get all the entertainment and discounts that you may be looking for which allows you to ex out other annual membership providers like Netflix and Spotify. Also, with Prime you may still be able to get an item that costs less than $35 shipped to you for free and currently Walmart does not offer that.
Walmart’s Free Shipping is a Start
Department, discount, and super stores have been closing their doors in the last few years. Just this month Sears and Kmart closed nearly 150 stores around the country and Macy’s and JcPenny are following close behind. Even specialty retail stores like Bebe, Abercrombie & Fitch, and Radioshack have felt the heat and had to close up for good.
This doesn’t equate to Amazon stomping out the competition, however more people are shopping online. Walmart’s move to offer two-day free shipping will probably be the start to more online shopping changes to stay afloat.
Prime’s numbers are not always disclosed by Amazon, however Prime subscribers in the U.S grew over 60 million last year and over 70% of American households, earning over $100k cumulatively, use Prime.
Walmart has competitive prices and a large selection of items already. Many of these items, like a NEW Smart TV, are also for sale at Amazon.com but for a better price on Walmart.com. For example, the Smart TV on on Walmart.com is nearly $200.00 cheaper than on Amazon, however the same Smart TV purchased as used is cheaper on Amazon.com. So, for customers looking to purchase a new product Walmart.com may save you money.
Since Walmart.com can compete with Amazon on price and selection already, making the move to offer free shipping on qualified orders makes sense. It wouldn’t surprise us if in the next coming months Walmart.com started to offer more entertainment perks, like Amazon’s Prime, to continue trying to beat out the competition.
Not Selling Yet On Walmart
You’re not alone, but Walmart list of sellers is growing daily. If you haven’t applied yet for the Walmart Marketplace, then can apply at marketplace.walmart.com. When selling on Walmart, it always good to understand how to take advantage and optimize your presence. If you don’t have a strategy for Walmart, or haven’t explored it yet, perhaps it’s time to talk to some professionals. Contact us today at 1-888-277-5429 or by filling out our contact form to learn more.
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