Walmart takes on Amazon: Offers Free one-day shipping on orders of $35+

3
132

The service will initially be available only in a select number of areas (Phoenix and Las Vegas for now and Southern California in the coming days), but the company says it will offer the service to roughly 75% of the country by the end of the year. Unlike Amazon, which limits free one-day delivery to Amazon Prime members, the Walmart offer will be available to anyone, without the need for a paid membership.

“Contrary to what you might think, it will cost us less – not more – to deliver orders the next day,” said Marc Lore, President and CEO, Walmart eCommerce U.S. in a statement. “That’s because eligible items come from a single fulfillment center located closest to the customer. This means the order ships in one box, or as few as possible, and it travels a shorter distance via inexpensive ground shipping.”

Walmart has been planning free next day shipping for a while. Soon after Amazon announced plans to invest $800 million to ensure Prime members got their orders the following day, the retailer issued a tweet saying “One-day free shipping…without a membership fee. Now THAT would be groundbreaking,” then refused to comment beyond that.

3 COMMENTS

  1. Makes you wonder if Amazon is a good investment. Amazon already is the dominant player in online shopping, how much more room for growth is there? Wal-Mart, on the other hand, is increasingly competing with Amazon, and have a lot of room for growth online. (Amazon hosting is a big money maker for Amazon though)

  2. @TreeInTheForest

    As an avid investor myself, I focus on a company’s “Sx3” [Strength, Stability, & Stamina]. As long as Amazon is the bigger elephant in the room, they’ll only continue to grow just as any other big company that stood the test of time. The world economy only goes up over time, but hey, if you’re looking for short term gain, then I would agree, Walmart can be quite lucrative.

    • Wal Marts revenue is more than twice that of Amazons, so calling Amazon the elephant in the room is a little disingenuous. Amazon has been the dominant player online, but Wal-Mart came late to the party and has been investing heavily online. They have also have some competitive advantages over Amazon. Their order online with drive through pickup for groceries is something Amazon can not match without massive investment as they don’t have the physical locations to compete. Next day shipping is another tool in their arsenal. Where Wal-Mart now lags, is in 3rd party sales an in the selection of goods available, both areas were Wal-Mart is aggressively looking to expand.

      This doesn’t even take into account their international operations. Wall-Mart bought the 2nd largest online marketplace in India. Where Amazon has seen setbacks in their operations in China as well as India.

      That being said, Amazon is the dominant player in cloud hosting, that is where they earn the majority of their profits, and it is an area where Wal-Mart doesn’t compete. However, they do have competition from Microsoft, Google and IBM in that area.

      I don’t know if either is a good investment right now, I bought Wal-Mart when P/E was under 20, it is now around 40. In the short term, the competition will likely effect the profitability of both companies

LEAVE A REPLY

Please enter your comment!
Please enter your name here