Executive Briefings

Walmart Goes After Amazon With Free 2-Day Shipping

Firing yet another salvo in its ongoing e-commerce war with Amazon, Walmart is eliminating its fee-based ShippingPass program less than a year after it was created to counter to Amazon Prime, instead offering free two-day shipping on 2 million items at a $35 order threshold.

Walmart Goes After Amazon With Free 2-Day Shipping

Previously, Walmart's free shipping threshold had been $50 and the service-level guarantee three to five days for delivery. For orders under $35, customers can pay $5.99 to get two-day shipping.

"I couldn't be more excited. We are moving at the speed of a startup," said Marc Lore, Jet.com founder and president and CEO of Walmart U.S. e-commerce in a release. "Two-day free shipping is the first of many moves we will be making to enhance the customer experience and accelerate growth."

"In today's world of e-commerce, two-day free shipping is table stakes. It no longer makes sense to charge for it," Lore added.

The 2 million items available for free shipping at Walmart.com is a fraction of the 40 million items available through Amazon, although not all of them are Prime eligible, meaning free two-day shipping for members.

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Previously, Walmart's free shipping threshold had been $50 and the service-level guarantee three to five days for delivery. For orders under $35, customers can pay $5.99 to get two-day shipping.

"I couldn't be more excited. We are moving at the speed of a startup," said Marc Lore, Jet.com founder and president and CEO of Walmart U.S. e-commerce in a release. "Two-day free shipping is the first of many moves we will be making to enhance the customer experience and accelerate growth."

"In today's world of e-commerce, two-day free shipping is table stakes. It no longer makes sense to charge for it," Lore added.

The 2 million items available for free shipping at Walmart.com is a fraction of the 40 million items available through Amazon, although not all of them are Prime eligible, meaning free two-day shipping for members.

Read Full Article

Walmart Goes After Amazon With Free 2-Day Shipping