Walmart takes direct aim at Amazon when it approaches to free shipping.
On Wednesday the retailing giant announced that it is going to offer a 30-day free trial of its Shipping Pass which enables unlimited two-day shipping. After the free trial period, it costs $49 per year.
The movement is similar to Amazon Prime, which also offers two-day unlimited, shipping with a 30-day free trial period. The only difference is that Amazon Prime costs more than Walmart. The price is $10.99 per month after the trial period. Amazon Prime offers extras like movie, TV show and music downloads.
While announcing the move, Walmart officials pointed out that they believe that the free trial will drive better sales. Fernando Medeira, CEO of Walmart’s U.S division says, “Once you start using it, it’s hard not to notice the everyday low prices on the stuff you need and want.”
The move reveals that Walmart is getting thoughtful about the threat posed by Amazon. Some wonder whether it can compete as efficiently when it comes to online orders and on-time delivery.
“I don’t think they have any choice,” says Scott Galloway, the chairman of digital marketing and tracking firm L2, Walmart “has to respond to the most valuable retailer in the world, which is now Amazon.” He added to the statement that Walmart, now, “has to play by a different rule book.”