Walmart takes on Amazon Prime with free, next-day deliveries
16 May, 2019, 16:51
In other words, you can't order a $3 toothbrush and expect it to arrive the next day without paying extra.
Walmart said the selection of eligible items would vary by market but will include top-selling general merchandise items such as diapers, laundry detergent, toys and electronics. It is available on eligible orders of $35 or more, with the specific assortment varying by customer location. The offer will first be available to customers in Phoenix and Las Vegas, then expand to Southern California in the coming days and roll out gradually over the coming months, with a plan to reach 75% of the US population this year. That's exactly what Walmart just did by offering its own version of one-day shipping, albeit on a much smaller scale. Amazon has declined to say when the switch will happen, but it already offers one-day delivery for some items in certain areas.
Next day shipping complements Walmart's same day grocery delivery service. In 2011, it began offering two-day shipping without a delivery fee - a shot, in part, at Amazon's Prime membership, which now runs at $119 per year. "That's in contrast to online orders that come in multiple boxes from multiple locations, which can be quite costly".
Walmart said it is able to offer its NextDay delivery service because it has "built a network of fulfillment assets that are strategically located across the U.S." that allows it to place "the right products in the right fulfillment centers based on where customers are located and what they are ordering".
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In announcing its plans, Walmart underscored the fact that its new shipping service will be available to all consumers and will not require a membership fee. We're on track to offer Grocery Pickup from 3,100 stores and same-day Grocery Delivery from 1,600 stores by year-end, which will provide coverage to approximately 80% and 50% of the USA population, respectively.
There are a few caveats to keep in mind about this fast delivery offer.
Walmart sends out boxes from multiple warehouses around the country under its two-day shipping program, but with one-day shipping, it is stocking inventory in the closest single warehouse to the shopper, Lore said.