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Walmart Competing With Amazon’s Free Two-Day Shipping

Walmart is now offering an online membership to customers that is similar to Amazon Prime and provides free and fast shipping.

Starting June 29, the retail giant began offering 30-day free trials of ShippingPass, which is a program that provides shoppers with unlimited two-day shipping.

USA Today notes that Walmart’s move to grow its ShippingPass subscriber base demonstrates that the company recognizes the “threat posed by Amazon,” and is taking steps to compete better in the areas of online ordering and free product delivery.

The ShippingPass pilot program launched in 2015 and, like Amazon Prime, comes with an annual membership fee. A typical Amazon Prime membership costs $99 per year, and includes online movie streaming and other services that are not part of Walmart ShippingPass subscriptions.

“ShippingPass is about half the price of similar programs out there at just $49 a year, and customers who are using it, love it,” Fernando Madeira, president and CEO of Walmart.com US, says in a statement. “They shop on Walmart.com more often to take advantage of our low prices, fast shipping and added benefits of no minimum order requirements and free online or in-store returns.”

 

About Kate Klein

Kate is profiles editor for Hardware Retailing magazine. She reports on news and industry events and writes about retailers' unique contributions to the independent home improvement sector. She graduated from Cedarville University in her home state of Ohio, where she earned a bachelor's degree in English and minored in creative writing. She loves being an aunt, teaching writing to kids, running, reading, farm living and, as Walt Whitman says, traveling the open road, “healthy, free, the world before me.”

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