Walmart to offer “one-day free shipping…without a membership fee” in major Amazon challenge
American retail giant Walmart has hinted that it could challenge Amazon’s one-day shipping for Prime members, after the news sent its shares dropping last week.
Last week Amazon announced that it was investing nearly $1 billion in halving its standard delivery times from two-days to one-day for Prime customers across the US, sending shares in its key domestic rival Walmart dropping three per cent.
Walmart has now responded with a tweet hinting that it could offer the same service without customers needing a membership as they do with Prime.
“One-day free shipping…without a membership fee,” its tweet read, adding: “Now THAT would be groundbreaking. Stay tuned.”
Though no solid details about Walmart’s plans have yet been released, it would potentially be easier for Walmart to implement this offering than Amazon.
While Amazon is continuing to increase its distribution network across the country, currently boasting 75 fulfilment centres and 25 sortation centres, Walmart already has a network of 5000 stores spanning the country, with 90 per cent of the US living within 10 miles of a Walmart store.
Walmart already offers two-day shipping for free on purchases over $35, but an anonymous source with knowledge of the retailers plans said it is aggressively building its network to accommodate one-day delivery.
“I will not make the assumption that we can’t do it as quickly as they can,” the source, referring to Amazon, said.