Walmart Takes Jab at Amazon Amid Prime Membership Updates

Walmart isn’t letting Amazon snatch their clientele without a fight.

Amazon recently announced that they will update their Amazon Prime membership plan to include one-day free shipping for all Prime members. Analysts agree that this offer will help Amazon in some ways, while it hurts the company in others. While some analysts are more bearish than others, there seems to be a consensus that Amazon will lose money in the short term as a result of this offer, but they should gain more Prime subscribers.

Walmart has announced that they too will be offering one-day free shipping, matching Amazon’s offer. The offer made by Walmart would not require any membership, while an Amazon Prime membership costs $119 per year. The move by Walmart was clearly competitive in nature, as indicated by a recent tweet reading, “One-day free shipping…without a membership fee. Now THAT would be groundbreaking. Stay tuned.” Walmart already offers two-day free shipping, just like Amazon does.

Many online services offer two-day free shipping, so it is clear why Amazon is trying to further differentiate itself from the competition. Amazon Prime members do have access to things such as unlimited free streaming, but it is likely that the company is trying to confront domestic competition from retailers like Walmart and Target. Walmart and Target offer similar free delivery to Amazon, and they also allow people to order online and pick up their orders in person, an option that has proven very popular with shoppers.

Written by  
5 years ago
Article Tags:
· · · ·