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Wal-Mart To Counter Amazon Prime With Its Own Delivery Service

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Wal-Mart To Counter Amazon Prime With Its Own Delivery Service

The battle of the titans is set to heat up as Wal-Mart Stores, Inc. (NYSE: WMT) is preparing to introduce a new, unlimited shipping service to rival Amazon.com, Inc. (NASDAQ: AMZN)'s widely successful and fast growing Amazon Prime.

Wal-Mart's new service will offer select customers on an invite-only basis beginning in the summer. The company will offer consumers more than one million products that can be shipped and delivered in three days or less. The cost of Wal-Mart's new service will be $50, half of Amazon Prime's service that costs $99 per year.

Wal-Mart's new service has not yet been given an official name. Nor has the company commented when (or even if) it will make the subscription service available to the general public. Rather, the retailer is considering its foray into Amazon territory as a market test.

Wal-Mart has previously instituted e-commerce tests, ranging from subscription-based sample boxes to local grocery delivery.

Related Link: This Company Is Stealing Wal-Mart And Target's Grocery Business

Tech Crunch opined that Wal-Mart's objective is not necessarily to test whether customers want fast, free delivery, but whether Wal-Mart could interest its customers in a lower-price point.

"In particular, Wal-Mart is determined to test he theory that what appeals to customers the most is not the speed of Amazon's service or the newer ‘same-day' services now gaining traction, but the reliability of these options," the publication argued. "That is, you know with Prime your orders will arrive in two days. For half the price, would customers wait an extra day?"

 

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Posted-In: Amazon Amazon Prime ecommerce retailers Tech Crunch Wal-MartNews Tech Best of Benzinga

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