Walmart is working on a new way to compete with Amazon’s shipping service. It is reported that Walmart may carry out a three-day policy to speed up the shipping service, which it will cost customers about $50 per year. It is half the price of Amazon Prime. But it is not clear yet if the additional benefits will be included while orders beyond free shipping. This policy will be on initial trail on Walmart.com this summer. If the orders are over one million sales, the three-day shopping policy will be applied to the customers.
If Walmart can avail of its distribution network to deliver products efficiently, the company will be in a positive position to compete with Amazon concerning the speed of delivery. Walmart is in difficult position to compete with Amazon due to its additional perks. Ravi Jariwala, Walmart spokesperson stated in Associate Press: Walmart is unable to compete with Amazon additional perks.
Amazon Prime charges double the cost of the Walmart proposal shipping service. But customers can access to a large streaming video library on Amazon instant Video, they can rent a free book for a month through the Kindle Lending library and download photos on Prime Photos, while streaming music on Prime Music. We can imagine that Walmart could eventually wrap a streaming video perk to Vudu which belongs to Walmart.
It is not clear that if the family members can share Walmart’s new shipping service when the customers purchase. While customers can share Amazon Prime’s shipping service with four household members living at the same address.
What is more, Walmart’s service was supposed to be tested during the 2014 holiday shopping season, but this proposal was suspended till 2015 because of some technical issues.