Walmart is fighting back with Amazon. Free 2 day shipping, with orders over $35

[edjr 5,564]

and you don't have to pay $99 for the year.

 

 

HUGE move for Walmart.

 

Always wondered why Amazon hasn't raised the rate for Prime, this is why.

 

 

https://www.yahoo.com/finance/news/walmarts-latest-move-to-undercut-amazon-prime-is-a-huge-win-for-shoppers-172143656.html

 

 

 

 

Walmart (WMT) has unveiled its latest move to undercut Amazon Prime (AMZN).

And the net result is a big win for consumers.

On Tuesday, Walmart announced a new initiative that will see 2 million frequently ordered things like baby products, cleaning supplies, and some food items enjoy two-day free shipping. And unlike Amazon Prime or Walmart’s previous “Shipping Pass” program, there is no membership fee to enjoy this perk.

Marc Lore, former head of Jet.com and now head of Walmart’s e-commerce operations after Walmart purchased Jet for $3 billion last year, said on a conference call that, “In today’s world of e-commerce, two-day free shipping is table stakes. It no longer makes sense to charge for it,” according to Reuters.

And in this, Lore is saying that if you want to be a real player in online shopping, you need to offer free two-day shipping. Anything less is simply unacceptable to customers.

Of course, if you’re a consumer, this is great news: the things you need to buy all the time are going to continue getting cheaper and easier to buy.

And while the easy read on this announcement is that Walmart is moving into Amazon Prime’s territory, what it really does is highlight just how differently Walmart and Amazon are approaching their retail businesses.

Walmart has been and remains a retailer first. The company’s success was built on scale — offering more products in one place at lower prices than any competitor could offer.

Certainly Amazon’s initial and continued foray into retailing is, like Walmart, predicated on scale. But with the internet’s customer acquisition cost bordering on zero, Amazon hasn’t been able to leverage its scale to achieve the same profit ends as that Walmart has. (Amazon’s stated aim, however, isn’t profit but free cash flow it can reinvest back into the business.)

Amazon, while breaking into the mainstream as a retailer, has now become a significantly more diversified business. In its most recent quarter, Amazon reported a profit of $252 million (on $22.3 billion in sales), more than all of which came from its web services business ($861 million).

Free shipping is “table stakes”

In his latest letter to Amazon shareholders, CEO Jeff Bezos said that, “We want Prime to be such a good value, you’d be irresponsible not to be a member.”

The first interaction most Prime members — of which there are an estimated 60 to 80 million in the US right now — have with Amazon’s “flywheel” is their retail channel. And, of course, these members don’t stop shopping: Amazon Prime members spend, on average, 4 times more per year than non-members on Amazon.

But Amazon Prime members are also pitched on the company’s video-on-demand offerings, its music-on-demand offerings, and exclusive shipping offers (like, for example, same-day delivery of some items in some markets), that non-members don’t get.

 

 

I don't personally shop at walmart. Once a year maybe. it's depressing and the reason I don't come here on the weekends is to get away from retards for a while.

 

 

 

 

[fandandy 3,311]

I hate it. Their version of Prime was only $49 with no minimum orders. Now it's 35 dollar minimum.

[edjr 5,564]

I hate it. Their version of Prime was only $49 with no minimum orders. Now it's 35 dollar minimum.

 

I had no idea they even had a "prime"

[giraldi02 470]

Shipping cost is easily one of the most important aspects to selling mass amounts of goods online. If you're not competitive and offering free 2 day air over a certain amount and dirt cheap, if not free, ground delivery, good luck....

[fandandy 3,311]

 

I had no idea they even had a "prime"

It had just started. I made a thread about it as I signed up. It was pretty awesome, no minimums and they shipped Fed Ex right to your door and not like Amazon where they contract USPS. I didn't even have to walk to my mailbox.

[edjr 5,564]

It had just started. I made a thread about it as I signed up. It was pretty awesome, no minimums and they shipped Fed Ex right to your door and not like Amazon where they contract USPS. I didn't even have to walk to my mailbox.

 

(I thought) Amazon only uses USPS for Sunday delivery. (for 2 day)

 

My buddy is a postman, he said next time he has to come to my house on a sunday he's sh1tting in the maibox

[fandandy 3,311]

 

(I thought) Amazon only uses USPS for Sunday delivery. (for 2 day)

 

My buddy is a postman, he said next time he has to come to my house on a sunday he's sh1tting in the maibox

No, they have been doing the tail end of the delivery USPS where I'm at for quite awhile no matter what the day. I hate it. Bring that sh1t to my door. There's a reason I ordered online and walking out to my mailbox and attempting to pry out the package you crammed in there is not one of them.

[edjr 5,564]

No, they have been doing the tail end of the delivery USPS where I'm at for quite awhile no matter what the day. I hate it. Bring that sh1t to my door. There's a reason I ordered online and walking out to my mailbox and attempting to pry out the package you crammed in there is not one of them.

 

Oh, I haven't seen much of it. no matter who delivers they toss it on my porch or the box if it fits

[Mookz 1,287]

Wake me when they'll deliver it to my bedside.