Shipping services are starting to gain popularity among e-commerce users, with new shipping platforms emerging from top retailers on US consumer markets. Walmart will soon deliver items consumers buy from its website within 3 days, for an annual subscription fee of $50.
The Walmart news come as a threat for an organization that already has a history of shipping services. Amazon for instance, offers the same service but for $99 and a different delivery timeframe.
With its cheaper program, Walmart breaks a serious challenge in front of Amazon, announcing that its service will probably be fully launched this summer and is aimed to gain large chunks of public from competitors like Amazon.
For the time being, Wal-Mart’s service is on trial and it works by invitation, offering selected products on the company’s website with a three day delivery promise. Walmart is known to be offering a wide range of products on retail, with over 7 million items in stock on its website.
Representatives are waiting to see how the premises evolve by the time of its launching and take advantage of the trial period to analyze, improve and meet all customer expectations. Their aim is to offer a competitive shipping service for half the price practiced by other retail giants. Amazon is their direct competitor and Walmart wants to gain a little bit of market share from the guys.
Amazon are already old in this field, with a shipping option activated more than a decade ago, offering the guarantee of reliable two-day shipping on online orders. Since Prime started, the Amazon delivery program took great shape. It’s become the goldmine of Amazon’s growth, with US Prime membership registering a 50% growth last year only.
The remix way of doing business has raised the eyebrow of Walmart who are trying to replicate Amazon’s success for a better price.
Walmart presently offers grocery delivery and pickup services in five markets. The following unlimited shipping program is set to mark a very serious commitment and to create a new consumer niche among the Walmart clients. Their goal is retention on the one hand and expanding customer database on the other, considering the method that proved to be efficient in the Amazon case.
Walmart’s online business has been registered with a serious slowdown lately, reason why the giant adjusts his market positioning with better ways of gaining more public. The shipping program will probably gain fast popularity and be absorbed as the tactic that made Walmart overcome a potential crisis.
If we look at the Amazon figures, we can see that at the end of 2014, Amazon Prime had 40 million US members, up from a previously reported 29 million at the end of the third quarter of the year. Consumer Intelligence Research Partners estimates that the average Amazon Prime customer usually spends about $1500 a year on their site, compared to classic, nonmember customers.
Given the facts, it is easy to conclude on why Walmart is now trying to go further with the shipping story, aiming to offer more than 1 million of the top selling items available on their website. This is a small part of their entire list though, representing about 14% of the 7 million items present on the site.
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