Amazon is changing the e-commerce game by setting up a new goal to have 1-day standard shipping for Prime members. Now, Walmart may have hinted how they are going to hold the ground.
Amazon is planning to spend $800 million to build infrastructure to achieve 1-day free shipping for all their Amazon Prime members. Now, that move will change the landscape of e-commerce a lot. And, this will make Amazon’s major competitors Walmart and Target to work out a plan to keep up with Amazon.
Additional reading: How can the small e-commerce owners survive Amazon’s 1-day free shipping?
Walmart was even struggling to keep up with Amazon’s 2-day shipping
Faster shipping requires significant logistic infrastructure changes for Walmart, and it won’t be economical for them to plan over-night changes to meet Amazon’s 1-day shipping plan. But, they have an advantage over Amazon. Walmart’s brick-and-motor footprint can leverage the strengths of having a physical presence over Amazon’s online presence.
While Amazon was working towards faster shipping, Walmart embraced Omni-channel model to spread its physical presence, setting up in-store rapid-pickup kiosks and curbside pickup in many markets. So, they were basically on two paths to reach the same goal. But, anyway, the Walmart hinted in a recent tweet, that they may be working on a plan to compete with Amazon’s one-day free shipping.
How can Walmart compete with Amazon’s one-day free shipping?
While Amazon charges $119 per year for their Prime membership, Walmart doesn’t charge any membership fee but offers free-shipping for the orders over $35.
So, for now, we can think that Walmart is planning to extend the same strategy by offering free one-day shipping for the orders above a specific value.
Also, since they have a massive physical presence, they can improve their in-store experience. So, Walmart can promote a “buy online, pick up in store” strategy. This can give Walmart a clear edge over Amazon’s online presence.
Featured image by Mike Mozart in Flickr.