Walmart will launch a new subscription service to try to compete with the Amazon juggernaut membership program, Prime, by offering unique benefits that the competing online retailer does not currently offer, including discounted fuel and recipes.
A Walmart spokesperson based in Bentonville, Arkansas, confirmed that the company went ahead with the service, which would be called Walmart +, but refused to provide more details.
The new service will be publicly tested from March.
Walmart, the world’s largest brick and mortar retailer, launches a new service to try to compete with Amazon’s Prime subscription service
Walmart’s new subscription service comes when the retailer is locked up in an arms race with Amazon to deliver packages faster and faster to customers’ homes. Depicted are Amazon vans on their way to a distribution center for delivery on Amazon Prime Day last year, July 16
Amazon’s Prime membership program includes benefits such as unlimited next-day shipping for more than 10 million items. Shown are Amazon packages that were delivered to a home in Boston during the holiday season last year
The initiative comes when Walmart is locked up in an arms race with Amazon to bring packages home faster and faster, VOX reports.
Walmart remains the undisputed, largest brick and mortar retailer in the world, with more than 11,400 store locations in 27 countries.
However, it lags behind Amazon, the largest retailer in the world.
The e-commerce giant jumped 25 places to # 28 on Forbes’ Global 2000 list of the world’s largest public companies, measured by a composite score of revenue, profit, assets and market value.
That was enough to steal the title of the world’s largest retailer of Walmart, which dropped five places to # 29 on this year’s overall list. Forbes.
The Amazon fortune is partly due to Prime, a $ 119 membership program per year that offers benefits such as unlimited next-day shipping on more than 10 million items, as well as free streaming of music, TV shows and movies.
Walmart did not compete directly with Prime imitator since the Amazon service first appeared in 2005, but it has stepped up its game with improvements to its online retail site and offers fast shipping.
Despite such efforts, its competitor Amazon still accounts for 40% of all online retail sales in the US, largely due to Prime.
Walmart remains in a distant 2nd place, with just over 5 percent of the US e-commerce market, reports Vox.
To catch up with Amazon, Walmart introduced a new service last year that offers the same day delivery of certain groceries from certain stores, with the advantage that it is delivered directly to a customer’s fridge, house or garage.
Walmart employees who deliver deliveries for the service, InHome Delivery, carry a camera so that customers can view the delivery on an app.
To help compete with Amazon, Walmart last year introduced a new service that offers same-day delivery of certain groceries from certain stores, with the advantage of being delivered directly to a customer’s fridge, house, or garage.
Walmart employees delivering service deliveries, InHome Delivery, carry a camera so that customers can view the delivery on an app
Customers have the option to pay an annual fee of $ 98 or a monthly fee of $ 12.95.
The service is expected to be expanded and converted to Walmart + and with unique benefits such as cheap fuel and cheaper medicines, it is different from Prime, VOX reports.
The plan is still in the test phase.
Walmart + can also have a function that allows customers to text their orders.
Sources said that the amount of the Walmart + price could still change, or that the retailer is testing multiple price points.
Other possible benefits are the retailer’s Scan & Go service, which Walmart briefly tested about two years ago when it allowed shoppers to view items from its stores without having to wait in line.
Amazon has a series of convenience stories based on a similar concept. Customers who shop at Amazon Go stores use an app to indicate what they are buying and then leave the store with their items without going through a cashier.