Wal-Mart testing 2 day shipping service simlar to Amazon Prime

The Wall Street Journal reports that Wal-Mart is testing a shipping subscription service similar to Amazon Prime. There’s no suggestion that the US Postal Service would be part of the plan- rather, Wal-Mart would use regional delivery companies to handle the last mile:

Wal-Mart Stores Inc. is testing a two-day shipping subscription service and building a regional delivery network as the world’s biggest retailer tries to rival Amazon.com Inc.

As part of the project, Wal-Mart will rely on eight massive e-commerce warehouses around the country, the last of which will be built by year’s end. It will also tap regional carriers to deliver more of its packages, say people familiar with the matter. That is a shift away from FedEx Corp., which handles the bulk of Wal-Mart’s parcels.

Last year Wal-Mart began experimenting with a three-day shipping service for members who pay $50 a year. The program called “ShippingPass” is similar to Prime, Amazon’s $99-a-year service with free two-day shipping.

Source: Wal-Mart Bets on Free Two-Day Shipping – WSJ

 

  • Cliff Clavin

    If Walmart really wanted to, they could stomp Amazon into oblivion. They have something Amazon doesn’t have…

    That’s retail locations all across the USA, and in a lot of foreign countries as well. They could ship store-to-store, and use the local Wallies to make final delivery.