Wal-Mart is scrapping its ShippingPass program, a fee-based, two-day shipping service it was testing to compete with Amazon Prime.
Instead, the world’s largest retailer will offer free two-day shipping on more than 2 million items when shoppers spend at least $35. That’s down from its previous spending threshold of $50, and its prior delivery window of three to five days.
Wal-Mart will give the undisclosed number of members who paid for a ShippingPass subscription a full refund.
Wal-Mart first started testing its ShippingPass program in May 2015. It pumped up the program ahead of Amazon’s second Prime Day sales event, when it offered a free 30-day trial. But the program never took off to the same degree as Prime.
Though Wal-Mart’s service offered an unlimited number of free deliveries for just $49 a year — $50 less than the cost of Prime — it lacked the ancillary perks that have made Prime so addictive. Those include Amazon’s vast network of streaming video, music and unlimited photo storage. There also are members-only deals and it recently introduced a credit card that gives Prime members 5% back on their Amazon purchases.
These types of perks encourage shoppers to stay loyal to Amazon.
Wal-Mart’s offer will apply to 2 million products, compared with more than 40 million eligible products on Prime. Lore emphasized that the 2 million items account for the vast majority of what its customers are purchasing.
Read More: CNBC
Published 01/31/2017