Walmart counters Prime Day with free shipping, no minimum required
As the world’s largest retailer, Walmart is unwilling to cede the day to Amazon.com, even if it is the e-tail giant’s own Prime Day. That’s why, Walmart announced it is offering shoppers free shipping for five days, beginning yesterday, on all orders placed on Walmart.com, with no minimum purchase requirement.
The chain also announced price cuts on a small number of products, including a half-off deal on a Samsung 55-inch 4K television. Walmart spokespeople were quick to point out to the media that its low prices are not confined to a single day, but can be enjoyed by consumers all year long.
The special offers made this week follow Walmart’s June 29 announcement that it is offering a free 30-day trial of ShippingPass, which promises two-day shipping all year round with an annual subscription of $49, roughly half what Amazon charges for its Prime program.
Walmart, according to Reuters, is taking its recent actions against the backdrop of slowing online sales for the company. Sales made through the company’s website and mobile app increased seven percent in the last quarter, down significantly from the 17 percent increase it posted during the same quarter in 2015.
- Wal-Mart offers ‘free shipping with no minimum’ to tackle Amazon’s Prime Day – Reuters
- Wal-Mart Takes on Amazon’s Prime Day, Rolls Out Free Shipping – CNBC
- Liberty and Low Prices for All – Walmart
DISCUSSION QUESTIONS: Where do you think Amazon.com ranks as a competitor in the minds of Walmart management? Is Walmart allowing Amazon to take the oxygen out of the room by responding to Prime Day rather than creating a unique event of its own that forces others to react?