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?
Ross ElyPresident and CEO, ProLogic Retail Services
Ross ElyPresident and CEO, ProLogic Retail Services
Shep HykenChief Amazement Officer, Shepard Presentations, LLC
Shep HykenChief Amazement Officer, Shepard Presentations, LLC
Ross ElyPresident and CEO, ProLogic Retail Services
Ross ElyPresident and CEO, ProLogic Retail Services
Shep HykenChief Amazement Officer, Shepard Presentations, LLC
Shep HykenChief Amazement Officer, Shepard Presentations, LLC
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14 Comments on "Walmart counters Prime Day with free shipping, no minimum required"
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President, Rubinson Partners, Inc.
Amazon is just doing everything right. Now Walmart is playing catch-up, an unfamiliar and uncomfortable place.
President and CEO, ProLogic Retail Services
Walmart is highly focused on Amazon as a competitor and is smart to respond to Prime Day with some aggressive promotions of its own. While it will never have the “cool factor” of Amazon, Walmart has the attention of a large segment of shoppers.
In the e-commerce space, Walmart is clearly behind Amazon and in no position to lead the industry with a unique event. Instead, with its aggressive response to Prime Day, Walmart keeps itself in the game as a legitimate online alternative to Amazon.
President and CEO, Stealing Share
President, Max Goldberg & Associates
Walmart’s primary competitor is Amazon. Only Amazon can best Walmart in selection, price, logistics and customer service. I don’t think Walmart’s offer takes any oxygen out of the room for Prime Day, but I salute Walmart for reminding Amazon that a big competitor is lurking nearby.
CEO, rDialogue
Amazon ranks at the top of competitors not just for Walmart but for most retailers. Or at least it should. Cheap stuff and free shipping at Walmart is still not going to compare to the consistently great customer experience at Amazon. And the Amazon experience — with Prime shipping, including same-day delivery in some markets — blows away walking into any Walmart door.
Advisor, MyAlerts
One area where Walmart might win this week is on out-of-stocks at Amazon where the shopper then finds the goods at Walmart. This could be a win both for shoppers and vendors. This morning I did a search for memory foam mattresses for Prime Day and the search results displayed three sponsored items that the vendor had paid Amazon to promote, and all three were sold out, yet the vendor obviously still had to pay — and waste — these marketing dollars.
Retail Strategy - UST Global
For branded product that can be “safely” bought anywhere Amazon has an edge as it just works so well, and the buying process is so easy (as is the return process) but price can be the definitive decision maker. If Walmart can serve it up faster and cheaper then over time they will win share as well.
Principal, Cathy Hotka & Associates
Prime Day is a successful public relations vehicle. Retailers who want to counter it would be smart to come up with their own publicity stunts rather than aping Amazon’s moves.
Vice President, Research, Shoptalk
Walmart employed a similar tactic last year, offering price rollbacks and free shipping on Amazon’s Prime Day. Sales on that day, July 14, for Walmart were up 3.5 times the average July day. So it seemed to have worked for Walmart. Of course, Amazon’s sales dwarfed Walmart’s — Walmart.com sales represented just 3 percent of Amazon’s on Prime Day (in the U.S.). Walmart has no choice but to draft off of Amazon where it can (for example, copying tactics that work, like Prime and Prime Day promotions). But Walmart isn’t going to take a lead online until it starts to innovate far more aggressively than it is today.
Editor-in-Chief, Retail TouchPoints
I think Walmart needs to do both — compete with Amazon on Prime Day and create its own unique events/promotions that will resonate with its most loyal shoppers. But … I read recently that Prime members may be wealthier than the average citizen. That could mean that Walmart and Prime aren’t really targeting the same shoppers, so maybe it’s a waste of time, money and effort for Walmart to try to lure non-customers away, especially on this highly-promoted event day.
Chief Amazement Officer, Shepard Presentations, LLC
Let the games begin! Walmart is famous for competing on price. Someone (Amazon) undercut them by offering free shipping for Prime members. Now Amazon offers free Prime (for a trial membership). Walmart feels that free shipping will compete with Prime. It will for a short time. But in the end Amazon will win because free shipping is just one part of the Prime membership. Prime members are loyal to Amazon. Walmart customers are loyal to free shipping and low prices.
Principal, The Retail Feedback Group
Amazon clearly leads online shopping versus Walmart, who quite obviously views them as a competitor. I don’t think Walmart’s offer takes anything away from Amazon’s Prime Day … after all, they created the event so Walmart’s offer looks more like a “me too.” Nonetheless, it’s critical that Walmart stay in the game with their own effort.
President, Protonik
Founder & Executive Chairman, Wiser
Amazon is definitely considered a top competitor of Walmart. Their tactic last year in response to Prime day was similar, and while yes, it is more reactive than proactive, there is potential to grab attention from consumers. Not only from the press but from getting impressions from consumers who will probably still be price comparing on Prime day.