Wal-Mart ditches Shipping Pass membership, offers free 2-day delivery

Wal-Mart ditches Shipping Pass membership, offers free 2-day delivery

Wal-Mart ditches Shipping Pass membership, offers free 2-day delivery

Starting from today, WalMart will offer two-day guaranteed free shipping of over 2 million essential items present in the store inventories. There is no minimum purchase price for free site-to-store shipping.

"We don't think it's necessary to charge for a membership", Marc Lore, Wal-Mart's president and CEO of USA e-commerce, said Monday. "It no longer makes sense to charge for it", said Marc Lore, CEO of Wal-Mart's e-commerce efforts. Amazon uses it to drive growth and subsidize features like free two-day shipping, as well as pay for extras like original video content. All those differences have contributed to Amazon becoming the leading e-retailer in the world, while Walmart is a distant sixth, according to Euromonitor. "We don't think it's necessary to charge a membership fee for it". The company will offer refunds for ShippingPass membership fees.

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Walmart's two-day shipping product selection will be heavily focused on consumable products. This is a drop from the previous $50 minimum for free home delivery.

And that will only accelerate as Amazon's Prime Now offering expands, making it possible to get stuff within an hour or two of ordering. It is estimated as many as 44-percent of U.S. households subscribe to Amazon Prime for a $99 annual fee that entitles those members to unlimited two-day delivery on any item.

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For two-day shipping through Walmart, orders need to be made by 2 p.m. your time.

Wal-Mart said it's relying on five fulfillment centers to execute its two-day shipping offer. This includes products that customers shop for the most, such as household necessities like baby and pet products, food, cereal and peanut butter, cleaning supplies and beauty items, as well as electronics and toys, Walmart said. Walmart says this is the just the beginning of more to come. And non-Prime Amazon shoppers have to hit a $49 order minimum.

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Walmart has always been trying to challenge Amazon's domination and it may now have just what it takes to get the ball rolling. He said more changes to Wal-Mart's digital strategy will be announced shortly.

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