Walmart ShippingPass to Be Replaced by Free Two-Day Shipping

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Wal-Mart Stores Inc (NYSE:WMT) is replacing Shipping Pass with free two-day shipping.

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Walmart will now allow customers to select free two-day shipping for items being sent to stores or their homes. Items that are being sent to customers’ home must be part of an order that is at least $35. This is a drop from the previous $50 minimum for free home delivery.

The free two-day shipping that Walmart of offering to customers ordering online is available without a membership. Items that are eligible for the offer include electronics, food, cleaning supplies and more. It doesn’t include freight and marketplace items.

With the introduction of free two-day shipping for customers, there is no longer a need for the Walmart ShippingPass service. Due to this, the company is closing the membership program down. ShippingPass members will be receiving a refund from WMT for their membership.

“In today’s world of e-commerce, two-day free shipping is table stakes. It no longer makes sense to charge for it,” Marc Lore, President and CEO of Walmart U.S. eCommerce, said in a statement.

Walmart’s decision to drop ShippingPass and offer free two-day shipping to all customers may give it an advantage over rival Amazon.com, Inc. (NASDAQ:AMZN). AMZN only offers free two-day shipping to its Prime members. The membership program costs $99 a year.

Amazon.com, Inc. also offers free shipping to customers if they order a minimum amount of items. However, that minimum is $49, not $35. The free shipping option also typically takes between seven to 10 days.


Article printed from InvestorPlace Media, https://investorplace.com/2017/01/walmart-shippingpass-wmt/.

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