Wal-Mart Joins Same-Day Delivery Battle

by Christopher Freeburn | December 28, 2012 10:55 am

Wal-Mart WMT[1]The nation’s largest retail chain is experimenting with same-day deliveries[2] for its online sales.

Wal-Mart (NYSE:WMT[3]) is rolling out such an option in five markets across the country for the holidays. Customers who want the items they purchase at Wal-Mart’s online store delivered the same day will pay an additional $10, The New York Times notes.

Online shoppers can then expect their products delivered during a four-hour window. The retailer is also offering next-day delivery for the same price.

While Wal-Mart didn’t disclose the exact numbers of online customers requesting same-day deliveries, a spokesperson noted that many customers selected the next-day option instead.

A number of companies are testing same-day shipping options[4], including eBay (NASDAQ:EBAY[5]), though the cost and logistics problems remain daunting. Analysts said that the driving motivation to offer same-day shipping was a need to compete with Amazon (NASDAQ:AMZN[6]).

While Wal-Mart’s online sales are tiny compared to Amazon’s, the company noted that same-day delivery boosted customer convenience. The U.S. Postal Service also tested a limited same-day delivery option for certain retailers this holiday season[7].

Shares of Wal-Mart slipped fractionally in Friday morning trading.

  1. [Image]: https://investorplace.com/wp-content/uploads/2011/06/walmart-store.jpg
  2. experimenting with same-day deliveries: http://www.nytimes.com/2012/12/28/business/fear-of-amazon-pushes-retailers-to-take-on-risks-of-same-day-shipping.html?pagewanted=1&_r=1
  3. WMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=WMT
  4. testing same-day shipping options: https://investorplace.com/2012/08/sorry-amazon-ebay-announces-same-day-shipping/
  5. EBAY: http://studio-5.financialcontent.com/investplace/quote?Symbol=EBAY
  6. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  7. same-day delivery option for certain retailers this holiday season: https://investorplace.com/2012/10/u-s-postal-service-to-test-same-day-delivery/

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