Walmart Unveiling 1-Day Shipping Offer

Cornelia Mascio
Mag 16, 2019

Up to 220,000 items will be offered with its NextDay delivery service with more products to be added in the future.

While Amazon will be spending a lot more on the whole thing, Walmart's expenses will be lower since it is going to roll out the initiative in only those locations which are close to the company's warehouses and hence the costs of shipping will be much lower.

The service is rolling out first to consumers in Phoenix and Las Vegas, with plans to expand it to Southern California next. The discounter plans to roll out the service to 75% of the US population by year-end. Walmart plans to gradually roll out the service over the coming months to reach approximately 75% of the USA population this year, including 40 of the top 50 major US metro areas. Walmart has also been expanding same-day grocery delivery service fulfilled from its stores for a fee of about $10. NextDay will only be offered on eligible orders of $35 or more.

Such orders are consolidated in boxes and travel short distances by ground, making them less costly than delivering items from multiple locations, according to Lore. The announcement comes not even three weeks after Amazon announced it would speed up its two-day Prime shipping to one day for eligible items.

Amazon Prime subscriptions cost $119 annually and include benefits such as streaming television and music. Everything that the user places into the NextDay delivery cart must be eligible to get the free delivery.

After coyly hinting about a major shift in its shipping policies, Walmart has filed the latest salvo in the retail wars, announcing free one-day shipping starting this week.

"Our new NextDay delivery isn't just great for customers, it also makes good business sense", Lore wrote.

The company also created a grocery pickup and delivery service that is expected to provide pickup in 3,100 stores and delivery from 1,600 stores by the end of the year, covering 80 and 50 percent of the USA population, respectively.

Walmart has succeeded in narrowing the gap to win new sales and in the battle of one-day shipping Walmart holds one key advantage, he said.

There are a few caveats to keep in mind about this fast delivery offer.

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