PYMNTS.com offers analysis of why Walmart decided to revamp its free shipping policy:
“So, instead of playing the membership game, Walmart is playing the free shipping game — dropping the free shipping threshold from $50 to $35. And the shipping is faster. In the past, the $50 expenditure only netted consumers three- to five-day free shipping; going forward, $35 will entitle consumers to two-day shipping.“
Walmart’s decision to step away from a membership model to simply offering free shipping to everyone who spends over $35 is clearly directed at Amazon. Will consumers who are already Prime members be willing to change their shopping habits and make a switch to Walmart (perhaps for lower prices)? That’s not yet clear, but suppliers should be prepared to accommodate the move toward e-commerce in product and packaging design.
Resources for Walmart Suppliers
NEW PODCAST: The 8th & Walton Conference Call – Episode 2