Walmart Has Unveiled a New $98/Year Subscription Service to Take on Amazon Prime
Besides free shipping in just 1 or 2 days for many products, Amazon Prime members also enjoy free TV shows, movies and music. There is unlimited photo storage and even 2-hour delivery service from Whole Foods. There is also no minimum order amount in order to enjoy the super quick and free shipping.
Walmart is trying to copy Amazon Prime’s service with it’s new Walmart+ service which will begin on September 15th. For $98 a year, members will get free shipping on orders $35+, and some items, such as groceries, will even be delivered the very same day. While Walmart+ won’t include free entertainment like music and movies, members will save 5 cents on each gallon of gas.
Walmart also plans to add other perks to the membership service, but we’ll see what those are once they are announced.
Walmart+ costs $21 less than Amazon Prime, but when you look at the number of extra perks included with Amazon Prime, that $21 seems worth it. Even if you don’t use the free entertainment or photo storage, it’s a huge plus that your order can be any amount and still qualify for free shipping.
Even though Walmart+ won’t have the same perks as Amazon Prime, it does have one perk that Amazon can’t match – Walmart stores. Walmart has 2,700 stores, and most Americans live within 10 miles of their local Walmart store. Many items from Walmart stores will ship to customers the same day they are ordered, which is a huge plus. For many customers, delivery speed may be much quicker with Walmart than with Amazon, and a minimum order for $35 isn’t really all that much.
Releasing this new feature during the pandemic seems like a smart move. Many customers have started doing much more of their shopping online, and shipping speed matters.
The question is if Americans want to pay for yet another subscription service. Will customers jump ship from Amazon Prime and switch to Walmart+? Will they use both services at the same time? Only time will tell.
Chuck Grom, analyst at Gordon Haskett Research Advisors, told his clients, “The jury is still out on the ultimate potential of this new offering.”
Are you going to sign up for Walmart+ when the service is available? If so, will you use Amazon Prime as well?