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Walmart challenges Amazon Prime with cheaper 2-day shipping service

by Jacob Kleinman | May 12, 2016May 12, 2016 7:30 pm PST

walmart shippingpass copy

Walmart is launching a new subscription service called ShippingPass that offers free two-day shipping for just $49 a year. Sound familiar? Amazon Prime offers a similar service for double the price, though the $99 subscription also includes with free music, video streaming and more.

Walmart is reportedly investing $2 billion in online commerce this year in an effort to compete with Amazon and other rivals. The company’s also building out a network of eight massive warehouses across the U.S. devoted to filling online orders. That sounds a lot like Amazon’s Fulfillment Centers.

ShippingPass is currently just a pilot program and you can sign up online to find out when it’s available in your neighborhood. The service covers all purchases with no minimum order requirements. You can also return and exchange ordered items online for free or simply take them to the nearest physical Walmart store and do it in person.

Walmart is offering a pretty great value. If you mostly use Amazon Prime for the free two-day shipping this is a hard deal to ignore. But if Amazon already has you hooked on its ecosystem of devices and services then it might not be not worth the hassle of switching.

Walmart WSJ The Verge Mike Mozart (Flickr)

Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...

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