Wal-Mart Stores is preparing to launch a new unlimited shipping service that is aiming to rival Amazon’s own Prime subscription program.
Wal-Mart’s new service, which will cost customers $50 a year, is expected to roll out this summer, according to The Associated Press. At that price, it will cost half as much as the $99 subscription fee that Amazon charges, but at least initially, it won’t offer as many features as Amazon Prime.
Wal-Mart said purchases ordered using its service will arrive in three days or less, which is slightly longer than the two-day window that Amazon normally offers on Prime-eligible items. The program will also only be eligible on one million of the seven million items available for sale on walmart.com, whereas Amazon claims that 20 million items are available for Prime shipping.
At this point, it will be hard to catch-up to Amazon, which launched Prime 10 years ago, and continues to invest aggressively in the program. By some counts, it has a membership base of 40 million users. It also offers a number of other perks, besides free two-day shipping, such as streaming video, music and e-book rentals.
Ravi Jariwala, a Walmart spokesman, told the AP that the launch is in response to customers, who are looking for predictable and affordable shipping. Today, Wal-Mart offers free shipping on orders of $50 or more, which can take six to eight days to arrive.
Jariwala said for now the service won’t include other features, like free video and music streaming, but that customer feedback will direct how the program evolves.
In an earlier story written by The Information, it reported that Wal-Mart’s shipping service, codenamed ‘Tahoe,’ was having difficulties getting off the ground, and was supposed to launch before the holidays.
