Walmart on Tuesday officially unveiled Walmart+, its new $98/year membership program that competes with Amazon’s $119/year Prime membership.
Walmart+ will launch Sept. 15 and offer members unlimited free delivery on more than 160,000 items; fuel discounts; and access to Walmart’s Scan & Go touchless payment experience.
The subscription differs from Amazon as it only includes free shipping for orders that meet a minimum order basket of $35. Amazon Prime does not have a minimum.
Walmart already offers free 2-day and next-day delivery on orders of $35 or more for select items, without requiring a membership.
Walmart+ can be paid for monthly at $12.95 per month. Amazon also offers a monthly Prime option at $12.99.
Walmart’s e-commerce business in the U.S. grew 97% in the company’s second fiscal quarter, ended July 31, the retail giant reported last month. That amounts to more than $10 billion in quarterly U.S. ecommerce sales, exceeding 11% of the retail giant’s overall U.S. net sales for the first time, according to GeekWire’s calculations, based on Walmart’s current and past financial results.
The new milestone reflects the ongoing shift toward online shopping amid the COVID-19 pandemic, and the fuzzy line between online and physical retail sales. It’s also an example of the pandemic accelerating the shift to digital commerce at traditional brick-and-mortar retailers.
Amazon and Walmart are increasingly competing head-to-head, with the Seattle tech giant expanding its physical retail footprint through Whole Foods and Amazon-branded stores, at the same time as Walmart moves further into e-commerce.
