Walmart home delivery
Tom Dougherty, CEO – Stealing Share
22 May 2019
Walmart home delivery goes next day. Amazon’s response?
Walmart home delivery once again responds to Amazon, and so the delivery version of the Battle of Winterfell is on.
As I wrote before, us Amazon Prime customers can thank Walmart for igniting a fire under Amazon. The online retail giant will spend $800 million to change Prime shipping from two-day to next-day. Rightly so, Amazon Prime customers cheered.
Now, Walmart home delivery will offer next-day free shipping on all orders of $35 or more. Walmart plans to reach 75% of the US population this year. Amazon said previously that its roll-out of next day shipping will take a bit longer. Oh, and Walmart customers don’t have to pay a membership fee.
Walmart home delivery plans on using its brick and mortar stores as distribution centers. About 90% of the people living the US reside 10 miles away or closer to a Walmart. So, the model makes complete sense.
“Walmart continues to be that glaring example of a brick and mortar mass retailer carving out its own niche in this “retailing according to Amazon” era.”
Walmart home delivery shows the way for other retailers
Also, your local Walmart stocks a different mix of products than the Walmart in the next state over. That’s to cater to the regional needs and wants of the local area. Using this model, Walmart home delivery claims it will actually be cheaper for it to ship next day since all of the orders will be fulfilled by their local Walmart and come in a single box. The one caveat is that there will be a limited number of items available for next-day shipping because only products in the local Walmart will be eligible.
Amazon relies on far fewer distribution centers but believes it can offset the added cost in volume. Where Walmart claims it will offer 220,000 products, Amazon has the ability to offer someone in the neighborhood of 100 million items.
I probably won’t be able to order my next electronic gadget from Walmart home delivery. But I could order a bunch of other things (220,000 other things).
This is pretty good news for consumers. Walmart continues to be that glaring example of a brick and mortar mass retailer carving out its own niche in this “retailing according to Amazon” era. What’s even better is that now Amazon must respond. It may not be for a little while, but Amazon will respond and once again it should be good news for the customer.
Instantaneous shipping via Star Trek transporter anyone?
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