Walmart is continuing its efforts to draw shoppers away from the Amazon Prime Now same-day delivery service.
The discount giant has removed the $35 minimum order requirement it previously required for its Express delivery service, which ships items to customer doors in less than two hours. Launched on a wide scale in May 2020, Express delivery allows customers to order items from Walmart’s food, consumables and general merchandise assortment such as produce, pantry staples, everyday essentials, toys and electronics.
Walmart relies on a team of 170,000 personal shoppers to pick customer orders. The service costs $10 on top of the existing delivery charge ($7.95 or $9.95), but there is no markup on item price. Members of the Walmart + subscription program, which costs $98 per year or $12.95 per month, only have to pay the $10 Express fee.
In comparison, Amazon Prime Now two-hour delivery is only available to members of the Amazon Prime subscription offering, which costs $119 annually or $12.99 monthly. Prime Now orders of less than $35 have a $4.95 fee, otherwise there is no extra charge for the service.
"Walmart continues to raise the bar against Amazon when it comes to the customer experience," commented Meyar Shiek, chief commerce officer, Kibo. "Removing the $35 minimum makes it even more compelling for its 150 million customers to shop more product categories from them as well as shop with them more frequently. This move also narrows the gap between Walmart+ and Amazon Prime as it delivers more value to Walmart shoppers while potentially luring Amazon Prime members who see convenience and benefit from shopping at Walmart.com or from one its 5300 stores across the U.S."
Express delivery is currently offered in nearly 3,000 Walmart stores. Walmart’s free curbside pickup service still carries a $35 order minimum.
“Many customers use Express delivery for when they’re in a pinch, whether it be a missing ingredient for a weeknight dinner or a pack of diapers,” said Tom Ward, senior VP of customer product, Walmart. “Customers told us sometimes the items they needed in a hurry didn’t meet the minimum, so we’re removing it, making it even easier for customers to get what they need when they need it.”