Walmart has just revealed its plans to compete with Amazon Prime Day. Walmart revealed its sales for cutting back prices in tandem with Amazon, who just started its Prime Day. For Amazon Prime Day, consumers can expect discounts and online deals on electronics, apparel, and many other categories.
To try and keep up with Amazon’s event, Walmart has decided to display a variety of sales as well, including Apple Tv, Xbox One and other popular electronics. Additionally, Walmart will be offering free shipping with no minimum purchase amount required.
Walmart hopes that its free shipping will be able to compete with Prime’s free two-day shipping. Before this deal, customers would be required to purchase at least $50 worth of goods to get free shipping. Walmart’s deal will extend from July 11th until July 15th.
Last year on Amazon Prime Day, the company saw more revenue than on Black Friday. This shows what a huge source of revenue this day has been for Amazon in the past. Walmart isn’t only preparing to take on Amazon on Prime Day or other special events, Walmart intends to compete for online sales, all year round with its ShippingPass service.
Walmart hopes that this week will lure customers in to view the Walmart.Com website and take interest in its ShippingPass service, which recently became available nationwide. Walmart’s ShippingPass ($49) is available for half the price of Amazon Prime Membership($99), and also offers free two-day shipping.
While Walmart’s offer seems quite appealing to customers, I wonder if consumers will switch from Amazon Prime to Walmart. Or if customers will remain loyal to Amazon Prime because of its wide selection and different sellers.
One of Amazon Prime’s attractive features is that it’s exclusive. Members are required to pay an annual fee, and are rewarded with exclusive sales, free shipping, and free tv shows. Walmart is trying a slightly different approach in its competition sale, by lowering prices for the general public and not just a select group of members. Time will tell which model is better, and will ultimately result in customer loyalty and higher revenue.