Wal-Mart testing its unlimited shopping service to overtake Amazon Prime


Wal-Mart Stores is getting prepped-up to test a new unlimited shopping service for its customers this summer at $50 per year, which is much below Amazon’s $99 per year for its Prime service.


Wal-Mart, the world largest retailer announced this news on Wednesday. This service will be on invitation-only basis for now and will be available only on selected products of the company with the promise of delivering the items in three days or less. Company’s spokesperson Ravi Jariwala said, “Depending on customer feedback we will see how the programme evolves. This strategic plan aims to expand its online business quickly and get hold of the major market share held by Amazon now.

The supermarket offers delivery of groceries and pickup services in five market. But the unlimited shipping feature marks a great commitment and shows how serious the company is on promoting the online business that has slowed down recently.

Around 10 years ago, Amazon introduced $99 per year shipping service called Prime with the guarantee of standard and reliable two-day shipping for good purchased online. This scheme launched by the company has become the foundation for its growth. The company’s Prime membership grew 50% last year. AT the end of 2014, Prime had 40 million US members which was estimated to reach only 29 million, according to Consumer Intelligence Research Partners. Another study shows on an average, a Prime customer spends around $1500 in a year on the site which is much more than the non-members who spend $625 per year.

Under the testing period, Wal-Mart will offer more than one million of its best sellers of the company’s website, which is about 14% of the seven million total items listed on the site. During this period, the company announced it would not provide features like free video and music streaming services like Amazon. Also said, the success and the improvement of the testing period depends on the feedback from the customers who avail this service.