Walmart Unveiling 1-Day Shipping Offer

Walmart plans to reach 75% of the United States with free next-day delivery on orders above $35 this year

Walmart items range from diapers and laundry detergent to toys and electronics, with more assortments to be added. NextDay delivery service now is available first to Walmart customers in Phoenix and Las Vegas, and there are plans to expand to southern California in coming days.

Walmart says free next day shipping will be available in 75% of the country by the end of the year, which includes 50 major metro areas.

A free two-day shipping benefit offered to Amazon Prime subscribers is evolving into a one-day shipping perk that the company expects to boost shopping and membership, executives at the e-commerce titan said on an earnings call last month.

Walmart's new initiative was viewed by USA media as a measure to compete with rivals in the retail sector, as it came after Amazon announced on April 25 that it would spend 800 million dollars in the second quarter for free one-day delivery for all of its Prime members.

Not to be outdone, Walmart today announced that it too is transitioning to free next day delivery, and without a membership fee. It is available on orders of $35 or more. This will enable Walmart to ship items in one box, or as few as possible, for a shorter distance via less expensive ground shipping. Walmart says that will provide coverage for Grocery Pickup to 80% of the United States population and same-day delivery to 50% of the United States population by year's end. Everything in the cart must be eligible for next day delivery to qualify.

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Walmart has been working to increase shipping efficiency for some time, including repurposing 12 Sam's Club locations that closed previous year into local e-commerce fulfillment centers.

Walmart claims NextDay deliveries actually cost the company less to fulfill. Target also offers free two-day shipping for those who spend at least $35 or use its RedCard loyalty card. "That's in contrast to online orders that come in multiple boxes from multiple locations, which can be quite costly". Though it was not immediately made clear if those facilities would be used specifically for the NextDay offers launching this week, Walmart previously said they would be used to support faster local shipping times, including one-day deliveries.

He also said the recently implemented tariffs on Chinese imports will not hurt demand as most are best-sellers and popular items that shoppers will keep buying even if prices rise.

Walmart has succeeded in narrowing the gap to win new sales and in the battle of one-day shipping Walmart holds one key advantage, he said.

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