Walmart is taking direct aim at Amazon when it comes to free shipping.
The retailing giant announced Wednesday that it is going to offer a free 30-day trial of its ShippingPass, good for unlimited two-day shipping. After the trial period, the price is $49 a year.
The program is similar to Amazon Prime, which also offers two-day shipping with a 30-day free trial period. Amazon Prime costs more -- $10.99 a month -- but also offers extras like movie, TV show and music downloads.
In announcing the program, Walmart officials indicated they believe that the free trial will drive incremental sales.
"Once you start using it, it’s hard not to notice the everyday low prices on the stuff you need and want," says Fernando Madeira, CEO of Walmart's U.S. division, in a statement.
While the move shows Walmart is getting serious about the threat posed by Amazon, some wonder if it can compete as effectively when it comes to online orders and delivery.
“I don’t think they have any choice,” says Scott Galloway, chairman of digital marketing and tracking firm L2. Walmart “has to respond to the most valuable retailer in the world, which is now Amazon.”
