Walmart Prepares to Take Amazon to the Mattresses with Faster Shipping Options
March 27, 2013 9:22 AM
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Walmart hopes to out Amazon, Amazon
Walmart has been putting a significant beating on many smaller retailers in the United States for years due to lower prices. Brick and mortar retailers are also feeling increasing pressure as more consumers signup for Amazon Prime, which offers free two-day shipping of products (often “tax free”) plus the added bonus of free TV show/movie streaming. Walmart may be the biggest retailer in the world, but it too is feeling the heat from Amazon.
Walmart may be the king of retail sales, but it is very far behind Amazon when it comes to online sales.
reports that last year Amazon racked up $61 billion in online sales. Walmart only expects to crack about $9 billion in annual online sales as of this year.
Walmart recently announced that it would start using it stores to get internet orders to its customers faster. Walmart noted that it would begin testing lockers to hold goods ordered on the internet in stores until shoppers pick them up. Exactly when this test will kickoff is unknown; Walmart only says "soon." Amazon is also using lockers in grocery stores, convenience stores, drugstores to hold purchases for consumers when the consumer doesn't want an order to come to their home.
Walmart will also begin testing other services to make online shopping via its website easier and more appealing to consumers. One service will allow shoppers to pay for online orders in the store with cash rather than paying online with a credit card.
In addition, Walmart is planning an expansion of a currently running test to ship online orders from physical stores. The company hopes to expand this test to about 50 locations. The goal is to use stores that are closer to customers offer same-day delivery and next-day delivery of online orders at a low cost. Considering that two-thirds of the U.S. population lives within 5 miles of Walmart store, this could prove to be a very important plan for Walmart.
Amazon is also testing a
same-day delivery service
in some locations.
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RE: Wal-Mart can't win
3/28/2013 2:02:44 PM
Why do people not
to what others say?
I did not claim I would indiscriminately purchase from the company with the lowest price. I said, "I'm supporting whoever has the product I want, at the price I'm willing to pay." The product I want. The price I'm willing to pay.
The "product" isn't limited to simply the physical good, or to a generic physical good that meets some criteria. The product includes both the physical good as well as anything else that might be important to me in the context of a purchase. That might be product quality, shopping experience, distance/time from me to the store, store hours/availability, taxation, who owns the company, past experiences, etc. And then we add in price. (Arguably, you could say the latter items listed are all "costs" and should be part of the "price" not the "product" - but it's 6 one way 1/2 dozen the other.)
WalMart's cheap, but I hate shopping there. I don't give a damn that they sell products made outside the US; the shopping experience is far too unpleasant for me. So if I can easily avoid shopping there, I will. And I'm very much willing to support Amazon's business because it adds value to me. But if I need a 9V battery for my multimeter for a project today, I'll make a 5 minute trip to Wal-Mart and not think twice about it.
The product I want, at the price I'm willing to pay. It's a value judgement, each and every time. If you want to never shop at Wal-Mart, good for you. But you're not on some moral high ground above the rest of us.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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