Published: Thu, May 16, 2019
Markets | By Otis Pena

Walmart Announces Free Next-Day Delivery With No Membership Fee

Walmart Announces Free Next-Day Delivery With No Membership Fee

US retail giant Walmart announced Tuesday that it will provide customers with free next-day delivery covering hundreds of thousands of "most frequently purchased" items.

There are around 220,000 items that qualify, ones that Walmart says are "most frequently purchased" (it varies by region).

The move will cost Walmart less as orders will be delivered from warehouses closer to the customer and arrive in a single box instead of multiple packages, Lore said.

Shoppers in Las Vegas and Phoenix will be the first to experience free next day shipping from Walmart.

Walmart will gradually roll out the plan in the coming months.

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. The company said a customer need only go to Walmart.com and click the NextDay delivery tab to view items that are available for one-day delivery. This means the order ships in one box, or as few as possible, and it travels a shorter distance via low-priced ground shipping. Target also offers free two-day shipping for those who spend at least $35 or use its RedCard loyalty card. Membership costs $119 a year. We're on track to offer Grocery Pickup from 3,100 stores and same-day Grocery Delivery from 1,600 stores by year-end, which will provide coverage to approximately 80% and 50% of the USA population, respectively.

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"Our new NextDay delivery isn't just great for customers, it also makes good business sense", Marc Lore, President and CEO, Walmart eCommerce U.S. said in a statement on the company's website.

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

Free NextDay delivery will be available on a wide range of general merchandise according to Walmart. "That's in contrast to online orders that come in multiple boxes from multiple locations, which can be quite costly".

Walmart only launched its two-day shipping service in January 2017.

There are a few caveats to keep in mind about this fast delivery offer.

Walmart is taking aim at Amazon with its latest announcement - a new next-day delivery service that does not require a membership fee.

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