Walmart Challenges Amazon Prime With New Service
By Christine Kern, contributing writer
New subscription shipping service, “Tahoe,” aims to boost Walmart’s online business.
Walmart is stepping up to the subscription shipping service plate and offering its new service(code-named “Tahoe”) in order to boost its online business and challenge Amazon and other e-commerce giants, according to CNBC News.
The move is just the latest in a string of initiatives the retailer has taken in the past year to boost its online sales and strengthen revenue. The retail giant has recently announced a number of new initiatives with an emphasis on technology to stay current with the pace of technology in order to meet the needs of its customers. The retailer recently named Kevin Systrom, co-founder and CEO of Instagram as a new member of their Board of Directors and Systrom will also join Walmart's Technology and e-commerce Committee and its Compensation, Nominating and Governance Committee.
Walmart has already launched a mobile app, print-at-home coupons, and introduced an electronic price-matching system known as Savings Catcher. The latter arrived in August 2014, and Walmart has mentioned Savings Catcher shall soon feature eCoupons and eReceipts. The retail giant also introduced personalized online shopping experiences based on weather, location, and previous purchases.
Scheduled to be tested this summer, the new subscription shipping service promises to deliver online goods quickly to customers at just half the price of Amazon Prime. Walmart’s service will carry a $50 price tag, with delivery guaranteed within three days or less, according to USA Today. While Amazon guarantees deliver in two days or less, and also delivers on Sundays, Walmart spokesperson Ravi Jariwala explained that the move is an effort to make Walmart “an online shipping powerhouse.” He explained, “We’ve heard from customers that they want shipping that’s predictable and they want it to be affordable.”
Walmart’s current policy is to offer free shipping on orders over $50. They also offer the option to order online with free in-store pickup. Walmart will be rolling out the new subscription shipping service by invitation only this summer, and it will include more than a million products ranging from electronics to home goods to toys and apparel.
"Depending on customer feedback we will see how the programme evolves," Jariwala said.