Business

Wal-Mart to Test Unlimited Shipping Service for $50 Per Year

Published

8 years ago

May 14, 2015

Oakland Post

In this May 9, 2013 file photo, a worker pushes shopping carts in front of a Wal-Mart store in La Habra, Calif. The world's largest retailer plans to work with DirectHealth.com, an online health insurance comparison site and agency, to allow shoppers to compare coverage options and enroll in Medicare plans or the public exchange plans created under the Affordable Care Act. (AP Photo/Jae C. Hong, File)

(AP Photo/Jae C. Hong, File)

Anne D’Innocenzio, ASSOCIATED PRESS

NEW YORK (AP) — Wal-Mart Stores Inc. will test a new unlimited shipping service for online shoppers this summer that will be priced below Amazon’s $99 per year Prime service.

Wal-Mart, the world’s largest retailer, told The Associated Press on Wednesday that the shipping subscription service will cost customers $50 a year. Products will arrive in three days or less.

Wal-Mart offers a grocery delivery and pickup service in five markets. But the unlimited shipping program marks a substantial commitment and underscores how serious the retailer is about accelerating the growth of its online business, which has seen a slowdown.

The unlimited shipping service was first reported by The Information, a publication that covers the technology industry.

Ravi Jariwala, a company spokesman, said the offering is in response to increasing demands from customers who are looking for predictable and affordable shipping. It’s also part of Wal-Mart’s overall strategy to test new ways to serve customers who are increasingly researching and buying on their PCs or mobile devices and are looking for convenience.

Jariwala said the service will be available by invitation only for now and it will offer more than one million top-selling items, from toys to electronic gadgets. Wal-Mart’s online site sells more than seven million products.

For now, he said the service would not offer features like free video and music streaming that Amazon provides. He said that customer feedback will direct how the program will evolve.

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