Walmart to compete Amazon Prime with new subscription service, Walmart
Category: #retail  By Saipriya Iyer  Date: 2020-07-08
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Walmart to compete Amazon Prime with new subscription service, Walmart

U.S retail giant, Walmart Inc. has recently joined the race against Amazon with its latest subscription service, Walmart+. Similar to Amazon Prime, the new subscription service will endow Walmart customers with access to same-day delivery on groceries and other products, provide discounts at Walmart gas stations and offer early access to latest deals.

Sources close to the move claim that the subscription-based service was planned to launch in early 2020, however, the recent coronavirus outbreak forced Walmart to step back with this initiative. The service is said to challenge Amazon's paid subscription service, Amazon Prime which was launched over a decade ago.

Amazon's subscription program entices shoppers with faster shipping, streaming, and exclusive deals, all at a price of $12.99 a month ($119 a year). Walmart however plans on offering a competitive price of $98 a year for its service.  

According to Kunal Chopra, CEO of leading e-commerce growth platform, etailz, Amazon is likely to face intense direct competition, with sellers and customers to be granted with enhanced benefits as the two services go head to head.

Chopra claims that Amazon may be at a risk of losing some of its sellers and customers to Walmart’s membership service. While for third-party sellers, there might be a potential increase in competition from Amazon’s private labels on its site.

As per reports, in February, Walmart’s e-commerce sales in the U.S. surged up by 37% for the year. This growth was especially witnessed after the COVID-19 pandemic set foot in the U.S., causing Walmart's e-commerce sales to spike significantly.

Market experts suggest that Walmart's e-commerce sales in the U.S. may further grow by 44.2% to $41.01 billion in 2020. If these projections are to be believed, then Walmart could gain an edge over eBay, which is expected to grow by only 3% this year.

Source Credit: https://www.foxbusiness.com/lifestyle/walmart-amazon-prime



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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