The retailer is going head-to-head against Amazon's Prime program with a $49 two-day shipping offer. Fred Katayama reports.
Wal-Mart's going head-to-head over deliveries with archrival Amazon. The retailer is testing a new subscription service starting Thursday for free two-day shipping. It stepped up its "ShippingPass" program, its current three-day delivery service, by offering two-day shipping for just $1 less at $49 a year. It is half the price of Amazon's Prime program that offers two-day deliveries. Keep in mind, however, that Prime also offers access to free movies, TV shows and music. To shorten its delivery times, the Wall Street Journal says Wal-Mart will use eight e-commerce warehouses. Some of those fulfillment centers are so huge they could house two cruise liners. Wal-Mart currently uses distribution centers that serve the warehouses and its stores. The Journal says the retailer will also use regional carriers to deliver more of its packages, shifting away from FedEx which charges higher rates. Wal-Mart says it has a wait list for the program.