Walmart fired another shot in the shipping wars, announcing it will offer free next-day delivery to select locations and has plans to reach three-quarters of the U.S. population by the end of this year.
Available in Phoenix, Las Vegas and Southern California first, the NextDay delivery service will be offered in 40 of the top 50 major U.S. metro areas, said Marc Lore, Walmart eCommerce U.S. president/CEO, in a company blog post.
Unlike Amazon Prime, it does not require a membership fee, but there is a $35 minimum purchase price. Approximately 220,000 items are eligible.
Lore said in the post that the service will reduce costs for the retailer: “Contrary to what you might think, it will cost us less — not more — to deliver orders the next day. That’s because eligible items come from a single fulfillment center located closest to the customer.”
“This means the order ships in one box, or as few as possible, and it travels a shorter distance via inexpensive ground shipping,” he continued. “That’s in contrast to online orders that come in multiple boxes from multiple locations, which can be quite costly.”