Wal-Mart Tests Same-Day Delivery; Increases Competition against Amazon

Wal-Mart Tests Same-Day Delivery; Increases Competition against Amazon
By Walmart Corporate from Bentonville, USA (Walmart store exterior) [CC BY 2.0], via Wikimedia Commons

Retail giant Wal-Mart Stores, Inc. (NYSE:WMT) started testing its same-day delivery for online purchases in various cities in the United States, in time for the holiday season.  It is possible that an item will be delivered on the date requested by a customer through the Walmart To Go delivery services, because it will be shipped from the nearest Wal-Mart store.

Wal-Mart Tests Same-Day Delivery; Increases Competition against Amazon

One of the reasons that keeps customers shopping online is because it takes days or even more than a week to receive their merchandise. If customers want the item delivered in a day or two, the shipping cost becomes more expensive than the regular shipping.

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Consumers who want to shop at Wal-Mart’s online store and try its new Walmart To Go delivery service, must first check if the service is already available in their area. If it is available, shoppers will be able to choose the delivery date for their merchandise. Take note that the company requires a minimum number of orders to qualify for the delivery service.

Wal-Mart Stores, Inc. (NYSE:WMT)’s same-day delivery service would attract many online shoppers, if it can succeed in delivering the orders on time. Walmart has an advantage against its competitors, such as Amazon (NASDAQ:AMZN) and e-Bay (NASDAQ:EBAY), because it has more than 4,000 stores across the country, and at the same time, they can serve as distribution centers for online purchases.

Amazon.com, Inc. (NASDAQ:AMZN) CEO, Jeff Bezos, previously announced the company’s objective to provide a same-day delivery service in major metropolitan areas in the country. The program known as Local Express Delivery is available in 10 major cities. Consumers need to place their orders before the cut off times.  Consumers who are located outside the metropolitan areas may not be able to receive their orders on the same day. They still need to wait for a few more days, unless they are willing to pay more on shipping. Amazon has 40 distribution centers in the United States.

Wal-Mart Stores, Inc. (NYSE:WMT)’s move to offer the same-day delivery service is a clear sign that it is increasing its competitiveness against Amazon. In September, Wal-Mart decided to stop selling Kindle e-readers and tablets in its stores. The company continues to enhance its e-commerce site, and offer better services for online shoppers.

On the other hand, eBay is also testing its same-day delivery, called eBay Now. The service is launched in San Francisco, and it is limited to orders made through the eBay Now mobile app from brick-and-mortar retailers.

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Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
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