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Wal-Mart Unveils $50 Per Year ShippingPass for Online Orders

1 min read

Wal-Mart Stores Inc. of Bentonville officially announced its ShippingPass pilot program, a delivery service designed to compete against Amazon Prime.

Most of the details of the plan leaked in late May. Wal-Mart executives said the plan would cost $50 annually for unlimited free three-day shipping. Amazon Prime costs $99 and guarantees two-day delivery.

Orders would have to be placed by noon to guarantee three-day delivery by Wal-Mart. Executives, speaking in a presentation Q&A session during the company’s shareholders week, said the plan would also complement its existing pick-up service for online orders.

“Right now, we have a great combination of pick-up and delivery,” said Fernando Madeira, the president and CEO of Walmart.com. “Now we have this unlimited free shipping. What is important is to get feedback from customers to learn what they need from us. We’re trying to do this as perfect as possible.”

Neil Ashe, president and CEO of Walmart Global eCommerce, said providing free shipping through subscription would give the retail giant an advantage over competitors such as Amazon.

“Only we can provide that unique combination,” Ashe said. “We think that is where the world is going, and we’re the only one who can provide that.”

Wal-Mart’s annual shareholders’ meeting is scheduled to begin at 7:30 a.m. Friday at Bud Walton Arena in Fayetteville.

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