Published: Thu, May 16, 2019
Finance | By Loren Pratt

Walmart takes on Amazon in next-day delivery contest

Walmart takes on Amazon in next-day delivery contest

"Contrary to what you might think, it will cost us less - not more - to deliver orders the next day", Lore wrote.

Up to 220,000 items will be offered with its NextDay delivery service with more products to be added in the future.

Eligible items may vary by customer location with shipping from the closest fulfillment center.

The company plans to reach 75 percent of the USA population with NextDay delivery by year-end, while continuing to expand grocery pickup to 3,100 stores, or 80 percent of the population, and grocery delivery to 1,600 stores, or 50 percent of the population by year-end. Walmart is on track to offer Grocery Pickup from 3,100 stores and same-day Grocery Delivery from 1,600 stores by the end of the year, which would cover approximately 80 percent and 50 percent of the US population, respectively.


Walmart, the world's largest retailer, will begin offering free next-day delivery of online orders starting in metro Phoenix and two other Western U.S. areas very soon, the company said Tuesday. The company said a customer need only go to Walmart.com and click the NextDay delivery tab to view items that are available for one-day delivery.

Amazon figured to spend $800 million this quarter on shortening delivery times to a single day for Prime buyers, with shoppers in North America expected to be the first to benefit. We're on track to offer Grocery Pickup from 3,100 stores and same-day Grocery Delivery from 1,600 stores by year-end, which will provide coverage to approximately 80% and 50% of the USA population, respectively.

Walmart said it is able to offer its NextDay delivery service because it has "built a network of fulfillment assets that are strategically located across the U.S." that allows it to place "the right products in the right fulfillment centers based on where customers are located and what they are ordering". "That's in contrast to online orders that come in multiple boxes from multiple locations, which can be quite costly".

Walmart has succeeded in narrowing the gap to win new sales and in the battle of one-day shipping Walmart holds one key advantage, he said. This news comes on the heels of an April 25 announcement that Amazon will be moving to make one-day shipping the standard for Amazon Prime members.

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