April 28, 2019
The shipping delivery war took another turn after Walmart went to social media to hint it would match Amazon’s decision to switch from free two-day shipping for Prime members to one-day deliveries.
“One-day free shipping … without a membership fee. Now THAT would be groundbreaking. Stay tuned,” Walmart tweeted April 26 the day after Amazon disclosed it would spend upwards of $800 million upgrading internal and external shipping capacity for one-day shipments.
Amazon charges $119 annually for its Prime membership, which includes free access to movies and TV shows on Amazon Prime Video, music on Prime Music and two-hour delivery (for a fee) for Prime Now store deliveries, among other features.
Amazon’s announcement had a ripple effect on retail stocks, sending Walmart and Target shares down 1.9% and 5.7%, respectively, in April 26 trading.
The switch is expected to put added pressure on big box retailers such as Best Buy, Office Depot and Dick’s Sporting Goods, among others.