The move will cost Walmart less as orders will be delivered from warehouses closer to the customer and arrive in a single box instead of multiple packages, Lore said.
The Walmart deal will be available to online shoppers in Phoenix and Las Vegas and then expand to Southern California in the coming days, the head of its US e-commerce service, Marc Lore, told Reuters in an interview. The service, which Walmart is calling NextDay, is available in Phoenix and Las Vegas and is expected to launch in Southern California later this week. It will roll out gradually over the "coming months" with a goal of reaching about 75% of the major U.S. population in the next year. That's exactly what Walmart just did by offering its own version of one-day shipping, albeit on a much smaller scale. The free next-day delivery is only eligible on orders of $35 or more, and Walmart said it is offered only "on specific assortment varying by customer location". Unlike Amazon, Walmart won't require a membership fee. Folks who live in certain areas already enjoy the expedited shipping time, and Amazon is investing $800 million of "incremental spend" towards making it more broadly available.
Prime costs $119 a year. 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.More news: Huawei P20 Lite 2019 leak reveals quad-camera setup, punch-hole display
Next day shipping complements Walmart's same day grocery delivery service. "That's in contrast to online orders that come in multiple boxes from multiple locations, which can be quite costly".
Walmart has been working to increase shipping efficiency for some time, including repurposing 12 Sam's Club locations that closed a year ago into local e-commerce fulfillment centers.
To have an online purchase delivered the next day, a customer visits Walmart.com and toggles into the next day delivery section of the site to view items that are eligible for free next day delivery.More news: USA suspends flights to and from Venezuela
Walmart is ramping up its delivery service with a new fast convenient option.
Walmart has been planning free next day shipping for a while.
He also said the recently implemented tariffs on Chinese imports will not hurt demand as most are best-sellers and popular items that shoppers will keep buying even if prices rise.More news: Rain delays Federer, Nadal matches in Rome