As I am sure you saw, Amazon recently announced a price hike of its popular Amazon Prime service. The cost of a one-year subscription will soon jump from $119 to $139, an increase of 17%. Early analyses indicate that most customers will stick with the Everything Store, though some have started to look for other options.
This creates an opportunity for Walmart. In recent years, Walmart has invested a lot of money in its Amazon Prime competitor, Walmart Plus. For the comparatively low $98 per annum, Walmart+ offers free next-day or same-day delivery. And unlike Amazon it typically follows through on that guarantee, since it has 5,000 brick-and-mortar stores nationwide. Assuming you live fairly close to one of them, it is very easy for Walmart to get you your item in a matter of hours.
For years, the biggest knock on Walmart as an e-commerce site compared to Amazon has been selection. Because Walmart still operates as a retail giant, they rely on buyers to make actual decisions on what to stock on its shelves. Amazon has no such process: Tell them you have something you want to sell, and next thing you know you are selling it to anyone with an internet connection. In building up its e-commerce platform, Walmart has started to adopt a similar strategy. Though it still requires more information from a business in order to feature its products on Walmart.com, it has opened its doors to Chinese sellers, and a product need not be stocked in a physical Walmart location for it to be available online. With its Amazon FBA-like Walmart Fulfillment Services, it is constantly growing its selection and giving customers an array of options that may one day rival the Seattle giant.
As for value, the biggest advantage of Amazon Prime is its streaming service. Walmart does not produce or house content for its W+ members. Prime subscribers get access to Amazon Originals like The Marvelous Mrs. Maisel and Jack Ryan, as well as a packed library of other quality movies and shows. If you watch a lot of television, the difference in prices it made up by this alone.
If not, then you may want to consider Walmart’s big advantage. Walmart+ subscribers get 5 cents off every gallon at Walmart and Murphy gas stations. Especially with the direction gas prices have been heading, this type of savings can really add up! Amazon does not offer a similar promotion.
We want to know your thoughts! Would you consider leaving Amazon Prime for Walmart+? Let us know in the comments!
