You are using an older browser version. Please use a supported version for the best MSN experience.

Walmart tests two-day shipping to compete with Amazon Prime

Engadget Engadget 12/05/2016 Billy Steele
© Provided by Engadget

A key advantage Amazon has over other online retailers is the free two-day shipping that its Prime subscription offers. According to The Wall Street Journal, shopping giant Walmart wants in on the e-commerce and quick shipping game as well. The company was already testing the concept with its ShippingPass option that handled three-day shipping for those willing to pay $50 a year. Starting Thursday, those members will be privy to two-day delivery for the same price. Of course, that's half of what Amazon's $99 annual Prime subscription costs. Amazon's plan includes other extras, though, like streaming streaming music, video and more.

WSJ reports that the system will leverage eight dedicated e-commerce warehouses and regional carriers to handle orders, instead of relying mostly on FedEx as it has in the past. If that sounds familiar, it's because Amazon is already doing just it, so the two retailers will be competing for delivery services as much as they are for customers. At first, Walmart will likely pay more per package, but over time as the business picks up (in theory), the costs should come down. Right now, the ShippingPass option is invite-only, so if you're looking to try it out, you may have to wait a bit.

While Walmart eyes two-day shipping, Amazon has been steadily expanding its same-day delivery option, adding new cities on the regular. It's also working to employ the use of drones to drop off packages in a timely fashion.

Wall Street Journal

More from Engadget

image beaconimage beaconimage beacon