NO ANNUAL MEMBERSHIP FEES
Wal-Mart takes on Amazon using free shipping
New York — Wal-Mart Stores is scrapping its ShippingPass programme that was designed to compete with Amazon.com’s Prime, opting instead for a two-day shipping model that does not have annual membership fees. The new service would be available as of 8am New York time on Tuesday, the company said. The company would refund the $49 annual fee for all active memberships in its ShippingPass programme, said Marc Lore, CEO of Wal-Mart’s online operations. "In today’s world of e-commerce, two-day free shipping is table stakes," Lore said on a conference call." Lore, the former CEO of Wal-Mart’s Jet.com unit, said the new service would focus on essential, everyday items, such as home goods, pet products and electronics. ShippingPass rolled out a two-day delivery service in May — down from three — and had required a $50 minimum order. That threshold will be cut to $35 under the new service — the same amount Jet requires for free two-day shipping. Lore called it a "pretty darn compelling" value...
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