Should Amazon be worried? They might have something to worry about after Walmart’s big move.
The retailer is rolling out a new competitive discount for its online shoppers.
In just one week, starting April 19th, Walmart will be offering discounts to customers who ship purchases to one of its stores.
With over 4,000 U.S. locations, there’s plenty of customers who take advantage of the shipping to store choice Walmart offers. Called the “pickup discount”, it will be offered on 10,000 items that the retailer sells but only items that are not available at the stores.
So how does the discount work? If a person is buying a TV and wants it shipped to Walmart versus their home, Walmart will take off $50 off the purchase price. If the customer wants it delivered to their home, they can get it delivered for free but no discount.
Depending on the product is how the discounts will vary and of course the bigger the price, the bigger the discount.
While Amazon has offered discounts to its own customers, this is something that may be challenging to beat considering Amazon is strictly online and has no physical locations.
“We’re leveraging Walmart’s unique set of assets in a way that will save consumers more money,” Marc Lore Walmart e-commerce head told Business Insider.
“The cost to get stuff from a fulfillment center to a store all together on a truck is not that expensive,” Lore said.
“The expensive part is when you deliver [the items] to an individual person’s home.”
Lore says Walmart plans to implement more options like these.
“In the coming months, you will continue to see ways for us to empower customers to shop smarter,” he said.
Disclaimer: We have no position in Wal-Mart Stores Inc. (NYSE: WMT) and have not been compensated for this article.