As many people know, Amazon Prime overs free 2-day shipping for their Prime members. It is still free, but prime members have to pay an annual fee of $119. Walmart is trying to match Amazon on this, and is starting to offer free one-day shipping for over 220,000 of their online items. There is a minimum of $35 for it to apply though.
This one-day shipping is currently available in Phoenix and Las Vegas, and will be available in Southern California soon. It is expected to be available in 75% of the United States by the end of this year.
This new service offered by Walmart came after Amazon announced upgrading its free 2-day delivery to one-day delivery. Select Prime members have access to this new service.
Free one-day shipping is not the only thing Walmart plans on adding to their services by the end of 2019. They are expanding their click and collect grocery services to 3,100 of 4,700 of their stores. 1,600 of these stores will offer one-day click and collect.
These new services offered by Walmart and Amazon are very expensive for them to implement. It is costing Amazon $800 million to offer the free one-day shipping to its members. $215 million will be spent by Walmart to catch up to Amazon.