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Walmart Rollout of Next-Day Delivery Steps Up Pressure on Rivals

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Walmart Steps Up Pressure on Fast Shipping with Next-Day Rollout

Walmart is rolling out next-day delivery beginning in Phoenix, Las Vegas, and Southern California, with plans to reach approximately 75% of the US population this year. The move follows on the heels of Amazon’s recent rollout of 1-day delivery.

The moves from the two retail giants puts greater pressure on other retailers and marketplaces to provide fast and free shipping.

Announcement by Walmart eCommerce US CEO Marc Lore follows:

When customers shop with us, they expect to find great items at low prices. They also want shopping to be easy and convenient, including getting the items they order online quickly. Our 4,700 stores, site and app combine to create an incredible range of choices for customers.

We started with same-day pickup in our stores in 2011 and began offering two-day free shipping two years ago with no membership fee. But, the most exciting development has been the creation of Grocery Pickup and Delivery. We’re on track to offer Grocery Pickup from 3,100 stores and same-day Grocery Delivery from 1,600 stores by year-end, which will provide coverage to approximately 80% and 50% of the U.S. population, respectively. This has been a game-changer for busy families.

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And, today, to complement our same-day Grocery Delivery, we’re excited to announce a new offering we’ve been working on for a while now. We’re adding free NextDay delivery on a wide range of general merchandise from Walmart.com, without a membership fee. NextDay delivery will be available first to Walmart.com customers in Phoenix and Las Vegas, and will expand to Southern California in the coming days. It will roll out gradually over the coming months, with a plan to reach approximately 75% of the U.S. population this year, which includes 40 of the top 50 major U.S. metro areas.

Walmart’s NextDay delivery offers a stand-alone, curated shopping experience where customers can browse up to 220,000 of the items most frequently purchased, ranging from diapers and laundry detergent to toys and electronics, with more assortment to be added. It is available on eligible orders of $35 or more, with the specific assortment varying by customer location.

Here’s how NextDay delivery works:

  • A customer visits Walmart.com and toggles into the NextDay delivery experience to view items that are eligible for free NextDay delivery.
  • After adding items to their cart, the customer proceeds to checkout. Everything in the cart must be eligible for NextDay delivery to qualify. Cut-off times vary by location.

Our new NextDay delivery isn’t just great for customers, it also makes good business sense. Contrary to what you might think, it will cost us less – not more – to deliver orders the next day. That’s because eligible items come from a single fulfillment center located closest to the customer. This means the order ships in one box, or as few as possible, and it travels a shorter distance via inexpensive ground shipping. That’s in contrast to online orders that come in multiple boxes from multiple locations, which can be quite costly.

We can offer fast, convenient shipping options because we’ve built a network of fulfillment assets that are strategically located across the U.S. We’ve also done extensive work to ensure we have the right products in the right fulfillment centers based on where customers are located and what they’re ordering.

NextDay delivery is a great complement to our same-day Grocery Pickup and Delivery options, and free two-day shipping on millions of items. With the combination of these choices, we’re making every day easier for busy families. And, with 90% of Americans living within 10 miles of a Walmart store, we’re well positioned to offer even faster delivery to customers in the future.

SOURCE: Walmart Announcement

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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