Wal-Mart and Target Aim to Compete with Amazon During This Holiday Season

  • Wal-Mart announced plans for a 32,000 sq ft cashier-less “Sam’s Club Now” store
  • Target and Wal-Mart will offer free shipping November 1 – December 22
  • Wal-Mart will accept returns from third party merchants at physical locations
Amazon’s competition is innovating and making news too. For example, Wal-Mart announced that they will be opening their first cashier-less store: Sam’s Club Now. The shopping experience will work by having customers scan the items that they want before tossing them in their shopping cart. Once the customer is finished, a Sam’s Club employee will scan their phone and the customer can leave.
Another way Amazon’s competition hopes to combat Amazon is with free shipping. From November 1 – December 22, both Wal-Mart and Target are offering free 2-Day shipping with no membership required. Both retailers have created shopper memberships that include a free shipping option, but this year they will be banking on enticing shoppers without the need for a membership. To help increase its ability to fulfill 2-Day shipping, Wal-Mart is partnering with third party (3P) merchants. Wal-Mart will also be accepting returns of 3P products at their physical stores during this period. This service is similar to Amazon’s Seller Fulfilled Prime Program, which gives 3P sellers access to Amazon’s logistics system and reduced shipping rates.
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