Walmart is one of the largest companies in the country, offering an assortment of convenient products at affordable prices. Because it’s so easily accessible to most of the nation’s population, it’s not hard to find the retailer and fulfill immediate shopping needs.
As if their current offerings weren’t enough, Walmart is now set to launch Walmart Plus, a membership program that adds even more convenience to the modern consumer’s daily routine. In this article, we’ll define Walmart Plus and discuss why it was officially announced.
Let’s Define Walmart Plus
Walmart Plus is a new membership program that provides in-store and online benefits, with ways for consumers to save even more money. Some of the major perks include unlimited free delivery from stores, discounts from certain gas stations, and savings on tech, beauty, and sports products.
Consumers officially gained access to the platform on September 15, 2020, when we were allowed to create an account for the first time. If anyone is hesitant to commit to a membership, there’s a free 15-day trial available for all consumers.
Currently, service costs $98.00 per year, or $12.95 per month. Customers who are already enrolled in Walmart’s Delivery Unlimited service will be transferred to Walmart Plus automatically.
Walmart Plus Is a Direct Competitor to Amazon Prime
Amazon is a direct competitor for Walmart, so the rollout of Walmart Plus means there is even more competition between. Amazon is currently dominating the market with 38% of all online sales, while Walmart is a distant second at 5%.
Walmart has made other notable attempts to compete with Amazon in the past. In 2015, the company introduced ShippingPass, which was an unlimited online shipping service that would cost consumers $50 per year, and deliveries were guaranteed within three days.
Since this program didn’t have the same competitive weight as Amazon, Walmart dropped the membership fee and switched to free 2-day shipping on orders of $35 or more. The new method was well-received by consumers, competing with other brick-and-mortar brands like Target.
Amazon and Walmart continued with their competition throughout 2019, when both companies announced plans to offer 1-day shipping. Walmart upped the competition by announcing a 2-hour express delivery service for an additional $10.
With the release of this new membership program, Walmart could increase its online market share and gain some ground on Amazon. Some other stores like Giant Eagle offer fuel perks, but Amazon has yet to announce similar deals. For Walmart, the hope is that these types of benefits will make their program more appealing than systems like Amazon Prime.
What Are the Benefits of Walmart Plus?
Now that Walmart Plus is officially dropping in the soon, let’s examine all the perks the program will offer, as we compare Walmart Plus to Amazon’s membership program.
There is unlimited free delivery.
Consumers who subscribe to the membership will receive same-day delivery on more than 160,000 items. This includes the following categories:
- Household Essentials
Take part in scan-and-go.
Walmart will not only have a more competitive edge on an online platform, but it also has an advantage in the brick and mortar stores. Using the Walmart app in a physical location, customers can scan their items as they shop. They’re also able to make purchases using Walmart Pay for easy touch-free transactions.
Take advantage of fuel discounts.
Walmart Plus customers can save up to 5 cents per gallon at nearly 2,000 Walmart, Murphy USA, and Murphy Express gas stations. Sam’s Club, Walmart’s sister store, will also provide discounts at its gas stations.
What perks are your favorite in the new Walmart Plus program? We’d love to know your thoughts, and to learn what consumers and advertisers want from Walmart’s innovative teams.
Walmart Plus adds to the competitive advantage so many businesses seek daily. Walmart is the closest competitor to Amazon in America, though there is a wide gap between first and second place.
If you’re an advertiser who represents brands advertising on Walmart, this could be an effective program that indirectly helps sales. As time progresses and we see the overall effect this new program has on Walmart’s place in the retail competition, we’ll be able to develop a more secure analysis about the actions to take as a result.
What are your thoughts on the release of Walmart Plus? How do you think it could help you as a business or a consumer? We’d love to hear what you’re thinking. Reach out to us if you’d like to speak with a Walmart ads agency.