Wal-Mart To Test Unlimited Two-Day Shipping, But Is It Too Little, Too Late

Wal-Mart Stores, Inc. WMT is looking for new ways to compete with online giant Amazon.com, Inc. AMZN and the new unlimited two-day shipping is part of that effort. But, here is the million question -- "is it too little, too late." Wal-Mart has deployed a two-day delivery offering through its ShippingPass e-commerce subscription program, according to WSJ. It has cut its shipping time by one day to go head-to-head with Amazon Prime, which boasts two-day delivery service. http://www.wsj.com/articles/wal-mart-bets-on-free-two-day-shipping-1463045580 The price of the e-commerce subscription is also cut to $49 from $50 a year versus Amazon Prime, which costs $99 annually. The price cut positions Wal-Mart competitively versus Amazon. But, analysts at Cantor Fitzgerald said the Amazon offers more incentives for $99, including streaming videos. "ShippingPass is still in beta and is available only in select markets," analysts at Cantor Fitzgerald wrote in a note. Currently, Wal-Mart runs eight fulfillment centers that support online sales as well as its 4,500+ retail stores. The company is also planning to create a regional delivery network by partnering with regional delivery firms to provide faster and cheaper delivery. Wal-Mart is not alone in the market as other retailers are also trying out free-shipping programs. Rival Target Corporation TGT provides free shipping to customers when they pay with its loyalty debit or credit cards and Overstock.com, Inc. OSTK has a $20-a-year free shipping program. Shares of Wal-Mart were up 0.82 percent to $65.47.