Walmart is launching their own version of Amazon Prime, dubbed Walmart+, on September 15. Below we've listed everything you need to know about the new service to help you decide whether to sign up for it or not.
This brand new, paid-membership will compete with Amazon Prime by offering exclusive deals and perks, as well as free delivery. Walmart+ costs $98 per year, or $12.95 per month; however, you can also snag a free 15-day trial before fully committing.
Perks of Walmart+ includes the following:
Perhaps the most obvious place where Walmart+ beats Amazon Prime is the price. Since Walmart+ costs only $98 per year, it already has a leg up over Prime, which currently costs $119 per year. By keeping the price under $100, Walmart is opening the door to new customers not ready to spend over $100 a year on a free delivery service. Even the price of Walmart+ per month is slightly cheaper, $12.95 vs. Prime's $12.99 monthly fee -- though in either instance it's cheaper to shell out for the yearly subscription in the long run.
It's no secret that Amazon boasts thousands upon thousands of items on their site. You can get anything from auto parts to groceries. However, Walmart+ will seek to compete with Amazon by offering exclusive deals on prescription medication, which Prime cannot offer. In addition, members will also save on gasoline at participating gas stations, which Amazon cannot offer either.
Though Amazon does offer groceries, Walmart+ has a chance to really out-preform AmazonFresh in the grocery market. Due to their physical presence nationwide, Walmart will be able to offer groceries at a much lower price than Amazon. Some rumors even state that you'll be able to text Walmart your grocery order and receive them within an hour or so.
One area in which Walmart+ may fail to really take root is in the fact that Walmart and Amazon shoppers are very different. A recent ShopperScape survery found that the average household income for a Walmart shopper is around $76,000 per year, compared to the $84,000 average for Amazon shoppers. Typically the lower end, middle-income households shopping at Walmart are not interested in paying for shopping club subscriptions. Plus, with a Walmart in nearly every neighborhood nowadays, the average Walmart shopper may prefer to go to the actual store to get what they need.
If Walmart+ is solely a delivery service, then it may fall short to consumers.
Another potential issue where Walmart+ may fail is in the fact that Amazon Prime offers much more than just free delivery. With your Prime subscription, you have access to Prime video and music, both of which offer unlimited streaming of popular and original content. Prime also offers other exclusive features such as unlimited photo storage through Prime photos and more. If Walmart+ is solely a delivery service, then it may fall short to consumers.
What do you think of Walmart's new service? Do you think it has the potential to compete with Amazon Prime? Let us know in the comments below.