• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
RetailE-commerce

Wal-Mart will test new subscription service to rival Amazon’s Prime

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
May 13, 2015, 6:25 PM ET

Wal-Mart Stores (WMT) is developing a new tool to fight back at Amazon.com (AMZN). The world’s largest retailer will start testing a new unlimited shipping service this summer that will cost half what the online giant’s Prime service does.

Wal-Mart will charge customers $50 a year for a service that will deliver online orders at no additional cost within three days, Ravi Jariwala, a company spokesman, told Fortune. The initiative was first reported by The Information.

The test comes as Wal-Mart, one of the biggest online retailers with nearly $13 billion in e-commerce sales last year, looks to re-accelerate its digital growth. In its most recently reported quarter, digital sales rose 18%, a slower pace than for the year as a whole.

Wal-Mart will report first-quarter earnings next Tuesday.

The subscription service will be available by invitation only at the outset and will include around 1 million items, a fraction of the 7 million available online. Jariwala said customer feedback would guide any next steps, including a bigger roll-out in the future.

Amazon has used Prime as a powerful tool to lure millions of new customers and build loyalty. Without a similar program, Wal-Mart has likely found it difficult to compete in an era when online sales are critically important.

Unlike Prime, which costs $99 a year, Wal-Mart’s service will not include free video and music streaming, free digital books or photo storage, which Amazon does.

Wal-Mart and Amazon are also preparing to compete in another e-commerce arena, online grocery orders. Amazon already sells online groceries in a number of markets while Wal-Mart has a similar test underway.

For more about Wal-Mart, watch this Fortune video:

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.