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Walmart Shipping Pass will compete with Amazon Prime; Unlimited Shipping Program aims to get more loyal customer

May 28, 2015 10:17 AM EDT

Walmart's Shipping Pass offers half the membership fee Amazon Prime is charging its customers. Its unlimited shipping program could strenghten customer loyalty and online presence. 

The waitlist sign-up page initially advertise $1 a year unlimited shipping for Shipping Pass when the internal link showed up in several budget deal websites. However, the premium is supposed to be $50 as it shows now.  External testers who signed up for $1 Shipping Pass was sent an email to clarify the confusion and was credited with $50 eGift. Aside from unlimited shipping, Shipping Pass features 3-day delivery, curbside pickup and home delivery options within the US. Walmart's website currently shows that purchases above $50 will have free shipping. 

Shipping Pass is scheduled to be launched this summer and its set to compete with Amazon Prime.  Amazon's annual membership fee is $99 while Shipping Pass offers $50. Amazon's extensive online products reach due to its longer online existence has proven to be a big edge over its competitors as its offer includes unlimited video and music streaming paired with free two-day shipping. Its packaged shipping program has increased online purchases from its members to maximize their subscription fee which lessens the chances of buying from different online retailers.

Earlier this month, reports confirmed that Walmart is developing an ecommerce platform targeting market leadership over its competitors. Other ecommerce enabled enterprises are also making moves to attract more customers. Target recently reduced its $25 minimum purchase requirement for online purchases which is lower than Amazon and Walmart. On the other hand, Amazon offers something more with free video and music streaming along with a faster shipping of 2 days.

Walmart's Shipping Pass would likely take the place somewhere between Amazon and Target considering it's a newly developed ecommerce program. Soon, Walmart will need to find its edge over Target and Amazon.