Retail giant Wal-Mart applied Monday for permission from the US Federal Aviation Administration (FAA) to test drones for home delivery and pick up, as well as checking warehouse inventory.

According to Reuters, this means Wal-Mart is planning to take on Amazon in using drones to deliver orders from online transactions. The retail firm has been conducting test using small unmanned aircraft for several months now. It will use drones made by China's SZ DJI Technology Co Ltd.

According to BBC News, some of the tasks that drones can perform include dropping off products in car parks for Wal-Mart customers, determining what trucks contain by inspecting the digital tags, and direct delivery to houses (as long as the customer gave permission).

A report from CIOL writes that Amazon has already made successful pilot operations for its drone delivery projects and it seems to all be going well. Wal-Mart seems to follow suit soon.

Amazon, Google and other companies are now testing drones to do their delivery service. With Wal-Mart joining the list the FAA is expected to establish rules concerning the widespread commercial use of drones.

FAA Deputy Administrator Michael Whitaker announced in June that they will finalize regulations in the next 12 months. Currently, the commercial use of drones is illegal, but companies can apply for special exemptions.

Wal-Mart's application could be fast tracked if it similar to other successful applicants. Otherwise, it may set precedent on issues that could lead to exemptions in the FAA regulations for commercial use of drones.

"Drones have a lot of potential to further connect our vast network of stores, distribution centers, fulfilment centers and transportation fleet," said Wal-Mart spokesman Dan Toporek. "There is a Walmart within five miles of 70 percent of the U.S. population, which creates some unique and interesting possibilities for serving customers with drones."

Wal-Mart has projected a decline in earnings for 2016, which is why finding a more effective way to store, transport, and deliver goods has become very important for the retailer.