Walmart Ends $35 Order Minimum for Express Delivery

Walmart Challenges Amazon with Expanded Express Delivery

Walmart has announced the removal of its $35 minimum order requirement for its “Express” delivery service. This move is a direct response to Amazon’s “Prime Now” offering, aiming to provide customers with quicker access to essential items.

With Walmart Express Delivery, shoppers can now receive orders of food, household goods, or general merchandise within two hours for a flat $10 fee. This service caters to immediate needs, such as forgotten ingredients or urgent supplies.

Service Details and Availability

Currently, Express Delivery is available in approximately 3,000 Walmart stores, reaching 70% of the U.S. population. It functions as a third delivery option, complementing existing pickup and delivery time slots.

Orders placed through Express Delivery are capped at 65 items, intended for smaller, more immediate purchases rather than full grocery shopping trips.

Competitive Advantages

Walmart utilizes its team of 170,000 personal shoppers to fulfill and package Express orders. Importantly, prices for these items remain consistent with in-store pricing.

This approach provides a potential advantage over services like Instacart or Shipt, where product markups can occur, and shopper familiarity with store layouts may be limited, potentially leading to “out of stock” issues.

Walmart employees are expected to have a superior understanding of store inventory and layout, minimizing these problems. Furthermore, direct access to order data will refine inventory management and staffing decisions.

Comparison with Amazon Prime Now

Express Delivery directly competes with Amazon’s Prime Now, which also offers a mix of groceries and everyday essentials. Prime Now often maintains a $35 minimum order for free delivery, though fees may apply depending on the local store partner.

Amazon is currently encouraging users to transition from the standalone Prime Now app to the main Amazon app, integrating Whole Foods and Amazon Fresh shopping within the primary platform.

Shifting Strategies

Amazon’s website no longer prominently features the “Prime Now” brand, instead highlighting same-day and 2-hour grocery delivery options through Prime.

Amazon attributes this shift to ongoing efforts to inform consumers about available options, while Walmart consolidated its delivery apps into a single platform last year.

Last-Mile Delivery Network

Walmart partners with companies like DoorDash, Postmates, Roadie, and Pickup Point, alongside its in-house delivery services, to manage the final stage of delivery.

Recent investments, such as the acquisition of assets from JoyRun, demonstrate Walmart’s commitment to optimizing its last-mile delivery capabilities.

Previous Minimum Order Adjustments

This isn’t the first instance of Walmart reducing order minimums to enhance its competitive position. In December, the $35 minimum was removed for non-same day Walmart.com orders for Walmart+ subscribers.

However, this perk was not previously extended to same-day grocery delivery until this recent announcement.

Logistics and Fulfillment Centers

Walmart’s ability to lower minimums is linked to its evolving logistics infrastructure. The company is transforming stores into fulfillment centers, utilizing automation and robotics technologies.

The proximity of Walmart stores to customers, compared to Amazon warehouses, enables faster delivery of a wider range of merchandise. Parking lots are also being repurposed as efficient picking stations.

Walmart maintains a $35 minimum for other pickup and delivery orders, as well as same-day orders for Walmart+ members.

Early Stage Event Announcement

Early Stage is a leading event designed for startup entrepreneurs and investors. Attendees will gain insights from successful founders and venture capitalists regarding business development, fundraising, and portfolio management.

The event covers all facets of company building, including fundraising strategies, recruitment processes, sales techniques, legal considerations, public relations, marketing, and brand development.

Each session incorporates audience participation, providing ample opportunity for questions and discussion.