Walmart flexes approach for on-demand delivery

Date : 01 March 2021

Stewart Samuel

Program Director - Canada

Walmart has removed the $35 minimum order requirement for its Express delivery programme, bringing in a new $10 additional flat fee for the service.

Available at over 3,000 stores

Walmart launched the Express delivery service last May, enabling customers to receive their orders in as little as two hours. Over the last nine months, this has been expanded to almost 3,000 stores, reaching 70% of the US population. The change will see customers pay an additional $10 on top of the existing delivery charge, typically $7.95 or $9.95. The minimum spend will remain in place for store pickup orders, regular delivery and free delivery for Walmart+ members.

Source: Walmart

Supporting profitability

The retailer noted that most customers use this service for distress purchases and items they require in a hurry. Often, these items did not reach the minimum spend requirement. This change positions on-demand delivery as a premium service. This will also support the profitability of the service, especially if most are small-basket orders.

Aligning with other on-demand services

This change comes as ecommerce continues to experience unprecedented demand. With many of Walmart’s competitors working with on-demand companies such as Instacart and Shipt, which offer two-hour delivery, this approach aligns more closely to their models. This type of service will be relevant to customers where convenience and speed of delivery are among the most important considerations.

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