Wal-Mart Stores, Inc. (NYSE:WMT) plans to rival Amazon.com, Inc. (NASDAQ:AMZN) with the launch of a new delivery system that costs less. Wal-Mart will launch a service that costs $50 a year, almost half the cost of the Amazon service. Prime goes for $99 a year, but is filled with other perks. eBay Inc (NASDAQ:EBAY) isn’t taking a back a seat in the race to entice more buyers either. The company is reportedly working on a service that will challenge Amazon Prime as well.
New players might be able to compete with Amazon Prime when it comes to quick product delivery and low prices. It will be interesting to see if they will be able to offer any additional benefits like video streaming and book rentals that continue to attract more buyers.
eBay has lagged behind in online retail and says that by reinventing its service, it should be able to compete better against the other players. The spinoff of PayPal also leaves the firm in dire need of more avenues for growth. Amazon is still set to hold the upper hand on the shipping front as its offers more features.
Amazon guarantees delivery of any orders in less than two days while Wal-Mart Stores plans to deliver the same in less than three days. Amazon has an advantage due to its warehouses across the nation. Buyers will also be limited to one million items with Walmart as opposed to more than 20 million available on Prime.
There is no doubt that Amazon holds the upper hand on this front having offered the same service for more than ten years. Wal-Mart and Ebay are only getting started and may struggle to play catch-up. Prime has over 40 million users, a dig-in bonus that other players will find hard to compete with.
Wal-Mart hopes to gain an advantage on cost, which should be more enticing to buyers who do not care much about the time it will take for them to get their orders. The retail store plans to improve the service with more perks in the future as it looks to compete with Amazon and eBay.
An eBay Prime-like service will debut in Germany and promises to offer fast, free shipping for only $17-$22 a year at the lowest level. The firm also plans to offer discounts on fees as one of the ways of enticing more buyers to join.