Walmart Free Two-Day Shipping On The Way After It Nixes Its Amazon Prime Rival, ShippingPass

Walmart is getting rid of its ShippingPass subscription, which tried to mirror Amazon Prime, and is offering two-day deliveries without a membership, the company announced Tuesday.

Walmart Two-Day Shipping

Starting Tuesday morning, Walmart customers spending $35 will get free two-day shipping, a decrease from its required $50 purchase minimum.

“In today's world of e-commerce, two-day free shipping is table stakes. It no longer makes sense to charge for it,” said Walmart CEO Marc Lore.

The company’s two-day shipping is available for more than two million items. This includes products that customers shop for the most, such as household necessities like baby and pet products, food, cereal and peanut butter, cleaning supplies and beauty items, as well as electronics and toys, Walmart said.

Walmart ShippingPass Membership Ends

Walmart is getting rid of its ShippingPass service, which offered unlimited two-day shipping for a yearly price of $49. The service was half the amount of Amazon Prime, but failed to take off. Amazon Prime offers more services to customers, such as Amazon Video, music streaming and its photo cloud. Amazon also introduced a credit card that give Prime customers 5 percent back on their purchases with Amazon.

Walmart’s two-day shipping offer makes the ShippingPass membership obsolete.

“Obviously, with this announcement, there is no longer a need for ShippingPass,” said Lore. “ShippingPass was a great way to test what we ultimately wanted to offer customers – free two-day shipping.”

Current ShippingPass members will receive a refund on their membership, the company said.

Walmart continues to offer same-day store pickup at more than 4,600 stores as well as Online Grocery Pickup at more than 600 locations. Walmart added it will expand Grocery Pickup, a service in which customers order and pick up fresh groceries, in the coming year.