Walmart’s Latest Jab at Amazon: Discounts for In-Store Pick-Up19 Apr, 2017 By: Doug McPherson
BENTONVILLE, Ark. – Walmart continues to take jabs at Amazon with its latest offering: a discount on merchandise that customers buy online and have shipped to a Walmart store for pickup. In industry lingo: buy online, pickup in store (BOPIS).
Analysts say BOPIS for Walmart leverages its vast store and delivery networks and expanding online capabilities – something Amazon is not in a position to do.
The program will initially be available for about 10,000 items, but will be expanded to more than 1 million of the chain’s most popular items by the end of June.
Walmart.com users will see items with a “pickup discount” note that can be shipped to their local store. The shoppers will then receive a discount based on each individual item.
Walmart offered examples: Lego City Great Vehicles Ferry, which sells for $23.99, will have a pick-up discount of $2.55; a Britax infant car seat that sells for $148.05 will have a discount of $7.40; and a Vizio television that costs $1,698 will be discounted $50.
The service is powered via “smart cart” technology developed by Jet.com, the e-commerce retailer Walmart bought last fall. It promises to accelerate the already intensified shipping and pricing wars between Walmart and Amazon. In a move to counter Amazon Prime, Walmart recently eliminated its ShippingPass program in favor of a free two-day shipping program.
Analysts add it’s a smart move because the “last-mile delivery” makes up nearly 30 percent of the costs of delivery alone.
And it appears consumers will bite on BOPIS. A recent Kibo study asked 3,000 consumers what they look for in terms of fulfillment and one of the top answers was savings on shipping costs. In fact, it overtook getting the product at the time the consumer wants it.
Nearly half of consumers said they would remain loyal to a retailer if BOPIS is available and 66 percent said providing multiple fulfillment options, such as BOPIS, would drive them to complete their purchases.