Wal-Mart kicked off a price war last week by slashing costs on high-definition televisions and toys and now it's ready to do battle in round two by offering free shipping on its website.
Starting yesterday (Thursday), Wal-Mart shoppers get free shipping on its Web site, with no minimum purchase. The promotion will run at least through December 20, although Wal-Mart says it might extend it or offer other free-shipping deals.
The offer covers 60,000 gift items, including many toys and electronics. This could be a game changer when you consider how expensive shipping costs can be. They can even wipe out the discount you're already getting.
Wal-Mart isn't alone in using the free shipping weapon. Target and J. C. Penney have also introduced their most aggressive free-shipping programs ever. Meanwhile, Sears, Toys "R Us, Williams-Sonoma and others are matching or trying to match Amazon.com's unlimited two-day free shipping for an annual fee.
Analysts say that Wal-Mart's size and dominance in the marketplace could raise the bar for free shipping in e-commerce. Some think it may be a game changer in which consumers will come to always expect free shipping with no minimums. That they add could make it harder for smaller e-commerce sites to survive.
Amazon.com has been using one "free shipping model for years but it only comes with orders over $25. The Amazon Prime program offers unlimited two-day shipping on almost all purchases but charges $79 a year for it.
Beginning in October, J.C. Penney started offering free shipping year-round, with a minimum purchase of $69 for most of the year. Target is offering free shipping on purchases of $50 and up, on 800,000 items. And in August L.L. Bean began offering free shipping with no minimum, through December 20, same as Wal-Mart's.
