Wal-Mart to test new unlimited shipping service at $50 a year

Walmart Stores Inc plans to test a new unlimited shipping service for online shoppers this summer that would be priced lower than Amazon's widely popular $99-per year Prime service.

Walmart, the world's largest retailer, told The Associated Press yesterday that the shipping subscription service would cost customers $50 a year with deliveries being made within three days.

Walmart offers a grocery delivery and pickup service in five markets, however the unlimited shipping programme marked a substantial commitment and underscored how serious the retailer was about accelerating the growth of its online business, which had seen a slowdown.

According to Walmart spokesman Ravi Jariwala, the offering was in response to increasing demands from customers who were looking for predictable and affordable shipping.

It also formed part of Wal-Mart's overall strategy to test new ways to serve customers who were increasingly researching and buying online and were looking for convenience.

According to Jariwala, the service would be available by invitation only for now and it would offer more than a million top-selling items from toys to electronics. The retailer's site sells over 7 million products.

According to Jariwala, depending on  customer feedback the retailer would see how the programme evolved.

According to commentators, the move underscored Walmart's efforts to rapidly scale its online business rapidly gain a share of a market dominated by Amazon.

Amazon launched Prime a decade ago at  $99-a-year. The service guaranteed standard, reliable two-day shipping on online orders.

Since then, Prime had emerged the cornerstone of Amazon's growth and the e-commerce company said US Prime memberships grew 50 per cent last year.