Retail

Sam's Club Quietly Tests Subscription E-commerce Program

walmart-store-front-blue
courtesy of Wal-Mart Stores Inc.
In a swipe at Amazon.com Inc. (NASDAQ: AMZN) and Target Corp. (NYSE: TGT), Wal-Mart Stores Inc. (NYSE: WMT) last October quietly launched a subscription service to members of its Sam’s Club stores that allows those members to receive free shipping on about 700 items. Under these programs, members are able to place orders on frequently used items and have them shipped free every one to four weeks.

Though a Sam’s Club spokeswoman denies it, the subscription program could be a challenge to Amazon Prime:

This isn’t a specific strategy targeted at Amazon Prime, but one of the ways we are looking to maximize Samsclub.com and the intersection of bricks and clicks to stay relevant to our members’ evolving shopping habits.

Walmart is also testing online sales of groceries, according to a report at the Internet Retailer website.

Unlike Amazon or Target, Sam’s Club members do not get a discount on items they purchase through the service. Amazon offers a 15% discount on monthly orders for five or more items. Target offers free shipping and a 5% discount to customers who use a Target credit card.

The most popular items customers are ordering from Sam’s Club are diapers, wipes, training pants, baby formula and baby food. Among business customers, printer ink and toner are the most popular.

Recent evidence shows that most consumers are not interested in ordering online and then dropping by the brick-and-mortar store to pick the items up on the same day. At one time that seemed like a natural extension of e-commerce, but customers do not appear to agree. Free shipping and great customer service are seen as the drivers for e-commerce.

Are You Ahead, or Behind on Retirement? (sponsor)

If you’re one of the over 4 Million Americans  set to retire this year, you may want to pay attention.

Finding a financial advisor who puts your interest first can be the difference between a rich retirement and barely getting by, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been carefully vetted, and must act in your best interests. Start your search now.

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.