Walmart drops the $35 order minimum on its 2-hour ‘Express’ delivery service

In a move designed to directly challenge Amazon, Walmart today announced it’s dropping the $35 minimum order requirement for its two-hour “Express” delivery service, a competitor to Amazon’s “Prime Now.”  With Walmart Express Delivery, customers can order from Walmart’s food, consumables or general merchandise assortment, then pay a flat $10 fee to have the items arrive in two hours or less.

The service is useful for more urgent delivery needs — like diapers or a missing ingredient for a recipe, SVP of Customer Product, Tom Ward, noted in an announcement. They’re not meant to sub in for larger shopping trips, however — Express orders are capped at 65 items.

Today, Express Delivery is available in nearly 3,000 Walmart stores reaching 70% of the U.S. population, Walmart says. It builds on top of stores’ existing inventory of pickup and delivery time slots as a third option, instead of giving slots away to those with the ability to pay higher fees.

Like Walmart’s grocery and pickup orders, Express orders are shopped and packaged for delivery by Walmart’s team of 170,000 personal shoppers and items are priced the same as they are in-store. This offers Walmart a potential competitive advantage against grocery delivery services like Instacart or Shipt, for example, where products can be priced higher and hurried or inexperienced shoppers aren’t always able to find items or search the back, having to mark them as “out of stock.”

In theory, Walmart employees will have a better understanding of their own store’s inventory and layout, making these kind of issues less common. It will also have direct access to the order data, which will help it better understand what sells, what replacements customers will accept for out-of-stocks, when to staff for busy times, and more.

In addition to grocery delivery, Express Delivery competes with Amazon’s Prime Now, a service that similarly offers a combination of grocery and other daily essentials and merchandise. Currently, Prime Now’s 2-hour service has a minimum order requirement of $35 without any additional fees in many cases — though the Prime Now app explains that some of its local store partners will charge fees even when that minimum is met, and others may have higher order minimums, which makes the service confusing to consumers.

Walmart’s news comes at a time when Amazon appears to be trying to push consumers away from the Prime Now standalone app, too.

When you open the Prime Now app, a large pop-up message informs you that you can now shop Whole Foods and Amazon Fresh from inside the Amazon app. A button labeled “Make the switch” will then redirect you. Meanwhile, on Amazon’s website touting Prime’s delivery perks, the “Prime Now” brand name isn’t mentioned at all. Instead, Amazon touts free same-day (5 hour) delivery of best sellers and everyday essentials on orders with a $35 minimum purchase, or free 2-hour grocery delivery from Whole Foods and Fresh.

When asked why Amazon is pushing Prime Now shoppers to its main app, Amazon downplayed this as simply an ongoing effort to “educate” consumers about the option.

Walmart, on the other hand, last year merged its separate delivery apps into one.

After items are picked, Walmart works with a network of partners, including DoorDash, Postmates, Roadie, and Pickup Point, as well as its in-house delivery services, to get orders to customers’ doorsteps. This last-mile portion has become an key area of investment for Walmart and competitors in recent months — Walmart, for example, acquired assets from a peer-to-peer delivery startup JoyRun in November. And before that, a former Walmart delivery partner, Deliv, sold to Target.

This is not the first time Walmart has dropped order minimums in an attempt to better compete with Amazon and others.

In December, Walmart announced its Prime alternative known as Walmart+ would remove the $35 minimum on non-same day Walmart.com orders. But it had stopped short of extending that perk to same-day grocery until now.

To some extent, Walmart’s ability to drop minimums has to do with the logistics of its delivery operations. Walmart has been turning more its stores into fulfillment centers, by converting some into small, automated warehouses in partnership with technology providers and robotics companies, including Alert Innovation, Dematic and Fabric.

And because its stores are physically located closer to customers than Amazon warehouses, it has the ability to deliver a broad merchandise selection, faster, while also turning large parking lots into picking stations — another thing that could worry Amazon, which is now buying up closed mall stores for its own fulfillment operations. 

Walmart today still carries a $35 minimum on other pickup and delivery orders and same-day orders from Walmart+ subscribers.

#amazon, #ecommerce, #food, #grocery-store, #instacart, #prime, #prime-now, #retailers, #shipt, #target, #united-states, #walmart, #whole-foods

0

Amazon Prime Video finally launches user profiles to all customers worldwide

Amazon’s Prime Video is finally adding a feature that’s long since become a standard for streaming video services: user profiles. With profiles, Prime Video users will have access to their own Watchlist, personalized recommendations, and they’ll be able to track their own viewing progress, similar to rival services, like Netflix.

Customers can create up to 6 profiles for their household members, including 1 primary profile associated with the Amazon account, plus 5 additional profiles, which can be a mix of adult and kids’ profiles.

The new profiles will be first available in the Prime Video app on iOS, Android, Fire tablet (Gen 10 and higher), and the Fire TV Prime Video app, in addition to the Prime Video apps built for other living room devices.

Prime Video profiles were spotted earlier this year by NDTV, which led to some erroneous reporting that the feature had officially launched to all. In actuality, Amazon first rolled out profiles to its customers in India and Africa. It’s now making it accessible to all worldwide, including the U.S.

Image Credits: Amazon

For any profile set as a “Kids” profile, the service will only include age-appropriate content aimed at those 12 years old or younger. The search results and search suggestions will also be filtered to only show Kids titles. Children with a Kids profile won’t be able to make purchases, either.

Meanwhile, any adult profile will be able to play all the entitled Prime Video content form the primary account, including content that has been purchased or rented, Prime Video titles, Prime Video Channels, and Live content.

However, if the adult wants to set up parental controls on their account so this content is not accessible on a shared device, like the living room TV, they can do so. In this case, viewing restrictions will be enabled but parents can enter a PIN code to access the content, as they can now.

Parents can also continue to block children from making purchases from an adult profile by enabling Purchase Restrictions under Prime Video Settings, which will also require a PIN to complete the transaction.

The one exception to how child profiles work is on mobile devices. The Prime Video app will allow a child profile to access the adult profile’s downloads on mobile — a decision Amazon made because it didn’t want to restrict access to downloads if the device was taken offline, making it impossible to profile switch.

In addition, for customers that have set up wallet-sharing in their Amazon Household settings, Prime Video will automatically create profiles for those users. This can be disabled from the Manage your profiles page, but once profile sharing is off, it can’t be re-enabled.

The lack of user profiles have been, to date, one of the bigger oversights with Amazon’s Prime Video streaming service, first launched in 2011, and a much-requested feature for years. Today, streaming services don’t just compete on their content library but on how well they can surface the titles from that library by way of personalized recommendations and other tools that keep a user’s favorites and interests easily accessible. But Prime Video ignored this need, forcing all members of a household to share a single account. That choice told customers that even Amazon itself didn’t consider Prime Video a true competitor to other top services, like Netflix, Hulu and Disney+.

It’s finally correcting this matter, but only as the streaming market crowds with new offerings, like recently launched HBO Max and NBCU’s forthcoming Peacock, for example.

Amazon cautions that user profiles are being launched today, but not everyone will see them immediately. The feature is rolling out in phases, so you may see them arrive in a few days’ time, if not today.

#amazon, #amazon-prime-video, #cord-cutting, #media, #prime, #prime-video, #streaming, #streaming-service

0