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Walmart Makes Changes to Free Shipping Policy

Walmart is ending its free shipping subscription program ShippingPass in favor of a free two-day shipping policy for purchases of $35 or more for all customers, reports USA Today.

The big-box retailer will end the subscription program, known as ShippingPass, and will lower the threshold for free shipping from $50 to $35, according to the article. Walmart will also shorten the shipping timeframe for orders that qualify for free shipping from four to six days to two days, says USA Today.

“In today’s world of e-commerce, two-day free shipping is table stakes. It no longer makes sense to charge for it,” says Marc Lore, president and CEO of Walmart U.S. e-commerce in the company press release announcing the change.

Walmart launched ShippingPass in 2015 as a competitor to Amazon Prime, according to USA Today. A ShippingPass subscription cost $49 per year, about half the price of an Amazon Prime subscription, which is $99 per year, according to the article. Both programs offered consumers unlimited free two-day shipping.

In July 2016, Walmart promoted a 30-day free trial of ShippingPass to compete with Amazon’s Prime Day, a day that the e-commerce retailer offers steep discounts on items throughout the site.

About Melanie Moul

Melanie is the communications and content manager for the North American Hardware and Paint Association. She joined the NHPA team in 2016 as an editor for Hardware Retailing and now helps lead the communications team to deliver relevant, timely content to the industry.

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