Retailers Offer One-Day Shipping During Holidays To Compete With Amazon


Retailers are driving up the competition as multiple companies announced that they were offering one-day shipping.

Walmart and Target are offering one-day shipping during the holidays to compete with Amazon’s one-day shipping, according to The Wall Street Journal.

It’s officially the holiday season and many people will be scrambling for gifts in the next few weeks. To attract these procrastinating holiday shoppers, retailers are offering one-day shipping options to drive up the competition for Amazon.

“Some people plan ahead, but some might not—like myself,” said Dr. Jeff Chin, a physician in the San Francisco Bay Area. “You think of someone to get a gift for last minute, and if it comes the next day, it’s that much easier.”

Amazon, in just the fourth quarter, is spending $1.5 billion in the process of expanding its free one-day shipping option. “We’re adding new transportation capacity and putting more selection in fulfillment centers closer to customers,” said Maria Renz, Amazon’s vice president of global delivery experience.

Many traditional retailers have been decimated by Amazon in recent years as consumers prefer the convenience and quicker deliveries. However, Walmart Inc. and Target Corp. have stood their ground by increasing their delivery capabilities and offering same-day pickup at their stores. In their quarter earnings report, both companies stated that digital sales and foot traffic increased.

Walmart and Target are offering free one-day shipping on orders that are $35 or more. The two companies offer fewer products than Amazon as Walmart’s one-day delivery program covers 220,000 items and Target’s covers between 100,000-150,000 products.

Walmart and Target are offering free one-day shipping as they ramp up competition for Amazon during the holiday season.

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Economics, Finance and Investing