Walmart’s Plan to Take on Amazon Prime Proceeds

NEW YORK (TheStreet) -- A leaked internal link has revealed more details about Walmart's (WMT) plan to compete with Amazon (AMZN) Prime and create its own unlimited shipping program.

Reports of the program first surfaced earlier this month courtesy of The Information's Amir Efrati, who learned of the project codenamed "Tahoe." Walmart then confirmed the report, saying that it will charge $50 a year for its fast-shipping subscription service.

Now, new information has been revealed thanks to a slip-up internally. For a brief time, an internal test link for the program went live to the public, allowing shoppers to sign up and make purchases through the program.

Once Walmart realized what had happened, the company quickly took down the link and replaced it with a waiting list. Consumers who had signed up and made purchases received apology emails, offering them $50 eGift cards and promising to ship the items already purchased at no additional cost.

During the snafu though, TechCrunch was able to glean some more information on Walmart's upcoming program:

  • The program is called ShippingPass
  • It will offer three-day shipping for orders placed before noon (Amazon's still in the lead there)
  • Items that are eligible for three-day shipping will be identified by a ShippingPass badge
  • The service also includes free shipping on certain items that won't ship in three days and will instead arrive in 4-6 days
  • There will be no minimum basket order to be eligible for ShippingPass
  • The service will only be available in limited geographic areas at the start. Among the places ineligible for the service: Alaska, Hawaii, Puerto Rico, and other U.S. territories. Nor will Walmart ship under this program to customers with P.O. Boxes in the continental U.S.

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