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2 reasons why it may be time to release Amazon Prime – The Motley Fool




Amazon (NASDAQ: AMZN) has set the standard for the delivery of online orders. The company made the two-day shipping norm, and now it leads the way to the next day delivery, forcing its top rivals, Walmart (NYSE: WMT) and Target (NYSE: TGT) to follow.

The company has been the leader and it has offset its costs by making people pay for the privilege of getting two days (and now a day) shipping through its primary membership. The $ 119 per year or $ 12.99 per month subscription award gives members unlimited two-day delivery of over 1[ads1]00 million items along with other benefits.

It was very good for a very long time, but it can no longer be necessary. Many premiere members can drop the service and not really lose anything.

  An Amazon Prime tractor trailer.

Amazon has real competition in delivery from Walmart and Target. Picture source: Walmart.

1. Walmart is aggressive

Walmart's digital team, led by Jet.com boss Marc Lore, has confirmed that it cannot compete with Prime. To make its offer attractive, Lore took the bold step of making Walmart's two-day delivery free of charge to people who place $ 35 or more qualifying orders.

It's not as convenient as being able to order in whatever quantity you want from Amazon. However, it is a good deal because consumers do not have to pay an annual or monthly fee. Walmart offers just a few million items – basically 100 million or fewer than Amazon – but at least some people are more than enough.

Walmart also plans to improve its delivery time to one day, and it has been testing to deliver groceries right to the consumer's refrigerator. The retail giant has not bested Amazon, but it has a decent selection if you can order in $ 35 increments – and free of charge is appealing.

2. Goals Go the Same Day

Goals have been behind Walmart and Amazon when it comes to offering two-day delivery for free. It has a similar offer to Walmart, with an order minimum of $ 35, but it only offers a selection of a few hundred thousand items. (Holders of the company's REDcard do not need to beat minimum.)

Where Target offers a true alternative to Prime, the same delivery offer on the same day through its Shipt service. The dealer offers a four-week free trial for Shipt, which costs either $ 99 a year or $ 9.99 per order.

The company offers a robust range of groceries and household items for the same day (sometimes close) delivery. Of course, Amazon offers delivery on the same day from Whole Foods and for Prime members in some markets, but Target's store base gives it an edge in this area.

Do you need Amazon Prime?

The Amazon edges are in selection and convenience. State members can get pretty much everything they want in two days and soon to be one day. That means they can book without planning and get the goods to come home for two days (and finally one).

These may not be great benefits compared to Walmart and Target's offers. Walmart basically offers Prime with lesser choices and a $ 35 minimum free, while Target pushes limits in the same day.

It is possible that many Prime fans will not be tempted, but for people on the fence, Walmart and Target have compelling offers. Amazon still has a good deal, but it is certainly no longer the only game in town.



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