BENTONVILLE, Ark.—Walmart now offers free shipping with no minimum purchase for members of its subscription service, CNN Business reports. Walmart+ members no longer have to meet the $35 threshold for free shipping on electronics, toys, clothing and other merchandise. However, groceries will still require a minimum purchase amount.
This fall, Walmart debuted the annual subscription plan, which costs $98 per year. The service offers free next-day and two-day shipping, plus a nickel per gallon discount on fuel and access to scan-and-pay via the Walmart app while shopping in stores.
Analysts predict Walmart’s membership, especially now that it has eliminated a minimum threshold for free shipping, will position the retailer well to compete against Costco, Amazon and other retailers. Amazon Fresh grocery delivery service also has a $35 minimum order for free delivery.
While Walmart will not say exactly how many Walmart+ members it has, CEO Doug McMillon has said the company was “excited about the results.” Last month in a research note, UBS analyst Michael Lasser put the number of Walmart+ members at up to 5 million and predicted the program will hit 10 million with its initial 12 months.