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Walmart vs. Amazon: Walmart offers free trial of 2-day shipping program

Walmart is taking direct aim at Amazon when it comes to free shipping.

Walmart is taking direct aim at Amazon when it comes to free shipping.

The retailing giant announced Wednesday that it is going to offer a free 30-day trial of its ShippingPass, good for unlimited two-day shipping. After the trial period, the price is $49 a year. Customers who already have ShippingPass will get a month free as part of the new offer.

ShippingPass launched last year and is similar to Amazon Prime, which also offers two-day shipping with a 30-day free trial period. Amazon Prime costs more — $10.99 a month — but offers extras like movies, TV shows and music downloads.

The announcement comes as Amazon gears up for it Prime Day on July 12, a blowout sale similar to Black Friday that the company did last year to mark its 20th anniversary and as a way of driving interest and membership in Amazon Prime. Walmart responded with a rival sale that it promoted as available to all customers, not just paying members like Amazon's. It will launch a similar promotion starting Friday, and has hopes that the new 30-day ShippingPass trial will drive incremental sales.

"Once you start using it, it’s hard not to notice the everyday low prices on the stuff you need and want," says Fernando Madeira, CEO of Walmart's U.S. division, in a statement.

While the move shows Walmart is getting serious about the threat posed by Amazon, some wonder if it can compete as effectively when it comes to online orders and delivery.

“I don’t think they have any choice,”  says Scott Galloway, chairman of digital marketing and tracking firm L2. Walmart “has to respond to the most valuable retailer in the world, which is now Amazon.”

He added that Walmart, now “has to play by a different rule book.”

Contributing: Hadley Malcolm

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