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Walmart Drops Amazon-Clone ShippingPass, Adopts Free Two-Day Model

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Walmart announced today that it’s doing away with ShippingPass in favor of a free shipping model for more than 2 million items on its site. The policy overhaul also includes a reduced free shipping threshold on orders from $50 down to $35.

“In today’s world of e-commerce, two-day free shipping is table stakes. It no longer makes sense to charge for it,” said Marc Lore, president and CEO of Walmart U.S. e-commerce.

Items eligible for free shipping include household essentials, pet products, food, cleaning supplies, beauty products and toys.

ShippingPass, which previewed in Spring 2015, was seen as a direct competitor to Amazon Prime. The membership model allowed shoppers to enjoy unlimited two-day shipping for $50 a month, half of the price of Prime. The service didn’t include the other Prime perks, however, which include streaming, downloads and cloud storage.

On the company’s blog, Lore said Walmart used ShippingPass to test its free two-day shipping capabilities. But now those users will receive a refund on their memberships.

Lore also alluded to more changes on the horizon.

The retail giant will no doubt leverage its recent acquisition of e-commerce start-up Jet.com. At the time, Walmart said it plans to revamp its app, site and stores.

“Walmart.com will grow faster, the seamless shopping experience we’re pursuing will happen quicker, and we’ll enable the Jet brand to be even more successful in a shorter period of time,” said Walmart CEO Doug McMillon, regarding the Jet.com acquisition.

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