Walmart Launches Free Next-Day Delivery to Compete With Amazon — Could It Make You Spend More?

Walmart Launches Free Next-Day Delivery to Compete With Amazon — Could It Make You Spend More?

Walmart’s new next-day service will be available for 220,000 popular items, ranging from non-perishable foods to toys and electronics.

The retail giant has reportedly been building a network of e-commerce distribution centers across the country in order to support the service. Their announcement came just two weeks after Amazon announced their own intent to upgrade from free two-day delivery to one-day.

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Walmart’s service is currently only available in Phoenix, Arizona, and Las Vegas, but will soon expand to Southern California. Unlike Amazon, Walmart’s next-day shipping will not require membership fees. Walmart plans to roll out its service to 75 percent of the U.S. population by the end of 2019, as well as increase qualifying products by hundreds of thousands as the program expands.

“Next-day delivery causes shoppers to buy more items, and to buy items more often from the retailers,” said consumer psychologist Bruce Sanders, author of the book “Retailer’s Edge” told CBS Market Watch.

Walmart customers must hit a $35 minimum on eligible items in order to receive the free next-day shipping. What if your bill only comes to $30? Sanders said it will encourage you to reach the free-shipping minimum. It may sound counter-intuitive, but spending that extra $5 can make you feel like you’re getting a discount. Consumers, consumer psychologists say, love anything with the word “free.”