Amazon, Walmart begin shipping war

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Amazon, Walmart begin shipping war

02/05/2019
The paid Amazon Prime service has made two-day delivery the bare minimum, and that led to Walmart embracing two-day shipping while offering it for free (with certain restrictions).

Long gone are the days of four to six weeks shipping delivery, as Amazon has fundamentally changed consumer expectations of delivery.

The paid Amazon Prime service has made two-day delivery the bare minimum, and that led to Walmart embracing two-day shipping while offering it for free (with certain restrictions).

The problem with offering two-day shipping is that it's expensive and cuts into already thin margins, according to a USA Today article. This has forced both Amazon and Walmart to rethink how they ship items, both to their warehouses and stores and to end customers.

As a result, Amazon and Walmart are going head-to-head in the ultimate battle for cost-effective and efficient shipping solutions. Amazon’s online retail presence has enabled it to boldly suggest the development of its own delivery network, which includes helping entrepreneurs build van-based delivery businesses.

Walmart is also creating its own delivery network expanding its army of truck drivers. The company added 1,400 in 2018 and has plans to add hundreds more this year. The retail giant is hiring not just drivers, but experienced drivers who have at least 30 months under their belt, and is paying them well. The company is offering wages that come out to just under $90,000 a year. That's a number that should be attractive in an industry where the average median salary comes in at $53,000 a year, according to a 2018 American Trucking Association survey.

To read the entire USA Today article, click here.

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