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2 reasons why it may be time to abandon Amazon Prime – The Motley Fool



Amazon (NASDAQ: AMZN) has set the standard for order delivery online. The company has made delivery in two days the norm, and now it paves the way for overnight delivery, forcing its major rivals, Walmart (NYSE: WMT) and Target (NYSE: TGT), to follow.

The company has been a leader and has offset its costs by forcing people to pay for the privilege of obtaining a two-day (and now one-day) shipment through its premium subscriptions. . The subscription cost of $ 119 a year or $ 12.99 a month offers members unlimited distribution in two days with over 100 million items as well as other benefits.

It was a good deal for a very long time, but it may not be necessary anymore. Many Premium members could give up the service without losing anything at all.

An Amazon Prime semi-trailer.

Amazon has a real competition in the delivery of Walmart and Target. Source of the image: Walmart.

1. Walmart is aggressive

The Walmart digital team, headed by Jet.com's director, Marc Lore, acknowledged that she could not compete with Prime. To make his offer attractive, Lore made the bold decision to make Walmart's two-day free delivery to people who place qualifying orders of $ 35 or more.

This is not as convenient as being able to order any amount of Amazon. This is however a good deal because consumers do not pay annual or monthly fees. The Walmart offer only covers a few million items, or 100 million less or less than Amazon, but for at least some people, the selection is more than enough.

Walmart also plans to reduce the shipping time of a day and tests the delivery of grocery items directly to consumers' refrigerators. The retail giant has not beaten Amazon, but it has a decent choice if you can order in increments of $ 35 – and free is attractive.

2. Target go the same day

Target has fallen behind Walmart and Amazon in terms of free shipping within two days. It offers an offer similar to that of Walmart, with a minimum order of $ 35, but only offers a selection of a few hundred thousand items. (Holders of the company's REDcard do not need to meet the minimum required.)

Target offers a real alternative to Prime with its same-day shipping offer via its Shipt service. The retailer is offering a free four-week trial for Shipt, which costs either $ 99 a year or $ 9.99 per order.

The company offers a wide selection of groceries and household items for same-day delivery (sometimes almost immediate). Of course, Amazon offers same-day delivery to Whole Foods and Premium members in some markets, but Target's store base gives it a competitive advantage in that area.

Do you need Amazon Prime?

The edges of Amazon are in the selection and convenience. Main members can get pretty much anything they want in two days and will be soon. This means that they can order without any planning and that items arrive home within two days (and possibly one).

These may not be major benefits over the Walmart and Target offerings. Walmart essentially offers Premium with fewer choices and a minimum of $ 35 free, while Target pushes the limits on same-day delivery.

It's possible that many Premium fans are not tempted, but Walmart and Target have attractive offers for people on the fence. Amazon still has a good deal, but it's definitely not the only game in town.


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