Transcript for Walmart Sets Sights on Amazon Prime
Okay. It's Thursday may fourteenth the markets and you are opening ever this morning fifty dollars as it and fifty boxes which is what Wal-Mart will be charging customers for its new unlimited shop shipping service for online shoppers. So is fifty dollars as a fee it. Half of what Amazon is charged is processors making today for a direct threat and a sign showing just how serious Wal-Mart is to get bigger. And the online space when I'm Dan Cutler and New York's or hear the details air Tass from Yahoo! finance on Thursday morning. Air and Wal-Mart. Taking on Amazon. Is and basically on its own turf there why. Well they kinda have to you really Wal-Mart the other they're saints ourselves have been sluggish for a couple of years now. In large part because more and more consumers are shopping on line. While Martin making a big effort of the investment. I'm in improving their website improving their service here and this is a test pilot they're they're gonna try this at this summer TO works but I you know they're definitely it's a shot across about Amazon.com. Men you know it it's not how successful Amazon has been with prime. That Wal-Mart is even trying something like this we're so when you say it's a test and a man they look and actually make money off of this thing or is it just kind of feel that out find out what the prices and it you know shakeout. Yeah I think they're gonna they're gonna tested out to see if fifty dollars is the right price point if that's gonna get people to come in and it whether that's. They can mete out work for them in terms of turning a profit on it. You know I think also for Wal-Mart is a big issue that you know Wal-Mart for most of the country is pretty much saturated terms of they have the stores that they're gonna build and this is a noble way for them to get new customers. Who either don't have Wal-Mart nearby or just don't go to Wal-Mart the store to say okay maybe I will not shop at Wal-Mart. This is me be potentially for them awaited acquired new consumers. A new customers which is something that they've struggled with in so here's how they line up as far as the services side by side wal mart's offering three day. Free shipping. Fifty dollars yearly fee Amazon prime is to date free shipping but it's a hundred dollar yearly fees to the bet is that you know by giving up an extra day of convenience. You're saving money obviously in and in the subscription. Exactly and and the Wal-Mart wal mart's. Prime issue is always been about Chrysler to save you money the Wal-Mart consumer. Is very cost conscious so saving you know another fifty dollars a year on the shipping name most people who would look at this might say okay it's worth winning an extra day. To get that item but again Wal-Mart is testing this and they might find you know what we might have to go to two days or even next day shipping. Senator really get a yo amassed number of people sign up for this. The service and again Amazon has been incredibly successful with prime. I seriously doubt that many people who are current Amazon prime members. Are gonna switch over Wal-Mart for the fifty dollar savings on in part because they're used to Amazon prime it works really well where Amazon prime family and in addition. To lower prices on goods and the free shipping you off surrogate Amazon movies and you get Amazon music and you get other benefits that go with it's I think Wal-Mart. If they're trying to really directly compete with hands on crime they might have to look at other things to their service so what do you mean things CEO Jeff basis of them as I think he's worried about this mean. It right well if wal marts and a shot across the bout Amazon maybe Amazon's get a sense of rooms the Bentonville if you without doing a Wal-Mart. Com look it's here's a competitive business and wal mart's a formal competitor for Amazon and vice Versa and I'm sure they are taking notice in Seattle. You know an ambulance headquarters of what Wal-Mart is doing and they will respond accordingly if they see it is a real threat I think right now it's more of an homage of more Ballmer thing hey why you guys have been severely great we're gonna try to. Yet fascinating matchup price of the Wal-Mart smiley face which rhino is no longer the logo but still it's how we think humans valiantly in a drone going head to head. We'll see who's gonna win out Aaron task Yahoo! finance there thank you so much for high extent. He novelist and has written an abcnews.com you like in the big number and Dan mark.
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