Retail

Sam's Club Quietly Tests Subscription E-commerce Program

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Source: courtesy of Wal-Mart Stores Inc.
In a swipe at Amazon.com Inc. (NASDAQ: AMZN) and Target Corp. (NYSE: TGT), Wal-Mart Stores Inc. (NYSE: WMT) last October quietly launched a subscription service to members of its Sam’s Club stores that allows those members to receive free shipping on about 700 items. Under these programs, members are able to place orders on frequently used items and have them shipped free every one to four weeks.

Though a Sam’s Club spokeswoman denies it, the subscription program could be a challenge to Amazon Prime:

This isn’t a specific strategy targeted at Amazon Prime, but one of the ways we are looking to maximize Samsclub.com and the intersection of bricks and clicks to stay relevant to our members’ evolving shopping habits.

Walmart is also testing online sales of groceries, according to a report at the Internet Retailer website.

Unlike Amazon or Target, Sam’s Club members do not get a discount on items they purchase through the service. Amazon offers a 15% discount on monthly orders for five or more items. Target offers free shipping and a 5% discount to customers who use a Target credit card.

The most popular items customers are ordering from Sam’s Club are diapers, wipes, training pants, baby formula and baby food. Among business customers, printer ink and toner are the most popular.

Recent evidence shows that most consumers are not interested in ordering online and then dropping by the brick-and-mortar store to pick the items up on the same day. At one time that seemed like a natural extension of e-commerce, but customers do not appear to agree. Free shipping and great customer service are seen as the drivers for e-commerce.

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