Wal-Mart Announces Free Shipping for the Holiday Season

Wal-Mart, the world’s largest retailer, announced on Thursday that it will offer free shipping for the holiday season on nearly 60,000 items. The offer, which includes free return shipping as well, will apply to all electronics except iPods and iPads, select video games, toys, baby products, jewelry, home appliances and furniture. The company said that the offer will save customers roughly $25 million this holiday season.

“Customers are doing all they can to save money this holiday, so we’re excited to offer free shipping to home, with no minimum purchase requirement as an early Christmas present to them,” said Steve Nave, senior vice president and general manager of Walmart.com.

Other major retailers such as Target and J.C. Penny also offer free-shipping but only on orders above a certain threshold. Wal-Mart has put no such restrictions on theirs, which may be a reflection of the company’s struggles this year to lift sales and maintain market share. Sears, Toys-R-Us, Williams Sonoma and others have rolled out free 2-day shipping programs for an annual fee in an attempt to match the success of Amazon’s Prime program. LL Bean is offering free shipping with no minimum through December 20th.

Wal-Mart says it will not raise prices to offset shipping and will not press shippers, like UPS and FedEx, to absorb the costs. But Wal-Mart and other big retailers already have low-price contracts with shippers, and the stores maintain distribution centers nationwide that reduce shipping distances and costs.

Market analysts note that online shoppers are increasingly demanding free-shipping. According to research firm comScore, more than 55% of online consumers may abandon their purchase if they do not get free shipping. For smaller retailers with lower volumes, free-shipping can represent a significant cost which often has to be added into prices. “This is where regional carriers such as LaserShip can provide an advantage”, said Blake Averill, LaserShip’s EVP Sales & Marketing. “We can provide lower cost shipping than the national carriers and still reach the majority of an online retailer’s customer base.”