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Walmart+ to add new cashback incentives

Thursday 25 August 2022 13:17 CET | News

Giant global retailer Walmart has announced the introduction of additional perks for its Walmart+ membership programme to compete with Amazon Prime, the biggest retailer in the US.

 

The Walmart+ subscription programme will benefit from a new cashback in the form of digital rewards that can further be used for online purchases.

Giant global retailer Walmart has announced the introduction of additional perks for its Walmart+ membership programme to compete with Amazon Prime, the biggest retailer in the US.

 

Digital coupons

Walmart+ users will be able to browse through Walmart’s mobile app for offers across a range of bestselling products, including household goods, groceries, and pet care. They can later clip these offers like digital coupons that can be used for upcoming purchases. 

After every purchase of a rewarded item, Walmart+ members will earn cashback in the form of digital Walmart Rewards, which are saved to their Walmart Wallet in the app. The rewards can be accumulated over time and used for discounted balances on further purchases or additional savings.

The battle of discounts

Walmart+’s latest cashback programme spots similarities with another giant US retailer, Target, and its discount programme, Target Circle. The latter offers its loyal members digital gift cards for specific products that can later be redeemed at checkout. The main difference between Walmart+ and Target is that the first only targets premium subscribers as opposed to being available to all its online shoppers.

Walmart’s latest feature is the result of the retailer’s partnership with cashback rewards platform Ibotta, announced earlier in 2020 and aims to rival Amazon’s membership subscription programme, Amazon Prime. By comparison, Amazon Prime offers a unique combination of perks and benefits, including fuel discounts, free shipping, contact-free checkout, free streaming, next-day delivery, and exclusive deals. 

At the same time, Amazon is facing problems on its own by being investigated by the Federal Trade Commission over allegations that it used its interface design to manipulate customers into signing up for the Amazon Prime membership and making it then difficult to cancel. Moreover, existing members are already debating the utility of the Prime programme after prices in yearly subscription spiked, amid inflation and additional global economic issues. 

By comparison, Amazon Prime costs USD 139 per year as opposed to Walmart+ which stands at little under USD 100. However, Walmart+ is mainly used for free shipping benefits and has a smaller selection of goods, including the lack of third-party merchants that sell through Amazon’s marketplace ecommerce platform.

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Keywords: ecommerce, ecommerce platform, retail, loyalty programme, cashless, online shopping, shopping, online payments
Categories: Payments & Commerce
Companies: Walmart
Countries: United States
This article is part of category

Payments & Commerce

Walmart

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