Wednesday, April 12, 2017

Walmart to lower prices on a million online-only items if you opt for store pickup over shipping

(4/12/2017) If you can get discount from online-only items on Walmart.com but you have to pick up at Walmart store, will you do that? You may try. That's what Walmart is trying to have a close fight with Amazon.com in online shopping. Walmart wants to lure millions of online shoppers who visit Walmart stores but never try to shop on Walmart.com.

However, I don't think that will work for Walmart. Why? Because I did shop at Walmart.com and I don't have the confidence. But there is several other reasons that I think Walmart 'underestimates' the complexity of online-and-real-store retailing and how consumers will react to any shipping issues.

  1. The service time @ Walmart is terrible and it's well known. You may save several dollars, but at the cost of waiting for 20 minutes in Walmart's long lines? 
  2. Think of a situation: a consumer has a shipping issue (say wrong items, or cannot find the package while it's said 'arrived' on notice) or the consumer remembers the wrong store to pick up. Since the consumer is at the store already, he will ask what's going on (At Amazon, the buyers will trace and figure it out by themselves, at consumer's own time). It's an extra burden on Walmart's employee's service time. 
  3. Imagine a situation in point 2. How many Walmart employees do you think are capable to solve the complex logistics problem, capable of using sophisticated corporate computer to figure it out? Many of Walmart associates have less than $10 hour-wage, don't have computer and broadband Internet at home? With minimal employee training, do you think they can solve online shopper's problems? 
I don't think so. 




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