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Walmart has announced plans to roll out a new membership program, Walmart+, to rival the massively successful Amazon Prime membership program which boasts over 150 million members.

Walmart+ is slated to cost $98 annually and offers additional perks, including free grocery delivery, discounts on Walmart gas, plus the ability to use a mobile phone to checkout instead of card or cash.

This isn't the first time Walmart has sought to unseat Amazon's grip on the e-commerce market. In 2019, the company tested another $98 program called Delivery Unlimited, which offered free grocery delivery as well.

Walmart ended up scrapping the program and intended to launch another version of Delivery Unlimited in Spring 2020, but was delayed due to COVID-19. Just recently, the company rebranded the program, calling it Walmart+ with additional perks.

Rather than offer free-shipping on all orders, Walmart has opted to offer free shipping on orders over $35. The cost of shipping for non-members of Walmart+ is estimated to be $9.

According to Walmart's chief customer officer, Janey Whiteside, tests indicate that customers shop more when they have a Walmart+ membership, pointing to increased revenues for the company.

Walmart+ members can receive free grocery delivery for over 130,000 items, including food, toilet paper, and even electronics. Outside of that, there will be a delivery fee of some kind.

For Walmart, the question of the day is, 'how do we catch up with Amazon?' Amazon still continues to be the only e-commerce giant that offers free shipping on all orders to program members.

While Walmart has certainly tried to take a crack at besting Amazon's membership program, the company has struggled to channel Amazon's recipe for success. Simply put, Amazon continues to innovate the e-commerce and retail space with their AmazonGo markets, Prime services, and Prime Air.

Needless to say, Walmart is facing considerable challenges in its battle with Amazon, as are a lot of other companies who have seen their profits dry up as more and more consumers shift to Amazon.

Currently, Walmart is in talks with Microsoft to acquire TikTok U.S. in another move to diversify Walmart's business model.

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