Retail

Walmart now lets customers set up repeat purchases by subscription — just 16 years after Amazon

Pennsylvania Walmart store
Walmart now offers a subscription replenishment options for frequently bought items, such as paper towels. Paul Weaver/SOPA Images/LightRocket via Getty Images
Read in app

Walmart now lets you order items through a subscription — something that Amazon has offered for years.

The retailer touted the service on Wednesday as a recent addition to its smartphone app in a blog post. It's meant to save customers the hassle of going to a store for frequently bought items, like toilet paper and dog food, every week or every month, the company said.

"From pet food and supplements to diapers and paper towels, Walmart subscriptions guarantee automatic scheduled delivery on a customer's preferred cadence, whether it's every two weeks or every two months," Walmart says in its blog post.

Items ordered through subscriptions are eligible for free shipping on orders over $35, according to the retailer's website. Walmart+ subscribers get free shipping on all orders, regardless of their value.

The replenishment model is one way retailers try to get more of a shopper's spending.

"It becomes this great flywheel of sales and profits, in which one or two subscriptions can blossom into many more (in my case, more than 40)," Kevin Coupe, author of the MorningNewsBeat newsletter, which covers developments in the retail industry, wrote on Friday.

But Walmart is also far behind one of its biggest rivals in introducing the option. Amazon started its "Subscribe & Save" program in 2007.

That first iteration of the service allowed customers to have a selection of dry grocery items delivered at a few different intervals, ranging from one to six months. It also offers customers a discount for buying at least five products together in the same auto-ship order. The offering still exists today.

Walmart has expanded multiple offerings to compete with Amazon in recent years. It launched Walmart+, a subscription service that provides free delivery and other benefits, in 2020. Amazon launched Prime, its own subscription service, in 2005.

It has also built out its own network of independent contractor delivery workers through Spark after parting ways with DoorDash last year. Some drivers told Insider in August that the platform includes many contractors who are using other identities to deliver orders for Spark.

Do you work for Walmart or Spark and have a story idea to share? Reach out to this reporter at abitter@insider.com

When you buy through our links, Insider may earn an affiliate commission. Learn more.

Read next

Screen Shot 2020 09 04 at 6.22.07 PM
Alex Bitter
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansionStarbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at abitter@bjinnox.com or via encrypted messaging app Signal at +1 (808) 854-4501.