Watch Out, Amazon: Walmart Testing Unlimited Shipping

Walmart will test a new unlimited shipping service for online shoppers this summer that will be priced well below Amazon's $99 per year Prime service. The world's largest retailer says the shipping subscription service will cost customers $50 a year, with products arriving in three days or less. Walmart offers a grocery delivery and pickup service in five markets. But the unlimited shipping program marks a substantial commitment and underscores how serious the retailer is about accelerating the growth of its online business, which has seen a slowdown. For now, the service does not offer features like free video and music streaming that Amazon provides.

A spokesman says the offering is in response to increasing demands from customers who are looking for predictable and affordable shipping. It's also part of Walmart's overall strategy to test new ways to serve customers who are increasingly researching and buying on their PCs or mobile devices and are looking for convenience. The rep says the service will be available by invitation only for now and it will offer more than a million top-selling items, from toys to electronic gadgets, with customer feedback directing how the program will evolve. (More Walmart stories.)