3 reasons to pick Walmart over Amazon Prime - USA TODAY

Daniel B. Kline The Motley Fool

Published 7:00 AM EDT Oct 5, 2019

Amazon.com (NASDAQ: AMZN) and Walmart (NYSE: WMT) have been in an arms race to win over customers. Each wants to crowd out the other to gain market share, and both have pulled out all the stops.

What was once a baseline of two-day shipping has moved to one-day, and same-day has become a bigger part of the plan for both companies. It's a competition that has been good for consumers, giving them a strong choice to make.

Walmart does not have the same digital selection as Amazon, but it probably has what you need. Here are three reasons to make that choice.

1. You don't want to pay a membership fee

Amazon Prime charges $119 a year, or $12.99 a month, the main benefit being free two-day shipping (which is slowly becoming free one-day shipping). Prime includes a robust video service and a lot of other perks, but many customers probably join for the free shipping.

Walmart offers free two-day shipping (to eventually become one-day) on a few million items for orders more than $35. If you regularly order enough to meet that threshold, it may make sense to not pay for Prime.

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2. BOPIS and BORIS

Walmart allows customers to buy online and pick up in-store (BOPIS) and to buy online and return in-store (BORIS). Amazon takes returns at its Whole Foods locations and through its partnership with Kohl's, but there are far fewer of those locations than Walmart has. Amazon has more limited BOPIS options at Whole Foods and through pickup point locations.

3. You like to see what you buy

Walmart has a massive brick-and-mortar footprint. Amazon has Whole Foods and a smattering of physical store locations. Customers can walk around a Walmart, put their hands on various items, then order them for home delivery.

That's something many people want to do when it comes to bigger-ticket items such as electronics. If you want to buy a TV from Walmart, you can go see exactly how big it is and what the picture looks like. You can't do that in most cases as a Prime member.

It may not be worth $119 for Prime

If you place small orders frequently and want a near-unlimited selection, then Prime may be worth the money. For those willing to place bigger orders and who have some flexibility on exactly what they buy, then it may make sense to go with Walmart.

The real question to ask yourself is "How hard would it be to not be able to just order on a whim?" If that's not a big deal for you – and you may enjoy the advantages of dealing with a company with an extensive brick-and-mortar presence – then it's worth skipping Prime and giving Walmart a try.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel B. Kline has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

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