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Amazon lowers free shipping minimum again, escalating price war with Wal-Mart | Retail Dive

Enter Wal-Mart, which since its $3.3 billion acquisition of Jet last year and the hire of Jet founder Marc Lore appears to believe that Amazon’s emphasis on Prime has left a segment of e-commerce to be disrupted. In an interview with Retail Dive earlier this year, Keith Anderson, vice president of strategy and insights at Profitero, compared that to cable television customers who’d rather pay à la carte, rather than for a slew of channels they’ll never watch.

That has sparked a price war, which Anderson says Amazon has time to address. “I don’t think there’s any way over the immediate term, even with the aggressive policies that Marc Lore and Wal-Mart are introducing, that Wal-Mart is going to be disruptive overnight to Amazon’s business — with the exception of pricing. You have to remember that Amazon’s still outpacing [everyone], and they’re by far the biggest player in the market. Margin compression is the biggest near-term risk.”

But it’s riskier for Wal-Mart, according to retail analyst Nick Egelanian, president of retail development consultants SiteWorks International, who noted, “This will be a very costly foray for internet novice Wal-Mart, particularly.”

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Amazon lowers free shipping minimum again, escalating price war with Wal-Mart | Retail Dive.