Amazon has begun providing free shipping for orders over $35 in a move to counter Walmart's new free two-day shipping service.
The online retailer is providing this service to customers who do not have Prime membership.
Free shipping was previously only available on orders worth more than $49.
Retail analytics firm DynamicAction senior vice-president Sarah Engel was quoted by New York Post as saying: “This is one of the first times we’ve seen a real reactionary response by Amazon.”
This move from Amazon comes as Walmart has begun revamping its online growth.
Five months ago, Walmart bought online delivery service Jet.com for $3bn.
Although Amazon matched the free shipping price with Walmart, it has not matched the supermarket chain’s delivery speed.
Customers who do not have Prime membership have to wait for five to eight days to receive their orders, while Walmart will provide a two-day delivery service.
Only Prime customers are delivered their orders in two days. Prime membership costs $99 a year.