In what has been a smash hit service for Amazon, their Amazon Prime membership online (which now costs $99 a year) allows customers to make purchases and get free two-day shipping. The service also allows their members exclusive access to online HD streaming for movies, TV and original Amazon shows such as "Alpha House" and "Transparent," all in a binge-viewing buffet style like Netflix. The membership also comes with a books and music service subscription.

Wal-Mart has decided to get in on that action.  As USA Today reported, the brick-and-mortar retail giant has picked up on consumer trends and added exclusive deals that make the virtual Wal-Mart visit more appealing. But calculating the costs of shipping, those special deals are no longer quite so lucrative.

And so Wal-Mart will soon attempt a membership status program that will only cost half as much as Amazon's. It has started the pilot program at $50 a year for online shopping with free three-day shipping only. Still early in its development, the service Wal-Mart is attempting to offer will also only be available to a select number of people on an invite-only basis for now.

"We've heard from customers that they want shipping that's predictable and they want it to be affordable," Wal-Mart spokesperson Ravi Jariwala said. Amazon also delivers on Sundays, which Jariwala said Wal-Mart would not be doing.

But one has to wonder if Wal-Mart can gain the competitive edge in this scenario with a simple price decrease. Undercutting on prices has been Wal-Mart's M.O. since its beginning, with "Rollback" deals in their stores regularly appearing at a fraction of average market prices. But is half the annual price enough to steer Amazon customers away from a service that offers them faster shipping and a digital video, music, and book-streaming buffet?

The Information reports that the code name for this service by Wal-Mart will be "Tahoe." They say Wal-Mart plans to undertake a larger presence in the e-commerce market headed up by a new executive. The service is expected to be launched in late spring or early summer, following a software overhaul in the company.