TODAY   |  October 13, 2012

Walmart vs. Amazon for online shopping dollars

Just in time for the holidays, the retail wars are heating up. Walmart is testing same-day delivery for online shoppers in a move that puts the retail giant in direct competition with Amazon, the world's largest online retailer. NBC's Janet Shamlian reports.

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This content comes from Closed Captioning that was broadcast along with this program.

>>> the holiday retail wars are already heating up. best buy now says it will match the online prices of some competitors. walmart is also going after amazon.com, testing same day delivery for online orders. janet shamlian looks at the new way they are competing for online customers.

>> reporter: internet purchases were a $200 billion pile last year, and it's heating up ahead of the holidays. walmart , the nation's largest retailer, wants to feed the neat for instant gratification, testing a $10 same day delivery on some 5,000 products. everything from toys to flat panel tvs, all without having to look for a parking spot.

>> i think it's a great idea. i really feel that it's going to be a really competitive advantage for them, especially going into the holiday season .

>> reporter: walmart to go, as they're calling it, is a shot across the bow of amazon.com, the world's largest online retailer which itself is aiming for same-day delivery. the sellers going head-to-head.

>> one thing i like better about amazon versus walmart is the actual -- the layout of their website. i think it's a little bit easier to follow.

>> because i know walmart and i'm comfortable with walmart , i trust them more than amazon.

>> reporter: walmart is testing the service in minneapolis, philly, northern virginia , and adding the san francisco area next month. amazon already offers same day on products in ten cities, including boston, chicago, vegas, and seattle. the fight for those point and click dollars could come down to the old real estate rule of them. location, location, location. it's early in the testing, but with 4,000 stores, walmart could conceivably offer same-day almost everywhere. by year's end, amazon's distribution centers will total about 60. whether you started out online or started out in the store, you have to do it well if you want to win those consumer dollars and walmart realizes that it's going to have to play ball with amazon. it's goliath versus goliath.