What Walmart Buying Jet.com Means for Amazon (and All of Us Online Shoppers)

August 11, 2016 by Kyle
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I’ve written before about Jet.com, and how it compares to Amazon Prime in terms of price and selection. But the recent news that Walmart bought Jet.com for over $3 billion could very well be a game-changer in online shopping. This is especially true for the folks at Amazon.com as the move clearly poses a threat to the online giant. Below is what Walmart buying Jet.com means for Amazon.

Jet.com Logo

What is Jet.com?

For those of you unfamiliar, Jet is the brainchild of Marc Lore who had previous success with Diapers.com and Soap.com. Jet offers thousands of product at good prices, many even cheaper than Amazon.

The cool piece with Jet is something they call a “Smart Cart” which essentially lowers the price of items in your cart when you add complementary items. Think a lower price on toothpaste when you add a toothbrush to your virtual cart.

Also, if you opt to use a debit card on Jet, instead of a credit card, you’ll save 1.5%. Or waive free returns and get an even lower price on the stuff you want to buy. They also offer free 2-day shipping on $35 or more.

Pretty cool concepts that caught Walmart’s eye to the tune of $3.3 billion. Walmart clearly saw something special because Jet has been burning through millions of dollars and appears a long way from turning a profit. Lore will now lead Jet.com and the online division of Walmart.

What Walmart Buying Jet.com Means for Amazon:

Let’s face it, Walmart ain’t cool, especially with millennials. By purchasing Jet, Walmart is clearly trying positioning itself online as a “cool” place to shop and by doing so, make a run at Amazon.

Besides bringing the cool factor that Walmart has been lacking, Jet is going to provide excellent e-commerce logistics, especially in terms of fast delivery times and a better online shopping experience that millennials demand. Jet can already delivery to half of U.S. households with 1-day delivery which is pretty amazing for such a young company (less than 2 years old).

Lore backed this up in a recent statement, “The combination of Walmart’s retail expertise, purchasing scale, sourcing capabilities, distribution footprint, and digital assets — together with the team, technology, and business we have built here at Jet — will allow us to deliver more value to customers.”

While the Jet brand and Walmart will maintain their separate identities, make no mistake that Walmart execs will be looking for ways to infuse them together in the near future.

It could be a deadly combination for Amazon if they can figure out how to use Jet’s logistics, technology, and shopping interface with Walmart’s huge brick & mortar reach, not to mention their grip on suppliers, to create an online shopping experience that’s extremely cool, convenient, offers fast and reliable delivery, and all at really low prices.

Time will tell, but in the meantime, it’s good news for us shoppers because competition for Amazon means better prices and customer service for all.

By Kyle James

Image provided by Jet.com.

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