What the Jet.com - Walmart Merger means for consumers

This past Friday, September 23rd 2016, Walmart finalized their $3 Billion plus acquisition of Jet.com. Jet.com launched in late 2014 making it the fastest and largest ecommerce sale in the history of the web.

HISTORY:

Jet.com was founded by Marc Lore, who also founded Diapers.com (also known as Quidsi) which sold to Amazon.com for $545 Million in 2010. It appears, as soon as Lore was released from his Amazon non-compete he didn't waste anytime partnering with Venture Capitalists to build out Jet.com

HOW THEY GREW:

Jet.com merged the idea of referral marketing and equity into one by allowing users who refer the most amount of members (top 10 spots) to earn equity in the company. The top spot earned the most equity. They also claimed that there would be a monthly or annual fee kicking in after the beta launch, but if you signed up during the beta you would 'earn' 6 months to one year for free. Everybody loves free! Well, here's what happened: the referral campaign drove over 250,000 sign ups in the first 3 weeks. In the end, the top referrer's equity at the time of the sale was worth to over 1 million dollars! One hell of a lucky guy who saw the potential and jumped to it. Man, am I kicking myself now.

THE AFTERMATH:

With Walmart's acquisition, Lore appears to be moving to an executive position at Walmart. I predict three things to be happening in the coming year:

  1. I expect Walmart to roll out with some sort of monthly fee in exchange for some benefits. This was Lore's initial idea with Jet and he will likely want to move it over.
  2. I expect Walmart to get much more competitive in price on specific categories. Lore's got a vendetta with Bezos for forcing him to sell Diapers.com, and working at Amazon.com all those years, he's likely to be able to find weaknesses.
  3. I expect Jet.com's core to business to somehow integrate into the Walmart ecosystem. How this will effect us? Time will tell.

Personally, I have never been a fan of Walmart.com. I have found the website to be a bit cluttered and difficult to find and compare products. Could be because I am so used to Amazon, or could be because of some negative experience I've had 6 years ago in a wild Walmart store in the Midwest that was clearly mismanaged. Who knows. But I will say this: I love change. Change is good for the consumers. Change brings challenge. And if this acquisition can give Walmart the tools to compete, that's a win for all of us. I am eagerly waiting the outcome, and I'm sure time will tell.

Please share your thoughts in the comments!

UPDATE 8/8 -

It now has become apparent what this acquisition has done for us. Walmart is now offering some incredible deals when you offer Ship to Store and Amazon has been occasionally matching those prices with Prime. Ah, I love competition. i'm sure there's more to come!

Sign up for Dealwiki Email Alerts to get notified about these awesome deals as they can come and go fast!

This article was originally published on 9/27/16.

1 Response to What the Jet.com - Walmart Merger means for consumers

  • Rhonda Fassett

    ...I am a senior citizen living alone w/grey hair. I walk slowly now and sometimes need the use of a cane.
    I never understood fully about the use of the terms; “scamming senior citizens”.
    Now that I am one, I have even targeted four times this yr. The first time, cost me $300, the second time cost me $300, the third time cost me my vehicle, 2004 Dodge Ram Quad cab this last time cost me almost what my vehicle was worth, $5000.
    These companies haven’t realized it yet, but when they add a monthly charge to their service to their customers, it leaves a whole marketing group out ! Yes, the senior citizens. At the end of every month, my check leaves me w/$5-7. Not enough to sign up for shopping w/with a fee.
    I hate it, Walmart but Amazon is blowing you away no matter how many jet.coms you purchase.

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