I read that Walmart is in talks to purchase Jet.com
There hasn't been a decided price, or even confirmation that Jet.com is selling. If Jet does sell, it's speculated that they would do it for $3 billion. Not a bad deal, right :)
If Walmart did purchase Jet.com they would be stepping into the ring with power houses like Ebay and Amazon.
When Jet started out they received more than $500 million from investors and had a startup evaluation of over $1 billion, which is unheard of. With that much startup capital it would be pretty difficult to fail lol.
When Jet.com started up it asked for a $50 a year sign up fee, similar to how amazon has their prime membership. Jet also said they would promise the lowest prices on anything they sold. During the start of Jet.com there was around an 8% price drop compared to other websites. You could get bigger discounts with bulk orders all shipped at the same time, but this was more for businesses. Jet.com eventually stopped the $50 subscription to try and gain more clients who just wanted to buy individual items. Jet.com would then be switching from the yearly membership fees to profiting off of each sale that was made through their site.
Now knowing all of this, do you think Walmart will still purchase for the assumed $3 billion or do you think it will be higher?
Walmart does have a huge following and can pull in a ton of traffic from the search engines through PPC (pay per click) ads and SEO (search engine optimization) but do you think they will do it? Or do you think they will try to pull the Jet.com traffic to their own website? (which would be dumb).
If Walmart does end up purchasing Jet.com I would think it would still be ran similar to how amazon is operated. Increase the prices of each item, but only by a little, and profit over time. Pay a good amount in advertising and pull in millions of people each year to turn them into dedicated customers. I think it's possible to compete with Amazon if Walmart is backing Jet.com
What do you think?