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Analysis: Walmart/Jet.com partnership has many positives

8/8/2016

Just as Amazon transformed e-commerce through its convenience, assortment and ease of use, look for the pairing of Jet.com and Walmart to introduce additional completion in the online shopping space that will give more options to consumers. Both companies stand to gain exposure to more and different customers as well as benefits in terms of service, delivery, and technological enhancements.



There are a number of positives that will come out of the Walmart/Jet.com partnership — it’s a win for Walmart in that it will have access to a different audience that has a high propensity to shop online, as well as the technology Jet.com utilizes to accelerate its e-commerce experience. Walmart will also gain insight through the Jet.com customer data, which is highly valuable. Jet.com will gain the ability to scale as well as access to Walmart’s shopper base that are loyal to the brick and mortar shopping experience.



Jet.com is an attractive partner to Walmart based on its disruptive pricing model. This move allows both parties to strengthen the other though the capabilities they specialize in. This also gives Walmart access to an e-commerce platform that’s ease of check out process and speed in delivery rivals Amazon.



Walmart’s price conscious consumers will now be able to have control over the discounts they can realize based on the volume they are ordering. They will also have an additional option to buy and order online from a company they are familiar with, which could help with any barriers based on trust or reluctance due to security concerns.



It is logical that Walmart and Jet.com would join forces — each was looking for a way to scale and the opportunity that this brings is not only a win for both retailers, but also consumers. Look for enhancements to the shopping experience for Walmart.com shoppers and for Jet.com shoppers to gain access to additional items, as well as potential delivery/pick-up options due to having physical locations to tap into.



For analysis of Walmart’s acquisition of Jet.com, click here.






Traci Gregorski is senior VP of marketing for Market Track, a leading provider of market intelligence solutions.


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