Jet.com travels in new product direction

Online retail marketplace Jet.com is making a big move in the home goods market.



Jet.com is purchasing Omaha, Nebraska-based online home products retailer Hayneedle for an undisclosed sum. The sale was announced in tweets on the official Hayneedle Twitter account. In addition, Jet.com founder, chairman and CEO Marc Lore and Hayneedle president and CEO Jon Barker confirmed the acquisition in an interview with the Omaha World-Herald.



With the purchase, Jet.com will instantly become a major player in the online home goods market, currently dominated by Wayfair.com as well as Jet’s chief rival Amazon.com. Hayneedle.com generated $350 million in revenue in 2015.



While Jet.com, which launched in July 2015, is estimated to be capable of generating $500 million in revenue annually, the retailer’s mainstays are CPG and health and beauty products. Purchasing Hayneedle outright delivers Jet.com immediate home goods inventory and expertise, as well as a built-in customer base.



“When we first met, we knew right away it would be an ideal fit for both companies,” Lore told the World-Herald.



Jet.com plans to keep Hayneedle operational as a subsidiary. Hayneedle’s roughly 400 employees, located at facilities in Nebraska, Ohio and California, will keep their jobs. Hayneedle was founded in 2002 as a collection of product-specific home goods site and consolidated under the Hayneedle banner in 2009.