Jet.com is now part of the Walmart family. Will the Walmart Black Friday sale already get the jet.com treatment?
Heavily funded Jet.com has only been operating an online shop for about a year before Walmart acquired the company for $3 billion in cash. The deal closed earlier this month. There is not much time left until Black Friday 2016. The Jet.com team will likely not have a dramatic impact on the Walmart Black Friday sale. Walmart is a huge corporation with 2.3 million employees world-wide and over $480 billion in annual revenues.
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The dynamic shopping cart feature available on Jet.com could have a big impact on how shopping works in Walmart's online shop. Buyers on Jet.com can save by making decisions in their cart. Savings start by adding at least 3 items into the cart, which saves 15% with TRIPLE15 coupon code. The discount is though cut off at $30. Buy giving up your right to return an item for free, you get a lower price. Paying with debit card also reduces the final cost of your cart.
The combination of shopping cart items also can have a positive effect on your final price as Jet.com is able to save on shipping costs. These shopping cart features work best on everyday essentials, where your final price is often lower than at competing stores.
Walmart.com is very likely not be able to offer the Jet.com smart shopping cart for Black Friday 2016. The risk of changing the online platform in a significant way ahead of the biggest traffic days is too risky. Walmart.com has suffered outages during Black Friday in past years. Last year the Walmart online shop had severe issues in the first hour of Thanksgiving Day. Delays, failed pages, load issues and failed transactions have hampered the launch of the Walmart Black Friday sale online.
What we will likely see are cross promotions between Jet.com and walmart.com during Black Friday and Cyber Monday sales. The Jet Black Friday 2015 sale was unconventional. Shoppers earned $10 JetCash when they shopped at other retailers including ToysRUs, hhgregg and Brookstone. The same promotion could be offered this year with Walmart. There could be more promotions that are aimed at driving customers from Walmart to Jet and vice-versa. The Jet.com Cyber Monday was a bigger event last year, compared to their low key Black Friday promotions.
We expect some of the Jet.com functionality to arrive at walmart.com in 2017, several months ahead of Black Friday 2017.
Walmart.com is the second largest online retailer by traffic in the U.S. and offers 15 million items on the site. Amazon.com is the undisputed number one. Walmart has still ways to go to catch up to Amazon. Walmart generated $13.7 billion in online sales in 2015. Amazon's online sales passed $92 billion in the same year. Amazon's online sales are 7 times bigger than Walmart's.
The efforts of Walmart to catch up with Amazon are great for consumers. Walmart will be able to offer more savings in a transparent way to consumers with Jet's technology and talent. At the same time Amazon needs to stay agile to maintain the dominating position in online shopping. This requires to offer low prices and a frictionless shopping experience. The Amazon Prime Day 2016 has shown that Jeff Bezos is not slowing down. The online retail giant is aiming at making the Amazon Black Friday 2016 another record sales day.