Author Topic: Walmart to buy jet.com?  (Read 4985 times)

Offline yhaller14

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Offline deal_rider

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Re: Walmart to buy jet.com?
« Reply #1 on: August 03, 2016, 06:40:38 PM »
we really need a strong amazon competitor

Offline springles

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Re: Walmart to buy jet.com?
« Reply #2 on: August 03, 2016, 07:02:04 PM »
The problem with Jet for me is that it does the opposite of what I use Amazon for.  I mostly use Amazon to order individual items as soon as I realize that I want/need it.  Jet relies on ordering multiple things to bring the price down.  Also, Amazon prime is so much more than a free shipping membership.  It gives you access to movies, music and other things. I dont see how Jet or WMT or any other company is going to take a big bite out of Amazon's sales.  And we dont really need a competitor for Amazon, we need (and have) competition on Amazon between sellers.  That will keep the prices down.

Offline deal_rider

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Re: Walmart to buy jet.com?
« Reply #3 on: August 03, 2016, 10:53:57 PM »
i meant we need a company that offers everything amazon does. this is just a start for walmart

Offline Yammer

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Re: Walmart to buy jet.com?
« Reply #4 on: August 04, 2016, 02:53:01 AM »
The problem with Jet for me is that it does the opposite of what I use Amazon for.  I mostly use Amazon to order individual items as soon as I realize that I want/need it.  Jet relies on ordering multiple things to bring the price down.  Also, Amazon prime is so much more than a free shipping membership.  It gives you access to movies, music and other things. I dont see how Jet or WMT or any other company is going to take a big bite out of Amazon's sales.  And we dont really need a competitor for Amazon, we need (and have) competition on Amazon between sellers.  That will keep the prices down.
With Walmart behind Jet it has the potential to do exactly just that.

Offline zale

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Re: Walmart to buy jet.com?
« Reply #5 on: August 04, 2016, 07:49:21 AM »
With Walmart behind Jet it has the potential to do exactly just that.

Baloney. When Amazon sends you that $9 item via two-day shipping, they lose money. Sometimes their two-day shipping is really one-day shipping. Even with Prime membership it's hard to imagine any profit.

Their prices are either the same or lower than everywhere else, and yet they ship it with more expensive service. Their warehouses operate 24/7.

Amazon's profits relative to their revenue has been consistently laughable. Their "wealth" is in the public market, where they enjoy consistent Wall Street bullishness.

This is why Jet, or anyone else for that matter, will not adopt this model.

As for Walmart's Shipping Pass, I have my doubts about it's longetivity. I expect changes to come soon, or prices to rise to accommodate. As of now, it's more like three-day shipping.

Offline yuneeq

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Re: Walmart to buy jet.com?
« Reply #6 on: August 04, 2016, 11:30:09 AM »
The problem with Jet for me is that it does the opposite of what I use Amazon for.  I mostly use Amazon to order individual items as soon as I realize that I want/need it.  Jet relies on ordering multiple things to bring the price down.  Also, Amazon prime is so much more than a free shipping membership.  It gives you access to movies, music and other things. I dont see how Jet or WMT or any other company is going to take a big bite out of Amazon's sales.  And we dont really need a competitor for Amazon, we need (and have) competition on Amazon between sellers.  That will keep the prices down.

The thing is that Jet usually has the same prices or lower than amazon before you add anything else to your cart.
Yes, Prime is more than free shipping, which IMHO is idiotic. Why up sell movies and music on a shipping service? These services have nothing in common. Nearly 50 million Americans already pay for Netflix, why should they pay again for Prime Video? $99 for free 2 day shipping is very expensive when you can get Walmart 2 day shipping for $50.

How about pantry items. Prime pantry is even more expensive, charging an extra $6 a box.
Walmart, pantry is included in the same price.

And we definitely want competition to Amazon. If other marketplaces continue to grow it will stop amazon from raising rates on sellers (who would in turn raise prices). And Amazon will need to continue to price competitively on the 50% of the items that they sell themselves. Also Amazon has lots of restricted categories, restricted products, suspended sellers.
On a lot of items they are not cheap at all.

TLDR; Diverse competition is always a good thing

Offline yuneeq

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Re: Walmart to buy jet.com?
« Reply #7 on: August 04, 2016, 11:39:12 AM »
Baloney. When Amazon sends you that $9 item via two-day shipping, they lose money. Sometimes their two-day shipping is really one-day shipping. Even with Prime membership it's hard to imagine any profit.

Their prices are either the same or lower than everywhere else, and yet they ship it with more expensive service. Their warehouses operate 24/7.

Amazon's profits relative to their revenue has been consistently laughable. Their "wealth" is in the public market, where they enjoy consistent Wall Street bullishness.

This is why Jet, or anyone else for that matter, will not adopt this model.

As for Walmart's Shipping Pass, I have my doubts about it's longetivity. I expect changes to come soon, or prices to rise to accommodate. As of now, it's more like three-day shipping.

With strategic warehouse locations and a good logistics system, there is barely a need for an e-tailer to ever purchase 2 day shipping. For example, Jet shipping to NY/NJ is usually one day on most of their items, while they use cheap economy shipping services. Walmart has even more warehouses, they can do the same on an even wider scale. I'm sure Amazon does the same, though it seems like their order processing time is so slow that they often need to purchase expedited shipping to make up for it.

Offline zale

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Re: Walmart to buy jet.com?
« Reply #8 on: August 04, 2016, 01:19:14 PM »
The thing is that Jet usually has the same prices or lower than amazon before you add anything else to your cart.
Yes, Prime is more than free shipping, which IMHO is idiotic. Why up sell movies and music on a shipping service? These services have nothing in common. Nearly 50 million Americans already pay for Netflix, why should they pay again for Prime Video? $99 for free 2 day shipping is very expensive when you can get Walmart 2 day shipping for $50.

They want Prime to be their official all-access membership, just like Costco, where once you are a member you can access all their services. Their plan was to make quality exclusive content, but so far they have failed miserably and Netflix eats them for lunch.

(On a side note, Amazon Fresh should be included in the $99 Prime membership. Paying an extra $200 a year so that you can PAY for grocery delivery is absolutely bonkers.)

Quote
How about pantry items. Prime pantry is even more expensive, charging an extra $6 a box.
Walmart, pantry is included in the same price.

Enjoy it while it lasts. Walmart will change their grocery item policy as soon as they see people ordering one box of cereal or one jar of mayo...

Offline yuneeq

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Re: Walmart to buy jet.com?
« Reply #9 on: August 04, 2016, 01:56:47 PM »
They want Prime to be their official all-access membership, just like Costco, where once you are a member you can access all their services. Their plan was to make quality exclusive content, but so far they have failed miserably and Netflix eats them for lunch.

I know what they want it to be, I just don't think it makes sense. Prime video costs Amazon a lot of money of which they pass onto the customers. And the customers don't really care for it as the Netflix subscriber count shows. Costco is worth it for in-store shopping alone. 2 day shipping for $99 is expensive when you can get anything at Walmart for half the price.

Quote
(On a side note, Amazon Fresh should be included in the $99 Prime membership. Paying an extra $200 a year so that you can PAY for grocery delivery is absolutely bonkers.)

Enjoy it while it lasts. Walmart will change their grocery item policy as soon as they see people ordering one box of cereal or one jar of mayo...

Forgot about Fresh for a second, I was talking about Prime Pantry which costs $6/box. Fresh is even more expensive, $300/year and $40 minimum for free shipping. I don't think Walmart offers fresh produce yet but if they start offering it, it would cost them far less than Amazon. They already have 5000+ stores selling produce that are near hundreds of millions of customers. Compared to Amazon that has maybe a dozen Fresh warehouses in limited locations. Walmart can spend a few dollars on infrastructure and turn their stores in to fresh delivery centers like Peapod does for Stop & Shop. Maybe they'll charge a delivery fee or a minimum order but I don't see Walmart raising the membership prices for fresh deliveries by more than $50. Pantry items can either become add-on items like amazon, or just a loss leader like Amazon does. Maybe they can implement some of Jet's features to incentivize the purchase of more than 1 item.
« Last Edit: August 04, 2016, 02:00:24 PM by yuneeq »

Offline LoLo

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Re: Walmart to buy jet.com?
« Reply #10 on: August 04, 2016, 03:32:24 PM »
Amazon video will likely get a huge bump when their new show 'the grand tour' launches in autumn.

Offline hvaces42

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Re: Walmart to buy jet.com?
« Reply #11 on: August 04, 2016, 05:27:57 PM »
Amazon video will likely get a huge bump when their new show 'the grand tour' launches in autumn.
Catastrophe and The Man in the High Tower were hits too. Its not Netflix but theyre working on it.
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Re: Walmart to buy jet.com?
« Reply #12 on: August 06, 2016, 09:16:05 PM »
Walmart is getting scared of Amazon's success, but how is Jet the solution? What do they have to offer (value proposition) that's worth so much.

P.s. I hit a paywall when clicking through the OP, any way around that?

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Re: Walmart to buy jet.com?
« Reply #13 on: August 06, 2016, 09:55:09 PM »
Walmart is getting scared of Amazon's success, but how is Jet the solution? What do they have to offer (value proposition) that's worth so much.

P.s. I hit a paywall when clicking through the OP, any way around that?
1. It won't help much.
2. Try in Chrome:
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiLt5qsma7OAhVIRCYKHayWAJYQFggcMAA&url=http%3A%2F%2Fwww.wsj.com%2Farticles%2Fwal-mart-in-talks-to-buy-web-retailer-jet-com-1470237311&usg=AFQjCNFSfILPQYQvH5fJOWb7NM2gMp9nAg&sig2=qwoUkXZLOaFIsncvsffypg&bvm=bv.129391328,d.eWE
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