Walmart on Tuesday announced the closure of their e-commerce bubble Jet.com as weakening traffic for the domain despite a rebranding effort finally fell short.
Walmart on Tuesday announced the closure of their e-commerce bubble Jet.com as weakening traffic for the domain despite a rebranding effort finally fell short. The announcement comes as Walmart reported its online sales from the e-commerce fell 74% during the ongoing pandemic. Walmart quoted closing of the e-commerce domain due to lowered sales even quoting continuing strength of the Walmart.com brand.
Jet was originally based in Hoboken, New Jersey launched in the summer of 2016 and raised $700 million, a huge amount of cash for a new company. It was scooped up by Walmart in 2016 for a whopping $3.3 billion which was part of a string of e-commerce buys. After acquiring Jet, Walmart saw a huge growth in their parent domain which overtook eBay as the 2 largest online retailer in the U.S.
Jet’s online traffic plummeted after it was acquired as Walmart decided to focus on their own domain. Marketplace Pulse reports Jet Traffic dropped from 33 million visits in December to a meager 1.4 million visit in December 2019. While Jet tried getting back the friction by rebranding itself as a platform for urban dwellers in 2018, it was quickly diminished by the big players.
Walmart reported a 74% increase in online sales in the last quarter. While these numbers look strong, they do not match Amazon who is completely dominating as the largest e-commerce platform in the United States for the last four year. At the time of writing Amazon has around 39% of the pie while Walmart only holds 5% even though Walmart sits at the number two position.
However, Walmart still holds the title for the biggest offline store in the United States, it is highly unlikely that it will storm to take Amazon’s place any time soon.