2 online retailer in the US this year, according to eMarketer. The purchase was also part of a string of e-commerce buys from Walmart, which included ModCloth, Bonobos and Moosejaw.Ībout six months after the Walmart acquisition, Amazon shut down Quidsi, saying it struggled to make it profitable.Īfter bringing in many new e-commerce leaders, Walmart has seen success with its main site, which overtook eBay as the No. Lore was named Walmart's new CEO of US e-commerce, a position he still holds today. Jet remained an independent company for a little over a year before Walmart, which was looking to bolster its online sales, scooped up the startup for $3.3 billion in September 2016. In 2010, he sold his 5-year-old startup Quidsi, owner of and, to Amazon for $545 million after Amazon initiated a price war against his company. The startup was founded by Marc Lore, a prominent e-commerce veteran. The thinking was that if Jet could save money on shipping costs or fewer returns, it would share some of those savings with customers. It quickly raised $700 million, a huge amount for a new company, and offered creative new discounts to customers for the more stuff they purchased in one order and if they waived returns.
Jet, based in Hoboken, New Jersey, launched in the summer of 2015 as a rare, buzzy e-commerce startup in a market dominated by Amazon. These days, instead of competing against these major companies in a variety of categories, e-commerce startups are finding specific niches to grow into, such as Away for luggage, Rothy's for shoes and Glossier for skincare. Walmart's decision to shut down Jet may point to how hard it can be to succeed as a general-merchandise online retailer against the top three online retailers - Amazon, Walmart and eBay - especially if your parent company is focusing on building up its main site instead. Walmart said it's discontinuing Jet "due to continued strength of the brand" and said Jet had helped it build up its e-commerce business. The announcement was part of the world's biggest retailer's latest quarterly earnings report, in which it said its online sales surged 74% during the coronavirus pandemic. Walmart on Tuesday said it's shutting down Jet.com, an e-commerce site that's seen weakening online traffic for years.
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