Walmart did acquire E-Commerce site Jet.com.
Walmart announced on Monday that it made an official offer at $3.3 billion to acquire e-commerce startup Jet.com. Doug McMillon, who serves as Walmart CEO, posted a photo on Instagram on Monday to confirm the acquisition of Jet.com.
In the meantime, McMillon explained the acquisition on his blog. McMillon claimed:” Walmart and Jet.com are both aiming to save time and expense for clients. With our collaboration, we will achieve these goals easily and create a seamless shopping experience from app to site, and app to store.
However, Walmart and Jet.com will face many challenges when the acquisition is done. Amazon has advantage in exploring business in e-commerce field in United States. It is one of the world-class e-commerce giants. It keeps market share increase in United State market. There is no sign that Amazon loses developing motivation though e-commerce business of Walmart grew a lot in past 18 months.
Jet.com has proved that it could develop some loyalty client group instead of a company profited by advertising in past years. Marc Lore, who works as CEO of Jet.com, will take charge of running Walmart website after the acquisition. What’s more, the distance between silicon e-commerce location and operation of Arkansas stores is also a challenge to Walmart. In fact, the major revenue of Walmart is from the offline stores.
Another challenge to Walmart and Jet.com is that they need to spend much money to overcome them and improve services.