Rapid Response: Who are JET.com Users and What Do They Make of WMT?
News alerts were in a frenzy yesterday: Walmart, The Wall Street Journal reported, is currently in talks to purchase online upstart Jet.com, a move that could bolster Walmart’s ecommerce business and further take the fight to Amazon.com.
After learning about this major development yesterday, Field Agent jumped into action. We screened our nationwide panel of almost 800,000 app-users to locate Jet.com customers. Given the news, we were eager to understand customers’ attitudes and behaviors toward Jet.com, and to understand some of the strategic implications of a Walmart acquisition.
In a matter of hours we screened the online purchase behavior of over 5,000 consumers. Tellingly, only 9% of those screened said they had made one or more purchases from Jet.com in the past. Compare this to Amazon.com (92%), Walmart.com (76%), Target.com (63%), and Overstock.com (36%).
Field Agent then targeted Jet.com users with a quick 8-question mobile survey. We launched the survey this morning, and had the results this afternoon. We call this Rapid Response Research: a way to collect fast, directional insights.
Although the sample size is too small to generalize results to a larger population, the insights below provide an overnight indication of the attitudes and behaviors of Jet.com customers, and what they think about the potential Walmart acquisition.
Quick-Fire Q&A with Jet.com Customers
1. Do Jet.com customers also shop with Amazon.com and Walmart.com?
Our quick survey suggests, yes, they very likely do.
We gauged the online cross-shopping activity of Jet.com customers by presenting eight additional online retailers and asking, “Which of the following have you purchased merchandise from?”
In all, a massive 98% of Jet.com users said they’ve also made one or more purchases at Amazon.com. Additionally, 89% said they’ve patronized Walmart.com. eBay.com (84%) and Target.com (80%), too, were prevalent cross-shopping destinations among Jet.com customers.
2. What in particular do Jet.com customers like about the online retailer?
From a list of 10 possible characteristics, 64% of Jet.com customers in our survey said it’s the “everyday low prices” that really tickle their fancy. However, an additional 52% indicated they particularly like Jet’s “price drop as you shop feature,” which allows you to save more money as you add items to your order.
Product selection (47%), fast shipping (43%), the option to decline free returns (and save money; 26%), and free returns (24%) also win points with Jet.com customers.
3. What does Jet.com do better than Amazon?
We asked all 250 Jet.com customers what, if anything, the online retailer does better than Amazon. The results reflect only those who have made purchases with Amazon in the past.
63% said Jet.com excels Amazon in “price promotions, sales, and/or discounts,” whereas only 19% feel Jet beats Amazon on “regular, everyday prices.” No other characteristic in our survey, among a total of 13 presented, amassed more than 25% for this question.
4. And what about Walmart.com? What does Jet.com do better than Walmart’s online business?
Here, too, responses were collected only from those who have shopped Walmart.com at some point.
52% believe Jet.com is superior to Walmart.com on “price promotions, sales, and/or discounts” (19% for “regular, everyday prices”).
However, an additional 41% say Jet.com bests Walmart.com on “website navigability” and 39% on “shipping costs.”
5. What do Jet.com customers purchase from the online retailer?
Field Agent assembled a list of approximately 40 products and product categories sold through Jet.com. We asked, “Which of the following do you buy at least occasionally from Jet.com?”
At 30%, laundry supplies took top place, followed by cleaning supplies (21%), toilet paper (21%), dishwashing supplies (20%), and health/beauty (18%).
6. How much of customers’ overall online shopping takes place at Jet.com?
For this question, we presented two general categories—home essentials and groceries—and asked the sample to tell us how much of their overall online spending in each category goes down at Jet.com. The results exclude any respondents who said they never purchase the specified category online.
37% of Jet.com users report purchasing 1-10% of their everyday home essentials (i.e., those they buy online), including laundry detergent, toilet paper, dishwashing supplies, and the like, from Jet.com. But 20% buy anywhere from 11-25% of the category from the upstart online retailer, and the same amount (20%) say Jet.com accounts for over 25% of their online purchases of home essentials.
For online purchases of groceries, 40% buy 1-10% from Jet.com, compared to 13% who buy between 11-25%, and 15% who buy over 25%.
Very few said Jet.com receives more than 50% of their online dollars in either category.
7. If Walmart buys the online retailer, would it affect the propensity of Jet.com customers to shop there?
To offer context, we first informed respondents that Walmart was considering purchasing Jet.com. Then we asked, “Would you be more or less likely to shop at Jet.com if it sold to Walmart?”
For the sake of the question, we instructed the sample to assume Walmart would leave the online retailer largely the same.
Most (46%) were neutral, saying they’d be neither more nor less likely to shop at Jet.com if purchased by Walmart. However, 28% said they’d be more likely and about the same amount (27%) less likely.
8. Would customers take advantage of Walmart products and services through Jet.com?
Many say they would.
For instance, 45% said they’d be likely to buy Walmart private brands (e.g., Great Value) if they were sold on Jet.com.
Or, consider this: A convincing 70% indicated they’d be likely to use Walmart’s in-store pickup service, if the retailer allowed them to purchase merchandise from Jet.com for pickup inside a local Walmart store.
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