Business sold just a couple years after it acquired Jet.com domain name.
A little over two years after Igloo brokered the sale of the Jet.com domain name, the company using the domain is going to be acquired by WalMart for $3 billion according to Re/Code.
As a domain guy, I could easily say that the Jet.com domain name should be credited for whatever Jet.com’s success has been so far. But that would be silly; it’s spending something like $25 million a month on advertising.
Instead, I want to point out how trivial a six- or seven- figure domain name purchase is to a company that planned to raise hundreds of millions to take on Amazon. It’s small potatoes.
Jet.com started with a membership model similar to Costco or Sam’s Club. You paid an annual fee and it sold products to you at what appeared to be below Jet.com’s cost.
It quickly scratched the membership model and then raised its prices.
I purchased from Jet.com a few times to try it out. Honestly, I can’t figure out why anyone would buy something from Jet.com rather than Amazon.com. After the memberships were scratched, its prices were no better than Amazon and its selection was lacking. And, according to Re/Code, it was spending something like $20-$25 million a month in advertising. It wasn’t profitable, and I don’t think there was a path to profitability.
I don’t see what way out Jet.com had other than being acquired.
Domain investor Garry Chernoff sold the domain name to Jet.com.