Bail out Jet.com for $3 billion — Walmart to

Business sold just a couple years following it purchased Jet.com domain name.

A little over two years following Igloo brokered the sale of the Jet.com domain name, the firm using the domain is going to be purchased by WalMart for $3 billion as stated by Re/Code.

As a domain guy, I could easily say that the Jet.com domain name ought to 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 firm that planned to raise hundreds of millions to take on Amazon. It’s modest 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. Following the memberships were scratched, its prices were no better than Amazon and its selection was lacking. And, as stated by 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 purchased.

Domain investor Garry Chernoff sold the domain name to Jet.com.