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The Jet Engine that Could

Wal-Mart is reportedly in talks to buy Jet.com, a billion dollar start internet retailer challenging Amazon.com:

Jet, barely a year old, has drawn more than $500 million in capital from the likes of venture firms New Enterprise Associates and Accel Partners, mutual-fund company Fidelity Investments and bank Goldman Sachs Group Inc. The funding, and a valuation over $1 billion, are massive sums for a company facing the prospect of years of losses and an uphill climb to draw loyal users. Jet projected it would burn through hundreds of millions of dollars in its first few years, spending much of that money on marketing to draw customers to its website.

We analyzed Jet.com using our consumer spending analytics application leveraging a panel of over 3 million credit and debit cards to find out what exactly Wal-Mart would be getting for its 3 billion dollars.

Jet.com sales grew more than by five times over the last 12 months:

The number of customers who shop at Jet.com grew very rapidly, almost quadrupling from Aug 1st and Oct 31st of 2015, slowing down after that:

After that, since November 2015, the growth in sales is mostly attributed to the growth in the average transaction size, from about $28 in October 2015 to almost $57 in July 2016:

Over the last 90 days, the average transaction amount is higher than at Amazon.com, for both Amazon and marketplace items, however the spend per customer is less than half the value for Amazon, meaning shoppers make fewer repeat purchases at Jet.com:

In terms of total relative size, Jet.com sales in the last 90 days amounted to about 0.5% of the sales on Amazon.com.

Learn more about consumer spending analytics with TXN.