In response to waning site traffic on Jet.com, Walmart is now relaunching the site. It will now offer more expedited fulfillment options for city residents, including same-day grocery delivery, localized content, and personalized product recommendations based on consumer preferences.
In the past few years, Walmart has made several strategic acquisitions of digitally-native brands in an effort to increase its appeal to a younger demographic, the urban millennial. By far the largest of those acquisitions was Jet, a platform for third-party sellers that algorithmically determines the best prices on products to find deals for users by incorporating discounts and shipping with the total price.
As brands consider distributing on the platform, they should be cognizant of under-penetrated categories and maintain a targeted keywords strategy. There are clear opportunities for long-tail brands to gain scale on Jet, according to Gartner L2’s report on various types of retailers and marketplaces. The study finds that across the activewear, consumer electronics, personal care and watches & jewelry sectors, the brands with the highest Digital IQ rankings own less than a third of first-page search results on unbranded keywords.
Brands that focus on select keywords take a dominant share of on-site search results. For instance, Adidas owns a majority of first-page results across a select group of keywords, including “indoor soccer shoes,” “soccer shoes,” and “golf shoes,” indicating that selective, targeted investment in Jet’s keywords is effective. However, broader keywords like “shoes” and “sneakers” see low ownership of results, highlighting opportunities for smaller-scale brands to take advantage.