WAL-MART Has Encountered Doubts In The Field Of Electricity Supplier, Amazon Is Also Not A Good Day.

Saunders wrote in a written report to the customer: "we always say that WAL-MART has a great advantage for Amazon. If WAL-MART finds a way to integrate the online store with its system, it can perform orders at a lower cost and faster speed."

The electricity supplier business has never been an opponent of Amazon.

Comparing the revenues of the two companies' electricity business, we can easily understand this: in 2015, WAL-MART's electricity supplier income was $13 billion 700 million, while Amazon reached $107 billion.

However, if WAL-MART really buys Jet.com, Amazon's nightmare may be coming.

There are three reasons:

1, WAL-MART has a large customer base.

In terms of online sales, WAL-MART is far behind.

But on the whole, it's completely different.

WAL-MART's revenue in 2015 was $482 billion, more than 4 times that of Amazon's revenue in the same year.

WAL-MART's high revenue means undeveloped.

Potential -- customers who shop in WAL-MART stores can be pformed into their e-commerce customers.

2, WAL-MART has a huge store network that can fulfill online orders.

WAL-MART has 4500 stores and 102 distribution centers in the United States.

Amazon, by contrast, has roughly 180 orders fulfillment centers in the US.

Stephan Schilbach, the founder of NewStore and Demandware of the electricity supplier company, believes that for WAL-MART, "the combination of its huge entity network with a new electricity supplier will make the two companies in a more advantageous position".

He said he did not believe WAL-MART would overtake Amazon in terms of e-commerce sales.

He said: "I still don't think WAL-MART can beat Amazon, but it's interesting to see WAL-MART trying to defeat Amazon."

Neil Saunders, chief executive of Conlumino, a retail consultancy, is more optimistic about WAL-MART's potential.

Saunders wrote in a written report to the customer: "we always say that WAL-MART has a great advantage for Amazon. If WAL-MART finds a way to integrate the online store with its system, it can perform orders at a lower cost and faster speed."

3, Jet.com can provide WAL-MART's lack of e-commerce logistics.

Jet.com has been growing fast and has taken away part of Amazon's customers at a low price.

According to the data released by Euromonitor, the company that has been established for only one year has generated more than 100 million US dollars in revenue and over 4 million customers.

According to Slice Intelligence, another industry data company, sales of Jet in July 2016 increased by 168% over August 2015.

Meanwhile, WAL-MART's online sales grew by only 30% over the same period.

Jet.com also quickly grasped the secret of quick and free delivery.

WAL-MART's ShippingPass membership fee is $49 per year, and the annual fee of Amazon Prime members is much higher, which is $99.

However, Jet.com's two day service is free, with an order amounting to US $35.

WAL-MART customers who do not purchase ShippingPass services can choose "urgent" one day distribution, the cost is $14 per unit, or "accelerated", "standard" and "preferential" delivery services. The distribution time is between two and seven, and the cost is between 5 and 8 dollars.

WAL-MART also offers free to shop self service.

WAL-MART has only recently started offering two day service to members of the ShippingPass free shipping program, and Jet has already started offering free service to half of the US families for one day.

"WAL-MART will benefit from its logistics and distribution capabilities from Jet," said Michelle Malison, a retail analyst at Euromonitor.

"By carefully positioning its distribution center and streamlining the circulation of logistics, Jet has increased the penetration rate of one day service from 25% to 50%, and nearly 99% of American households can enjoy delivery services within two days.

In some densely populated areas such as New York, Jet can achieve one day without increasing costs. "