They don't have any margins. When a consumer buys a product on their site - they have employees purchase from retailers or suppliers and ship.

So they've been eating the cost of shipping and overhead with no margins and have zero loyalty because they don't really have a unique value proposition.

They failed with their initial subscription model. They say they can keep costs low with their technology and rewards based shopping but they haven't proven anything.

It gets better with Walmart though - now they have a supplier and distribution hub that has great relationships with countless vendors.