Online retailer Jet.com sets Amazon & Walmart in its sights
Jet.com is setting its sights on established e-commerce rivals Walmart and Amazon with a proven pincer of low prices and real-time trading to shake-up it’s more established counterparts and give it an edge in an increasingly competitive market.
This encourages shoppers to stump up a $50 annual membership fee in return for access to discounted rates of between 10 and 15 per cent on 10m plus items.
Whilst a crowded market e-commerce is also a growing sector with total sales of $300bn last year expected to surge to $414bn by 2018, according to the most recent research to be compiled by Forrester.
Jet founder Marc Lore told USA Today: “"It's simply about undercutting everyone. We make money only on the memberships, so we can cut profit margins to zero. But the real secret sauce is our technology. It's more a real-time trading site than an e-commerce site."
For those unaccustomed to Jet’s methods the site employs real-time trading to update a purchase basket with discounts for every additional item added, together with bonuses for opting out of product returns or paying by debit card.
Further savings can be found by sourcing from suppliers close to your door.
The new model has been jump started by a $225m funding drive and months of testing with its existing customer-base of 150,000 ahead of a national roll-out on Tuesday which will be incentivised by a three-month free trial.