Jet.com: Aiming for the Stars!
Modern technological innovations and the eCommerce boom has made the online shopping space cluttered. Millions of companies worldwide are taking the eCommerce route and offering products online to boost their revenue.
The existence of a multitude of eCommerce providers in the market today has thus made the industry fiercely competitive. Differentiation is key, in order to stand out in the competition. While eCommerce providers choose from a wide range of differentiating factors like product range, customer service, promptness of delivery etc., It chooses to differentiate based on price. Jet.com is the new eCommerce website on the block that couples Amazon-like shopping experience using a wholesale store like a model.
Annual Membership Model
Jet.com intends to earn revenue through membership fees but aims to pass on all the other savings to customers. People looking to shop at Jet.com require taking an upfront annual membership of $49.99. However once a member, Jet.com guarantees the lowest prices along with free shipping and returns on products over $35. Skeptical whether Jet.com’s low price claims are for real? Then you can opt for their 3 months free trial period, which allows you to test run the website without worrying about being auto-enrolled to their website once the period is over.
Helping Customers Save on Costs
While Jet.com’s working model remains the same as any other eCommerce company, a marketplace that allows merchants to offer their products to customers, it suggests customers on how they can save more money.
- By bundling multiple products sold by multiple sellers into one package, It achieves savings on shipment which is eventually passed on to the customer.
- Additionally, it also suggests customers choose a delivery agent that’s closest to them, based on their current location, in order to save up costs.
- This way, Jet.com intends to offer the best deals to customers thereby building long-term and strong relationships with them.
The Owner, a Former Employee at Amazon
Jet.com is owned by Marc Lore, former CEO of Quidsi that was bought by Amazon in 2010 for $550 million. While Marc remained a part of the acquisition for 2 years, he later decided to start his own venture and compete with Amazon in the eCommerce market.
Officially launched on 20th July 2015, Jet.com currently has over 10 million products on the store. Though this number is significantly lesser than Amazon, It is looking to take on Amazon head on. By offering prices as low as 10-15%, Jet.com is looking to reinvent the wholesale model by providing products for people of all ages.
What Makes Jet.com Unique?
With hordes of companies competing with each other in the eCommerce market, customers today look more at convenience than value. Though shipping costs may appear free, it is often bundled with the actual price of the product. With it, Marc intends to offer lowest priced products in the form of most economical deals that meet customers’ distinct shopping needs.
Additionally, in order to earn immediate profits, many big eCommerce players tend to offer useless products to customers at unreasonable prices that lead to immense displeasure and anger within customers. Marc claims that the motive of it is not to earn money but to offer the best deals to customers.
While it is tough for any company to compete with a big firm like Amazon, with the intentions of Marc, the future of Jet.com seems promising. Jet.com has already raised more than $80 million from venture capital firms and plans to raise hundreds more in the coming months. By enabling customers to benefit from the cost savings that Jet.com achieves, Jet.com is sure to offer a shopping experience that results in customer delight.