Have you heard of Jet.com? If not, that’s okay. Jet.com is a startup based out of Montclair, New Jersey, ready to compete with the biggest of the big in the world of ecommerce and bricks and mortar. With currently 100 employees, Jet.com aims at becoming the “shopping club reinvented” and to gain the customer base from Amazon, EBay, and Costco. For a yearly fee of $49.99, (think Amazon’s prime membership and Costco’s club membership) Jet.com members will have access to a large variety of product categories that are 10-15% less than any of the prices that appear online.
Next, how does Jet.com plan on making money? Just like Costco, an annual membership fee will become their main source of income as they hand over low cost products to customers in which Jet.com will most likely not make any profit from. They also differ from competitors in the ways they help customers save. Besides offering products that are less expensive, Jet promotes bulk shipping that will save customers money if they accumulate a full order of different products, compared to ordering multiple products at different times. Using a bulk method of shipping and enticing customers to use it serves as a win/win, for Jet.com and their customers as well. A low cost leader? Jet.com’s main objective is to offer the best value to their customers, attempting to rival the rest of their e-com competitors. If they plan to defeat Amazon, this approach is one that will work in their favor. Plus, free shipping and returns never hurts.