HOBOKEN, N.J. – Marc Lore's ambition is as spectacular as his view of the sparkling Manhattan skyline.
...Jet's consumer proposition is as simple as its algorithms are complex: Spend $50 a year for a membership and you get the Web's lowest prices on 10 million-plus goods.
Fueled by $225 million in funding ("Though it will take much more to get us on the e-commerce flywheel," says Lore) and encouraged by months of beta testing with 150,000 customers ("We saw repeat rates of more than 50%," he adds), Jet rolls out nationally Tuesday with a three-month free trial.
“'It's simply about undercutting everyone (on price).'”
...With average savings of 10-15% on most items, Jet's niche is the cost-conscious, from millennials on a budget to boomers hunting coupon-less savings.
"It's simply about undercutting everyone," says New Jersey native Lore, whose calm demeanor belies his boundless energy. "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."
Here's how Jet works. As you add items to your basket, a discount tally starts accruing. The more you add, the bigger the discount, aided by specific choices such as opting out of a product return (a cost that Lore says is built into most shipped goods) and non-credit card payments (debit cards and linked checking accounts cut your final bill).
ALL ABOUT A KETCHUP BOTTLE
Lore's real-time trading reference speaks to the system's ability to adjust your discount based in part on where suppliers are. The closer the supplier, the lower the price. It gets Lore thinking about a bottle of ketchup.
"The a-ha moment for me was thinking about the profitability of a single SKU," he says excitedly. "On one Heinz ketchup bottle we could either lose 20% if it had to ship cross-country, or make 20% if it was near. So we thought, let's give retailers the ability to compete for that ketchup depending on where the order comes from."
...
I signed up and purchased from them for my new video card in order to get their new member discount as well as a discount on the card. Had no issues and would go back to order there, though Amazon is always my first thought.
But I wish them luck. Competition is good.
I have that feeling as well. More power to 'em.What a scam! It was all a huge scam and Wal-Mart fell for it.
Jet.com never actually sold any items themselves. They would were kinda like a wholesaler, selling items in "partner company" inventories while keeping no inventory of their own. They really don't provide anything of value as far as distribution, at least not to a giant like Wal-Mart.
What enticed Wal-Mart was all the "Jet Customers" and Jet accounts that were created, but most of those were created so people could take advantage of the 15%-20% discounts on the first purchase. The only reason they had such a strong repeat rate is every customer is given a new 10% off coupon after the first purchase.
So basically what these people did was create an Amazon "copy" that has no inventory. They took their initial seeding money and turned it into a marketing budget, and used this budget to bribe people to become members. Then once their user numbers were up (again via percent discount bribes) they "sold out" to a sucker old school company (Walmart) who doesn't realize they just bought a scam. Once Wal-Mart is in control and the 10%-15%-20% coupons are gone not many people will come back while Jet.com creators will have made off with billions.
Kinda makes me feel better for making so many accounts to get that 15% multiple times. I might do it a few more times before the party is over.
Yeah our laptop dock took a long time but they did say when I ordered it that it would be a couple of weeks and it was a good $30 cheaper than anywhere else so I was ok with it.I tried them one time. Simple order, (one item) supposed to be in stock...took over two weeks for delivery.
Won't order again.
Jet.com never actually sold any items themselves. They would were kinda like a wholesaler, selling items in "partner company" inventories while keeping no inventory of their own. They really don't provide anything of value as far as distribution, at least not to a giant like Wal-Mart.
What a scam! It was all a huge scam and Wal-Mart fell for it.
Jet.com never actually sold any items themselves. They would were kinda like a wholesaler, selling items in "partner company" inventories while keeping no inventory of their own. They really don't provide anything of value as far as distribution, at least not to a giant like Wal-Mart.
What enticed Wal-Mart was all the "Jet Customers" and Jet accounts that were created, but most of those were created so people could take advantage of the 15%-20% discounts on the first purchase. The only reason they had such a strong repeat rate is every customer is given a new 10% off coupon after the first purchase.
So basically what these people did was create an Amazon "copy" that has no inventory. They took their initial seeding money and turned it into a marketing budget, and used this budget to bribe people to become members. Then once their user numbers were up (again via percent discount bribes) they "sold out" to a sucker old school company (Walmart) who doesn't realize they just bought a scam. Once Wal-Mart is in control and the 10%-15%-20% coupons are gone not many people will come back while Jet.com creators will have made off with billions.
Kinda makes me feel better for making so many accounts to get that 15% multiple times. I might do it a few more times before the party is over.
Not American so never even heard of Jet.
They've been advertising on TV quite a bit lately but of course a lot of people have cut the cord and never see ads. But even their ads are confusing, something about adding a product to your cart "shrinks the price" on other items. I don't shop that way....Never heard of them either. Considering i price check practically everything i get from amazon the same item almost always turns up on walmart.com, never jet.com. This seems to be the case where the best at one thing is an idiot at everything else.
But I wish them luck. Competition is good.