Amazon.com is likely on high alert this week, because this week, a new online shopping website launched and it is looking to compete directly with Amazon. I am talking, of course, about Jet.com.
You may be wondering…How does some new kid on the block expect to compete directly with online shopping’s biggest powerhouse? Well Jet.com isn’t just any online retailer.
Jet.com is a membership based price club which aims to save you money in any and every way it can, in exchange for a membership fee of $50 per year.
One of their main goals is to beat Amazon’s prices. If you have ever shopped on Amazon, you know this won’t be an easy task, but Jet.com is up to the challenge. It intends to accomplish this in the following ways. First, their price tool scours the net for the best prices on any item you might be interested in. Second, when you add more items to your purchase, the entire cost goes down, and certain items reap even more savings when bought together. Third, the site will even pass savings onto you when you waive certain services like returns or choosing a lower cost payment method.
All of those ways to save are great, but here is what really makes Jet.com stand out. Jet.com does not make money on the goods you buy; they only make money on the $50 memberships they sell. This means that they are selling items at cost, while working to make the savings even more significant in other ways, and passing all of the savings onto the consumer. Taking all of these things together, Jet.com is confident that they can significantly beat Amazon’s prices. Isn’t competition wonderful?
Jet is so adamant that it can beat Amazon’s prices, that it will display Amazon’s prices next to their own goods. We love this, as it reassures us that we are getting the absolute best price on what we are buying in most cases. It’s a really good feeling.
Jet also intends to enable customers to purchase products from third parties which are unavailable on Jet as part of a program called Jet Anything. This way, Jet customers can get a discount on items they do not even buy through Jet. The program is expected to roll out later in the month.
If this didn’t give Amazon enough of a reason to be worried, the man behind Jet.com may make the internet retailing giant anxious. Jet.com was founded by Marc Lore, who actually worked in the upper echelons of Amazon.com before founding Jet. Before that, he founded Quidsi, which owned Diapers.com, among other things. Diapers.com became the largest online specialty retailer for baby products. Amazon bought Quidsi for $550 million after a diaper price war. Given Amazon’s reputation for closely watching its competitors, and their history with Lore, you can bet Amazon will be keeping a close eye on Jet.com. This can only mean great savings for us consumers!
If you want to see what all the fuss is about, head on over to Jet.com. It could be worth your while.