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Started By
Message
Jet launches today, a startup who raised $225 million to take on Amazon
Posted on 7/21/15 at 1:19 pm
Posted on 7/21/15 at 1:19 pm
quote:
Jet.com, which has raised $225 million to take on Amazon, officially launched Tuesday after welcoming beta testers in April.
The site promises to offer prices that are 10-to-15% lower than anywhere else.
Products start at about 8% cheaper right-off-the-bat, but the site then offers additional discounts when shoppers can combine multiple orders into a single shipment, waive the ability to return something, or use debit cards instead of credit cards.
Instead of making a profit by taking a cut off the top of product prices, Jet makes money solely from a Costco-esque membership free: Users have to pay $50 a year to shop.
Business Insider Link
Jet.com Link
Basically they are not shy about who they're going after. For example, when you click on an item, they display their price directly next to the Amazon price, and even have a link to check the price on Amazon. Then they tell you how much you can save by buying from them.
Example: Nest Thermostat on Jet.com
Do you think they can take down Amazon?
10
Posted on 7/21/15 at 1:31 pm to Box Geauxrilla
No one is going to be able to make a dent in Amazon until Amazon gets serious about making money.
Posted on 7/21/15 at 1:32 pm to Box Geauxrilla
Looks like the same price on the nest 
Posted on 7/21/15 at 1:38 pm to Grouper Picatta
quote:
Looks like the same price on the nest
All of their prices seem to match Amazon's until you create an account. Once you login, it shows a discounted price. For the nest, it is $15.09 cheaper.
It also let me choose to save an additional $2.48 by waiving the free return option.
This post was edited on 7/21/15 at 1:40 pm
Posted on 7/21/15 at 1:44 pm to Grouper Picatta
Shows $14.13 off and I didn't create an account.
Some of their food is nicely discounted, Pringles $2.48 on Amazon and you get $1.03 off on Jet.
Some of their food is nicely discounted, Pringles $2.48 on Amazon and you get $1.03 off on Jet.
This post was edited on 7/21/15 at 1:46 pm
Posted on 7/21/15 at 3:00 pm to Box Geauxrilla
I'm eager to see how Amazon will respond. The 6-month trial is nice. I'll probably do a price comparison every time I want to make an Amazon purchase. They'll need to compete on customer service, too.
Posted on 7/21/15 at 3:03 pm to Box Geauxrilla
Dammit. I was wrong about CAD. I was convinced he was an Amazon higher-up. It's clear he's behind Jet. Clever bastard.
Posted on 7/21/15 at 3:21 pm to PurpGold 14-0
prices are really nice, but let's see how they do with customer service, which amazon does a great job with. unless your name is CAD, of course.
Posted on 7/21/15 at 3:24 pm to ILikeLSUToo
So their business model is "we'll only make money on our annual fee, not the products we sell, and we'll charge half of what Amazon is charging per year." How will they have the volume to get the discounts to match Amazon on price, let alone beat them? A price war only works if you actually have a lower cost structure.
Posted on 7/21/15 at 3:39 pm to TigerinATL
I'm even more interested in how manufacturer's will respond to Jet blatantly breaking MAP pricing.
Posted on 7/21/15 at 3:48 pm to Grouper Picatta
quote:
Looks like the same price on the nest
The base price is the same, but when you add it to the cart, it subtracts the discount. The discount varies based on different factors. I had a few things in my cart when I looked at the Nest, and it showed the discount on the nest would be 15.97. After emptying my cart, the discount dropped to 14.13.
Posted on 7/21/15 at 4:02 pm to Box Geauxrilla
Seems pretty legit to me.
Not sure if it'd catch on with the common peasant considering the "math" involved
Not sure if it'd catch on with the common peasant considering the "math" involved
Posted on 7/21/15 at 4:25 pm to Box Geauxrilla
Sci-Fi and Fantasy under Children's Books?
Seriously, prices are decent. I'll be buying from them for at least the free trial length.
Seriously, prices are decent. I'll be buying from them for at least the free trial length.
Posted on 7/21/15 at 4:26 pm to CubsFanBudMan
the discount for me is $27.39 off. i have nothing in my cart, but i've played around with jet some today just to check prices
Posted on 7/21/15 at 4:51 pm to Box Geauxrilla
quote:Not in the foreseeable future. Not even if Amazon doesn't respond at all.
Do you think they can take down Amazon?
Amazon hasn't been about the prices for me for a long time.
Posted on 7/21/15 at 5:01 pm to Box Geauxrilla
I just made my first purchase, two boxes of Quest Bars for $35.60.
Posted on 7/21/15 at 7:41 pm to Box Geauxrilla
(no message)
This post was edited on 8/18/15 at 7:24 am
Posted on 7/21/15 at 9:15 pm to bigblake
quote:
Amazon already loses money, yet has tons of volume. Amazon already has a subscription service... I'm not sure how this company is going to undercut a company that is already charging basement prices.
Amazon actually runs higher margins than Walmart. Of course, that includes the high margin virtual goods such as ebooks and web services, but the margins on their physical goods leaves plenty of room for undercutting. Amazon breaks even due to high capex.
Posted on 7/21/15 at 9:26 pm to TigerinATL
quote:
So their business model is "we'll only make money on our annual fee, not the products we sell, and we'll charge half of what Amazon is charging per year." How will they have the volume to get the discounts to match Amazon on price, let alone beat them? A price war only works if you actually have a lower cost structure.
Jet doesn't actually stock the items. They're kind of like a glorified drop shipper. When you place an order on Jet, they choose a third party seller based on price and location and offer the sale to the seller. Sellers aren't supposed to contact the buyer--from the buyer's perspective, the transaction is with Jet and they just contract the third party seller to fulfill the order.
Jet hols sellers to strict performance metrics. The seller is expected to accept the order within 15 minutes. If they don't accept within 2 hours Jet gives the sale to another seller. Tracking information has to be provided to Jet, and the carrier must register the first scan within 24 hours. The item is supposed to be to the buyer in no more than 5 days. I don't think Jet is going to be able to maintain those standards due to certain quirks with shipping and logistics that are unrelated to this post.
Jet makes money off both the user fees and commissions paid by the sellers. The commissions are lower than Amazon which allows the sellers who fulfill the orders to charge a lower price than they do on Amazon. I was looking at their site from the buyer side this afternoon and it looks a lot cleaner than Amazon, but that might be simply because it's a relatively new site and hasn't been clogged up with bad listings by incompetent sellers.
Posted on 7/21/15 at 10:08 pm to Korkstand
(no message)
This post was edited on 8/18/15 at 7:24 am
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