Jet.com Launches Frontal Assault on Amazon
July 23, 2015
Ballyhooed e-commerce venture Jet.com launched this week, bringing the Costco/Sam’s Club/BJ’s warehouse model to e-commerce. Users pay an annual $50 fee that gives them access to what Jet says are the lowest prices on virtually any product you can think of.
The company, which has raised $225 million in capital prior to Tuesday’s launch, is comparing its prices to Amazon’s on every product page. Like Amazon, users are served up recommendations based on what they buy. Jet’s difference, however, is that those recommended products are priced differently depending on what and how many items are in a shopper’s cart. The more you add to your cart, the lower the price for each item you’ve already chosen becomes. The company’s technology also incentivizes shoppers by lowering prices on items stored at warehouses closer to their location.