E-commerce newcomer Jet has officially launched its site, with the aim of offering shoppers lower prices than Amazon and Walmart (NASDAQ:AMZN).
Jet's founder, Marc Lore, is also the founder of start-up Quidsi, parent company of Diapers.com, which he sold to Amazon in 2011 for more than $500 million. Since being acquired by Amazon, Quidsi has seen several brand changes, including a relaunch of Vine.com intended to cater to shoppers with dietary restrictions that want natural and organic groceries.
Lore's work at Quidsi was focused on perfecting customer service and speedy delivery, which were seemingly falling short at the time. That, he believes, is the reason why only one in five shoppers returned to Diapers.com, reported the Washington Post.
Now, Lore believes price is king. That's why his new venture, Jet, is promising the lowest prices online—even lower than Amazon and Walmart. The company plans to undercut rivals with a delivery model that sets the prices in real time based on the combination of items a user is buying. As shoppers fill baskets, Jet's technology calculates which seller can send orders most efficiently and cheaply on a case by case basis.
Jet is also planning to attract consumers through a marketing blitz targeted at older millennials, AKA young moms. Lore believes older millennials aren't shopping as much online because prices aren't enticing enough.
The company is also strategizing customer savings. Shoppers can both waive their right to return an item and pay with a debit card instead of a credit card to cut down the purchasing price at checkout.
As of January, Jet had received $220 million in venture funding, and then another round of funding, worth $140 million, was awarded back in February, putting the value of the company at around $600 million. About 350,000 people have signed up early to access and shop the site as of last week. A release to the general public is planned for later this spring.
-See this Washington Post article
Amazon's hashtag blows up social media
E-commerce turning to fee-based memberships
Amazon competitor Jet gets $140M in latest round of funding
Former Diapers.com CEO to open wholesale shopping club next month
Diapers.com founder raises $55 million to battle Amazon, again