Analyst Insight by Michelle Chae - Retailing Analyst
Marc Lore, the founder of Quidsi and former Amazon employee, is finally launching his next venture, Jet.com on Tuesday July 21st, after raising US$220 million. Will Jet.com be the next game-changer that can take on Amazon?
Through a dynamic pricing model, Jet.com promises average savings of 10-15% compared to anywhere else online at half of Amazon Prime’s membership fee. Starting on Tuesday, consumers can sign up for a membership at $49.99 per year with a free 90-day trial period. Jet.com plans to make its revenue strictly from membership fees and pass along all savings to consumers.
“'The bottom line is, we’re basically not making a dime on any of the transactions. We’re passing it all back to the consumer,’ Lore says from a conference room in his Montclair headquarters. ‘We want to build a different type of relationship with the consumer. When we show you a product, it’s not because we are making money on it and not because we are closing out a line. It’s because we think it’s a good deal.’” –BloombergBusiness