Home Technology Consumer Tech Jet.com Threatens To De-throne Amazon

Jet.com Threatens To De-throne Amazon

Jet.com

By: Nick Gambino

Hey, Amazon – DUCK! Jet.com, touted as the “Costco of the internet,” is coming out swinging. The new mega-website launched this week and quickly brought in $1 million in sales its first day. Pretty good for a start-up.

Jet.com has greatly benefited from the $220 million invested in the company before even seeing a dime in sales. This is mostly attributed to the founder, Marc Lore’s track record as the co-founder of Quidsi, a parent company to such popular sites as Soap.com and Diapers.com. Ironically that company was sold to Amazon in 2011 for $545 million.

The founder’s fame wasn’t the only draw as the idea behind the company is itself innovative – make a one-stop shopping website that undercuts the big dogs like Amazon and Wal-Mart. Jet offers a $50 a year membership (half the price of an Amazon Prime membership) with a system that gives you more and more discounts each time you add more to your “smart cart.”

Jet’s system is different from Amazon as they don’t make their money on the items they sell. Instead they make money solely on paid memberships, giving them an extra incentive to keep you buying from them. Additionally, they act as a sort of middle man from the merchant to the customer while Amazon is a massive retailer.

A recent price comparison performed by Profitero on 16,028 different products found that Jet’s prices were an average of 9 percent lower than Amazon’s prices while it was 6% lower than Walmart. So, I guess they’re living up to their marketed intent.

Now, while us, the objective bunch, are pitting Jet against Amazon, Lore assures us they have no intention to go up against Amazon. “I don’t look at it like that at all,” Lore tells Mashable. “We don’t really see ourselves as being a competitor, we’re just a conduit for other retailers to more effectively compete.”

Yeah, yeah, tell that fairytale to the kids, Marc. We’re not buying it here. We want to see an epic battle of internet titans going toe-to-toe in an all-out brawl where only one is left standing. Or…we can just calm down and let you get in on the action and corner your own little niche. I guess that would be the saner thing to do.

Well, I for one, am excited to give Jet.com a shot and see if it can’t live up to the hype. It’s got a long road ahead of it if it wants to honestly even be considered in the same realm as Amazon. Yes, they received $220 million of invested funds and made $1 million the first day but Amazon made $89 billion last year alone. That’s “billion” with a “b”, folks. For now Amazon remains king.

ABOUT THE AUTHOR

Nick Gambino is a regular script writer and tech beat reporter for NewsWatch.  He lives in Northern Virginia with his wife and daughter.

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