The success story of Jet.com continues. Within one year of its inception, Jet.com broke many records and set new benchmarks and its success story is nothing short of folklore.
As the Marc Lore joins the Walmart’s e-commerce vertical as its top most executive, the Jet.com can now concentrate more on expanding their network with deeper penetration and streamline business operations. The hopes from Jet.com is high as the new start-up, a tiny competition for Amazon has defied all the speculations and has grown more than 200 times than Amazon in the first year of its operations.
THE REASONS FOR ITS RAPID GROWTH:
The first and foremost reason for its rapid growth are MAN behind the company – Marc Lore. Seasoned campaigner he is, before founding Jet.com he sold Diapers.com to Amazon in excess of $500 million. With this, he has a proven record, and the investors supported his endeavors wholeheartedly and lined up for investments. And with massive investments, the first year’s marketing budget was set $100 million – staggering for start-ups. The stage was set and Marc Lore capitalized it to the fullest and Jet.com became the 4th largest marketplace of the United States of America within one month. Alone marketing isn’t responsible for growth, the single most factor for the growth is its pricing. Offering prices 5-15% less than competitors has made it immensely popular.
HOW JET.COM OFFERS PRODUCTS CHEAPLY ? : FOR CONSUMERS
The strategy behind Jet.com’s offering lower prices is clear. Minimize or , if possible, eliminate embedded costs completely. Once a product is delivered there are many factors that make it cost to go up. Eliminating and minimizing these costs is what makes Jet.com cheaper. The varies factors are:
1. BUILDING BIGGER BASKETS:
The dynamic real-time pricing engine comes quickly into play customers start shopping and once the product is added, the discounts are applied. And consumers start adding products to their cart, Jet.com starts searching vendors that are closest to you and can fulfill the entire order. In this way by building bigger baskets, the logistics fee is reduced as the seller can pack it in the single box.
2. WAIVING OFF RETURN FEE:
The product comes with embedded return cost provided the return is initialized. Jet.com asks its customers to waive off the return fee and this way Jet.com eliminates one of the embedded costs.
3. IN HOUSE PICK UP:
Another way Jet.com offers discounts is by offering In-House pick up. As the customers living nearby the stores can pick up the order, it further weeds out the embedded costs.
4. LOW FEE PAYMENT METHODS:
The Jet.com encourages its members to use low fee payment options for paying as some of them are taxed less than other. As debit card’s tax is less than the credit card.
5. HOW IT BENEFITS SELLERS:
The first and foremost benefit the sellers get an extremely powerful channel for more sales. Diversifying the earning opportunity is always better. And other benefits put sellers in the front seat are:
6. NO FEES:
The Jet.com doesn’t charge any sign-up fee, monthly fee or product listing fee and the only fee that it charged is 8-15% commission on the product purchase. The commission differs for different Product Type categories.
7. WHAT TO SELL:
A seller decides the minimum number of products for a basket. For example, if a consumer wants minimum 3 products must be in the basket, then no less than this orders will be selected.
8. WHERE TO SELL:
Sellers can set savings to the minimum if the order is sent across the country, where shipping costs maximize so a customer is less incentivized, therefore discouraging the order placing.
Merchants can directly market themselves to the customers at the time of check out. They can offer one-time discounts to consumers for providing them with their email addresses that can further be used for future correspondence and promotions.
WHERE CEDCOMMERCE STANDS?
As the Jet.com is registering 400,00 new customers every month, also it has no subscription fee and orders over $35 are freely shipped, it has become one of the favorite sales channels for customers. And to sell on the Jet.com sellers are required to have online stores which they need to integrate with Jet.com.
It is here that Jet.com has been hugely popular among the seller community with its extremely cost-effective, feature-rich and effective Jet integration solutions. Offering its services across 12+ platforms, the extension is being used by 500+ seller all across the length and breadth of the United States Of America.
Thanks for your interest!