Look out Amazon! Look out Costco, Target and Walmart!...here comes Jet.com. Raising over $255 million even before its public launch, Silicon Valley's Jet.com is the latest in the online retail space and they seek to save you money. Indeed, that is their strategy, noting they ofer lower prices over Amazon and its kind for bulk goods, as well as additional discounts for other, consumer-opted behaviours. For example, choosing to buy two products from the same source vs. two diferent sources. Unique in its approach, Jet.com looks to shake things up in the consumer retail world.
With deliveries promised in 2 to 5 days, direct to your front door (like Amazon), and the greatest deals on bulk items versus individual purchases (like Costco), Jet's combinination of this "best of both worlds" may indeed give it a real shot at success. Yet Jet's strategy goes a few key steps deeper.
First, there is a small catch. Much like Sam's Club or Costco, you pay an initial $50 membership fee to Jet each year to get shopping access. Of course, Jet maintains that its low prices will save the average customer around $150 a year, making the membership a 3 to 1 beneft. Well, we've seen this (and bought in) with Costco, Amazone Prime, etc...so this should not turn away too many potential members.
Additional strategic differentiation (and actually making shopping a bit more interesting), Jet does something that no other retailer does: they point out combination formulas, while you shop, that can save you even more money. For example, let's say you select a 12-pack of soap from a certain manufacturer. You then select some detergent, from an entirely diferent manufacturer. That said, if a comparable detergent is also available from the soap manufacturer, Jet may send you a quick notice that if you switch your detergent selection to that of the soap manufacturerer then you will receive two discounts: one for consolidated shipping, and another for buying in greater bulk from the same source. Viola! More savings for you.
Jet.com's approach to online retailing doves well with a populace that is increasingly going online to buy its goods. And coupling in some new, cost-saving metrics, well, smart move I say. Let's see now how fast the uptake is and whether or not they survive against the 800-lb retail gorillas already out there. Stay tuned.