Jet.com Vs The Amazon Fortress

byGCouture

221 followers

Updated 9 years ago

Good day everyone,

I found a very good article about a new comer in the Affiliate Marketing World: Jet.com

Excuse my French! The article is written in French but I did a fast translation for you guys.

http://affaires.lapresse.ca/economie/technologie/2...

The article is very well documented and gives us good information about Amazon actual situation and e-commerce in general.

Translated Article:

The online sales site Jet.com will soon launch an assault on the American giant Amazon.com offering more competitive prices but asking a registration fee to potential buyers.

Jet.com has already raised $ 220 million and has approximately 1,600 retail partners who will offer more than 10 million products, ranging from electronics to household products.

The registration fee will be 49 dollars (about 45 euros) per year and will allow subscribers "to find the lowest prices for everything they want to buy online," says a spokesman Jet.com.

Still in testing phase Jet.com temporizes rivalry with Amazon.com, which dominates the industry for nearly 20 years.

"With only 8% of sales made online, we believe that there is still plenty of room in the market for new businesses, innovation and growth," say officials Jet.com. The price of such items will vary according to the number of items placed in the shopping basket.

The company was founded by Marc Lore, already behind Quidsi (diapers.com and soap.com) which was sold to Amazon in 2011 ... for $ 545 million.

According to Forrester Research analyst Sucharita Mulpuru, "there was an opportunity to seize for a new player on the web that can overturn the deal and give retailers a chance."

She recalled that earlier sites developed by Marc Lore were distinguished by the quality of their customer interface. "If anyone can do it, it is he and his investors," she says.

Strong competition

But others point out that it will be difficult to get into a market dominated by Amazon.com and whose profitability remains unproven.

"They have to spend tens of millions of dollars in infrastructure. They must become a logistics company and any other competitor entering the market must also think about it, "he adds.

With Amazon in front, "he said it will be difficult to compete on price and difficult to be competitive in service," said Bob O'Donnell.

The US retail giant Wal-Mart will also embark on online distribution with subscription promising delivery within three days for most products.

Amazon also has in its favor its "Prime" program, which includes free shipping and other services such as music and video.

Larry Chiagouris, a marketing professor at Pace University in New York, said that the subscription model proposed by Jet.com is similar to one that works with other supermarkets such as Costco and can succeed.

Amazon "is not universally appreciated" and some of its partners are not satisfied with its income distribution model.

But the ultimate goal for Jet is perhaps not so much as to beat Amazon to join him.

Thank you for reading and have a nice day everyone.