How Jet Measures Up Against Amazon
Jet.com, an online marketplace that launched in July 2015, hasn’t made it a secret that it’s targeting Amazon.com. In those 11 months, Jet has dropped its initial membership model, instead offering free shipping on orders over $35, two-day delivery on common household essentials, and an almost game-show style shopping experience. But is it making inroads in its quest to conquer Amazon? This article from Forbes reveals some interesting — and potentially concerning — insights about the progress Jet has made in establishing itself as the go-to site for online shoppers.
Total Retail’s Take: Jet’s arrival on the retail scene came with a lot of fanfare, but so far it’s been unable to deliver on the hype. The company has already dropped its $50 annual membership fee, which company founder Marc Lore said would be the sole source of profit for the retailer. And while more than 50 percent of U.S. shoppers have heard of Jet.com, only 4.5 percent had ever purchased from the retailer and, more troubling, just 32.5 percent bought again after their initial transaction. This is in stark contrast to Amazon Prime’s improving retention rates. In this David vs. Goliath fight, I’m going with Goliath (aka Amazon).