Jet.com is finally ready to roll out its services. The new e-commerce service plans on making an entry into the online market as a challenge to the e-commerce giant, Amazon.com, Inc. (NASDAQ:AMZN).
The new company will open up its services to its initial 10,000 subscribers giving them an opportunity to access a variety of products. One of the strategies that Jet.com incorporates is the diversification of the products and services available on the platform. The idea is to operate just like its big rival, Amazon, by providing a trading platform that is not limited in terms of content.
Marc Lore, who is the founder jet.com, oversaw the official rolling out of the new platform, which he hopes will grow to become legitimate competition for Amazon and the others. Another strategy that the company will employ is providing quality services at cheaper prices compared to Amazon. Marc Lore said that the 5 million products available to members at subsidized prices. This will allow users to save 10% to 15 % on each order. This will be pivotal in pulling in more customers. The service will be piloted for the next few weeks before it can finally be rolled out to the general public within the year.
Jet.com was started with an initial capital of about $225 million which was collected from various investors such as New Enterprise Associates and Bain Capital. Interestingly, Alibaba Group Holding Ltd (NYSE:BABA) also contributed to the investment. The investment shows just how promising the investment is in terms of performance.
Speculators believe thatthe service will grow to become Amazon’s biggest threat in recent times. This extrapolation is influenced by the fact that the company does not plan on charging transaction fees for any purchases. Instead, the platform will only charge membership fees to its subscribers. This will greatly influence the reduced price levels that subscribers will benefit from.
Jet.com is currently valued at $600 million. The company hopes that annual sales will reach $20 billion in yearly sales margins for products and services traded on the web site.
