Hoboken, N.J. — A new members-only e-tail site has made its debut, the founder no stranger to its biggest competition.
Jet.com, which carries a $49.99 annual membership fee, promises algorithm-calculated price reductions and offers several ways consumers can automatically increase savings, such as waiving returns.
Consumers can also earn “JetCash” when they purchase items at participating brands — known as Jet Anywhere stores — that are redeemable for future purchases at Jet.com. Participating brands include Apple, Lowe’s, J&R, Adorama, Monster and RadioShack, among many others.
According to its website, Jet.com makes no profits on the items it sells, only on the membership fees.
“Our platform is engineered more like a financial trading system than a traditional e-commerce marketplace,” said Marc Lore, founder and CEO. “Because Jet’s business model is to only profit from membership fees, not from the products we sell, all cost savings are passed back to the customer.”
Jet.com’s debut dovetails with Amazon’s Prime Day, the one-day savings event for members that was much derided on social media yet resulted in record-breaking sales. This is far from the first time Lore has crossed paths with Amazon founder Jeff Bezos: He co-founded Quidsi, parent company to Diapers.com and other e-tail sites, which is now a subsidiary of Amazon.