Jet.com drops membership fee
In the weeks since Jet.com launched in the States, it’s caused a lot of buzz and it’s also proved to be rather successful.
And one of the most interesting aspects was that they charged a membership fee to keep other costs down, talking of themselves as a Shopping Club. It was an interesting concept and was supposed to be how Jet made its money. It’s interesting to note that today Marc Lore, Founder of Jet, has posted to the company blog saying the fee is to be dropped.
“When we launched Jet, we envisioned a shopping club that would empower both consumers and retailers by exposing embedded costs and creating new ways to eliminate them. It’s been amazing to see how deeply this idea has resonated with our customers and retail partners, and we’re more committed than ever to extending the reach of our vision. I am therefore incredibly excited to announce that we’ve decided to drop the membership fee and make Jet free for all shoppers.
The response to Jet’s core value proposition has been stronger than we anticipated. With the average number of units per order twice what we expected, Smart Carts have been the rule, not the exception. Our customers are taking every advantage of our dynamic pricing engine to place orders that can be fulfilled at a lower cost — and to have those efficiencies shared with them as savings. In turn, our retailers are reaching new customers while capturing more efficient and profitable orders. By enabling even more people to embrace this new way of shopping, we believe we can more fully realize our vision of a reshaped e-commerce landscape and deliver unprecedented value to consumers and retailers.”
Jet isn’t yet available in the UK.
SO how are they making money now? I thought the whole point was they made it on the subscriptions