Jet.com is an American e-commerce company headquartered in Hoboken, New Jersey. The company was founded jointly by businessman Marc Lore (who sold the company before, Diapers.com, to Amazon.com) along with Mike Hanrahan and Nate Faust, and has raised $ 820 million over four business rounds from companies including Google Ventures, Goldman Sachs , Bain Capital Ventures, Accel Partners, Alibaba Group, and Fidelity. This site was launched publicly in July 2015.
Announced on August 8, 2016, that Walmart will earn Jet.com for $ 3.3 billion ($ 3 billion in cash and up to $ 300 million in shares paid from time to time to founders and other selected individuals in the company). On September 19, 2016 ceased to be an independent company, and is now a subsidiary of Walmart.
Video Jet.com
Histori
After Marc Lore sold Diapers.com to Amazon in November 2010, he speculated that users might be willing to accept a longer waiting time to get items purchased online if they could save money for their purchase. He said that existing internet retailers only serve richer customers "who care more about convenience than value". Lore initially aims to create a site that will use a cost-based membership model such as Costco and Sam's Club and combine it with a broad selection of common ecommerce retailers, somewhat like Amazon Prime but emphasizes reducing product prices for members rather than free fast shipping. He started peddling the idea, and after lunch with a colleague at Accel Ventures, Lore was promised $ 1 million in initial capital to start a new site. To create transparency and reduce salary-related disputes, Lore created a 10-level salary and tenure system. Recruitment is assigned to one level based on experience, thus eliminating salary negotiations.
The main feature of this site is the price scheme. Price fixing is offered to encourage users to purchase more goods at once and to purchase items located in the same distribution center, thus making purchases less expensive for companies to collect and ship. When users add items to their virtual shopping carts, they are encouraged to select additional items using price incentives. Price options are also offered during the check-out process, such as asking users to opt out of the ability to return merchandise for free in return for a cheaper price. Users are also offered a price incentive to use a debit card rather than a credit card for purchase.
It was initially announced that the site would charge an annual membership fee of $ 50 after a 90-day free trial period, and that membership fees would be the only source of profits for the company - so merchandise would be sold at break-even prices by Jet.com. Lore said, "The bottom line is, basically we do not make a dime on every transaction, we turn it all back to the consumer." It was also announced that the site is planned primarily to serve as a market for members to access offers from third-party merchants rather than owning Jet.com selling the goods directly.
The site was launched with an initiative called Jet Insider, which is a campaign to spread the word about the company before its official official launch. Registered users are offered six months of free site membership and links used to refer friends and family to sign up. Referrals are rewarded like lifetime membership or five-year membership, and the top 10 referrals are given stock options. As of February 2015, about 352,000 users have registered and the initial membership program is closed. Beta testers report mixed reviews about the benefits of the site.
By July 2015, the site had 4.5 million products available for sale. After the beta period, the site was officially launched on July 21, 2015. Plans to use the fee-based membership model were dropped in October 2015. In November 2015, Jet.com is rumored to be raising $ 500 million, but ended up collecting $ 350 million of venture-led capital by Fidelity.
In May 2016, Jet.com reportedly worth $ 1.3 billion in its latest funding round and has launched a pilot program for food delivery services similar to AmazonFresh. However, the site was also reported as "bleeding money". In August 2016, The Wall Street Journal reported that Walmart was negotiating with jet.com to acquire the company. On August 8, 2016 it was announced that Walmart would acquire Jet.com. The acquisition process is completed in autumn 2016. In December 2016, Jet.com completed the acquisition of ShoeBuy from IAC. ShoeBuy was again branded as Shoes.com shortly after the acquisition closed.
Maps Jet.com
Competitors
Questions on various technology sites are expressed regarding Jet's ability to provide services that can adequately differentiate itself from competition and gain market share in e-commerce space. Comparisons made by Wired relative to Amazon.com and Cart do not indicate that substantial savings are earned by shopping through Jet.
Questions have been raised about whether the site can measure as needed to achieve a significant market share and grow into a sustainable business.
Features
One of Jet's core features is the "realtime pricing algorithm," according to one of Marc Lore's founders, aims to measure "the true marginal cost of getting the product to [customers]". Goods are priced according to their location in the distribution center. If, for example, a user buys multiple items that are all in the same distribution center, the price will be lower than if they were in a separate center. If the user releases their right to return the item, the item decreases its price. Paying with a cheaper form of payment, for example by using a debit card rather than a credit card, will also lower the price. The site also connects with partner sites like TigerDirect.com and Sony Store.
Jet Anywhere is a program that allows Jet users to spend money elsewhere and get "JetCash", which can be spent on actual Jet sites. Partner sites in the program include Ann Taylor, Bloomingdale's, Hotels.com, and Nike. Jet Anywhere ends in March 2017.
Jet experienced some reactions in August 2015 after displaying some links to other sites as if they were partnering with the site without getting permission. Brands like Macy's, Walmart, and Home Depot broke away from Jet because of the incident. Jet deletes all links to brands that request removal. Chief customer officer Jet states that the brand Jet wanted to be removed as a competitor.
Business model
The price is generated by a pricing algorithm that adjusts the price of the content in the basket based on the distribution center of the originating goods. The Wall Street Journal reported in July 2015 that in a test purchase on the site, Jet had sold a 12 item newspaper for $ 275.55 that had cost $ 518.46 - lost $ 242.91 on the transaction.
The Jet Partner program allows companies to sell their products on Jet sites by registering accounts and integrating application programming (API) components into their systems.
See also
- Tech companies in the New York City metropolitan area
References
Source of the article : Wikipedia
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