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Amazon has a competitor in the house, and its name is Jet.com.
To leverage sales from this competition, Walmart recently purchased Jet.com for $3 billion in the most expensive e-commerce acquisition in America.
Jet.com Strategizes Growth, Competition With Amazon
While Amazon continues climbing the ladder to become the largest company in the U.S., Jet has distinct differences. These differences should allow Jet and Amazon to cohabit the online retail market, according to the National Retail Federation (NRF).
Jet.com gives consumers the best price and shipping value by offering a real-time pricing algorithm. When a user adds items to his or her cart, prices change on the back-end. So, when an item is added, savings increases.
Yet Jet pricing and delivery are comparable to Amazon, says NRF.
Jet CEO Marc Lore says that “pricing and transparency are the building blocks to the company’s success.”
NRF reports that Jet.com has accumulated an inventory of 11 million products sourced from 1,800 retailers, and the company surpassed $1 billion in gross sales in May. Lore expects the company will reach overall profitability by 2020, and he says Jet can “coexist” with Amazon.
“There’s going to be more than one player…there’s opportunity for a very large No. 2, or even No. 3.,” says Lore. “It’s not a winner takes all.”
