What Jet.com Means For Multi-Channel Sellers (and Shoppers)
Posted: July 20, 2015
The countdown to Jet.com's public launch is T-minus 10 hours. The rocket ship is about to take off and we believe it's important for merchants and brands to get onboard early.
Jet.com has received a great deal of attention for its ambitious goal to become the most cost effective place to shop online. It has already raised a staggering $225 million pre-launch, boasts a team of nearly 300 employees, and is rumored to be in talks to add "hundreds of millions" in funding before year end at a $3 billion valuation according to The Wall Street Journal.
Is it possible to disrupt the online marketplace model? What makes Jet.com's business model so special? Unlike Amazon.com and Ebay's ~15% marketplace commissions, Jet.com does not charge a commission to its merchants and will not compete with merchants aside from the bulky essentials you'd normally drive to your local big box retailer to purchase.
Instead, Jet.com charges a $49.99 annual membership fee (after a 90-day free trial) and guarantees you'll save at least the amount of your annual membership by shopping the site. Therefore, you should expect pricing to be as much as 15% cheaper on Jet.com.
The Jet Insider referral program attracted nearly 500,000 early signups and - from our experience - every customer communication has been consistent and memorable. With a $65 million marketing budget earmarked for tomorrow's launch through January 2016, you can expect Jet.com to grab share of mind and wallet from competing online and brick and mortar retailers. Jet.com's stated goal is to reach $20 billion in gross merchandise volume by 2020, and while ambitious, we think it's certainly doable.
How to sell on Jet.com
Marketplace sellers approved to start selling on Jet.com can either integrate directly via API, or work with a 3rd party service provider. Current 3rd party service providers can be a bit expensive as they charge a commission on each order based on monthly volume, and limited in functionality.
We've been working closely with the founding team at Jet.com since September - initially as a merchant, now as a service provider - on a deep integration that takes full advantage of Jet.com's powerful API and makes it easy to start selling on Jet.com. The Zentail Commerce platform automates inventory and order management, driving considerable increases in sales and efficiency.
If you're interested in selling on Jet.com, get in touch, we'd love to help you grow and automate your business.