Jet’s much-anticipated website opened for business Tuesday, 21st July 2015 with its bold claim that it can undercut prices from just about any online retailer — including Amazon, which is already known for low prices. The Hoboken, New Jersey, startup, backed by $225 million in funding, offers annual memberships of $50 for its US Internet shopping club, which offers about 7.5 million products for sale, including Appliances, Furniture, Health & personal care, Beauty, Baby, Household supplies, Grocery, Patio, Lawn & Garden, Sports & Outdoor Recreation, Toys & Video Games amongst several other categories.
The launch serves as Round 2 for Marc Lore, Jet’s founder and CEO. In 2010, he sold his 5-year-old startup Quidsi, owner of Diapers.com and Soap.com, to Amazon for $545 million after Amazon initiated a price war against his company.
Here are 7 things Buyers need to know about Jet.com.
How it works
1. It costs $50 a year to join. That’s slightly less than a Costco membership, and half the price of Amazon Prime.
2. Like Amazon and Costco, Jet allows individual retailers to sell products through its platform. Jet’s technology figures out who has the best price for each item and shows that price to the customer. Amazon will often show a list of the same products being sold at different prices by numerous vendors, which can get incredibly confusing, and forces the buyer to find the lowest priced items. With Jet, the buyer has to trust that Jet’s algorithm has identified the lowest price.
Price and products
3. You can buy anything from groceries and appliances to furniture, books, clothing, and gadgets on Jet. Some of the merchants that Jet works with include Barnes & Noble, Bluefly, Lenovo, Dell, TigerDirect, and HarperCollins.
4. On average, Jet says you can can expect to save $150 per year. The site tracks your savings, and if it’s less than the membership fee, you’ll receive a refund for the difference.
5. Discounts are applied based on a few factors. The greater the quantity you buy, the more you’ll save per unit. A small dollar sign icon on the corner of products indicates that those products reside in the same or nearby warehouses as other items in your shopping cart, which reduces shipping costs and ultimately what you pay.
Most products have additional savings if you want to waive the right to return. Some merchants that sell through Jet offer discounts for collecting your email address, or if you pay with a debit card versus a credit card. In exchange for dispersing your personal information to yet another company, you’ll get a few dimes and quarters worth of a markdown.
Shipping and customer service
6. Shipping and 30-day returns are free for orders over $35. This is standard no matter how many different vendors fulfill your order. Jet also takes care of all customer service.
7. Jet offers a rewards program called Jet Anywhere that lets members accumulate “Jet Cash” when shopping at affiliate stores.
Information for Sellers to know:
Are there any additional fees associated with selling on Jet?
Jet does not charge any sign up fees, monthly fees, or fees to list products.
Jet Retail Partners are only charged commissions on the items they fulfill.
How is a Retail Partner selected to fulfill an order or part of an order?
In order to provide a streamlined experience for Jet Members, Jet presents only one listing per product. When a member searches for a product on Jet and views a listing, there is no associated retailer indicated on that listing. When a member goes to checkout, Jet evaluates the overall basket and selects the partner or set or partners that offer the best economics to the member to fulfill the order.
Jet’s proprietary algorithm selects the Retail Partner offering the best overall economic value to the Jet Member on a basket level. This is determined based on a combination of Retailer Price (Item Price + Shipping), Applicable Commission Rate, and Dollar Based Adjustments offered on items in Jet Member’s basket.
How are commissions handled differently on Jet than on other marketplaces?
Retailer Commissions = Member Savings
Jet’s business model is to not profit from the transactions on Jet.com. Jet’s profits willcome from member subscriptions, not from commissions. After covering operating expenses, commissions are passed through to shoppers as savings, driving great value for our members.
Commission Rate Adjustment
The Jet Rules Engine will allow Jet Retail Partners to make discretionary Commission Rate Adjustments that ultimately impact how competitive their pricing is for a specific order.
For any item sold on Jet, the commission rate = a Base Commission Rate based on the item category + Commission Rate Adjustments made in the Rules Engine = the Applicable Commission Rate.
Applicable Commission Rate = Base Commission (+/-) Commission Rate Adjustment
A portion of the ‘Applicable Commission Rate’ is passed back to the Jet Member placing the order as Jet Member Savings.
The Jet Rules Engine will give Retail Partners the ability to make discretionary ‘Commission Rate Adjustments’ based on factors, including order size, distance from the fulfillment center, and item return options. These Commission Rate Adjustments then impact the amount of Jet Member Savings that is passed back to the customer, ultimately impacting price for that Jet Member.
ChannelSale Jet.com integration features:
- If you are thinking how we go about the product listing process on Jet.com, then this is the answer for you. We create the listing on Jet.com via your product feed file in formats like CSV, TXT, XLS or API-XML. Then ChannelSale synchronizes it with Jet.com along-with the big names among the online marketplaces, comparison shopping engines and affiliate networks.
- ChannelSale can integrate and connect your product data feed to automatically flow in to Jet.com marketplace directly from your webstores such as Magento, BigCommerce, Volusion, Shopify, Yahoo store, AmeriCommerce, NetSuite, 3D Cart, Pinnacle cart, CS Cart, Open Cart, Prestashop amongst others. The Jet.com orders and shipping tracking updates can be synchronized with platforms such as Fulfilled by Amazon, eBay Global Shipping, SKU Vault, ShipWorks, ShipStation, StoneEdge, OrderMotion, OrderLogix, SOS Inventory and others.
- ChannelSale supports simple or multi-variation products / parent–child relationships. Even if you have varied products of multiple sizes, colors, materials, we have the solution!
- Granular level product category mappings pave the way for apt listing in sync with Jet.com product categories.
- Have variable pricing for Jet.com and other marketplaces / shopping engines, or retrieve your Jet.com pricing to be sent to other shopping engines or markup pricing over cost price.
- ChannelSale includes data for as many product attributes as available in your source feed while including custom fields you may require. Examples: Bullet point descriptions, search terms, video link, multiple warehouse inventory, gender, pattern etc.
- ChannelSale offers real time inventory services, for you to track product performance. For example – If a product sells on Amazon, eBay, Sears, Rakuten, Newegg, Pricefalls, Shop.com, Overstock, Wayfair, Houzz, Wish etc., the updated stock in hand would reflect in your ChannelSale account and further on Jet.com.
- Business rules available to easily suppress products that are to be excluded from being sent to specific shopping sites.
- Add on custom automated business rules to modify product data such as merge fields, add new content, markup pricing over cost, and many more business rules.
- Centrally manage all Jet.com orders and shipping tracking updates. Automate exporting Jet.com orders to third party order fulfillment platforms / dropshipper’s, Fulfilled by Amazon, or to suppliers on an hourly basis. Setup to automatically retrieve order shipping tracking number on Jet.com.
While just about any Jet.com sellers can benefit tremendously with such assistance, it is a must for advanced sellers to seek their solution with ChannelSale.
Need more information or ready to get started with enhancing sales on Jet.com marketplace?, speak to one of our Client Service Executives, reach us on phone +1-866-709-9495 or email firstname.lastname@example.org, website: www.channelsale.com