web analytics

Is there competition to Amazon?

Jet Dot Com LogoThe new face of ecommerce may be Jet.com. Marc Lore, former co-founder and CEO of Quidsi (diapers.com, Soap.com, etc.), claims his site has the lowest prices online (e.g. Costco or Sam’s Club), but it intends to offer lower prices on third-party seller sales by forging the fees Amazon collects on such sales. Its focus is on gaining members, not making money. That will work for a while. Lore is reported to have financing to allow him to ride out losses for some time.

Early data suggests that Jet.com now offers lower prices than its biggest competitors. Price comparison research from Profitero eCommerce focused on 16,028 exact match SKUs across seven categories (baby, beauty, electronics, grocery, household, office supplies, and pet) and found the Jet’s prices, on average, 9% lower than Amazon’s and 6% lower than Walmart’s. Amazon did bet Jet when pricing some items, especially electronics and office supplies.

See SellerActive Article Can anyone beat Amazon’s prices? Jet.com thinks so

Updated August 26, 2015

Read: Investors pour $220 million into this man’s plan to beat Amazon – are they crazy?