The Hoboken, N.J.-based startup is essentially branding itself as Costco (COST)-meets-Amazon, where consumers can pay $50 a year to have access to great prices on products ranging from food to shoes to sporting equipment. The company was started by Marc Lore, whose previous startup Diapers.com was acquired by Amazon in 2010. Having already proven himself in the industry, Lore was able to amass $220 million in funding before he even launched a site.
To reach prices that are lower than Amazon, Jet, which was recently valued at $600 million, has built a dynamic pricing model that lets consumers save when they take actions such as forgoing returns or if they order multiple products from the same retailer (saving on shipping costs). They can also save by paying with a debit card instead of a credit card or by handing over their email address.
"We're trying to create the most transparent e-commerce site out there for both our merchants and consumers," Jet founder Marc Lore told TheStreet in May.
The company estimates that consumers will save about $150 a year by using Jet, and based on some early reviews, it seems as though Jet could easily follow through on this promise.
Jet is still in private beta, but those who have been able to participate in its limited test phase have noted significant savings on the marketplace.