A leading contender for this year’s hottest ecommerce startup is Jet.com, fueled by a $225 million funding round and great PR calling it the next Amazon. Jet.com brings the Costco warehouse pricing model to the web by charging an annual 50$ member fee in exchange for below-competition prices on everyday goods.
Jet.com managed to bring gamification into the shopping experience by offering dynamic pricing. Adding certain products to the cart unlocks rebates on other projects and buying more of the same item increases savings further.
Another clever option to save is by waving free returns, an option more retailers should include.
The launch of the company was also accompanied by a very successful referral program. Jet.com gave 100.000 shares to the person who referred the highest number of sign-ups. Certainly a very goal orientated marketing campaign resulting in over 350.000 new members.
The necessity to keep up with Amazon’s humongous variety of products on sale meant that Jet.com started to sell items from other retails with a representative quietly buying it from other outlets such as Walmart.com. However by sticking to their below-competition prices, Jet.com ended up paying on top.
The innovations in play certainly inspire to be re-conceptualized, the pricing policy might however need some tweaking to be sustainable in the long-run.