Less than three months since its launch, online retailer Jet.com is already planning to change its revenue strategy. In a Medium blog post today, Jet.com CEO Marc Lore says the company will ditch its $49 annual membership fee to extend its reach.
Jet.com is similar to Amazon in that it offers everyday items – from cleaning products and appliances to toys and sporting goods – for a low price with free shipping on orders over $35. Its ‘Smart Cart’ system lets customers save around 5 percent when ordering the items in bulk. Jet.com works with third party retailers to fulfill orders, and offers free returns on all items.
Unlike Amazon Prime’s membership, free two day shipping is not included for most orders. Since Jet.com matches prices from around the Web, it seems customers will now be left to choose whether they prefer the savings on bulk orders via Jet or faster shipping with a Prime membership.
Still, it may not be the last time you’ll see Jet.com’s membership fee. The site’s Chief Customer Officer Liza Landsman says it may consider adding the option for another type of pro access in the future for exclusive perks and discounts. For now, Jet.com seems focused on growing an audience first.
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➤ Jet.com Overhauls Business Model, Kills $50 Membership Fee to Broaden Appeal [Re/Code]
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