OnDemand WTP Pricing Research

Blog: Can Jet.Com Make it Up on Volume? | Strategic Pricing Solutions

A little more than a month ago, Jet.com opened its digital doors for business.  Jet’s stated goal is to “make shopping more transparent, more efficient, and at the same time, a little more fun.”   The pitch to potential customers is they will save money buying things on Jet.com instead of Amazon, Costco, and other online and physical stores.  Jet promises to be the lowest price provider for consumers who pay an annual membership fee.  Jet claims they will make money once they get up to scale.  In other words, they will make up for these low prices with greater volume.  I am skeptical.

Last week I decided to try Jet.com.  I created my account and surfed for some of the products we regularly buy.  The first item I searched for was dog food.  We have an 80 lb. Lab who requires food for sensitive skin.  We have been buying a specific brand at PetSmart for years.  We paid slightly over $53 for a 30 lb. bag the last time we purchased it.  On Jet.com, it listed the retail price at $73.77, but my price was $44.61.  That was roughly a 15% savings over the store price.  In addition, since we were spending at least $35, shipping was free.

I then searched for a personal care product which we have purchased in our local grocery store and at Costco.  I could not remember the price we paid at either store; but at a price of $3.46 (retail was listed at $4.21), I was not willing to shop around, and I ordered the product.  We just don’t buy enough to make comparison shopping on small items worthwhile.  It is interesting to note that for this blog I found the same product on Amazon.com for $6.97, which makes me suspect the Jet.com web scraper was referencing the wrong product before setting this price.

Read complete article here:

Can Jet.Com Make it Up on Volume?.

Post a Comment

WP-SpamFree by Pole Position Marketing