A new ecommerce site Jet.com, created by co-founder of Diapers.com parent Quidsi Marc Lore, launched on Tuesday, challenging ecommerce leader Amazon with lower pricing. Lore says that Jet uses a proprietary technology engine to link certain items that cost less to deliver when purchased together, creating a dynamic discount system that reprices items based on what shoppers already have in their carts. Such items are branded “Smart Items” and promoted on Jet with a special icon, similar to how Amazon promotes the “Prime-eligible” items.
What Brands Should Do
While it is still too early to tell if Jet’s offering is appealing enough to truly compete with Amazon. It does bring something new to the ecommerce space with the “Smart Items” system that enables dynamic discounts, which CPG brands and alike could potentially leverage to increase sales on digital outlets by encouraging bigger orders.