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Jet.com Failing to Rival Amazon

When news of Jet.com emerging as a new e-commerce site whose goal was to beat the Amazon giant, there was much speculation as to whether this could happen, and if so, HOW it could happen. Amazon is well established as an e-commerce leader and continues to improve every year.

The most recent struggle was with delivery fulfillment during the holidays. Though they tried, news circulated a week before Christmas that the company admitted they could no longer guarantee Christmas delivery on many items unless they were specificially marked for two day delivery. They blamed fulfillment partners, as indicated by a statement on their website in the days leading up to Christmas, which stated, “this year’s holiday gift rush has led to nationwide shipping delays that have affected many of our fulfillment partners.”

Sounds like they had a difficult time of their first holiday season. Where else has the retailer struggled since their launch?

Originally, the site was charging membership fees of $50 annually for customers to use their site. Lower prices rivaling their main competitor were being offered, and the company’s thought was that money would be made from the membership fees. However, they failed to find success with this model, and, in October, the company dropped their membership fees. This could potentially keep the company from being able to compete with Amazon’s low prices, yet another hurdle in the startup’s first year.

Delivery dates are another work in progress in the coming year. When news broke about the possibility of not living up to Christmas delivery promises, the Chief Customer Officer, Liza Landsman, revealed in a Forbes interview that they hope to provide exact delivery timeframes in 2016, as opposed to the estimated delivery time frames currently being offered to customers.

It sounds like their first year is almost under their belt, and came with a few bumps in the road, as to be expected. However, despite their challenges, it sounds like they had a great year – the company reached their goal of $44.9 million in gross merchandise sales, and just reached the 2 million member mark.

It remains to be seen if jet.com, or any other e-commerce site for that matter, could ever give Amazon a run for their money. Jet is surely trying, and the next two years will give better insight as to whether or not they can make their dream a reality.

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Author: Ann Michaels & Associates

Ann Michaels & Associates has been providing customer experience measurement services since 1998. We provide a full range of services to meet the needs of all industries and company sizes, including mystery shopping, customer and employee feedback services, and social media management.

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