Serial entrepreneur Marc Lore, who successfully sold his company Quidsi to Amazon in 2010 is now set to take on his old bosses with a new NYC based start-up firm called jet.com.
Lore sold his previous business Quidsi to Amazon in 2010 for $550m and worked there for two years after acquisition. Now he’s launching his new venture next months with a start up staff of 100. He has already raised $80m from investors.
Jet will be a wholsesale priced marketplace offering prices at least 10 to 15% cheaper than elsewhere online. Many of the buyers, it would seem will be sellers on other marketplaces as well as cost conscious consumers. The marketplace will sell clothing, books and electronics and a fee of $49 annually will apply.
Lore says: “The bottom line is, we’re basically not making a dime on any of the transactions. We’re passing it all back to the consumer. We want to build a different type of relationship with the consumer. When we show you a product, it’s not because we are making money on it and not because we are closing out a line. It’s because we think it’s a good deal.”
It will predominantly make money from subscriptions and will also offer a marketplace facility so that third parties can sell using the platform too. And costs will be kept low by encouraging buyers to buy bundles and take time to wait for their orders by pushing slower economy shipping offers. Jet won’t be competing on speed but price.
It looks like an interesting concept although it’s not clear that it will be coming to the UK any time soon although it’s certainly something we’d like to see over here.