Amazon Prime is expected to face competition with the launch of Jet.com
Previously, when news regarding the arguments of organizations governed by Jeff Bezos and Marc Lore made its way to the masses, most of the people were extremely content. However, it is now expected that this might observe a bigger change now.
For the very first time, when Amazon Inc. initiated a price war with Diapers.com, it resulted in immense pressure because of a $550 million worth sale of the ecommerce giant. However, the outcome was not similar to what Mr. Lore was actually expecting but was a great exit anyhow. Now, he is coming up with a website namely Jet.com that will be limited to members only.
The website is all geared up for its launch but Mr. Bezos is not the one who surrenders easily. Therefore, he is likely to fight back too! Over the past couple of months, Amazon has been giving various discounts on several products with an aim to encourage Prime members to show via their streaming media and shopping venture. The previous week, several reports surfaced, according to which, Amazon was reportedly offering several discounts to its Prime subscriber.
It was also heard that Amazon Prime is also giving various discounts to it’s subscribes on their wide range of sneakers. This is not the first time when the company has decided to offer discount to its subscribers, as previously as well, they were offering good advantages to them. However, to come up with several discounts in such a short span of time clearly indicates that it is now trying to retain a defense mechanism ready against Jet, which will be relatively similar to them in terms of operations.
As reported by Re/Code, “For $50 a year, Jet is promising its members the best prices on the Web thanks to a complex system of discounting by stripping costs out of the order fulfillment and shipping process of e-commerce.”
A spokesperson mentioned in a recent statement, “Prime is a loyalty program that is the gateway to the best of Amazon.” They further added, “From time to time, Amazon offers special pricing on select merchandise for Prime members. This is yet another added benefit to Prime members.”
So now, Amazon has competition in stores with the launch of Jet.com that follows the trajectory of Amazon’s Prime service. The company needs to be extremely careful in order to avoid any mishap that can cause them to lose on potential subscribers. This can consequently result in drastic loss.