There’s a new kid on the ecommerce block, and one that could be as revolutionary as Amazon was on its launch 20 years ago. International airfreight comparison site ParcelHero, an ecommerce fulfilment specialist, says Jet.com will be a game-changer in the industry, thanks to its unique cost saving approach to logistics.
ParcelHero’s David Jinks MILT says Jet.com has had a successful flight so far after its take-off on July 21. The new site already has some 1,600 retail partners, and is selling some 10 million products. Jinks says Jet’s claim that its customers will receive “the lowest price on anything they buy online,” is viable because of its innovative approach to deliveries.
“Many companies fail to perceive how their delivery options can actually give a positive commercial advantage,” Jinks said. “Here is an instance of a newcomer bringing an entirely new approach to fulfilment and returns, significantly reducing its overall costs.”
How Jet keeps its prices low is because of its delivery options: products start at about 8% cheaper up front, but the site then offers additional discounts when shoppers combine multiple orders into a single shipment, which cuts delivery costs. The more customers bundle purchases, the more the discount increases.’
Jinks reveals one other clever way Jet keeps costs down is by asking customers to waive the ability to return something.
“By offering customers the option of not returning items, in exchange for further savings, Jet has the potential to reduce its costs significantly,” Jinks said. “Once an item has been returned twice no one makes money on it; and some sites are experiencing up to 60% returns on items such as clothing.”
And there’s one other delivery option that also reduces Jet.com’s prices and costs dramatically. Buyers will also make savings by waiting for their orders. By pushing slower economy shipping offers, Jet won’t be competing on speed, but price, says Jinks.