Transcript for Jet.com Battles Retail Juggernauts for Online Shopping Supremacy
Incredible what went into it. A new way to shop online this morning. A start-up site launching today takes aim at Amazon and Walmart and this battle could be a boon for consumers. Paula Faris has the story. Good morning. Reporter: This is really uncharted territory. Jet is part costco, part Amazon and goal according to its founder is to undercut everyone on price. This morning, there's a new option for online shoppers jet.com which launched at midnight is hoping to rival retail giants Amazon and Walmart as the cheapest web retailer. The company describing itself as an online price club saving members 10% to 15% on more than 10 million products. Shoppers on jet.com will pay a $50 yearly membership fee for access to those low prices. We only profit from the membership. Once we know what products the consumer wants to buy we can figure out what's the cheapest most efficient way to get that to the consumer. The low cost promise seems to be true. Jet.com charging 7.49 for this women's schictquattro they sell for $15 and this is selling for over $40 less than Walmart and more than $200 less than Amazon but this Hamilton beach slow cooker is $70 less than Walmart and Amazon. While there is a study found jet's prices were 27% lower on average and performed especially well in the household category where prices were a surprising 39% more affordable. The real hard question is can they keep enough product in stock to convince you that there's enough there to be worth doing your digital window shopping on jet as opposed to Amazon and Walmart. Reporter: Now the company's founder mark Lori has a whole lot of internet success under his belt. You may have heard of diapers.com. Sold it to Amazon for $550 million and, George, no profit here on product. It's all coming from those membership fees. Half a billion for diapers.com. Okay, Paula, thanks. To Amy with today's other
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