HOBOKEN – A potentially massive new player has entered the world of e-commerce, and it’s coming straight out of the Mile Square City. Jet.com, which opened its headquarters in a brand new office tower on the South Waterfront earlier this year, aims to bring the price club model to online shopping.
Members of Jet pay $50 per year for access to discounts averaging 10 to 15 percent lower than any other shopping site on over 10 million items, according to the company. Shipping is free on orders over $35, and shoppers can unlock additional savings by bundling certain items together in one order.
After a long beta testing period, the site opened to the public Tuesday. For the time being, anyone can try a three-month membership on the site for free.
Jet is taking on online behemoth Amazon, where founder Marc Lore worked for over two years after Amazon bought his first big venture, Quidsi, which was behind such sites as Diapers.com.
The company has received $225 million in seed funding and does not expect to turn a profit for at least five years. It does not make money on transactions, allowing it to seek the maximum discount for customers, and must rely on growing its paying membership to succeed.
Meanwhile, Jet will continue to grow in Hoboken. The company has signed a lease for 40,000 square feet in Waterfront Corporate Center III last December and announced plans to double its workforce to 200 employees by the end of this year.
“I’m eager to partner with the local community to help make Hoboken into a standout hub for tech talent,” said Lore.
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