JET Growth
Since its launch in July 2015, JET has experienced growth, thanks to advertising and media coverage. Since September 2015, sales have increased by 28% each month through February 2016, and they experience a predicted slowdown of sales when the holidays ended. In addition, JET acquired Hayneedle.com, which is a home décor merchant.
Source: intelligence.slice.com
JET Advertising
JET is prepared to spend up to $25 million per month on advertising to continue to grow and compete against Amazon.com. Advertising is a big part of JET’s business strategy to continue its growth momentum.
Credit: Jet
JET is Dependent on New Customers,
but Likes Repeat Customers too
As with all new businesses, JET is banking on its advertising to bring in new customers. 80% of revenue in December 2015 was from new customers, rather than repeat customers (20%). In February 2016, 70% of customers were new, while 30% were repeat customers. However, JET is noticing a problem. Their repeat customers have purchased at a rate of 1.5 times, while compared to Target at (2.2%) and WalMart.com (2.1%).
Source: intelligence.slice.com
JET’s Strong Sellers Against Amazon.com
& Amazon’s Top Sellers Against JET
The categories that JET is doing well in are listed in order of strongest down to the weakest. This means that at the top, JET generated a larger portion of more sales in those categories. JET did the best against Amazon in Grocery & Gourmet food. Amazon did the best against JET in Books and Apparel & Accessories.
The list tops with Grocery & Gourmet Food, Home & Kitchen, Health & Beauty, Baby Products, Electronic & Accessories, Pet Supplies, and lastly Jewelry & Watches. The categories that Amazon.com are outselling JET are listed from least in competition to strongest. That list consists of: Software & Mobile Apps, Appliances, Movies & TV, Music, Office Products, Sports & Outdoors, Shoes, Automotive, Toys & Games, Tools/Home Improvements, Books, and Apparel & Accessories.
What sells best on Jet?
Source: intelligence.slice.com
JET’s Smart Cart
JET’s proprietary Smart Cart is one of their main weapons in e-commerce. This Smart Cart is an engine that can match supplies with a customer wanting to add some more to their online shopping cart to get the free shipping at $35 order size. This have allowed JET to increase its order size with shoppers in comparison with other online competitors Costco, Target, WalMart, and Sam’s Club. JET also has a higher rate of multi-unit purchases of the same product vs. these other competitors. JET has even noted that 20% of items purchased on their site is for a quantity greater than one.
Key Point: JET’s Smart Cart makes a unique win-win-win scenario between the customer, the manufacturer, and JET.
Source: intelligence.slice.com
Further Questions for JET
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Will JET get repeat purchases from first time customers?
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Will JET’s Marketing efforts grow their user base?
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Will JET increase order sizes with the Smart Cart engine?
Source: Whitepaper – April 2016 – Jet.com, How will it land?
