Amazon might be one of the largest online retailers in the world but that doesn’t mean that there aren’t any companies trying to compete with it, Jet is one such company, and it aims to take the fight straight to Amazon by undercutting the giant on prices. However unlike Amazon which allows everyone to purchase products through its website without necessarily signing up for Amazon Prime, Jet required everyone to purchase a membership which cost $50.
That might have turned away many potential users who would have wanted to try out Jet without having to make that $50 commitment, Jet appears to have understood that this isn’t the way to go, which is why today it announced a fairly radical change to its business.
The $50 Jet membership fees has gone away for good, it will no longer charge that fee to enable users to take advantage of the price savings that it offers, but there’s a downside for the company. The removal of this fee is going to be a big roadblock in its mission to become profitable.
With membership revenues no longer coming in Jet will now have to make money on sales, much like every other e-commerce website, but the company is confident that it will be able to turn a profit by 2020, which was its target year to begin with.