Jet.com: Taking Off, Full Throttle
There’s been no shortage of doubters and naysayers about Jet.com’s business model. And, as founder Marc Lore openly acknowledges, there’s no question Jet represents an audacious bet. While several opinions exist on the matter, we thought we’d share some initial interesting facts following Jet’s launch in late July. Keep in mind that these stats are based on our customers selling on Jet and may not be indicative of Jet’s results overall:
1. Jet has gained altitude so rapidly that it’s currently our number 4 marketplace by GMV, out of the marketplaces we support worldwide. That means that just a month after its public debut, it’s already bigger for ChannelAdvisor than incumbents like Sears, Best Buy, Newegg, Tesco and Rakuten — marketplaces that have been operating for years (check out the growth of these marketplaces here). It’s not out of the realm of possibility that in 2016 it will be our number 3 marketplace, after Amazon and eBay. That would be remarkable.
2. Just a few weeks after officially launching, the average Jet seller GMV is twice that of seller GMV on Sears or Newegg.
3. Our sellers have seen tens of thousands unique consumers buying on Jet since its public launch, and a 23% repeat buyer rate. Over the same time period, eBay had a 17% repeat buyer rate and Amazon had a 11% repeat buyer rate. This indicates early shoppers on Jet find the values compelling enough to come back more frequently than on eBay and Amazon, although our sample size is still small.
4. It’s still early, so we can’t call this a trend, but at this time we don’t see evidence of cannibalization of Amazon or eBay GMV — in other words, even for consumers who purchased on both Jet and/or Amazon and eBay, their purchase rate remained unchanged on Amazon and/or eBay before and after Jet’s launch.
Our mission is to connect our customers to online demand, and ultimately we’ve been impressed with Jet’s momentum out of the gate. Jet still has to prove the long-term viability of its business model, but sellers can be encouraged by the sales volume Jet is already driving and should consider joining the platform.
This blog post was written by David Spitz, CEO, ChannelAdvisor