Re:Jet.com’s Strategy: Low Prices, Fast Delivery, Happy Workers
by pc86 on Monday December 28, 2015 @12:37PM
(#10802234)
2x is entirely reasonable markup on a piece of furniture, particularly if they bought it in bulk. There's just no way they are selling merchandise at a 40% loss per unit.
Re:Jet.com’s Strategy: Low Prices, Fast Delivery, Happy Workers
by skj on Monday December 28, 2015 @12:27PM
(#10802181)
Why do you think that Jet payed full retail price?
Re:Jet.com’s Strategy: Low Prices, Fast Delivery, Happy Workers
by msingle on Monday December 28, 2015 @12:54PM
(#10802321)
My understanding from interviews with employees and they use volume, logistics and other factors to leverage a better deal that they pass off entirely to the customer. (They make their profits off the membership as I recall)
Re:Jet.com’s Strategy: Low Prices, Fast Delivery, Happy Workers
by skuhn on Monday December 28, 2015 @12:58PM
(#10802350)
I think this was the original plan, but they dropped the membership fee and have since raised several hundreds of millions to continue operating. Hence all of the head scratching about their financial prospects.
Edit: I was asked why I think Jet paid full retail price... I can't know that for sure obviously. There was a packing slip that I didn't think to look at. In any case, the only way they don't lose money is if they bought it for close to 50% off. Seems unlikely to me.