"Amazon Killer" Jet.com Nixes $50 Annual Membership Fee

By Tonya GarciaMarketWatch Pulse

commerce site Jet.com is dropping its plan to charge a $50 annual membership fee, a key part of its business model. "The response to Jet's core value proposition has been stronger than we anticipated," Marc Lore, chief executive officer of Jet.com wrote in a post on the website Medium. At the heart of the site's value proposition is the promise of deep discounts when customers add to the "Smart Cart." The more items customers add and the easier it is to fulfill the order, the deeper the discount. "By enabling even more people to embrace this new way of shopping, we believe we can more fully realize our vision of a reshaped e-commerce landscape and deliver unprecedented value to consumers and retailers." Lore writes that the company will continue to offer perks like free shipping on orders over $35 and free returns within 30 days. Jet.com, which launched 11 weeks ago, has been discussed as a competitor to Amazon.com Inc.

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