Is the next ecommerce king?

Despite the fact that its website hasn’t been launched yet, announced today that it has raised a $140 million convertible note, giving the company a total funding of more than $200 million and a reported post-money valuation of $600 million. So what’s the big deal with Founded by Marc Lore, the former owner of parent company Quidsi; an ecommerce company that Amazon acquired for around $550 million in 2010, aims to disrupt online membership shopping by offering lower prices year-round. According to news sources, the company plans to offer products that will be on average – 5 to 6% percent cheaper than the rest of the web, including Amazon. To make money, Jet will receive a cut for every sale as well as profit directly from membership fees. Compared to Amazon, Jet’s discounts will depend on a customer’s total spend. If the customer buys more than one item, Jet will find a single retailer that can ship all items in one box, saving the customer postage cost. What’s more, customers who will pay using a debit card instead of credit or give the seller their email address may be given additional discounts.You can read about’s funding here.

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