’s big ambition

This week, Amazon competitor raised $500 million in a new funding round led by Fidelity Investments at a “pre-money” valuation of around $1 billion. According to sources,’s total sales or gross merchandise volume for September has reached $20 million and the company has exceeded its October target of $30.5 million by 11%. Additionally, customer acquisition grew by 25% while returning customers increased by 62%. So what is doing differently? The company offers the lowest prices on the web and its prices will drop further as shoppers add more products to their carts, pay with debit or agree to ship different items in one box. But here’s the catch: the company is not making any money on any of its transactions and has recently abandoned its annual $50 membership fee. Now the question on everyone’s mind is, without any fee, can make real money? Critics predict that it will. Many suspect that the hyper-aggressive pricing is’s land-grab strategy that will lead to an acquisition.
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