Jet.com’s biggest problem is that people don’t know how cheap it is

It doesn’t matter how low your prices are compared to your competitors if customers aren’t aware of the price difference. That’s one of the biggest problems that Jet.com is facing at the moment as it continues to try and steal the e-commerce crown away from Amazon. CEO Marc Lore acknowledged this in an interview earlier this week when he explained how hard his company is trying to make customers aware that Jet.com has better prices. 

Jet.com may have the lowest prices on the Web, but a lot of people who visit the site still don’t realize it. That is something CEO Marc Lore acknowledged when asked about confusion among people who hear about Jet.com’s low prices but don’t see them displayed clearly when they visit a Jet.com product page. “Believe me, we have this discussion every single day,” Lore said in an interview Thursday evening. “We keep tweaking the [user experience] to make it more clear and are bringing in research groups. But you’re right, it’s still frustrating to [some].” Before we get to the confusion, a reminder about how Jet works: Jet marks down most of the products it sells below the lowest price elsewhere on the Web. How? The retailers that sell goods through Jet give Jet a fee for each sale, but Jet doesn’t pocket that fee, as competing online marketplaces do. Instead, it gives a large portion of it back to shoppers in the form of discounts on each item they buy.