Exclusive: New Jet marketplace cleared for takeoff

The Next Big Thing in e-commerce is set to launch in late May according to Marc Lore, CEO of a new online Marketplace called Jet that blends aspects of the traditional warehouse club model with a new approach to dynamic pricing and fulfillment.

Lore said the Jet board of directors is scheduled to meet on May 7. At that time he expects the platform will be ready for launch and the board will pick a specific launch date within the following two week window.

His comments came during the opening session of ChannelAdvisor’s annual Catalyst conference. Lore appeared briefly on stage with ChannelAdvisor CEO Scot Wingo during his opening key note address to an audience of more than 1,000 people comprised largely of ChannelAdivsor’s retailer and supplier customers. ChannelAdvisor is supporting the Jet marketplace with its software that allows retailers and manufacturers to integrate, manage, monitor, and optimize their merchandise sales in various online channels. ChannelAdvisor currently supports 47 third-party marketplaces.

“Our goal is to be ready by (the May 7 board meeting) and then launch a couple weeks after that,” Lore said. “Our value proposition is really geared toward Millenials.”

Lore said roughly 10 million items will be available at launch and touched on the basics of the Jet business model which includes a $50 annual membership fee that is essentially in line with Sam’s Club, Costco and BJ’s charge for a basic membership.

And like those operators, the company plans to make its money on the fee charged to consumers as opposed to the mark-up on the merchandise sold. The reference to Millennials stems from the predisposition those in the 18 to 34 year old age bracket have for controlling their experience.

For example, Jet enables shoppers, as well as retailers, to control aspects of shopping and dynamically prices products based on items put in the cart based on the expense associated with fulfilling the order. Shoppers can also influence the price by adding items to their cart, opting out of returns and sharing personal information.

The Jet platform seeks to eliminate some of the supply chain inefficiencies that add to retailers’ fulfillment costs by allowing them to accept a shopper’s order at one price if the fulfillment distance and basket size meet certain requirements as opposed to charging the same price to all shoppers regardless of location and whether one item or 10 are purchased and shipped together.