Connect with us

Business

Will Jet.com Invade the Mighty Amazon?

Published

on

will-jet-kill-amazon-jet-logo-jet-dot-comA new startup called Jet is setting up to steal Amazon’s crown as eCommerce king. For $49.99 a year membership everything is cheaper with Jet, who promise to beat all other online retailers in price by using sourcing algorithms which allow them to reduce supply chain inefficiency, bringing you the lowest prices, all while placing more control in not only your hands, but the hands of those supplying the products to you.

// -- Discuss and ask questions in our community on Workplace.

Jet founder and CEO Marc Lore has been quick to distance himself from comparisons to Amazon, despite direct competition between the two. When you take a look at differences in the way they operate you can see why; Amazon is both a retailer and a marketplace for third parties, relying on sourcing large quantities of stock in their controversial warehouses and taking fees from sellers using Amazon as a platform. Jet on the other hand has taken a different approach. They’re choosing not to compete against its own merchants and avoid stepping in to the retailer market completely. They do still run fulfillment centers, but they also allow for ‘trusted third party merchants’ to fulfill orders independently. This model should allow for the cost savings of having local suppliers ship at lower rates to those centers while simultaneously cutting out the reliance on them where a supplier is able to provide the same standard of service without great quantities of stock to be held on behalf of the suppliers — it’s a flexible model designed to increase efficiency, reduce costs and appeal to both suppliers and consumers.

We aspire to work collaboratively with our retail partners, not competitively.  Our pricing algorithm is designed to help our partners find ways to reduce inefficiencies so they win too.

will-jet-kill-amazonWill Jet bombing kill Amazon?

It’s not hard to see why Jet managed to raise $220 million in startup capital from investors before even opening their doors. The key payer here is Lore, who has already founded several successful eCommerce startups. So successful were they that Amazon set up loss-leading copycat services before eventually buying Lore’s out for $550 million, and taking him on as staff for over two years. Now rich in capital and insider information, Lore is taking another shot at the monopolistic giant that bought him out with a superior business model that can’t be reproduced by his former employer.

Also read: Amazon Echo: Spy Tool or Innovation?

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Amazon has entrenched itself firmly in its traditional retailer model while using its monopoly to take a big cut from the retailers forced to use their platform. This is in many ways inefficient when compared to Jet’s model, which acts as non-competitive automated price comparison service. Their profit comes from your membership fee, your profit comes from the reduced costs at which the retailers can supply their products to you without the fees Amazon are charging them.

There are many advantages and flexible options being provided by the feisty new startup. Their algorithm increases your available discounts when you make multiple purchases by identifying cost savings made possible by the order you’re already planning. As part of their commerce and consumer friendly approach, they’re turning Amazon’s business model on its head and allowing members to use their discounts on other retailer’s sites, rather than forcing them all on to Jet.

will-jet-kill-amazon-amazon-logoWhile there are huge startup costs involved in even a lightweight model such as Jet’s, they’re significantly lower than those Amazon are stuck with when they reach comparative scales. Given the negative publicity Amazon has been constantly feeding and battling, Jet looks set to win the hearts, minds and wallets of both suppliers and consumers. They responded very swiftly to my enquiries and confirmed this approach:

Jet.com operates on the philosophy of transparency and trust.We have an amazing structure where the employees can wear what they like and we have standing desks and are planning on the treadmill desks in the very near future. Furthermore, we have no plans in the future to alter the fee structure.

A brief overview of their ‘about us’ and ‘careers’ website pages makes it clear that Jet are addressing some key concerns of the jaded customers and suppliers of Amazon. If only out of interest I would recommend comparing the two, I guarantee one will leave you indifferent and the other inspired. Jet’s pages highlight the respect they have for their employees, and the importance of a workforce with a passion for their work. Many consumers are already seeking out more ethical alternatives so Jet has a lot of fuel to work with. My one complaint is that they can’t confirm a schedule for international rollout — this is the service I’ve been waiting for, and it seems I’ve to wait for it’s U.S. success before it’ll come to me.

Images from Shutterstock and author.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

John O'Mara is a writer of code and prose from London, UK




Feedback or Requests?

2 Comments

2 Comments

  1. gary gilmore

    August 9, 2015 at 11:57 am

    read review and browse at amazon but buy at jet. amazon is a crooked company, they allow large numbers of drop shippers who have no stock to list millions of items who turn around and order from other sellers, just so they can get double orders

    • fabulouspanda

      August 9, 2015 at 3:54 pm

      I love and agree with that policy. Amazon used the opposite strategy years ago – browse at ethical retailers then buy it cheap at Amazon. Now that Amazon is a great place for reviews (although inaccurate item descriptions, too) we can reverse that!

You must be logged in to post a comment Login

Leave a Reply

Business

Crypto Hedge Funds Grow 64% Over the Past Year as Institutions Embrace Digital Currency

Published

on

After spending much of the last eight years bashing cryptocurrency, Wall Street is beginning to embrace the digital asset class more intently than ever before. Case in point: the number of cryptocurrency hedge funds has increased 64% over the past year. As it turns out, Goldman Sachs isn’t the only institutional player pivoting toward cryptocurrency.

// -- Discuss and ask questions in our community on Workplace.

The Rise of the Crypto Hedge Fund

There are now 287 hedge funds devoted to cryptocurrency trading, compared with 175 a year ago, according to data from Autonomous Next. Astonishingly, there were only 20 crypto hedge funds in existence in 2016.

Over the past year, at least 100 hedge funds have been launched for the sole purpose of trading cryptocurrency. At this rate, institutions will play an increasingly pivotal role in the digital currency market in the very near future.

Digital currency exchanges are betting big on institutional money. San Francisco-based Coinbase recently unveiled four new products designed to unlock up to $10 billion in institutional capital currently sitting on the sidelines. This includes a new custodial service that will provide institutions with a trusted steward to safeguard their digital assets.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

As for hedge funds themselves, April saw a huge turnaround in terms of profitability, as firms played the crypto-market rebound to great success. In the process, they gained more than 80% compared with March.

The Next Bull Market

Coinbase has put forward the position that institutional capital will be responsible for the next great bull market in cryptocurrency. If 2017 was the year of the retail investor, 2018 and beyond will largely be driven by institutions. A close examination of Google search trends seems to support this view.

The 2017 bull market was accompanied by a wave of new entrants into the cryptocurrency market, as evidenced by the surge in Google search results for terms like “bitcoin” and “cryptocurrency.” If we use the same metrics, we can conclude that cryptocurrency has lost its buzz among new traders. For example, a term like “cryptocurrency” achieved a Google Trends score of 12 in the most recent week, down from a perfect 100 at the start of 2018.

That said, hedge funds are still a long ways away from dominating the crypto market.  In fact, institutional adoption remains weak overall in spite of the recent growth. This was recently pointed out by Tom Lee, the Wall Street crypto analyst leading research at Fundstrat Global Advisors.

In Lee’s view, cryptocurrencies failed to rally during blockchain week because of adoption hurdles at bank as well as a lack of custodial tools among major institutions. Using the same logic, Lee concludes that institutional demand is one of the missing ingredients for a large rally in prices.

However, Lee has maintained a strongly bullish outlook on crypto assets, including a price forecast for bitcoin of $25,000 by the end of the year.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 3.50 out of 52 votes, average: 3.50 out of 52 votes, average: 3.50 out of 52 votes, average: 3.50 out of 52 votes, average: 3.50 out of 5 (2 votes, average: 3.50 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 410 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Business

Walmart’s Flipkart Deal: The Dawn of a New Day in India

Published

on

It’s the dawn of a new day in India, particularly cross-border investment, thanks to Walmart’s groundbreaking controlling stake in Bengaluru-based e-commerce darling Flipkart. Walmart has tried for years to no avail to enter the South Asian country, until now.

// -- Discuss and ask questions in our community on Workplace.

As a result of the deal, Walmart now has five seats on the online retailer’s board and is poised to play an influential role on the direction of the company — including a possible Flipkart IPO — setting the tone for further investments into the region in the interim.

It’s $16 billion deal values Flipkart at a whopping $21 billion and helps the Arkansas-based big-box retailer to compete more fiercely with Amazon, considering that the integration goes smoothly. Walmart has chosen a controversial target company to kick things off. Flipkart has been at the center of a saga ironically surrounding a previous cross-border investment.

Amazon is fighting back, however, as evidenced by it reaching into the belly of western India including Gujarat’s Bhuj, where some residents don’t even have online access. Amazon is taking an Etsy-like approach there with a focus on handmake craft items that are unique to this corner of the world.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

No doubt corporations around the world have it on their radar as a possible harbinger of more cross-border investment activity to unfold in the region.

Gopal Jain of Mumbai-based private equity firm Gaja Capital told The Financial Times: “India continues to be perceived in global boardrooms as a tough place to do business in.” But he also said that as a result of this deal, global executives have gone from “being on the heels to being on the toes.”

India’s Cross-Border Investment

The overhaul of India’s international investment has been two decades in the making. And while India Prime Minister Narendra Modi says his administration has opened the doors to foreign investment, there still hasn’t been much evidence of that. For instance, cross-border M&A into India totaled $14.5 billion last year, lagging the performance of other developing countries including Brazil and China by as much as 50%, as per Dealogic data cited in the FT.

Indeed, the last time that a deal of anything close to the size of Walmart’s Flipkart acquisition was more than a decade ago in the telecom space when Vodafone took a majority position in Hutchison Essar. That deal left a sour taste in the mouths of would-be pursuers given hostile tax environment in which Vodafone was forced to operate.

Prime Minister Modi has the opportunity to prove to the rest of the world that India indeed is open for investment. If the Walmart deal can somehow help to shake the stigma that is attached to foreign investment into India, as evidenced by the “tax terrorism” that’s been attached with the region, it, in fact, could reflect the dawn of a new day for cross-border M&A in India.

Feature image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.4 stars on average, based on 7 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. Full disclosure, she's invested in bitcoin.




Feedback or Requests?

Continue Reading

Business

R3’s Blockchain Corda Used By HSBC and ING For The First Time

Published

on

HSBC

UK-based HSBC Holdings Plc. along with Dutch ING Bank NV, completed the first transaction based on the blockchain.

// -- Discuss and ask questions in our community on Workplace.

The transaction was credited to Cargill Inc. and was performed during last Monday. It was based on a shipment containing soybeans and transported from Argentina to Malaysia. The transaction relied on a distributed ledger technology or commonly known as blockchain platform named Corda, developed by the R3 consortium.

R3 Blockchain Network

R3’s own blockchain network is currently supported by 12 banks, including Bangkok Bank, ING, SEB & U.S. Bank, and of course HSBC among other international banking institutions, which could help the DLT technology broaden its borders and make it accessible to the mainstream public.

The use of blockchain technology eliminated the need for paper and/or other physical documents, while it drastically fastened the transaction process.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Under traditional circumstances, the same transaction would require from five up to ten days to be filled, exchanged and verified by the respective parties involved in the transaction. Using next generation DLT technology, the process was smooth and instant without the need for mortal interference.

Vivek Ramachandran, HSBC’s global head of innovation and growth for commercial banking, issued the following statement when asked about the transaction:

“This is an inflection point for how trade is conducted. With blockchain, the need for paper reconciliation is removed because all parties are linked on the platform and updates are instantaneous.”

“The reason why letters of credit have persisted is because of two real challenges — the absence of digital infrastructure and the challenge of coordinating multiple parties. This platform helps us overcome the first and I think the technology and everyone focussed on it gives us the impetus to go after the second now with hopefully much better results than we have seen in the past”

The use of blockchain technology in the IT sector seeks to make transactions of crucial data more reliable, secure and faster. With DLT technologies, companies are able to reduce the risk of fraud in letters of credit and other types of transaction with the use of smart contracts, as well as severely reduce the number of steps required for the transaction to happen.

Major Partnerships

Letters of Credit (LoCs) are the main way for vendors (importers and exporters) to trade with each other, as it eliminates problems such as the great distance between them, the different language and the different laws.

LoCs guarantee more than $2 trillion worth of transactions annually, but the process creates a great deal of paperwork and it is extremely time-consuming.

R3, while a silent player in this disrupting scene, has managed to establish some astonishing partnerships with major international central banks, including the Bank Of America.

The company uses a slightly different approach when it comes to blockchain technology, which is relatively close to IBM’s approach with Hyperledger. Corda is not a token, and you won’t find it or its mixed market cap used by projects using R3’s network in CoinMarketCap or similar cryptocurrency trackers.

While many banks attempted to join the blockchain train with Ripple and other similar transfer unions using blockchain technology as their basis, HSBC and ING are not your average banks, and they’re definitely on the verge of something that might revolutionize the scene and bring banking institutions closer to the future.

Featured image courtesy of Shutterstock.

 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 5 (1 votes, average: 4.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.6 stars on average, based on 12 rated posts




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending