Jet.com VS Amazon, Should Sellers Ditch Amazon?

Jet.com VS Amazon, Should Sellers Ditch Amazon?

Many sellers have a firm opinion of selling on Amazon, however they have a reputation for being strict and unclear in their policies. With Jet.com launching Amazon could have some competition. Should sellers consider adding Jet as an additional channel?

Jet promotes themselves as giving Partners the ability to “build a direct relationship with the customers you acquire”. Amazon does not provide buyer email; Sellers do not have the option to direct customers to other websites, etc. When selling on Jet you are first authorized to sell the product you want to list. Amazon allows anyone to sell a product if it is in his or her possession. Jet maintains control of the content, appearance, and design of the product listing, while amazon allows the seller to updating listing descriptions, product names/titles, and images.

Sales tax obligations are sometimes a burden for the Sellers who utilize the FBA network. Jet has their own system that allows Jet to collect sales tax and remit collected taxes to taxing authorities. With Amazon the Seller is responsible for sales tax obligation. Jet offers weekly payouts while Amazon offers Bi-weekly payouts. This could be significant for businesses with a tight cash flow cycle. Amazon generally includes a closing fee, and a monthly seller fee of $39. Jet also has a 15% fee on retail price, but there is not a membership fee.

Since Jet.com is so new, there are still a lot of questions to be asked. However, Jet does present itself as an alternative to Amazon for established brands.

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