Jet, the hot new ecommerce site that promises to undercut Amazon on prices, just realeased its first television ad lauding itself as the “biggest thing in shopping since… shopping.”
The company, which started its print and outdoor ad campaigns earlier this summer, has said that it plans to spend $US100 million on marketing over the next year.
That’s nearly half the $US225 million Jet has raised so far, but the startup is reportedly trying to raise a boatload more at a $US2 billion valuation.
The ad claims that Jet’s bigger than credit cards, cash registers, the barter system, and shows people’s heads exploding in puffs of purple smoke when they find out how much they can save on the site.
Jet says it can offer customers prices that are 10 to 15% lower than competitors by using a Costco-esque model: Instead of making money on individual product sales, it reels in cash through its $US50-a-year membership fee. It intends to keep its prices low through a dynamic pricing model that adjusts order costs in real-time according to factors like how many ordered products are in the same warehouse, the distance an order has to travel for delivery, the kind of payment used, and whether the customer elects to forgo their right to a return.
Watch the full commercial here:
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.
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