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Bulk Merchandise Gives Amazon a Competitive Edge over Jet.com

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Amazon’s advantage over Jet.com

Although Jet.com promises the lowest prices online and is cheaper than Amazon (AMZN), it lags behind Amazon with respect to the number of products listed on its site. Jet.com surpasses Amazon in product categories such as baby products and health and beauty. However, it lags behind Amazon in clothing, accessories, and shoes, according to the Wall Street Journal.

Amazon leads Jet.com with respect to the number of top products available on its site, giving users enough options to shop on its portal.

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About Jet.com

Jet.com is a three-month-old startup that promises to offer prices that are 10%–15% cheaper than its competitors on the Internet. Customers can save on shipping costs when they add more items to their shopping cart. Savings depend on the nature of the items shipped from the same warehouse and on the distance from the warehouse to the customer.

Plus, customers can save more by choosing options like paying with debit cards or by being willing to wait for items to be shipped in the same package.

As the above chart shows, electronics, apparel, furniture, and healthcare are the four largest categories in the US retail e-commerce market. These are the four categories where Amazon’s prices were higher than Walmart’s and Target’s prices, according to the Wall Street Journal.

Walmart and Target beat Walmart in online pricing

This isn’t the first time that Amazon has been compared with other retailers. According to the Wall Street Journal citing the research firm 360pi, which tracks online product prices, Walmart’s (WMT) and Target’s (TGT) online prices could be 5%–10% cheaper on average than Amazon’s prices. The report also states that Amazon’s prices were cheaper than online prices at Kohl’s, Sears, and Macy’s (M).

You can get exposure to Amazon by investing in the Consumer Discretionary Select Sector SPDR ETF (XLY), which has 6.10% exposure to the company.

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