News: Change of model for new online retailer.
Three month old e-commerce company Jet.com has remodeled its business by dropping its $50 membership fee to attract more users.
Jet.com was promoting its service with free trial memberships which were set to expire in the coming days after which users would have had to pay the $50 membership fee, but now shoppers can use the service without a membership.
Jet is offering free shipping in two to five business days on a minimum of $35.
Amazon Prime is one of the most popular services by Amazon which has a $99 membership fees.
It includes free two-day shipping with no minimum order, and users residing in big cities can get same-day shipping on popular items.
The service was launched in 2005 and it also includes video and music streaming services.
According to reports, Jet.com planned to achieve break-even on all sales, and it planned for driving profits from the membership fees, but with the new business model it will have to be dependent low-margin e-commerce business.
The company made headlines when raised a $140m convertible note raising its value to $600m even before the website went online.