Start-up e-commerce membership site Jet.com took off less than two weeks ago, but it's already flying with big ambitions.
With a $49.99 annual membership fee and free shipping for orders of more than $35, the site has Amazon Prime, warehouse clubs and online retail sites squarely in its sights. In an interview with CNBC's "On the Money," founder and CEO Marc Lore claims that shoppers get more value the more they buy.
Jet.com differs from its competition because of an algorithm that is able to adjust prices as you shop, he said.
"We built this technology that actually helps pull supply chain costs out of the system," Lore told CNBC, adding that the more you buy, the less you pay for each item.
"We built this dynamic pricing engine that actually reprices products in real time as consumers shop to reflect the true marginal cost of getting that product to you, based on knowing what's in your basket," he added.
Lore says the savings are mostly on the cost advantage of more efficient shipping.
"The more product you get into the same box," he said, "and the closer the buyer is to the inventory, lowers shipping costs."