There’s a new kid on the e-commerce block, and one that could be as revolutionary as Amazon was on its launch 20 years ago. New US site Jet.com could be a game-changer in the industry, thanks to its cost saving approach to logistics.

Jet.com launched in the US on July 21 having raised $225 million for the new e-commerce service. The new site already has some 1,600 retail partners, and is selling some 10 million products. Jet.com is promising that its customers will receive ‘the lowest price on anything they buy online’, a pledge that is viable because of the company’s innovative approach to deliveries.

According to David Jinks of UK parcel delivery company ParcelHero: “The site makes much of its money from customers’ initial subscription of just under $50 – rather like Amazon’s Prime membership. For this it promises to offer prices that are 10% to 15% lower than anywhere else.

“How Jet keeps its prices low is because of its delivery options. Products start at about 8% cheaper upfront but the site then offers additional discounts when shoppers combine multiple orders into a single shipment, which cuts delivery costs. The more customers bundle purchases, the more the discount increases.”

Jet.com also asks customers to waive the ability to return something. “By offering customers the option of not returning items, in exchange for further savings, Jet has the potential to reduce its costs significantly,” says Jinks. “Once an item has been returned twice, no-one makes money on it, and some sites are experiencing up to 60% returns on items such as clothing.”

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And there’s one other delivery option that also reduces prices and costs. “Buyers will also make savings by waiting for their orders. By pushing slower economy shipping offers, Jet won’t be competing on speed but price.”

Jet.com is led by Marc Lore, a founder of online retailer Quidsi -- including diapers.com and soap.com – which he sold to Amazon in 2011 for $545 million. “The new company is concentrated on its logistics. Lore has spent $40 million on hiring 300 people, opening warehouses in Kansas, Nevada and New Jersey, and taking losses through subsidized prices.”

ParcelHero’s recent industry report – Amazon’s Prime Ambition – details how the original industry disruptor plans to fight off new competition through building its own logistics provider, Amazon Logistics.