In the world of e-commerce, Jeff Bezos is a living legend. Bezos developed an online empire that redefined how we shop and changed the face of retail as the founder and former CEO of Amazon.
But so far, only some people are familiar with Marc Lore, a lesser-known e-commerce player who became a billionaire due to his battle with Bezos.
Lore is the founder of Jet.com, an online marketplace founded in 2014 as a direct competitor to Amazon. He had previously founded other e-commerce ventures, including Quidsi, which was sold to Amazon in 2010, and Diapers.com.
So, he was no stranger to the world of online retail. But Jet.com was his most ambitious project yet, and it would prove to be his most successful.
Jet.com and Amazon were locked in a war. Both companies were competing for a piece of the online retail industry and substantially investing in marketing, advertising, and logistics to acquire a competitive advantage. With his massive network of warehouses and distribution hubs, Bezos appeared to be an insurmountable opponent. Lore, on the other hand, was undeterred.
Jet.com's business strategy was developed around a unique pricing algorithm that adjusted rates in real-time based on the customer's location, the goods in their basket, and the availability of the products they wished to buy. This strategy enabled Jet.com to offer cheaper costs than Amazon in numerous categories, allowing the firm to gain momentum with budget-conscious customers.
But the battle was far from easy. According to data from eMarketer, Amazon had a market share of 37.7 per cent in the US e-commerce market in 2016, while Jet.com had just 0.8 per cent. Bezos had also started a pricing war, lowering prices on several goods to compete with or surpass Jet.com's prices. The struggle proved costly for both firms, with Amazon reportedly losing USD 3 billion due to the price war alone in 2016.
Nevertheless, in 2016, the tide began to change. In August of that year, Walmart revealed that it was acquiring Jet.com for USD 3.3 billion in cash and shares, a deal that would make Lore a billionaire. The acquisition gave Walmart a significant boost in its struggle with Amazon and the resources with infrastructure Lore required to continue developing Jet.com.
Following the purchase, Jet.com has kept growing and expanding. The business introduced its line of private-label goods in 2018 and has since broadened its selection to include grocery delivery, seasonal fruit, and other home goods. With projects like Jetblack, a personal shopping service that employs AI to assist clients in locating the things they like, the firm has continued to develop.
Today, Lore is considered one of the top entrepreneurs in the e-commerce industry. His battle with Bezos has cemented his place in the history of online retail.
While Bezos will always be known as the founder of Amazon, Lore has shown that even the most formidable foe can be beaten with the appropriate plan and vision. Also, the rivalry between Bezos and Lore played a significant role in establishing the current e-commerce ecosystem.
