Amazon Competitor Can’t Guarantee Christmas Delivery

December 22, 2015, 3:10 PM UTC
Inside A Jet.com Inc. Fulfillment Center On Cyber Monday
Empty boxes sit in stacks at the Jet.com Inc. fulfillment center on Cyber Monday in Kansas City, Kansas, U.S., on Monday, Nov. 30, 2015. Online sales on Cyber Monday may rise at least 18 percent from a year earlier, slower growth than during the holiday weekend, as consumers start their Internet shopping earlier, according to forecasts by International Business Machines Corp. Photographer: Daniel Acker/Bloomberg via Getty Images
Photograph by Bloomberg via Getty Images

This post has been updated to include comment from Jet.com’s chief customer officer Liza Landsman.

The start-up trying to undercut Amazon is running into Christmas delivery problems.

Jet.com no longer guarantees deliveries by Christmas for product orders that aren’t marked for two-day shipping. Most of the items that can still arrive on time are household products like toilet paper and groceries.

In a banner on the company’s website, Jet.com warns shoppers that “this year’s holiday gift rush has led to nationwide shipping delays that have affected many of our fulfillment partners.”

The company, which was founded this summer, attempts to compete with e-commerce giants like Amazon by shipping some of its products and partnering with retailers to ship the rest. The start-up rewards customers who make big orders or ones that can be fulfilled at nearby centers with lower prices, according to the Wall Street Journal.

In an interview with Fortune, Jet.com’s chief customer officer Liza Landsman said that only about 500 of the 1 million shipments Jet.com has processed in December will miss promised delivery dates before Christmas. She said that while Jet.com only provides delivery estimates on the site now, it plans to roll out exact delivery dates in the new year. “Our goal for this month was to hit $44.9 [million in gross merchandise sales], and we will hit it,” she said. “Last week we just hit our 2 million member mark. Every performance mark that we have set we are hitting.”

FedEx and UPS are expected to deliver a record 630 and 317 million packages, respectively, this holiday season, according to Bloomberg.

 

Read More

Great ResignationInflationSupply ChainsLeadership