Marc Lore, the former founder of Diapers.com, has already raised $80 million for his new e-commerce company, called Jet.com, but today he said he wants to raise a whole lot more.
Speaking at Shop.org’s annual event in Seattle, Lore said today he anticipates raising up to $600 million over the next five years, with a vast majority of it, or $550 million, to be spent on marketing.
Lore knows a little bit about running e-commerce companies on a massive scale. Prior to founding Jet.com, Lore was the co-founder and CEO of Quidsi, the parent company of Diapers.com, Soap.com, Wag.com and Yoyo.com. Amazon bought Quidsi for more than $500 million three years ago.
Two weeks ago, the Hoboken, New Jersey-based company announced it had raised $80 million. Investors include Western Technology Investments, NEA, Accel Partners, Bain Capital Ventures and MentorTech.
So far, Lore has been reluctant to go into too much detail about what he is trying to accomplish at Jet.
That was also the case today during a brief interview on the show floor with ChannelAdvisor’s CEO Scot Wingo, but he reiterated today that Jet is about putting more power in the consumers’ hands. In prior communications, he’s compared it to how Zipcar and Airbnb have pulled back the curtain on price and reducing friction for consumers.
Much of the friction in e-commerce commonly has to do with logistics, and getting orders to customers quickly. When shopping online, customers often look for the lowest prices irrespective of where the product is based. Logically, however, products that are closer to the customer should cost less and arrive much faster.
While many of the details are still unknown, you should anticipate hearing more soon, especially with a marketing budget of $550 million.