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Why Jet.com Just Threw Out Its Business Model

Jet.com’s announcement that it would eliminate membership fees from its online discount shopping program came as a surprise to industry observers, particularly since the company’s business model depended on those fees to generate profits.  Clarus Commerce CEO Tom Caporaso tells Inc. that online sellers, including eBay, Birchbox, and others, continue to rely on paid subscription programs to grow their businesses.

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