How much would consumers ideally spend for household items like peanut butter or toothpaste? A new startup, called Brandless, thinks they shouldn't have to spend more than $3. TechCrunch reported that this company differentiates itself by removing the "brand tax" - or the additional costs incurred from a traditional distribution model.
Much like grocery store Trader Joe's, Brandless can keep costs down by offering a smaller amount of products than a traditional company. The model has some hype around it, raising $50 million from investors, the publication reported.
This is yet another e-commerce site that is generating a lot of buzz. Jet.com - which was acquired by Wal-Mart in 2016 - also offers benefits to online shoppers. As shoppers add more items to their cart, it drops the price of different items, Fortune.com noted.
E-commerce continues to appeal to shoppers, creating more challenges for brick-and-mortar retailers. Whole Foods, which recently changed multiple directors on its board in an attempt to boost lagging sales, is now under the Amazon name. Analysts anticipate that the e-commerce giant's reach will help the grocery business.