Amazon is rolling out free grocery delivery to all Prime members

in #amazon3 years ago

Amazon is rolling out free grocery delivery to all Prime members (Business Insider)

  • Amazon announced this week that two-hour grocery delivery will be free for its Prime members, effectively eliminating its monthly US$14.99 fee for Amazon Fresh.

  • In order to qualify for free delivery, customers have to meet an order minimum – or pay an extra US$9.99 for delivery.

  • The company is currently only offering this service for existing Prime members who already use grocery delivery and has not indicated when it will become widely available yet.

Analysis and Comments

  • A move clearly meant to attract more people to relying on Amazon as their grocery provider as it eliminates a barrier to entry to its service and simultaneously may make competing providers such as Instacart and Shipt look more expensive.

  • Amazon’s grocery delivery service now covers some 2,000 cities (when you look at both Whole Foods and Amazon Fresh delivery locations) and the company’s push into this category (while trickier regarding the deliveries) makes sense if you consider the recurring line of revenue that comes with shipping these perishable goods.

  • Coincidently, Amazon has just reported that its shipping costs have increased 46% yoy (mainly due to transportation costs). The company now handles delivery for more than 40% of orders placed through its site according to data from Rakuten.

  • The move does however raise questions on the profitability of Amazon’s grocery business – according to TechCrunch it is currently not clear how many customers are already using the service and there are estimates that growth may be slowing

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Having used online shopping for years I tend to buy non perishables or breakables because of the state some of the parcels arrive - if they arrive. Can you image someone from amazon walking around the store picking up my groceries? Would they then pick the freshest? Would they accept my coupons ? Would amazon start having grocery stores across the world ? I know that many people use online grocery shopping but I also know many have been disappointed or left with items missing etc etc - could end up being a big gamble by amazon that might cause more headaches than they want

You are raising a good number of concerns. But si believe this can be fixed at Amazon to make your experience better.
Have you tried Hellofresh? They deliver food to make 2-3 meals a week with receipts and all the ingredients. I tried it and food was fresher than in the shop, it is kind of « expensive » at the moment (7-8$ per person per meal). But I find the concept appealing especially for millennials. I tried receipts I would have never imagine and didn’t have to go to 3 different shops for the specific spices, veggies, fish...

Amazon has got the money, they can buy the entire world. :D

I am still waiting for a time for Amazon to accept Bitcoin and cryptos. Looks like its not that far now.

I don't think Amazon could sell fresh food in my area, just processed stuff..

For processed stuff, if only Amazon will stop selling expired food, and counterfeit pet food [assuming grocery extends to pet food], and fake Supplements too. And if Amazon's online grocers stopped selling things with 200% markup over store prices.

https://www.cnbc.com/2019/10/20/amazon-is-shipping-expired-baby-formula-and-other-out-of-date-foods.html

https://topdogtips.com/someone-selling-counterfeit-versions-popular-pet-food/

https://www.wired.com/story/amazon-fake-supplements/

And the $5 candy bar
https://www.businessinsider.com/the-best-chocolates-to-buy-from-trader-joes-for-under-5-2017-9#5-pound-plus-5

I used to hear things about trade wars on amazon where products were sold under wholesale, but never seen/looked for any. If I am not willing to buy a SD cards from amazon in fear they are fake, why would I buy something to eat from there.

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Amazon is shifting towards becoming a logistics company. effectively taking over UPS and USPS market shares. I wonder what some of their ideas may be for international shipping.

It could be but they are doing it slowly compared to their % of orders ! Long term this is a threat to these companies for sure

 3 years ago Reveal Comment