Instore - January/February 2014 - (Page 46)
AmazonFresh
AmazonFresh
expands to LA
A
mazonFresh, which in 2007 began delivering fresh groceries in
its home city of Seattle (Amazon is based in Bellevue, Seattle's
largest suburb), recently expanded the service to Los Angeles
where it offers free delivery on orders over $35. Online customers
who hate to shop at brick-and-mortar stores tap into a massive online
shopping list of more than 500,000 everyday essentials, from apples to
Ziploc bags.
by John Unrein
visiting a brick-and-mortar store, and Amazon will be one of the
players that is there when that time comes," Hertel says. "I really do
believe they are thinking on a longer term basis. They're tremendously
experimentative."
Home delivery to their door
As quoted in The Wall Street Journal, Amazon's CEO Jeff Bezos indicated at this year's annual shareholders meeting that AmazonFresh
wasn't yet making money. "They have made progress on the
economics over the last year," he said, responding to a question about
AmazonFresh.
"Place your order by 10 a.m. and have it by dinner, or by 10 p.m. and
have it by breakfast," proclaims the AmazonFresh website, which is
an affiliate of the world's largest online retailer, Amazon.com. "We bring
your city to your doorstep - including bakery, seafood and meats,
ethnic foods, gourmet meals, and much more. Order up fresh mahimahi, a tasty apple pie, or a crisp salad just in time for dinner."
Retail experts like Jim Hertel at Willard Bishop, a well-respected
research and consulting firm, say they believe AmazonFresh is more
about positioning for the long haul than making money right away on
delivering fresh groceries.
AmazonFresh carries more than 150 bread and bakery brands for
online ordering, including French almond macarons and gluten-free
cakes from Layer Cake Bakery, based in Irvine, CA. For the service,
AmazonFresh takes up to 40% of the retail price of each item.
"I do believe we are going to reach a point when at least a group of
consumers are going to be more discontinuous when it comes to
A nine-count box of assorted French almond macarons sells for $17 (or
$1.89 per macaron) from Layer Cake Bakery on AmazonFresh.
46 * JAN + FEB 2014 * instore
http://www.Amazon.com
Table of Contents for the Digital Edition of Instore - January/February 2014
Instore - January/February 2014
Editor's Note - The Halloween Issue
What's in store for Sept + Oct
Table of Contents
News - On Our Radar
Consumer Insights - Trending Bagels
Trending Deli Meats
Regulation Watch - Trans Fats
Consumer Trends - Consider Mediterranean
All Natural and Organic
Gear Up for Halloween - Fall Forward
Other Emerging Shopper Trends
Understanding Shoppers - Generational Differences
Gear Up for Tailgating - Tailgating 'round the clock
Amazon Fresh expands to LA
Product Trends
Product Showcase
Next Up: The Thanksgiving Issue
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