Grocery Foothold

Grocery Foothold

Throughout time, food has been delivered in one form or another to eager recipients. In modern day society, many grocery stores and restaurants have continued that tradition. The cost effectiveness of delivery options, however, can often act as a deterrent, particularly when the bottom line is already on shaky ground. Despite being a low profit or profit draining option, one new entrant into the delivery market has high hopes for expansion opportunities.

Amazon.com is widely known for offering a massive number of products to its digitally-minded shoppers. For those who reside in Seattle, WA, Amazon offers a special service that includes the delivery of groceries.

The grocery service, called AmazonFresh, offers a wide selection of groceries for purchase with overnight delivery. Delivery charges vary with the order, though users of the service can earn free delivery if they meet certain qualifications such as order size and frequency of purchase.

In addition to the grocery delivery service, customers can add other Amazon purchases to their order. A shopper can add electronics, books, and toys to their grocery list, combining their purchases for a single delivery. Customers can also choose to order complete meals from a select number of local restaurants.

If the test in Seattle is successful, Amazon will likely expand the service to other cities, effectively creating its own delivery network. If the expansion thrives, it might not be long before Amazon utilizes its new network to compete directly with FedEx, UPS, and USPS.

Do you think Amazon.com can create a shipping network that’s as effective as that of the Postal Service?

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2 Comments

  1. Anonymous

     /  June 26, 2013

    The PS is effective?

  2. Jonn

     /  June 26, 2013

    I doubt I’d have my groceries delivered since there are so many stores in the neighborhood. The extra expense of delivery isn’t worth it. If I lived 20 miles from the store, then I’d consider it for a $10 delivery fee or less.

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