Sunday, September 25, 2016

Amazon Global Delivers Grocery Service

Amazon has never shied away from a challenge.  Last week Amazon expanded its grocery delivery service into India with the launch of its Pantry service in in Hyderabad, India where customers can shop for over 4,000 everyday essentials.
In a press release Amazon stated that "Using Amazon Pantry, customers can now shop for over 4,000 everyday essentials such as groceries and household products on the website and mobile, fill a virtual box of items and have them conveniently delivered at their doorsteps the following day,"
"Amazon Pantry makes it convenient for customers to stock-up for a basket of frequently purchased items while also increasing savings when compared to shopping at supermarkets," it added.
The newest international grocery retailer, Amazon brought its premium subscription service - Amazon Prime - to India this summer.  In India, Prime comes with unlimited one-day and two-day deliveries with no minimum order size, apart from early access to some deals on Amazon, as well as some Prime-members only deals.
Things are different in India  benefits available to Prime members in the US the ilk of Amazon Music  and Amazon Video - the shopping giant's video and music streaming services respectively - are not available in the country at this point. However Amazon will rollout incremental service over time and I expect both Video and Music to be included.
Country to country differentiation is a key to Amazon’s roadmap for success moving forward.  Amazon Pantry service was launched in the US for Prime customers only, and it's noteworthy that the company has launched the service in India for regular customers. There is a slight delivery charge for regular customers, but Amazon Prime customers currently have a promotional offer where they do not need to pay a delivery charge.

As with all new country launches there will be lessons learned.  However in the case of Amazon it’s noteworthy that grocery items are high on the list of products they want to deliver.  With a growing middle class, food, fresh food, food delivery including Ready-2-Eat and Heat-N-Eat fresh prepared food will continue to drive success for retailer’s incremental customers.

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