Amazon’s Grocery Delivery Conundrum

 

Now that companies are requiring more and more workers return to the office more days a week, online grocery orders are in decline. Amazon wants to understand the value of convenience.  To that end they have launched a three city test for free grocery delivery.

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes that the convenience of they will find at the intersection of time and cost for delivery they will be able to garner incremental top-line sales and bottom-line profits.

So, Amazon’s pilot project was launched in Denver, Colorado; Columbus, Ohio; and Sacramento, California

This test by Amazon is once again adjusting its delivery fee for grocery orders, piloting a new add-on service which allows Amazon Prime members in select markets to receive unlimited fee-free deliveries for $9.99 per month. 

The program entitles Prime members to the no-fee perk for orders over $35 from Amazon Fresh and Whole Foods, the online retail giant announced last week.

The service also includes unlimited 30-minute pickup on grocery orders of any size. 

Tony Hoggett, senior vice president of worldwide grocery stores for Amazon, stated, “We’re always experimenting with features to make shopping easier, faster, and more affordable, and we look forward to hearing how members who take advantage of this offer respond.”

Hoggett continued, that Amazon will collect feedback from those who use the service as it determines when and where to expand the new program. 

The company’s test run of the new service is Amazon’s most recent effort to adjust the fees it charges to members of its Amazon Prime service, which costs members $14.99 per month or $139 a year. 

In February, the company raised the purchase threshold from $35 to $150 for free delivery for Amazon Prime members, and in October, the company reduced that amount to $100.

In November, Amazon opened up delivery from Amazon Fresh stores to non-Prime members and said it plans to expand the delivery service to its 500-plus Whole Foods stores next. 

Prior to the change, only subscribers to Amazon Prime could receive delivery on Amazon Fresh orders.

 www.FoodserviceSolutions.us  specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit, Linkedin.com/in/grocerant or twitter.com/grocerant Contact Steve@FoodserviceSolutions.us