Homebodies rejoice! What can be better than ordering the latest bestseller along with something to munch on while you are reading? Reuters reports that Amazon .com – is getting into the grocery business. Amazon’s grocery business is called AmazonFresh and an anonymous source for Reuters says that Amazon has already been testing the delivery of groceries in Seattle. Amazon plans to expand the grocery deliver service into Los Angeles and San Francisco this year as a guide to determine when and if they can expand into other areas.
Like most good things, this service will only be available in large urban areas at first, but if AmazonFresh turns out to be a best seller for Amazon, those of us in the small towns may be able to order our groceries from Amazon as well.
What does this mean for your local grocery store? Well, as stated above, the grocery stores in smaller towns have nothing to fear for a few years at least, but major chains in large cities may see some fierce competition. With gas prices on the rise, more people may very well choose to order groceries from the comfort of their own homes. We live in a computer age, and when you think of the ease of a point and click order versus driving to the grocery store, fighting to find a parking spot, dragging a broken shopping cart down the aisle only to stand in line until your ice cream melts and your milk turns sour, who wouldn’t want to have groceries delivered?
Of course, this idea is not a new one. Way back before computers, some grocery stores offered a call in delivery service – instead of clicking on the product, a customer would call with his or her grocery order and it would be delivered to his or her door for an extra fee. Amazon is not the first company to try online grocery orders, but it has the right plan of action. Reuter’s anonymous sources also state that Amazon has plans to build new warehouses with refrigerated storage, and the company’s expansion plan ensures they will not expand to quickly . According to Reuters, Amazon is betting that many customers will choose to order their groceries along with other (expensive) products.
Speaking of expensive, there is no word from the company on predicted prices for either the groceries or delivery. The success of this venture may come down to how much customers are willing to pay to avoid the grocery store.
Who knows? In the not to distant future, we may be ordering eggs, milk and electronics from Amazon.com.
Written By: Brock, Tara