Amazon is entering the fresh food delivery market, competing directly with supermarkets. It promises same day delivery. Though, for the time being, it is only serving Premium customers in the London area, as reported by the BBC:
I said before that, for me, the killer advantage of Amazon vs. other retailers is not same day delivery (unless I forgot to buy someone a present). Rather, it is the convenience (24 hours, no parking, etc…), the choice, and the product information. And, because of this, I felt that companies that offered a good level of product knowledge, and added value, could fight off Amazon’s threat, despite the same day delivery promise.
But not in groceries shopping! For me, food shopping is the one area where same day delivery is a big, big advantage.
And there is more. According to Mintel‘s report ‘Online Grocery Retailing – UK – March 2016’, barriers to buying food online include bad customer service, poor delivery experience, and not getting the product that you asked for. These are all areas that Amazon is really good at.
Yes, fresh good has small margins. But if I could order my fresh groceries from Amazon, then I would very likely order those other bulky items (which have long shelf-lives and offer better margins for Amazon).
So, would you do your fresh foods grocery shopping with Amazon?