Saturday, April 9, 2011

Amazon.com gets feet wet with Amazon Fresh, Grocery Home Delivery Service Pilot in Seattle

Discuss the  the long term viability of Amazon’s new Fresh and Tote home delivery services. What are the challenges and opportunities Amazon faces with these services?

Is there anything amazon won't try? The e-commerce tycoon already carries everything from A-Z, and is a leading consumer decision analysis and market testing authority. Every dotcom strives to emulate what Amazon has already conquered. But, grocery home delivery? Amazon has launched limited availability of Grocery Home Delivery Service, named Amazon Fresh. A little behind the curve, as Homegrocier.com and webvan.com already exist. Local groceries also offer delivery service, Giant  of Northern Virginia offers Peapod. The people who would use such a service, are most likely already signed up. It is perfect for any working single who simply doesn't have time to spend grocery shopping. For myself, and most other red blooded Americans, I like to see and touch my produce before I buy it. No one wants to eat wilted broccoli or spoiled strawberries. The same applies to meat and dairy products. The convenience of Peapod is your groceries come from your local Giant, so returns would not be difficult. But, where is my Amazon Fresh groceries coming from?   Some warehouse? What about local produce? The prepared and frozen foods market could do well for Amazon, but that isn't fresh.

Amazon's Tote, offers free home delivery in a "tote" bag rather than the standard shipping box, once a week. The corporate giant is attempting to suck every penny out of us with buzz words, free delivery. The catch? You have to spend x amount each week to continue the service. A savvy internet shopper already gets free delivery. Clearly "tote" didn't deliver, the service has already been terminated. 

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