Amazon to Launch Online Grocery Store

Aryabhata writes "It might sound like a bad flashback to the dot-com days, but news is that Amazon is planning to test the waters with an old idea; the online grocery store!. To its defense Amazon is only attempting this with nonperishables like peanut butter, potato chips, and canned soup implying that there's no refrigeration required--ordinary warehouse shelves will do fine."

Amazon has lost its advantage

[Anonymous Coward]

Previously I shopped Amazon for price and convenience, but with the plethora of new markets they've entered (none of which I'm interested in buying online) and cheaper competitors, they've lost my custom. While all businesses need to diversify their revenue streams, I find this jack-of-all-trades attitude divering theirs.

So?

[ToddML]

I already routinely order groceries from Fresh Direct http://www.freshdirect.com/ [freshdirect.com] . Its huge in the NYC area, the selection is broad (far broader than what Amazon is offering), the service is excellent, and the overall experience is excellent.

since no perishables

[boredandblogging.com]

it might work out ok. But unless they can cut some serious deals with FedEx/UPS/USPS, shipping and handling for bulk detergent is going to be expensive. Still, its better than having to deal with the smelly and crowded walmarts around here.

Re:So?

[Pink Tinkletini]

Oh, sure, until the day the FreshDirect guy sticks his foot in the doorway [gothamist.com] and won't leave until you tip him. :-P Wasn't their policy originally not to accept any tips, ever, expressly to prevent situations like these? Or am I thinking of someone else (Kozmo, MaxDelivery)?

But I agree, on the whole, the FreshDirect experience is hard to beat. Did you ever see those signs at Fairway hanging from the ceiling, bashing FreshDirect and its owner for various injustices apropos nothing? Priceless.

Re:plenty in the UK

[ByteofK]

But we thought the US was so great and the US invented the internet and the US this and the US that. Are you telling me the US is not so great now?

It doesn't matter how big the country is. There are plenty of stores here. It just needs someone from a single major retailer to admit that people only want to buy what they NEED, and not what gets placed at the end-caps, checkout lanes, and on falsely labeled sale shelves.

It's an experiment -- nothing more

[PeeAitchPee]

These types of goods are commoditized to the point that no one -- not even Amazon -- will be able to gain significantly better economies of scale than are already present. The margins are just too thin. As others have mentioned, Amazon is already at a disadvantage because of the shipping.

Most of the traditional grocers gave up on trying to compete with Wal-Mart on price long ago and are looking for new ways to differentiate the customer's shopping experience instead. Been in a Wegmans [wegmans.com], Whole Foods [wholefoods.com], or one of the new A & P "Fresh" format stores (A & P Fresh, Waldbaums Fresh etc.)? It's all about ultra-impressive super-clean 100K+ sq. ft. stores, organic foods, in-store cafes, etc. coupled with a progressive (for retailers anyway) use of technology. With many traditional low-end grocers going under, selling off large numbers of stores or re-orging (Winn-Dixie, Food Lion, etc.), the rest are content to let Wal-Mart have the low-income demographic and aim squarely at capturing upper-middle class and above shoppers' dollars. These shoppers have proven that they're willing to pay a bit more for a high-quality shopping experience. Amazon's approach will add some more content to their own store (the ultra-important "long tail") but will have little effect on the grocery biz.

Disclaimer: I work for a retail software vendor.

Re:Better sell hard to find stuff.

[Breakfast Pants]

I want to be able to go online, check off everything that I need for the week at my local grocery store, head over there 20 minutes later with it bagged and ready (and still have the ability to pick up my own fruit while I'm there so it isn't bruised etc.).

History of the US vs UK

[Anonymous Coward]

Yes, you'll find that many of the problems historically in the formation of the US are the direct opposite of the problems in Europe.

Mainly, ... in Europe you have plenty of labour and no land; in the US we have always had plenty of land, but a massive shortage of labour.

You see these issues work themselves out in many ways over the last 500+ years from slavery, religious warfare, socialism, to trains, and even web groceries.

Now with the amazingly suicidal birthrate in Europe at the moment that is likely to change. However, I am sure that once the Muslims have reached majority and are able to implement Sharia [wikipedia.org] law, your birthrates will start to climb back up. Say, 2030-ish?

Google for Mark Steyn & "It's the Demographics Stupid" [opinionjournal.com]

Not exactly

[grahamsz]

My parents live about 9 miles from the nearest supermarket, in a relatively rural area. They have, I believe, three supermarkets that will deliver.

I live in an suburban area of Colorado, and only 5 miles from the nearest supermarkets and yet I can't get a single supermarket to deliver. Apparently i'm too far out!?

I think it has a lot more to do with the US tendency to drive. Many people in the UK find 18 miles r/t too far to drive to pick up a few items - yet in the US that's nothing.