Will Amazon Fresh help revive online food shopping?

The Germans spend more than €200b* per year on food. However, so far only some 0.5% of this revenue is generated online.

In other countries, like China and USA, this field is already stronger developed and the eCommerce Net Sales are much higher. Data from the Statista Digital Market Outlook also suggests that there still is a great amount of untapped potential in Germany: eCommerce revenue from food and beverages is forecast to grow by 86% from €998m in 2017 to €1,853m in 2021.

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Amazon Fresh – a breath of fresh air 

Amazon, having seemingly become aware of this potential, too, started its grocery service Amazon Fresh in Germany in early May.
For the time being, the offered products will be delivered exclusively to customers living in a – still quite fragmented – delivery area covering Berlin and Potsdam. The competitors, however, reacted instantly.
Rewe, for instance, currently offers free shipping to every floor. Kaufland’s delivery service, on the other hand, focuses on flexibility. Customers can accordingly still change their orders within 24 hours before shipping.
Berlin-based Bringmeister, which is part of the Edeka Group as of recently, is probably Amazon Fresh’s biggest competitor. The delivery service ships products to the entire Berlin postal code area offering not only branded products, but also Edeka’s own brand Gut&Günstig.
In the USA, Amazon Fresh is the leading eCommerce company in the food & beverage sector. Amazon’s impact on the German online grocery market will eventually depend on how quickly the delivery service will be able to expand its delivery area to cover the whole of Germany and whether Amazon will be able to raise its profile as a grocery delivery service among consumers just as successfully as it did with regard to electronics and books.
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