Amazon Enhances Online Grocery Shopping for Prime Members

Amazon Grocery News: Key Insights 

• Same-Day Delivery Expansion: Amazon is rolling out Same-Day Delivery for fresh groceries and Amazon.com products, starting in select cities with plans to extend the service to more locations in the near future.

• Innovations in Convenience and Affordability: In a move to streamline grocery shopping, Amazon is set to open its first automated micro-fulfillment center while also launching a budget-friendly food line called "Amazon Saver," targeting affordability for consumers.

• Major Investments in Grocery:  Although grocery accounts for just 2.3% of Amazon's gross merchandise volume, the company’s acquisition of Whole Foods in 2017, valued at US$13.7 billion, remains its largest purchase to date.

Amazon announced new features aimed at improving the online grocery shopping experience for Prime members, including expanded product selection and faster deliveries. 

These updates are designed to simplify the shopping process by allowing customers to order fresh groceries and Amazon.com products together with Same-Day Delivery options. 

Same-Day Delivery for Groceries
and Amazon Products 

Prime members in select cities, starting with Phoenix, can now order both fresh groceries and Amazon.com items for Same-Day Delivery. Previously, this service was limited to Amazon Fresh groceries. Amazon plans to expand this service to more cities soon, though specific locations were not disclosed.

In addition, Amazon is expanding the product range within its Fresh fulfillment centers, allowing shoppers to buy items from Amazon Fresh, Amazon.com, and Whole Foods Market in one order, streamlining the shopping experience.

Amazon’s Commitment to Grocery 

Despite representing 2.3% of Amazon's gross merchandise volume (GMV), grocery has been more than numbers for the company:

• As of August 2024, Whole Foods' 2017 acquisition is the most expensive for Amazon, at US$13.7 billion.

• It is followed by Metro-Goldwyn-Mayer, the American media company, at US$8.5 billion.

• One Medical, Zoox, and Zappos follow with acquisition values of US$3.5 billion, US$1.3 billion, and US$1.2 billion, respectively. 

Micro-Fulfillment and Cost-Effective Shopping 

Amazon is also building its first automated micro-fulfillment center at a Whole Foods in Pennsylvania, set to launch next year. These centers will house popular products from both Amazon Fresh and Amazon.com, enabling faster delivery or pickup options. 

Alongside these innovations, Amazon recently launched “Amazon Saver”, a budget-friendly line of food items aimed at customers impacted by inflation. The line offers pantry staples and perishables for less than US$5, targeting competitors like Aldi and Walmart.  

These developments highlight Amazon’s focus on improving convenience and affordability in online grocery shopping, ensuring Prime members can access fresh groceries and household essentials with ease.

Sources: TechCrunch, Statista, ECDB