Tuesday, June 04, 2013

Grocery Is Trickier

Amazon plans big expansion of online grocery business: sources
Wal-Mart is testing same-day and next-day delivery of online grocery and general merchandise orders in the San Francisco Bay Area and operates a grocery delivery business in Britain..... FreshDirect delivers food to homes and offices in some parts of New York City and its trying to expand its service into the Bronx. .... If online orders also include higher-margin general merchandise such as digital cameras ..... "Grocery is a frequency business. If Amazon can deliver to consumers' homes two or three times a week, they can up-sell other items" ..... Amazon offers same-day delivery in several cities including New York, Washington D.C. and Chicago, and since last year the company has been building new distribution warehouses on the outskirts of the Los Angeles and San Francisco Bay areas.
Amazon Reportedly Looking To Expand Grocery Business, Roll Out AmazonFresh Beyond Seattle
Amazon has had an ongoing experiment for the past half decade called AmazonFresh, which offers grocery service and delivery of fresh produce to customers in its home base of Seattle. That program is on the verge of a significant expansion .... grocery has proven relatively impervious to attempts to turn it into an online business thus far, mostly because of immense costs of keeping inventory on hand, factors like spoilage that don’t affect other goods, and delivery complications (refrigerated trucks, for instance).
But no telling how adding intelligence does not make it a better experience.
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