Amazon Expands Test-Run On Grocery Delivery Service

Amazon is certainly on a roll! So far this year, they’ve announced plans to expand the FBA program by building more warehouses throughout the United States (and Europe). They’ve created and launched new television programs for online viewers, and — now they’ve announced that they’ll be expanding their grocery delivery service.
 

 
This is not really a new concept for Amazon, since they have been delivering groceries to the homes of Seattle area residents since 2007 — but it is the first time they have expanded outside of that one local area. They are now offering a trial run of  “Amazonfresh” to Los Angeles area customers, which seems to indicate that they are serious about expanding this service and perhaps eventually offering it to other areas of the country as well.

So, what is Amazonfresh and how does it work? Actually, it’s pretty basic. Customers go online and order their groceries, then wait for the items to be delivered to their home. This grocery service offers customers a selection of over 500,000 items to choose from, and they can get same day delivery. The service includes the ability for customers to order products from specialty stores that are available around the city.

The service is initially free for Amazon Prime Members for the first 90 days, and if they choose to continue after 90 days, they have to sign up for a new Prime membership program that costs $299 a year. Delivery is then free as long as the grocery order is over $35.

Before you get too excited, keep in mind that Amazon is still figuring out the process of grocery delivery and plans to take the steps to increase their service areas very slowly. This is not a new concept – remember Webvan, which went bankrupt in 2001, and Publix Supermarket Inc., which shut down their delivery service in 2003 — it’s pretty clear why Amazon wants to work all the kinks out before offering the program in other states or worldwide.

This guest post was contributed by Kat Simpson. Kat is a trusted eCommerce author, speaker, educator, and entrepreneur. Kat Simpson has been a successful eCommerce merchant for over 10 years; is an eBay Education Specialist and Gold Level PowerSeller, as well as a successful Amazon merchant. Currently Kat is the hosts the popular weekly eCommerce Podcast That Kat Radio and an active Facebook Group ThatKat.

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