Amazon grocery deliveries will likely commence as soon as Amazon has the infrastructure set up to enable them. The purchase of Whole Foods Market has given Amazon a massive foothold on the grocery delivery market. There are sure to be price wars between Amazon and the traditional grocery chains such as Walmart, Safeway and Target. That is to the advantage of the consumer.
At a push, it could even result in a drop in US inflation figures – but that is stretch at the moment. Home shopping is about to become more interesting and push prices down. It might even force other grocery and foodstuffs retailers to work on their own online presence. Home grocery shopping via Amazon is a step forward in the USA. Reduced foodstuff prices may even affect the US economy.
Amazon has been dabbling in the fresh food supply business for a while now. It started up Amazon Fresh in Seattle in 2007. This was a paid fresh food delivery service, where customers made regular payments for the delivery service. Amazon announced a new service, Amazon Pickup, in March of this year. For Amazon Prime subscribers only, they can shop online and reserve a time to have their groceries loaded into their car at the store.
The Whole Foods purchase is a step beyond that, where Amazon owns the grocery store providing the goods. This service is sure to upset the competition and prompt them to take action. It may also affect the profitability and share prices of companies such as Walmart, Publix, Aldi, Trader Joe’s and Costco – and other large stores offering foodstuffs. This is particularly true for those operating on very slim profit margins – which is just about all of them.
The Amazon Whole Foods purchase will benefit the consumer and, as suggested above, will likely have an effect on the US economy. Keeping grocery prices low must help inflation rates to remain low. This in turn may even affect the Fed interest rate – who knows! What is known is that the consumer will benefit from more competition in the grocery sector. Other stores might be forced to so the same – but Amazon is way ahead of others in its infrastructure for this business model.
Amazon Grocery deliveries are not far away, and many consumers await them with glee! They can have all their groceries delivered to their door without needing a subscription. Harassed young moms have no more need to trail to the stores with their kids hanging on. They simply make a few clicks and choose the exact products they want from the comfort of their sofa. Then relax while they wait for their delivery to arrive. This is the future of food shopping!
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