Amazon Adds Groceries
By Yaser Anwar of Equity Investment Ideas
WSJ reports: Amazon.com Inc. (AMZN) has begun selling groceries on its Web site, a careful step by the company into what has been a challenging space for online retailers.
Amazon's new grocery store offers nonperishable items, such as microwave popcorn, breakfast cereals and diapers, from a range of brands that include Kellog's, Lipton and Jell-O, among others. In a notice on its site, Amazon said it doesn't currently offer perishable items because "we can't ship these for free."
Most products are available for bulk purchase only, rather than as single items. All items qualify for Amazon's free-shipping offer on orders of $25 or more, as well as the company's "Amazon Prime" free-shipping program.
Selling groceries is a bold move for Amazon, as similar attempts by other companies in the past have met with mixed results. Dot-com darling Webvan filed for bankruptcy in 2001, but New York online specialty-food retailer FreshDirect.com, launched in 2002, continues to deliver to the metropolitan area.
Like other product categories Amazon has added over the year, the grocery store is currently in "beta" form, a term Web companies often use for new features that are still being tested.
http://www.equityinvestmentideas.blogspot.com/
WSJ reports: Amazon.com Inc. (AMZN) has begun selling groceries on its Web site, a careful step by the company into what has been a challenging space for online retailers.
Amazon's new grocery store offers nonperishable items, such as microwave popcorn, breakfast cereals and diapers, from a range of brands that include Kellog's, Lipton and Jell-O, among others. In a notice on its site, Amazon said it doesn't currently offer perishable items because "we can't ship these for free."
Most products are available for bulk purchase only, rather than as single items. All items qualify for Amazon's free-shipping offer on orders of $25 or more, as well as the company's "Amazon Prime" free-shipping program.
Selling groceries is a bold move for Amazon, as similar attempts by other companies in the past have met with mixed results. Dot-com darling Webvan filed for bankruptcy in 2001, but New York online specialty-food retailer FreshDirect.com, launched in 2002, continues to deliver to the metropolitan area.
Like other product categories Amazon has added over the year, the grocery store is currently in "beta" form, a term Web companies often use for new features that are still being tested.
http://www.equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 5:13 AM
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