Yep, Amazon is on another market disruption journey, and this time it’s into groceries… so if you’re a food brand, you need to read this!
As millions of us turn to online shopping for our tech, fashion and household necessities, Amazon is taking steps to ensure that they’re a top player for the purchase and delivery of all goods whether a pair of headphones or a fresh bag of apples. Many hailed the launch of Amazon Fresh as the key starting point in changing the way in which consumers do their food shopping forever.
We’re not quite at drones dropping a bag frozen peas down your chimney yet, but we very well might be getting there…
So, what is Amazon Fresh and why should I bother?
Amazon Fresh is a service offered by Amazon which promises “everything you need for your weekly shop”, delivered to your door. With traditional supermarkets already struggling – the likes of Tesco, Sainsbury’s, Asda and Morrisons – it seems as though Amazon is already on track to steal sales.
In fact, they’ve recently gone into partnership Morrisons, as well as buying Whole Foods in the U.S (and the 6 UK stores), meaning products from these supermarkets are now available via Amazon Fresh in their respective countries.
Not to be confused with Pantry, Amazon Fresh offers next or even same-day delivery depending on the time the customer places their order and their location.
Amazon Fresh speaks for itself; it delivers fresh items to the customer’s door, not just non-perishables. In this respect, it’s a whole new area Amazon is taking on, as Prime Pantry only ever promised regular shipping as with non-edible Amazon Prime products.
There is also rumour that Amazon may buy Ocado, but this seems to be less likely following the Whole Foods acquisition.
Amazon’s takeover of Whole Foods, which has 460 shops across the US, Canada and the UK has brought fresh scrutiny to the potential Amazon deal and suggests that even Amazon has concluded that an existing supply chain built around a store network of scale, is a more efficient way to fulfill and deliver online grocery orders than building a new network of dedicated warehouses.
It is clear that Amazon needs a physical presence in a network of stores to provide ‘click-and-collect’ and solutions to the challenges of the ‘final mile’ of delivering chilled / fresh produce.
Also according to Amazon’s own data 35% of people search for products on their mobile then go onto buying in store, preferring to ‘touch and check’ a product before buying. This sensual shopping experience is perhaps even more important for food, especially if you are sampling a product for the first time.
What is sure to happen that food brands must prepare to perhaps loose revenue from one of the large supermarkets as the market is disrupted by Amazon. So the strong message is to spread your risk, with owned channels, whilst also stocking your product on Amazon Fresh in these challenging times.
What can my consumers purchase via Amazon Fresh?
Offering 500,000 items (over 180,000 in the UK), Amazon Fresh has everything needed for a full shop and is delivered in quality, temperature-specific packaging for the safe transportation of goods and the maintenance of fresh foods. All packaging is reusable for your Amazon driver to pick up upon your next Fresh delivery.
Where Amazon Fresh brings something different is through its relationships with local shops and markets, meaning customers have delivery access to high-quality stores local to them. Local food and drink businesses are able to sign up to sell their goods on Amazon Fresh, with Amazon drivers picking up products from a drop off point before taking them directly to the customer. It’s likely that Amazon Fresh could become the leader in bringing local, artisan products to customers through the means of regular delivery. You don’t get that with Tesco.
Not only does Amazon Fresh provide fresh fruit and veg, but it has also begun to broaden out it’s offering into less expected areas such as electronics and toys. In London, there is also the ‘FreshFlowers’ service which allows same or next-day delivery for those looking for a romantic bunch of flowers (or a quick apology!).
Where does Amazon Fresh deliver?
Unfortunately, we are only looking at the UK’s capital (plus select postcodes in Kent & Hertfordshire), with current availability in around 300 postcodes. However, due to its perceived success, we are likely to see Amazon roll out their service to further cities in the UK, good news for village markets and the local butchers, maybe. Amazon Fresh is also available in a selection of cities in the U.S. and has this year (2017) been introduced to both Tokyo and Berlin – there’s a clear aim to go international!
London-based? Check out how you can register.
So, why should I be considering Amazon Fresh for my food brand?
As a consumer, Amazon Fresh could be perfect for you if you want access to next or even same-day deliveries of your groceries. It gives you the freedom to order your groceries whilst out and about safe in the knowledge that they will be delivered in time for when you get home. Also, as mentioned earlier, there is a huge selection of products available on Amazon Fresh, not just limited to fruit and veg but also other everyday essentials and electricals.
As a business Amazon Fresh provides you the opportunity to reach consumers quickly on a well-established platform. Fresh allows you to reach Amazon Prime customers who can purchase your product as part of their weekly shop and also removes the concerns over delivery as Amazon take care of this for you. Selling on Amazon Fresh also means that Amazon will take care of any customer questions or complaints plus you can build a bespoke storefront to showcase your products.
If you are looking to begin selling on Amazon Fresh, then Marketplace AMP can help!
Marketplace AMP would be happy to get the opportunity to help your business to access the 304m active customers on Amazon, – one of the world’s most valuable marketplaces.
We can ensure that you make the most of this massive opportunity to sell on Amazon and on Fresh. Contact us here.
Don’t forget to check out our Amazon Fresh infographic here.