As Amazon Prime Day kicked off last Monday, the online retailer has yet to set another record in its earnings. With an increase of 35% Amazon Prime members from last year, the annual sale event could generate $1 billion according to analysts. This growth is also expected to impact Amazon’s online grocery store, AmazonFresh.
Now with over 80 million Prime members in the US, Prime Day may very well be a good tool to boost sign-ups for AmazonFresh. The online retail giant announced on CNBC last July 8 that it plans to sell various food and household items in addition to the special deals on Prime Day. Members can get a taste of what to expect from the online grocery service through Prime Pantry. The event allowed Amazon to showcase AmazonFresh products and give consumers an actual experience of what they can expect with its online grocery shopping platform.
Amazon is definitely striking while the iron is hot with what it had been doing on Prime Day to make a more aggressive move in the grocery industry. Apart from the deals and discounts for products on the grocery category, Amazon also launched a faster delivery method, Prime Now, to cater to mostly food and beverage purchases of the highly anticipated 30-hour exclusive sale. Members will get to try the efficiency of its delivery service for fresh goods and domestic items.
The recent acquisition of Whole Foods has set consumers’ eyes on the online retail giant and Prime Day’s third run keeps this attention at bay. While Prime Day focused more on electronics and other retail goods in the past runs, the introduction of grocery items would mean more revenues for Amazon but a threat to brick-and-mortar stores. Rival retailers such as Macy’s and Best Buy have tried to match Prime Day deals with their own promotion but Amazon still outdid the rest. With AmazonFresh rapidly expanding in the recent years and upgrading its services such as adding drive-in locations, this could pose a great challenge for traditional grocery stores.
AmazonFresh has already reached the United Kingdom and just last May, it also extended its services to Berlin and Potsdam. And while Australia may not be ready with the idea of online grocery shopping, the entry of AmazonFresh could prove otherwise. As the Amazon food delivery service continues to grow, are we seeing a decline to traditional stores in the coming months?